Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 411,174,341 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net Sales | $ 5,110 | $ 5,517 |
Costs and Expenses | ||
Cost of products sold | 3,611 | 3,844 |
Selling and administrative expenses | 376 | 406 |
Depreciation, amortization and cost of timber harvested | 284 | 323 |
Distribution expenses | 320 | 357 |
Taxes other than payroll and income taxes | 41 | 44 |
Restructuring and other charges | 1 | 0 |
Net (gains) losses on sales and impairments of businesses | 37 | 0 |
Interest expense, net | 123 | 137 |
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 317 | 406 |
Income tax provision (benefit) | 41 | 130 |
Equity earnings (loss), net of taxes | 63 | 35 |
Earnings (Loss) From Continuing Operations | 339 | 311 |
Discontinued operations, net of taxes | (5) | 0 |
Net Earnings (Loss) | 334 | 311 |
Less: Net earnings (loss) attributable to noncontrolling interests | 0 | (2) |
Net Earnings (Loss) Attributable to International Paper Company | $ 334 | $ 313 |
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||
Earnings (loss) from continuing operations | $ 0.82 | $ 0.74 |
Discontinued operations, net of taxes | (0.01) | 0 |
Net earnings (loss) | 0.81 | 0.74 |
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||
Earnings (loss) from continuing operations | 0.82 | 0.74 |
Discontinued operations, net of taxes | (0.01) | 0 |
Net earnings (loss) | $ 0.81 | $ 0.74 |
Average Shares of Common Stock Outstanding - assuming dilution | 414 | 423.7 |
Cash Dividends Per Common Share | $ 0.4400 | $ 0.4000 |
Amounts Attributable to International Paper Company Common Shareholders | ||
Earnings (loss) from continuing operations | $ 339 | $ 313 |
Discontinued operations, net of taxes | (5) | 0 |
Net Earnings (Loss) Attributable to International Paper Company | $ 334 | $ 313 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Net Earnings (Loss) | $ 334 | $ 311 | |
Other Comprehensive Income (Loss), Net of Tax: | |||
Change in cumulative foreign currency translation adjustment | 236 | (484) | |
Net gains/losses on cash flow hedging derivatives: | |||
Net gains (losses) arising during the period | 4 | 6 | |
Reclassification adjustment for (gains) losses included in net earnings (loss) | (1) | 3 | |
Total Other Comprehensive Income (Loss), Net of Tax | [1] | 320 | (397) |
Comprehensive Income (Loss) | 654 | (86) | |
Net (earnings) loss attributable to noncontrolling interests | 0 | 2 | |
Other comprehensive (income) loss attributable to noncontrolling interests | (1) | 1 | |
Comprehensive Income (Loss) Attributable to International Paper Company | 653 | (83) | |
U.S. Plans | |||
Other Comprehensive Income (Loss), Net of Tax: | |||
Amortization of pension and post-retirement prior service costs and net loss: | 64 | 78 | |
Foreign Pension Plan, Defined Benefit [Member] | |||
Other Comprehensive Income (Loss), Net of Tax: | |||
Pension and postretirement liability adjustments | $ 17 | $ 0 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Current Assets | |||
Cash and temporary investments | $ 1,155 | $ 1,050 | |
Accounts and notes receivable, net | 2,641 | 2,675 | |
Inventories | 2,217 | 2,228 | |
Deferred income tax assets | 295 | 312 | |
Assets held for sale | 216 | 0 | |
Other current assets | 268 | 212 | |
Total Current Assets | 6,792 | 6,477 | |
Plants, Properties and Equipment, net | 12,037 | 11,980 | |
Forestlands | 399 | 366 | |
Investments | 287 | 228 | |
Financial Assets of Special Purpose Entities (Note 13) | 7,019 | 7,014 | |
Goodwill | 3,354 | 3,335 | |
Deferred Charges and Other Assets | 1,155 | 1,131 | |
Total Assets | 31,043 | 30,531 | |
Current Liabilities | |||
Notes payable and current maturities of long-term debt | 551 | 426 | |
Liabilities held for sale | 98 | 0 | |
Accounts payable | 2,065 | 2,078 | |
Accrued payroll and benefits | 362 | 434 | |
Other accrued liabilities | 1,022 | 986 | |
Total Current Liabilities | 4,098 | 3,924 | |
Long-Term Debt | 8,824 | 8,844 | |
Nonrecourse Financial Liabilities of Special Purpose Entities (Note 13) | 6,279 | 6,277 | |
Deferred Income Taxes | 3,277 | 3,231 | |
Pension Benefit Obligation | 3,533 | 3,548 | |
Postretirement and Postemployment Benefit Obligation | 338 | 364 | |
Other Liabilities | 434 | 434 | |
Equity | |||
Common stock, $1 par value, 2016 - 448.9 shares and 2014 - 448.9 shares | 449 | 449 | |
Paid-in capital | 6,130 | 6,243 | |
Retained earnings | 4,800 | 4,649 | |
Accumulated other comprehensive loss | (5,389) | [1] | (5,708) |
Shareholders' Equity before Treasury Stock, Total | 5,990 | 5,633 | |
Less: Common stock held in treasury, at cost, 2016 - 37.737 shares and 2015 - 36.776 shares | 1,756 | 1,749 | |
Total Shareholders' Equity | 4,234 | 3,884 | |
Noncontrolling interests | 26 | 25 | |
Total Equity | 4,260 | 3,909 | |
Total Liabilities and Equity | $ 31,043 | $ 30,531 | |
[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 | Mar. 31, 2016 | Dec. 31, 2015 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares | 448,900 | 448,900 |
Common stock held in treasury, shares | 37,737 | 36,776 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities | ||
Net earnings (loss) | $ 334 | $ 311 |
Depreciation, amortization and cost of timber harvested | 284 | 323 |
Deferred income tax provision (benefit), net | (37) | (3) |
Restructuring and other charges | 1 | 0 |
Net (gains) losses on sales and impairments of businesses | 37 | 0 |
Equity (earnings) loss, net | (63) | (35) |
Periodic pension expense, net | 91 | 122 |
Other, net | 27 | 76 |
Changes in current assets and liabilities | ||
Accounts and notes receivable | (7) | (76) |
Inventories | (9) | (81) |
Accounts payable and accrued liabilities | (26) | (14) |
Interest payable | 32 | 19 |
Other | (44) | (4) |
Cash Provided By (Used For) Operations | 620 | 638 |
Investment Activities | ||
Invested in capital projects | (309) | (319) |
Proceeds from sale of fixed assets | 8 | 9 |
Other | (63) | (67) |
Cash Provided By (Used For) Investment Activities | (364) | (377) |
Financing Activities | ||
Repurchases of common stock and payments of restricted stock tax withholding | (131) | (139) |
Issuance of common stock | 0 | 2 |
Issuance of debt | 467 | 40 |
Reduction of debt | (322) | (280) |
Change in book overdrafts | 3 | 0 |
Dividends paid | (181) | (169) |
Cash Provided By (Used For) Financing Activities | (164) | (546) |
Cash Included in Assets Held for Sale | (12) | 0 |
Effect of Exchange Rate Changes on Cash | 25 | (20) |
Change in Cash and Temporary Investments | 105 | (305) |
Cash and Temporary Investments | ||
Beginning of period | 1,050 | 1,881 |
End of period | $ 1,155 | $ 1,576 |
BASIS OF PRESENTATION Footnote
BASIS OF PRESENTATION Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation [Note Text Block] | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of International Paper Company’s (International Paper’s, the Company’s or our) financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first three months of the year may not necessarily be indicative of full year results. It is suggested that these consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 which have previously been filed with the Securities and Exchange Commission. |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Developments [Note Text Block] | RECENT ACCOUNTING DEVELOPMENTS Stock Compensation In March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." Under this new guidance, all excess tax benefits and tax deficiencies will be recognized in the income statement as they occur, replacing current guidance which requires tax benefits that exceed compensation costs (windfalls) to be recognized in equity. The new guidance will also change the cash flow presentation of excess tax benefits, classifying them as operating inflows rather than financing activities as they are currently classified. In addition, the new guidance will allow companies to provide net settlement of stock-based compensation to cover tax withholding as long as the net settlement doesn't exceed the maximum individual statutory tax rate in the employee's tax jurisdiction. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods with those years. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance. Investments - Equity Method and Joint Ventures In March 2016, the FASB issued ASU 2016-07, "Simplifying the Transition to the Equity Method of Accounting." The amendments in the ASU eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years and should be applied prospectively upon the effective date. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance. Derivatives and Hedging Also in March 2016, the FASB issued ASU 2016-05, "Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships." The amendments in this ASU apply to all reporting entities for which there is a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815. This ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years, and allow for the amendments to be applied on either a prospective basis or a modified retrospective basis. The Company is currently evaluating the provisions of this guidance. Leases In February 2016, the FASB issued ASU 2016-02, "Leases." This ASU will require most leases to be recognized on the balance sheet which will increase reported assets and liabilities. Lessor accounting will remain substantially similar to current U.S. GAAP. This ASU is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years, and mandates a modified retrospective transition method for all entities. The Company is currently evaluating the provisions of this guidance. Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, "Balance Classification of Deferred Taxes." This ASU requires entities to offset all deferred tax assets and liabilities (and valuation allowances) for each tax-paying jurisdiction within each tax-paying component. The net deferred tax must be presented as a single noncurrent amount. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted. The application of the requirements of this guidance is not expected to have a material effect on the consolidated financial statements. Business Combinations In September 2015, the FASB issued 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, 2015, and interim periods within those years. This ASU must be applied prospectively to adjustments to provisional amounts that occur after the effective date. The application of the requirements of this guidance did not have a material effect on the consolidated financial statements. 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. The application of the requirements of this guidance did not have a material effect on the consolidated financial statements. 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 application of the requirements of this guidance did not have a material effect on the consolidated financial statements. 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 application of the requirements of this guidance did not have a material effect on the consolidated financial statements. 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 application of the requirements of this guidance did not have a material effect on the consolidated financial statements. Revenue Recognition In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customer." This guidance amends the principal-versus-agent implementation guidance and illustrations in ASU 2014-09. This ASU clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. Therefore, for contracts involving more than one specified good or service, the entity may be the principal for one or more specified goods or services and the agent for others. This ASU has the same effective date as the new revenue standard, ASU 2014-09, and entities are required to adopt this ASU by using the same transition method used to adopt the new revenue standard. The Company is currently evaluating the provisions of this guidance. 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. Early adoption will be permitted as of the original effective date in ASU 2014-09. The Company is currently evaluating the provisions of this guidance. |
EQUITY Footnote
EQUITY Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Equity [Note Text Block] | EQUITY A summary of the changes in equity for the three months ended March 31, 2016 and 2015 is provided below: Three Months Ended 2016 2015 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 $ 3,884 $ 25 $ 3,909 $ 5,115 $ 148 $ 5,263 Issuance of stock for various plans, net (6 ) — (6 ) 141 — 141 Repurchase of stock (131 ) — (131 ) (141 ) — (141 ) Common stock dividends ($0.4400 per share in 2016 and $0.4000 per share in 2015) (183 ) — (183 ) (174 ) — (174 ) Transactions of equity method investees 17 — 17 — — — Comprehensive income (loss) 653 1 654 (83 ) (3 ) (86 ) Ending Balance, March 31 $ 4,234 $ 26 $ 4,260 $ 4,858 $ 145 $ 5,003 |
OTHER COMPREHENSIVE INCOME Foot
OTHER COMPREHENSIVE INCOME Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Other Comprehensive Income [Note Text Block] | OTHER COMPREHENSIVE INCOME The following table presents changes in AOCI for the three -month period ended March 31, 2016 : 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, 2016 $ (3,169 ) $ (2,549 ) $ 10 $ (5,708 ) Other comprehensive income (loss) before reclassifications 17 236 4 257 Amounts reclassified from accumulated other comprehensive income 64 — (1 ) 63 Net Current Period Other Comprehensive Income (Loss) 81 236 3 320 Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — (1 ) — (1 ) Balance, March 31, 2016 $ (3,088 ) $ (2,314 ) $ 13 $ (5,389 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. The following table presents changes in AOCI for the three -month period ended March 31, 2015 : In millions Defined Benefit Pension and Postretirement Items (a) Change in Cumulative Foreign Currency Translation Adjustments (a) Net Gains and Losses on Cash Flow Hedging Derivatives (a) Total (a) Balance, January 1, 2015 $ (3,134 ) $ (1,513 ) $ 1 $ (4,646 ) Other comprehensive income (loss) before reclassifications — (484 ) 6 (478 ) Amounts reclassified from accumulated other comprehensive income 78 — 3 81 Net Current Period Other Comprehensive Income (Loss) 78 (484 ) 9 (397 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 1 — 1 Balance, March 31 2015 $ (3,056 ) $ (1,996 ) $ 10 $ (5,042 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. The following table presents details of the reclassifications out of AOCI for the three -month periods ended March 31 : Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income (a) Location of Amount Reclassified from AOCI Three Months Ended 2016 2015 In millions: Defined benefit pension and postretirement items: Prior-service costs $ (9 ) $ (8 ) (b) Cost of products sold Actuarial gains (losses) (95 ) (120 ) (b) Cost of products sold Total pre-tax amount (104 ) (128 ) Tax (expense) benefit 40 50 Net of tax (64 ) (78 ) Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts 1 (6 ) (c) Cost of products sold Total pre-tax amount 1 (6 ) Tax (expense)/benefit — 3 Net of tax 1 (3 ) Total reclassifications for the period $ (63 ) $ (81 ) (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 Footnote | 3 Months Ended |
Mar. 31, 2016 | |
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 In millions, except per share amounts 2016 2015 Earnings (loss) from continuing operations $ 339 $ 313 Effect of dilutive securities (a) — — Earnings (loss) from continuing operations – assuming dilution $ 339 $ 313 Average common shares outstanding 410.8 421.2 Effect of dilutive securities (a) Restricted stock performance share plan 3.2 2.5 Average common shares outstanding – assuming dilution 414.0 423.7 Basic earnings (loss) from continuing operations per common share $ 0.82 $ 0.74 Diluted earnings (loss) from continuing operations per common share $ 0.82 $ 0.74 (a) Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities [Note Text Block] | RESTRUCTURING AND OTHER CHARGES 2016: During the three months ended March 31, 2016, restructuring and other charges totaling $1 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Gain on sale of investment in Arizona Chemical $ (8 ) Riegelwood mill conversion costs 9 Total $ 1 |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions [Note Text Block] | ACQUISITIONS On March 16, 2016, the Company announced that it had entered into a binding agreement with Holmen Paper to purchase Holmen's newsprint mill in Madrid, Spain, and intends to convert the facility to produce recycled containerboard. Under the terms of the agreement, International Paper will purchase the Madrid newsprint mill, as well as associated recycling operations and a 50% ownership interest in a cogeneration facility. The transaction is expected to close during the second quarter of 2016, subject to certain regulatory approvals. International Paper plans to convert the newsprint facility during the second half of 2017 to produce recycled containerboard with an expected capacity of 380,000 metric tonnes. Once completed, the converted mill will support the Company's corrugated packaging business in EMEA. The Company's aggregated purchase price for the mill, recycling operations and 50% ownership of the cogeneration facility is €50 million (approximately $57 million using March 31, 2016 exchange rate), subject certain closing and post-closing adjustments. |
DIVESTITURES _ SPINOFF Footnote
DIVESTITURES / SPINOFF Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Note Text Block] | DIVESTITURES / SPINOFF Other Divestitures and Impairments 2016: On March 14, 2016, the Company announced that it had entered into a definitive agreement to sell its corrugated packaging business in China and Southeast Asia to Xiamen Bridge Hexing Equity Investment Partnership Enterprise. Under the terms of the transaction, International Paper will receive a total of approximately RMB 1 billion (approximately $155 million at the March 31, 2016 exchange rate), subject to post-closing adjustments and other payments, including the buyer's assumption of the liability for loans of approximately $57 million . All payments are to be made within six months of closing the sale. The transaction is expected to be completed during the second quarter of 2016, subject to the satisfaction of closing conditions, including obtaining governmental approvals. A determination was made that the current book value of the asset group exceeded its estimated fair value of $155 million which is the agreed upon selling price. As a result, a pre-tax charge of $37 million was recorded during the three months ended March 31, 2016 in the Company's Industrial 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 Asia Packaging business included in the Company's consolidated statement of operations for the three months ended March 31, 2016 and 2015 was $41 million and $2 million , respectively. The assets related to the IP Asia Packaging business, totaling $216 million , are included in Assets held for sale in current assets in the accompanying consolidated balance sheet at March 31, 2016. The liabilities of the IP Asia Packaging business, totaling $98 million , are included in Liabilities held for sale in current liabilities in the accompanying consolidated balance sheet at March 31, 2016. The table below reflects the major asset and liability categories of the IP Asia Packaging business' balance sheet as consolidated in International Paper's balance sheet as of March 31, 2016. In millions March 31, 2016 Total current assets $ 127 Plants, properties and equipment, net 89 Deferred Charges and Other Assets 37 253 Impairment charge (37 ) Total assets $ 216 Payables and other short-term liabilities $ 41 Debt 43 Other long-term liabilities 14 Total liabilities 98 Shareholder's equity 116 Noncontrolling interest 2 Total equity 118 Total liabilities and equity $ 216 |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Statement Information [Note Text Block] | SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Temporary Investments Temporary investments with an original maturity of three months or less are treated as cash equivalents and are stated at cost. Temporary investments totaled $879 million and $738 million at March 31, 2016 and December 31, 2015, respectively. Accounts and Notes Receivable In millions March 31, 2016 December 31, 2015 Accounts and notes receivable, net: Trade $ 2,418 $ 2,480 Other 223 195 Total $ 2,641 $ 2,675 The allowance for doubtful accounts was $69 million and $70 million at March 31, 2016 and December 31, 2015, respectively. Inventories In millions March 31, 2016 December 31, 2015 Raw materials $ 317 $ 339 Finished pulp, paper and packaging 1,223 1,248 Operating supplies 569 563 Other 108 78 Total $ 2,217 $ 2,228 Depreciation Accumulated depreciation was $21.0 billion and $20.7 billion at March 31, 2016 and December 31, 2015. Depreciation expense was $267 million and $304 million for the three months ended March 31, 2016 and 2015, respectively. Asset Retirement Obligations There was no material activity related to asset retirement obligations during either of the three months ended March 31, 2016 or 2015 . Interest Interest payments made during the three months ended March 31, 2016 and 2015 were $136 million and $129 million , respectively. Amounts related to interest were as follows: Three Months Ended In millions 2016 2015 Interest expense (a) $ 160 $ 159 Interest income (a) 37 22 Capitalized interest costs 7 7 (a) Interest expense and interest income exclude approximately $9 million for the three months ended March 31, 2015, related to investments in and borrowings from variable interest entities for which the Company had a legal right of offset (see Note 13). |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles [Note Text Block] | GOODWILL AND OTHER INTANGIBLES Goodwill The following table presents changes in goodwill balances as allocated to each business segment for the three -month period ended March 31, 2016 : In millions Industrial Packaging Printing Papers Consumer Packaging Total Balance as of January 1, 2016 Goodwill $ 3,325 $ 2,124 $ 1,664 $ 7,113 Accumulated impairment losses (a) (237 ) (1,877 ) (1,664 ) (3,778 ) 3,088 247 — 3,335 Reclassifications and other (b) 1 21 — 22 Additions/reductions — (3 ) (c) — (3 ) Balance as of March 31, 2016 Goodwill 3,326 2,142 1,664 7,132 Accumulated impairment losses (a) (237 ) (1,877 ) (1,664 ) (3,778 ) Total $ 3,089 $ 265 $ — $ 3,354 (a) Represents accumulated goodwill impairment charges since the adoption of ASC 350, “Intangibles – Goodwill and Other” in 2002. (b) Represents the effects of foreign currency translations and reclassifications. (c) Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil. Other Intangibles Identifiable intangible assets comprised the following: March 31, 2016 December 31, 2015 In millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships and lists $ 503 $ 179 $ 495 $ 166 Non-compete agreements 70 59 69 56 Tradenames, patents and trademarks 61 55 61 54 Land and water rights 12 3 33 6 Software 23 21 22 20 Other 39 24 46 29 Total $ 708 $ 341 $ 726 $ 331 The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended In millions 2016 2015 Amortization expense related to intangible assets $ 12 $ 13 |
INCOME TAXES Footnote
INCOME TAXES Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Note Text Block] | INCOME TAXES International Paper made income tax payments, net of refunds, of $6 million and $26 million for the three months ended March 31, 2016 and 2015, respectively. The following table presents a rollforward of unrecognized tax benefits and related accrued estimated interest and penalties for the three months ended March 31, 2016 : In millions Unrecognized Tax Benefits Accrued Estimated Interest and Tax Penalties Balance at December 31, 2015 $ (150 ) $ (34 ) Activity for three months ended March 31, 2016 26 (1 ) Balance at March 31, 2016 $ (124 ) $ (35 ) 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 $24 million during the next 12 months. Included in the Company’s income tax provisions for the three months ended March 31, 2016 , is $74 million of income tax benefits related to special items. There were no tax benefits related to special items for the three months ended March 31, 2015. The components of the net provision related to special items were as follows: Three Months Ended In millions 2016 2015 Special items $ (3 ) $ — Tax-related adjustments: Internal restructurings (57 ) — 2010-2012 IRS audit closure (14 ) — Income tax provision (benefit) related to special items $ (74 ) $ — |
COMMITMENTS AND CONTINGENCIES F
COMMITMENTS AND CONTINGENCIES Footnote | 3 Months Ended |
Mar. 31, 2016 | |
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 (PRP) 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 PRPs. Remediation 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 $93 million in the aggregate at March 31, 2016 . Cass Lake: One of the matters included above arises out of a closed wood-treating facility located in Cass Lake, Minnesota. In June 2011, the United States Environmental Protection Agency (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 March 2016, the EPA issued a proposed plan concerning clean-up standards at a portion of the site, the estimated cost of which is included within the $47 million reserve referenced above. In October 2012, the Natural Resource Trustees for this site provided notice to International Paper and other potentially responsible parties of their intent to perform a Natural Resource Damage Assessment. It is premature to predict the outcome of the assessment or to estimate a loss or range of loss, if any, which may be incurred. Other Remediation Costs In addition to the above matters, other remediation costs typically associated with the cleanup of hazardous substances at the Company’s current, closed or formerly-owned facilities, and recorded as liabilities in the balance sheet, totaled approximately $43 million as of March 31, 2016 . 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 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 polychlorinated biphenyls (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. In March 2016, the Company and other PRPs received a special notice letter from the EPA (i) inviting participation concerning the remedy for a portion of the site, and (ii) demanding reimbursement of EPA past costs totaling $37 million , including $19 million in past costs previously demanded by the EPA. Separately, in April 2016, the EPA issued a unilateral administrative order to the Company and certain other PRPs to remove PCB contaminated sediments from a different portion of the site. The Company is preparing responses to both the special notice letter and the unilateral administrative order. The Company’s CERCLA liability has not been finally determined with respect to these or any other portions 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 costs purportedly expended by plaintiffs ( $79 million 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 is a liable party as an "arranger for disposal" of PCBs in waste paper that was de-inked and recycled by mills along the Kalamazoo River. The order did not address the Company's responsibility, if any, for past or future costs. The parties’ responsibility, including that of the Company, was the subject of a second trial, which was conducted in late 2015. A decision has not been rendered and it is unclear to what extent the Court will address responsibility for future costs in that decision. 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 River Superfund Site) in Harris County, Texas, and have been actively participating in investigation and remediation activities at this Superfund Site. In December 2011, Harris County, Texas filed a suit against the Company 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. The Company is also defending an additional lawsuit related to the San Jacinto River Superfund Site brought by approximately 400 individuals who 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. Vicksburg: In the first quarter of 2016, the Company received notice from the Mississippi Department of Environmental Quality (MDEQ) of a proposed penalty in excess of $100,000 arising from alleged violations of air emission permitting requirements at the Company’s Vicksburg, Mississippi paper mill. The Company is working with the MDEQ to resolve the matter. While it is premature to predict the outcome or to estimate the resulting fine, if any, which may be incurred, the Company believes that any such fine will not be material. 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 Co. (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 unspecified treble damages and attorneys' 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, later dismissed without prejudice in November 2015, captioned Del Monte Fresh Products N.A., Inc. v. Packaging Corporation of America (S.K. Fl.) , in which the Plaintiff asserted 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 Tennessee action is in a preliminary stage, we are unable to predict an outcome or estimate a range of reasonably possible loss. Gypsum: Beginning in late December 2012, certain purchasers of gypsum board filed a number of purported class action complaints alleging civil violations of Section 1 of the Sherman Act against Temple-Inland and a number of other gypsum manufacturers. The complaints were similar and alleged that the gypsum manufacturers conspired or otherwise reached agreements to: (1) raise prices of gypsum board either from 2008 or 2011 through the present; (2) avoid price erosion by ceasing the practice of issuing job quotes; and (3) restrict supply through downtime and limiting order fulfillment. On April 8, 2013, the Judicial Panel on Multidistrict Litigation ordered transfer of all pending cases to the U.S. District Court for the Eastern District of Pennsylvania for coordinated and consolidated pretrial proceedings, and the direct purchaser plaintiffs and indirect purchaser plaintiffs filed their respective amended consolidated complaints in June 2013. The amended consolidated complaints 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. Tax On October 16, 2015, the Company was notified of a $92 million tax assessment issued by the state of Sao Paulo, Brazil for tax years 2011 through 2013. The assessment pertains to invoices issued by the Company related to the sale of paper to the editorial segment, which is exempt from the payment of ICMS value-added tax. This assessment is in the preliminary stage. The Company does not believe that a material loss is probable. General The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, labor and employment, personal injury, contracts, sales of property, intellectual property and other matters, some of which allege substantial monetary damages. While any proceeding or litigation has the element of uncertainty, the Company believes that the outcome of any of these 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 Footnote | 3 Months Ended |
Mar. 31, 2016 | |
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 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 Class A interests in the Borrower Entities, along with 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 . 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. 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 obligations under these debt instruments with its investments in the Entities and despite the offset treatment, these remained debt obligations of International Paper. 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. During 2015, International Paper initiated a series of actions, including acquiring the Class A interests from a third party and a restructuring, in order to extend the 2006 monetization structure and maintain the long-term nature of the $1.4 billion deferred tax liability. The restructuring resulted in the formation of wholly-owned, bankruptcy-remote special purpose entities (the 2015 Financing Entities) and International Paper began consolidating the 2015 Financing Entities during the third quarter of 2015. As part of the transactions, International Paper extended the maturity date on the Timber Notes and entered into nonrecourse third party bank loans totaling approximately $4.2 billion (the Extension Loans). The Timber Notes are shown in Financial Assets of special purpose entities on the accompanying consolidated balance sheet and mature in August 2021 unless extended for an additional five years. These notes are supported by approximately $4.8 billion of irrevocable letters of credit. The Extension Loans are shown in Nonrecourse financial liabilities of special purpose entities on the accompanying consolidated balance sheet and mature in the fourth quarter of 2020. In addition, provisions of loan agreements related to approximately $1.1 billion of the Extension Loans require the bank issuing the 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 the 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. As of March 31, 2016, the fair value of the Timber Notes and Extension Loans is $4.80 billion and $4.37 billion , respectively. The Timber Notes and Extension 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, 2015. 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 In millions 2016 2015 Revenue (a) $ 24 $ 9 Expense (a) 32 18 Cash receipts (b) 29 10 Cash payments (c) 34 36 (a) For the three months ended March 31, 2016, the revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations. For the three months ended March 31, 2015, the net expense related to the Company’s interest in the Entities is included in the accompanying consolidated statement of operations, as International Paper has and intends to effect its legal right to offset as discussed above. (b) For the three months ended March 31, 2016, cash receipts are interest received on the Financial assets of special purpose entities. For the three months ended March 31, 2015, the cash receipts are equity distributions from the Entities to International Paper prior to the formation of the 2015 Financing Entities. (c) For the three months ended March 31, 2016, the payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. For the three months ended March 31, 2015, the cash payments are interest payments on the associated debt obligations of the Entities discussed above. In connection with the acquisition of Temple-Inland in February 2012, two special purpose entities became wholly-owned subsidiaries of International Paper. The use of the two wholly-owned special purpose entities discussed below preserved the tax deferral that resulted from the 2007 Temple-Inland timberlands sales. The Company recognized an $840 million deferred tax liability in connection with the 2007 sales, which will be settled with the maturity of the notes in 2027. In October 2007, Temple-Inland sold 1.55 million acres of timberland for $2.38 billion . The total consideration consisted almost entirely of notes due in 2027 issued by the buyer of the timberland, which Temple-Inland contributed to two wholly-owned, bankruptcy-remote special purpose entities. The notes are shown in Financial assets of special purpose entities in the accompanying consolidated balance sheet and are supported by $2.38 billion of irrevocable letters of credit issued by three banks, which are required to maintain minimum credit ratings on their long-term debt. In the third quarter of 2012, International Paper completed its preliminary analysis of the acquisition date fair value of the notes and determined it to be $2.09 billion . As of March 31, 2016 , the fair value of the notes was $2.10 billion . These notes are classified as Level 2 within the fair value hierarchy, which is further defined in Note 14 in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. In December 2007, Temple-Inland’s two wholly-owned special purpose entities borrowed $2.14 billion shown in Nonrecourse financial liabilities of special purpose entities. The loans are repayable in 2027 and are secured only by the $2.38 billion of notes and the irrevocable letters of credit securing the notes and are nonrecourse to us. The loan agreements provide that if a credit rating of any of the banks issuing the letters of credit is downgraded below the specified threshold, the letters of credit issued by that bank must be replaced within 30 days with letters of credit from another qualifying financial institution. In the third quarter of 2012, International Paper completed its preliminary analysis of the acquisition date fair value of the borrowings and determined it to be $2.03 billion . As of March 31, 2016 , 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 In millions 2016 2015 Revenue (a) $ 8 $ 6 Expense (b) 7 6 Cash receipts (c) 2 2 Cash payments (d) 6 4 (a) The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million for each of the three months ended March 31, 2016 and 2015 , respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of special purpose entities. (b) The expense is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $2 million for each of the three months ended March 31, 2016 and 2015 , 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 Footnote
DEBT Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt [Note Text Block] | DEBT Amounts related to early debt extinguishment during the three months ended March 31, 2016 and 2015 were as follows: Three Months Ended In millions 2016 2015 Early debt reductions (a) $ — $ 217 Pre-tax early debt extinguishment costs — 1 (a) Reductions related to notes with interest rates ranging from 5.30% to 6.25% with original maturities from 2015 to 2025 for the three months ended March 31, 2015 . During the first quarter of 2016, International Paper borrowed $400 million under a receivable securitization facility at a rate of 1.22% . The Company repaid $185 million of the borrowings during the first quarter of 2016. Subsequent to March 31, 2016, the Company repaid an additional $100 million of the borrowings outstanding under the receivable facility. Subsequent to March 31, 2016, International Paper entered into a $250 million contractually committed bank credit facility that expires on December 31, 2016 and has a facility fee of 0.15% payable quarterly. In April 2016, the Company borrowed $230 million on the bank credit facility. The proceeds from this borrowing were used to pay off $261 million of debt maturing in April 2016. At March 31, 2016 , the fair value of International Paper’s $9.4 billion of debt was approximately $10.2 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, 2015. Maintaining an investment-grade credit rating is an important element of International Paper’s financing strategy. At March 31, 2016 , 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 Footnote | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 . The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows: In millions March 31, 2016 December 31, 2015 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts (a) $ 310 $ 290 Derivatives in Fair Value Hedging Relationships: Interest rate contracts — 17 Derivatives Not Designated as Hedging Instruments: Electricity contract 7 16 Foreign exchange contracts 45 35 Interest rate contracts — 38 (a) These contracts had maturities of two years or less as of March 31, 2016 . 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 In millions 2016 2015 Foreign exchange contracts $ 4 $ 6 Total $ 4 $ 6 During the next 12 months, the amount of the March 31, 2016 AOCI balance, after tax, that is expected to be reclassified to earnings is a gain of $5 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 In millions 2016 2015 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 1 $ (3 ) Cost of products sold Total $ 1 $ (3 ) Gain (Loss) Recognized Location of Gain (Loss) In Consolidated Statement of Operations Three Months Ended In millions 2016 2015 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ — $ 2 Interest expense, net Debt — (2 ) Interest expense, net Total $ — $ — Derivatives Not Designated as Hedging Instruments: Electricity contract $ (2 ) $ (1 ) Cost of products sold Foreign exchange contracts — (2 ) Cost of products sold Interest rate contracts 2 3 Interest expense, net Total $ — $ — The following activity is related to fully effective interest rate swaps designated as fair value hedges: 2016 2015 In millions Issued Terminated Undesignated Issued Terminated Undesignated First Quarter $ — $ 55 $ — $ — $ — $ — Total $ — $ 55 $ — $ — $ — $ — Fair Value Measurements For a discussion of the Company’s fair value measurement policies under the fair value hierarchy, refer to Note 14 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . 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 March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 8 (a) $ 5 (b) $ 1 (d) $ 1 (d) Total derivatives designated as hedging instruments $ 8 $ 5 $ 1 $ 1 Derivatives not designated as hedging instruments Electricity contract $ — $ — $ 7 (c) $ 7 (e) Foreign exchange contracts 2 (b) — — — Total derivatives not designated as hedging instruments $ 2 $ — $ 7 $ 7 Total derivatives $ 10 $ 5 $ 8 $ 8 (a) Includes $7 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (b) Included in Other current assets in the accompanying consolidated balance sheet. (c) Includes $5 million recorded in Other accrued liabilities and $2 million recorded in Other liabilities in the accompanying consolidated balance sheet. (d) Included in Other accrued liabilities in the accompanying consolidated balance sheet. (e) Includes $4 million recorded in Other accrued liabilities 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. As of March 31, 2016 , there were no derivative contracts in a net liability position that were subject to credit-risk-related contingent features. The fair value of derivative instruments containing credit risk-related contingent features in a net liability position was $1 million as of December 31, 2015 . The Company was not required to post any collateral as of March 31, 2016 or December 31, 2015 . 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, 2015 . |
RETIREMENT PLANS Footnote
RETIREMENT PLANS Footnote | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 . 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. Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: Three Months Ended In millions 2016 2015 Service cost $ 37 $ 39 Interest cost 156 149 Expected return on plan assets (206 ) (196 ) Actuarial loss 94 119 Amortization of prior service cost 10 11 Net periodic pension expense $ 91 $ 122 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. No cash contributions were made to the qualified pension plan in the first three months of 2016 or 2015. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $5 million for the three months ended March 31, 2016 . |
STOCK-BASED COMPENSATION Footno
STOCK-BASED COMPENSATION Footnote | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 . As of March 31, 2016 , 14.2 million shares were available for grant under the ICP. Stock-based compensation expense and related income tax benefits were as follows: Three Months Ended In millions 2016 2015 Total stock-based compensation expense (selling and administrative) $ 26 $ 33 Income tax benefits related to stock-based compensation 33 89 At March 31, 2016 , $193 million , net of estimated forfeitures, of compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future service had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 2.0 years. Performance Share Plan During the first three months of 2016 , the Company granted 2.6 million performance units at an average grant date fair value of $37.26 . |
INDUSTRY SEGMENT INFORMATION
INDUSTRY SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
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 $62 million and $39 million for the three months ended March 31, 2016 and 2015, respectively, for Ilim. At March 31, 2016 and December 31, 2015 , the Company's investment in Ilim was $234 million and $172 million , respectively, which was $164 million and $161 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 $39 million and $43 million for the three months ended March 31, 2016 and 2015, respectively. Sales by industry segment for the three months ended March 31, 2016 and 2015 were as follows: Three Months Ended In millions 2016 2015 Industrial Packaging $ 3,452 $ 3,553 Printing Papers 1,184 1,228 Consumer Packaging 495 778 Corporate and Intersegment Sales (21 ) (42 ) Net Sales $ 5,110 $ 5,517 Operating profit by industry segment for the three months ended March 31, 2016 and 2015 were as follows: Three Months Ended In millions 2016 2015 Industrial Packaging $ 396 (a) $ 468 Printing Papers 85 109 Consumer Packaging 16 (b) 46 Operating Profit 497 623 Interest expense, net (123 ) (137 ) Noncontrolling interests/equity earnings adjustment (c) — 1 Corporate items, net (21 ) (9 ) Restructuring and other charges 8 — Non-operating pension expense (44 ) (72 ) Earnings (loss) from continuing operations before income taxes and equity earnings $ 317 $ 406 Equity earnings (loss), net of taxes – Ilim $ 62 $ 39 (a) Includes a charge of $37 million for the three months ended March 31, 2016 for the impairment of the assets of our corrugated packaging business in Asia and costs associated with the announced definitive agreement to sell the business. (b) Includes a charge of $9 million for the three months ended March 31, 2016 for costs associated with the Riegelwood mill conversion to 100% pulp production. (c) 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. |
SUBSEQUENT EVENT Footnote
SUBSEQUENT EVENT Footnote | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT On May 1, 2016, the Company entered into a definitive agreement to purchase the pulp business of Weyerhaeuser Company for $2.2 billion in cash, subject to certain adjustments. Because the transaction is a purchase of assets, International Paper expects to realize a tax benefit with an estimated net present value of approximately $300 million . Under the terms of the agreement, International Paper will acquire five pulp mills and two modified fiber mills located in the United States, Canada and Poland. The acquisition is expected to close in the fourth quarter of 2016, subject to certain closing conditions, primarily the receipt of regulatory approval. |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity [Table Text Block] | A summary of the changes in equity for the three months ended March 31, 2016 and 2015 is provided below: Three Months Ended 2016 2015 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 $ 3,884 $ 25 $ 3,909 $ 5,115 $ 148 $ 5,263 Issuance of stock for various plans, net (6 ) — (6 ) 141 — 141 Repurchase of stock (131 ) — (131 ) (141 ) — (141 ) Common stock dividends ($0.4400 per share in 2016 and $0.4000 per share in 2015) (183 ) — (183 ) (174 ) — (174 ) Transactions of equity method investees 17 — 17 — — — Comprehensive income (loss) 653 1 654 (83 ) (3 ) (86 ) Ending Balance, March 31 $ 4,234 $ 26 $ 4,260 $ 4,858 $ 145 $ 5,003 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in AOCI for the three -month period ended March 31, 2016 : 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, 2016 $ (3,169 ) $ (2,549 ) $ 10 $ (5,708 ) Other comprehensive income (loss) before reclassifications 17 236 4 257 Amounts reclassified from accumulated other comprehensive income 64 — (1 ) 63 Net Current Period Other Comprehensive Income (Loss) 81 236 3 320 Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — (1 ) — (1 ) Balance, March 31, 2016 $ (3,088 ) $ (2,314 ) $ 13 $ (5,389 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. The following table presents changes in AOCI for the three -month period ended March 31, 2015 : In millions Defined Benefit Pension and Postretirement Items (a) Change in Cumulative Foreign Currency Translation Adjustments (a) Net Gains and Losses on Cash Flow Hedging Derivatives (a) Total (a) Balance, January 1, 2015 $ (3,134 ) $ (1,513 ) $ 1 $ (4,646 ) Other comprehensive income (loss) before reclassifications — (484 ) 6 (478 ) Amounts reclassified from accumulated other comprehensive income 78 — 3 81 Net Current Period Other Comprehensive Income (Loss) 78 (484 ) 9 (397 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 1 — 1 Balance, March 31 2015 $ (3,056 ) $ (1,996 ) $ 10 $ (5,042 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
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 periods ended March 31 : Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income (a) Location of Amount Reclassified from AOCI Three Months Ended 2016 2015 In millions: Defined benefit pension and postretirement items: Prior-service costs $ (9 ) $ (8 ) (b) Cost of products sold Actuarial gains (losses) (95 ) (120 ) (b) Cost of products sold Total pre-tax amount (104 ) (128 ) Tax (expense) benefit 40 50 Net of tax (64 ) (78 ) Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts 1 (6 ) (c) Cost of products sold Total pre-tax amount 1 (6 ) Tax (expense)/benefit — 3 Net of tax 1 (3 ) Total reclassifications for the period $ (63 ) $ (81 ) (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 ATTRIBUTAB28
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 In millions, except per share amounts 2016 2015 Earnings (loss) from continuing operations $ 339 $ 313 Effect of dilutive securities (a) — — Earnings (loss) from continuing operations – assuming dilution $ 339 $ 313 Average common shares outstanding 410.8 421.2 Effect of dilutive securities (a) Restricted stock performance share plan 3.2 2.5 Average common shares outstanding – assuming dilution 414.0 423.7 Basic earnings (loss) from continuing operations per common share $ 0.82 $ 0.74 Diluted earnings (loss) from continuing operations per common share $ 0.82 $ 0.74 (a) Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING AND OTHER CHARG29
RESTRUCTURING AND OTHER CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs [Table Text Block] | During the three months ended March 31, 2016, restructuring and other charges totaling $1 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Gain on sale of investment in Arizona Chemical $ (8 ) Riegelwood mill conversion costs 9 Total $ 1 |
DIVESTITURES _ SPINOFF (Tables)
DIVESTITURES / SPINOFF (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Total current assets $ 127 Plants, properties and equipment, net 89 Deferred Charges and Other Assets 37 253 Impairment charge (37 ) Total assets $ 216 Payables and other short-term liabilities $ 41 Debt 43 Other long-term liabilities 14 Total liabilities 98 Shareholder's equity 116 Noncontrolling interest 2 Total equity 118 Total liabilities and equity $ 216 |
SUPPLEMENTAL FINANCIAL STATEM31
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts and Notes Receivable In millions March 31, 2016 December 31, 2015 Accounts and notes receivable, net: Trade $ 2,418 $ 2,480 Other 223 195 Total $ 2,641 $ 2,675 |
Inventories [Table Text Block] | Inventories In millions March 31, 2016 December 31, 2015 Raw materials $ 317 $ 339 Finished pulp, paper and packaging 1,223 1,248 Operating supplies 569 563 Other 108 78 Total $ 2,217 $ 2,228 |
Interest Income and Interest Expense Disclosure [Table Text Block] | Amounts related to interest were as follows: Three Months Ended In millions 2016 2015 Interest expense (a) $ 160 $ 159 Interest income (a) 37 22 Capitalized interest costs 7 7 |
GOODWILL AND OTHER INTANGIBLE32
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill Balances [Table Text Block] | The following table presents changes in goodwill balances as allocated to each business segment for the three -month period ended March 31, 2016 : In millions Industrial Packaging Printing Papers Consumer Packaging Total Balance as of January 1, 2016 Goodwill $ 3,325 $ 2,124 $ 1,664 $ 7,113 Accumulated impairment losses (a) (237 ) (1,877 ) (1,664 ) (3,778 ) 3,088 247 — 3,335 Reclassifications and other (b) 1 21 — 22 Additions/reductions — (3 ) (c) — (3 ) Balance as of March 31, 2016 Goodwill 3,326 2,142 1,664 7,132 Accumulated impairment losses (a) (237 ) (1,877 ) (1,664 ) (3,778 ) Total $ 3,089 $ 265 $ — $ 3,354 (a) Represents accumulated goodwill impairment charges since the adoption of ASC 350, “Intangibles – Goodwill and Other” in 2002. (b) Represents the effects of foreign currency translations and reclassifications. (c) Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil. |
Finite and Indefinite-Lived Intangible Assets [Table Text Block] | Identifiable intangible assets comprised the following: March 31, 2016 December 31, 2015 In millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships and lists $ 503 $ 179 $ 495 $ 166 Non-compete agreements 70 59 69 56 Tradenames, patents and trademarks 61 55 61 54 Land and water rights 12 3 33 6 Software 23 21 22 20 Other 39 24 46 29 Total $ 708 $ 341 $ 726 $ 331 |
Amortization Expense of Intangible Assets [Table Text Block] | The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended In millions 2016 2015 Amortization expense related to intangible assets $ 12 $ 13 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits and Related Accrued Estimated Interest and Penalties [Table Text Block] | The following table presents a rollforward of unrecognized tax benefits and related accrued estimated interest and penalties for the three months ended March 31, 2016 : In millions Unrecognized Tax Benefits Accrued Estimated Interest and Tax Penalties Balance at December 31, 2015 $ (150 ) $ (34 ) Activity for three months ended March 31, 2016 26 (1 ) Balance at March 31, 2016 $ (124 ) $ (35 ) |
Components of Net Income Tax Provisions Related to Special Items and Discontinued Operations [Table Text Block] | The components of the net provision related to special items were as follows: Three Months Ended In millions 2016 2015 Special items $ (3 ) $ — Tax-related adjustments: Internal restructurings (57 ) — 2010-2012 IRS audit closure (14 ) — Income tax provision (benefit) related to special items $ (74 ) $ — |
VARIABLE INTEREST ENTITIES AN34
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Entities [Member] | |
Activity Between Company And Entities [Table Text Block] | 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 In millions 2016 2015 Revenue (a) $ 24 $ 9 Expense (a) 32 18 Cash receipts (b) 29 10 Cash payments (c) 34 36 (a) For the three months ended March 31, 2016, the revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations. For the three months ended March 31, 2015, the net expense related to the Company’s interest in the Entities is included in the accompanying consolidated statement of operations, as International Paper has and intends to effect its legal right to offset as discussed above. (b) For the three months ended March 31, 2016, cash receipts are interest received on the Financial assets of special purpose entities. For the three months ended March 31, 2015, the cash receipts are equity distributions from the Entities to International Paper prior to the formation of the 2015 Financing Entities. (c) For the three months ended March 31, 2016, the payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. For the three months ended March 31, 2015, the cash payments are interest payments on the associated debt obligations of the Entities discussed above. |
2007 Financing Entities [Member] | |
Activity Between Company And Entities [Table Text Block] | Activity between the Company and the 2007 financing entities was as follows: Three Months Ended In millions 2016 2015 Revenue (a) $ 8 $ 6 Expense (b) 7 6 Cash receipts (c) 2 2 Cash payments (d) 6 4 (a) The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million for each of the three months ended March 31, 2016 and 2015 , respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of special purpose entities. (b) The expense is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $2 million for each of the three months ended March 31, 2016 and 2015 , respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Nonrecourse financial liabilities of special purpose entities. (c) The cash receipts are interest received on the Financial assets of special purpose entities. (d) The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Extinguishment [Table Text Block] | Amounts related to early debt extinguishment during the three months ended March 31, 2016 and 2015 were as follows: Three Months Ended In millions 2016 2015 Early debt reductions (a) $ — $ 217 Pre-tax early debt extinguishment costs — 1 (a) Reductions related to notes with interest rates ranging from 5.30% to 6.25% with original maturities from 2015 to 2025 for the three months ended March 31, 2015 |
DERIVATIVES AND HEDGING ACTIV36
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 December 31, 2015 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts (a) $ 310 $ 290 Derivatives in Fair Value Hedging Relationships: Interest rate contracts — 17 Derivatives Not Designated as Hedging Instruments: Electricity contract 7 16 Foreign exchange contracts 45 35 Interest rate contracts — 38 (a) These contracts had maturities of two years or less as of March 31, 2016 . |
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 In millions 2016 2015 Foreign exchange contracts $ 4 $ 6 Total $ 4 $ 6 |
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 In millions 2016 2015 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 1 $ (3 ) Cost of products sold Total $ 1 $ (3 ) Gain (Loss) Recognized Location of Gain (Loss) In Consolidated Statement of Operations Three Months Ended In millions 2016 2015 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ — $ 2 Interest expense, net Debt — (2 ) Interest expense, net Total $ — $ — Derivatives Not Designated as Hedging Instruments: Electricity contract $ (2 ) $ (1 ) Cost of products sold Foreign exchange contracts — (2 ) Cost of products sold Interest rate contracts 2 3 Interest expense, net Total $ — $ — |
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: 2016 2015 In millions Issued Terminated Undesignated Issued Terminated Undesignated First Quarter $ — $ 55 $ — $ — $ — $ — Total $ — $ 55 $ — $ — $ — $ — |
Impact Of Derivative Instruments In Consolidated Balance Sheet [Table Text Block] | The following table provides a summary of the impact of our derivative instruments in the consolidated balance sheet: Fair Value Measurements Level 2 – Significant Other Observable Inputs Assets Liabilities In millions March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 8 (a) $ 5 (b) $ 1 (d) $ 1 (d) Total derivatives designated as hedging instruments $ 8 $ 5 $ 1 $ 1 Derivatives not designated as hedging instruments Electricity contract $ — $ — $ 7 (c) $ 7 (e) Foreign exchange contracts 2 (b) — — — Total derivatives not designated as hedging instruments $ 2 $ — $ 7 $ 7 Total derivatives $ 10 $ 5 $ 8 $ 8 (a) Includes $7 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (b) Included in Other current assets in the accompanying consolidated balance sheet. (c) Includes $5 million recorded in Other accrued liabilities and $2 million recorded in Other liabilities in the accompanying consolidated balance sheet. (d) Included in Other accrued liabilities in the accompanying consolidated balance sheet. (e) Includes $4 million recorded in Other accrued liabilities and $3 million recorded in Other liabilities in the accompanying consolidated balance sheet. |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 In millions 2016 2015 Service cost $ 37 $ 39 Interest cost 156 149 Expected return on plan assets (206 ) (196 ) Actuarial loss 94 119 Amortization of prior service cost 10 11 Net periodic pension expense $ 91 $ 122 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 In millions 2016 2015 Total stock-based compensation expense (selling and administrative) $ 26 $ 33 Income tax benefits related to stock-based compensation 33 89 |
INDUSTRY SEGMENT INFORMATION (T
INDUSTRY SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment [Table Text Block] | Sales by industry segment for the three months ended March 31, 2016 and 2015 were as follows: Three Months Ended In millions 2016 2015 Industrial Packaging $ 3,452 $ 3,553 Printing Papers 1,184 1,228 Consumer Packaging 495 778 Corporate and Intersegment Sales (21 ) (42 ) Net Sales $ 5,110 $ 5,517 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating profit by industry segment for the three months ended March 31, 2016 and 2015 were as follows: Three Months Ended In millions 2016 2015 Industrial Packaging $ 396 (a) $ 468 Printing Papers 85 109 Consumer Packaging 16 (b) 46 Operating Profit 497 623 Interest expense, net (123 ) (137 ) Noncontrolling interests/equity earnings adjustment (c) — 1 Corporate items, net (21 ) (9 ) Restructuring and other charges 8 — Non-operating pension expense (44 ) (72 ) Earnings (loss) from continuing operations before income taxes and equity earnings $ 317 $ 406 Equity earnings (loss), net of taxes – Ilim $ 62 $ 39 (a) Includes a charge of $37 million for the three months ended March 31, 2016 for the impairment of the assets of our corrugated packaging business in Asia and costs associated with the announced definitive agreement to sell the business. (b) Includes a charge of $9 million for the three months ended March 31, 2016 for costs associated with the Riegelwood mill conversion to 100% pulp production. (c) Operating profits for industry segments include each segment's percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings. |
EQUITY Table (Details)
EQUITY Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Line Items] | ||
Beginning balance | $ 3,909 | $ 5,263 |
Issuance of stock for various plans, net | (6) | 141 |
Repurchase of stock | (131) | (141) |
Common stock dividends ($0.4400 per share in 2016 and $0.4000 per share in 2015) | (183) | (174) |
Transactions of equity method investees | 17 | 0 |
Comprehensive income (loss) | 654 | (86) |
Ending balance | 4,260 | 5,003 |
Total International Paper Shareholders' Equity [Member] | ||
Equity [Line Items] | ||
Beginning balance | 3,884 | 5,115 |
Issuance of stock for various plans, net | (6) | 141 |
Repurchase of stock | (131) | (141) |
Common stock dividends ($0.4400 per share in 2016 and $0.4000 per share in 2015) | (183) | (174) |
Transactions of equity method investees | 17 | 0 |
Comprehensive income (loss) | 653 | (83) |
Ending balance | 4,234 | 4,858 |
Noncontrolling Interests [Member] | ||
Equity [Line Items] | ||
Beginning balance | 25 | 148 |
Issuance of stock for various plans, net | 0 | 0 |
Repurchase of stock | 0 | 0 |
Common stock dividends ($0.4400 per share in 2016 and $0.4000 per share in 2015) | 0 | 0 |
Transactions of equity method investees | 0 | 0 |
Comprehensive income (loss) | 1 | (3) |
Ending balance | $ 26 | $ 145 |
EQUITY Phantom (Details)
EQUITY Phantom (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Line Items] | ||
Common stock dividends, per share | $ 0.4400 | $ 0.4000 |
Total International Paper Shareholders' Equity [Member] | ||
Equity [Line Items] | ||
Common stock dividends, per share | 0.4400 | 0.4000 |
Noncontrolling Interests [Member] | ||
Equity [Line Items] | ||
Common stock dividends, per share | $ 0.4400 | $ 0.4000 |
OTHER COMPREHENSIVE INCOME Sche
OTHER COMPREHENSIVE INCOME Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | [1] | $ (5,708) | $ (4,646) | ||||
Other comprehensive income (loss), before reclassifications, net of tax | [1] | $ 257 | $ (478) | ||||
Reclassification from accumulated other comprehensive income, current period, net of tax | [1] | 63 | 81 | ||||
Other comprehensive income (loss), net of tax | [1] | 320 | (397) | ||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | [1] | (1) | 1 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (5,389) | [1] | (5,042) | [1] | (5,708) | ||
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] | (3,169) | (3,134) | ||||
Other comprehensive income (loss), before reclassifications, net of tax | [1] | 17 | 0 | ||||
Reclassification from accumulated other comprehensive income, current period, net of tax | [1] | 64 | 78 | ||||
Other comprehensive income (loss), net of tax | [1] | 81 | 78 | ||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | [1] | 0 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [1] | (3,088) | (3,056) | ||||
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] | (2,549) | (1,513) | ||||
Other comprehensive income (loss), before reclassifications, net of tax | [1] | 236 | (484) | ||||
Reclassification from accumulated other comprehensive income, current period, net of tax | [1] | 0 | 0 | ||||
Other comprehensive income (loss), net of tax | [1] | 236 | (484) | ||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | [1] | (1) | 1 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [1] | (2,314) | (1,996) | ||||
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] | $ 10 | $ 1 | ||||
Other comprehensive income (loss), before reclassifications, net of tax | [1] | 4 | 6 | ||||
Reclassification from accumulated other comprehensive income, current period, net of tax | [1] | (1) | 3 | ||||
Other comprehensive income (loss), net of tax | [1] | 3 | 9 | ||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | [1] | 0 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [1] | $ 13 | $ 10 | ||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
OTHER COMPREHENSIVE INCOME Sc43
OTHER COMPREHENSIVE INCOME Schedule of Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Earnings (Loss) From Continuing Operations | $ 339 | $ 311 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Earnings (Loss) From Continuing Operations | [1] | (63) | (81) |
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) | (8) |
Actuarial gains (losses) | [1],[2] | (95) | (120) |
Total pre-tax amount | [1] | (104) | (128) |
Other comprehensive (income) loss, reclassification adjustment from AOCI, pension and other postretirement benefit plans, tax | [1] | 40 | 50 |
Earnings (Loss) From Continuing Operations | [1] | (64) | (78) |
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] | 1 | (6) |
Other comprehensive income (loss), unrealized gain (loss) on derivatives arising during period, tax | [1] | 0 | 3 |
Earnings (Loss) From Continuing Operations | [1] | 1 | (3) |
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] | $ 1 | $ (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 ATTRIBUTAB44
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS Table (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Earnings Per Share, Basic and Diluted [Line Items] | |||
Earnings (loss) from continuing operations | $ 339 | $ 313 | |
Effect of dilutive securities (a) | [1] | 0 | 0 |
Earnings (loss) from continuing operations - assuming dilution | $ 339 | $ 313 | |
Average common shares outstanding | 410.8 | 421.2 | |
Average common shares outstanding - assuming dilution | 414 | 423.7 | |
Basic earnings (loss) from continuing operations per common share | $ 0.82 | $ 0.74 | |
Diluted earnings (loss) from continuing operations per common share | $ 0.82 | $ 0.74 | |
Restricted Stock Performance Share Plan [Member] | |||
Earnings Per Share, Basic and Diluted [Line Items] | |||
Effect of dilutive securities (in shares) | [1] | 3.2 | 2.5 |
[1] | Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING AND OTHER CHARG45
RESTRUCTURING AND OTHER CHARGES Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | $ 1 | $ 0 |
Sale of investment in Arizona Chemical [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | (8) | |
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 | $ 9 |
RESTRUCTURING AND OTHER CHARG46
RESTRUCTURING AND OTHER CHARGES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring and other charges | $ 1 | $ 0 |
ACQUISITIONS Narrative (Details
ACQUISITIONS Narrative (Details) - Mar. 16, 2016 - Holmen Newspring Mill [Member] € in Millions, $ in Millions | USD ($)Tons | EUR (€)Tons |
Business Acquisition [Line Items] | ||
Ownership percentage to be purchased | 50.00% | 50.00% |
Annual production capacity in metric tons | Tons | 380,000 | 380,000 |
Anticipated net investment | € | € 50 | |
Anticipated net investment | $ | $ 57 |
DIVESTITURES _ SPINOFF Details
DIVESTITURES / SPINOFF Details of Major Assets and Liabilities Included as Part of Disposal Group Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 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 | $ 216 | $ 0 | ||
Payables and other short-term liabilities held for sale | 98 | 0 | ||
Shareholder's Equity held for sale | 4,234 | 3,884 | ||
Noncontrolling interests | 26 | 25 | ||
Total equity held for sale | 4,260 | $ 3,909 | $ 5,003 | $ 5,263 |
IP Asia Packaging [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 | 127 | |||
Plants, properties and equipment held for sale | 89 | |||
Deferred charges and other assets held for sale | 37 | |||
Total assets held for sale before impairment | 253 | |||
Impairment of long-lived assets to be disposed of | (37) | |||
Total assets held for sale | 216 | |||
Payables and other short-term liabilities held for sale | 41 | |||
Debt held for sale | 43 | |||
Other long-term liabilities held for sale | 14 | |||
Total liabilities held for sale | 98 | |||
Shareholder's Equity held for sale | 116 | |||
Noncontrolling interests | 2 | |||
Total equity held for sale | 118 | |||
Total liabilities and equity held for sale | $ 216 |
DIVESTITURES _ SPINOFF Narrativ
DIVESTITURES / SPINOFF Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of long-lived assets to be disposed of | $ (37) | $ 0 |
Xiamen Bridge Hexing Equity Investment Partnership Enterprise [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Liabilities assumed | 57 | |
IP Asia Packaging [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] | ||
Disposal Group, Including Discontinued Operation, Consideration in RMB | 1,000 | |
Disposal group, including discontinued operation, consideration | 155 | |
Assets held-for-sale, long lived, fair value disclosure | 155 | |
Impairment of long-lived assets to be disposed of | 37 | |
Income (loss) from individually significant component disposed of or held-for-sale, excluding discontinued operations, attributable to parent, before income tax | 41 | $ 2 |
Total assets held for sale | 216 | |
Total liabilities held for sale | $ 98 |
SUPPLEMENTAL FINANCIAL STATEM50
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Accounts and Notes Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts, Notes, Loans and Financing Receivable, Net, Current | $ 2,641 | $ 2,675 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts, Notes, Loans and Financing Receivable, Net, Current | 2,418 | 2,480 |
Other Account Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts, Notes, Loans and Financing Receivable, Net, Current | $ 223 | $ 195 |
SUPPLEMENTAL FINANCIAL STATEM51
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Inventories by Major Category (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 317 | $ 339 |
Finished pulp, paper and packaging | 1,223 | 1,248 |
Operating supplies | 569 | 563 |
Other | 108 | 78 |
Inventory, Net | $ 2,217 | $ 2,228 |
SUPPLEMENTAL FINANCIAL STATEM52
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Interest Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Supplemental Income Statement Elements [Abstract] | |||
Interest Expense | [1] | $ 160 | $ 159 |
Investment Income, Interest | [1] | 37 | 22 |
Interest Costs Capitalized | $ 7 | $ 7 | |
[1] | Interest expense and interest income exclude approximately $9 million for the three months ended March 31, 2015, related to investments in and borrowings from variable interest entities for which the Company had a legal right of offset (see Note 13). |
SUPPLEMENTAL FINANCIAL STATEM53
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Interest Income and Expense Footnotes (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Supplemental Income Statement Elements [Abstract] | |
Variable Interest Entity, Measure of Activity, Operating Income or Loss | $ 9 |
SUPPLEMENTAL FINANCIAL STATEM54
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |||
Temporary investments | $ 879 | $ 738 | |
Allowance for doubtful accounts | 69 | 70 | |
Accumulated depreciation | 21,000 | $ 20,700 | |
Depreciation expense | 267 | $ 304 | |
Interest payments | $ 136 | $ 129 |
GOODWILL AND OTHER INTANGIBLE55
GOODWILL AND OTHER INTANGIBLES Changes in Goodwill Balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Goodwill [Line Items] | |||
Beginning balance | $ 7,113 | ||
Accumulated impairment losses (a) | [1] | (3,778) | |
Total | 3,354 | $ 3,335 | |
Reclassifications and other | [2] | 22 | |
Additions/reductions | (3) | ||
Ending balance | 7,132 | ||
Accumulated impairment losses (a) | [1] | (3,778) | |
Industrial Packaging [Member] | |||
Goodwill [Line Items] | |||
Beginning balance | 3,325 | ||
Accumulated impairment losses (a) | [1] | (237) | |
Total | 3,089 | 3,088 | |
Reclassifications and other | [2] | 1 | |
Additions/reductions | 0 | ||
Ending balance | 3,326 | ||
Accumulated impairment losses (a) | [1] | (237) | |
Printing Papers [Member] | |||
Goodwill [Line Items] | |||
Beginning balance | 2,124 | ||
Accumulated impairment losses (a) | [1] | (1,877) | |
Total | 265 | 247 | |
Reclassifications and other | [2] | 21 | |
Additions/reductions | [3] | (3) | |
Ending balance | 2,142 | ||
Accumulated impairment losses (a) | [1] | (1,877) | |
Consumer Packaging [Member] | |||
Goodwill [Line Items] | |||
Beginning balance | 1,664 | ||
Accumulated impairment losses (a) | [1] | (1,664) | |
Total | 0 | $ 0 | |
Reclassifications and other | [2] | 0 | |
Additions/reductions | 0 | ||
Ending balance | 1,664 | ||
Accumulated impairment losses (a) | [1] | $ (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. | ||
[3] | Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil. |
GOODWILL AND OTHER INTANGIBLE56
GOODWILL AND OTHER INTANGIBLES Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite And Indefinite Lived Intangible Assets Gross | $ 708 | $ 726 |
Finite-Lived Intangible Assets, Accumulated Amortization | 341 | 331 |
Customer-Related Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 503 | 495 |
Finite-Lived Intangible Assets, Accumulated Amortization | 179 | 166 |
Noncompete Agreements [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 70 | 69 |
Finite-Lived Intangible Assets, Accumulated Amortization | 59 | 56 |
Intellectual Property [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite And Indefinite Lived Intangible Assets Gross | 61 | 61 |
Finite-Lived Intangible Assets, Accumulated Amortization | 55 | 54 |
Use Rights [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite And Indefinite Lived Intangible Assets Gross | 12 | 33 |
Finite-Lived Intangible Assets, Accumulated Amortization | 3 | 6 |
Computer Software, Intangible Asset [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 23 | 22 |
Finite-Lived Intangible Assets, Accumulated Amortization | 21 | 20 |
Other Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 39 | 46 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 24 | $ 29 |
GOODWILL AND OTHER INTANGIBLE57
GOODWILL AND OTHER INTANGIBLES Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization of intangible assets | $ 12 | $ 13 |
INCOME TAXES Unrecognized Tax B
INCOME TAXES Unrecognized Tax Benefits and Related Accrued Estimated Interest and Penalties (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Schedule of Unrecognized Tax Benefits and Related Accrued Estimated Interest and Penalties [Line Items] | |
Beginning balance, unrecognized tax benefits | $ (150) |
Activity for three months, unrecognized tax benefits | 26 |
Ending balance, unrecognized tax benefits | (124) |
Beginning balance, accrued estimated interest and tax penalties | (34) |
Activity for the three months, accrued estimated interest | (1) |
Ending balance, accrued estimated interest and tax penalties | $ (35) |
INCOME TAXES Components of Net
INCOME TAXES Components of Net Income Tax Provisions Related to Special Items and Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | $ (74) | $ 0 |
Special Items [Member] | ||
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | (3) | 0 |
Internal Restructuring [Member] | ||
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | (57) | 0 |
Settlement With Taxing Authority and Legislative Changes [Member] | ||
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | $ (14) | $ 0 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes Paid, Net | $ 6 | $ 26 |
Estimated reduction of unrecognized tax benefits | 24 | |
Income tax provision benefit related to special items | $ (74) | $ 0 |
COMMITMENTS AND CONTINGENCIES E
COMMITMENTS AND CONTINGENCIES Environmental Remediation Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Jun. 30, 2011 |
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 93 | |
Environmental exit costs, assets previously disposed, liability for remediation | 43 | |
Cass Lake, Minnesota [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 47 | $ 46 |
COMMITMENTS AND CONTINGENCIES L
COMMITMENTS AND CONTINGENCIES Litigation (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Sep. 30, 2010 | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
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 | $ 37 | $ 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 | ||
Vicksburg [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 | $ 0.1 | ||
BRAZIL | |||
Loss Contingencies [Line Items] | |||
Loss contingency, damages sought, value | $ 92 |
VARIABLE INTEREST ENTITIES AN63
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Activity Between Company and Entities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Entities [Member] | |||
Variable Interest Entity [Line Items] | |||
Revenue | [1] | $ 24 | $ 9 |
Expense | [1] | 32 | 18 |
Cash receipts | [2] | 29 | 10 |
Cash payments | [3] | 34 | 36 |
2007 Financing Entities [Member] | |||
Variable Interest Entity [Line Items] | |||
Revenue | [4] | 8 | 6 |
Expense | [5] | 7 | 6 |
Cash receipts | [6] | 2 | 2 |
Cash payments | [7] | $ 6 | $ 4 |
[1] | For the three months ended March 31, 2016, the revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations. For the three months ended March 31, 2015, 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] | For the three months ended March 31, 2016, cash receipts are interest received on the Financial assets of special purpose entities. For the three months ended March 31, 2015, the cash receipts are equity distributions from the Entities to International Paper prior to the formation of the 2015 Financing Entities. | ||
[3] | For the three months ended March 31, 2016, the payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. For the three months ended March 31, 2015, the cash payments are interest payments on the associated debt obligations of the Entities discussed above. | ||
[4] | The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million for each of the three months ended March 31, 2016 and 2015, respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of special purpose entities. | ||
[5] | The expense is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $2 million for each of the three months ended March 31, 2016 and 2015, respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Nonrecourse financial liabilities of special purpose entities. | ||
[6] | The cash receipts are interest received on the Financial assets of special purpose entities. | ||
[7] | The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
VARIABLE INTEREST ENTITIES AN64
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Activity Between Company and Entities Footnotes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2006 | |
Variable Interest Entity [Line Items] | ||
Accretion income for amortization of purchase accounting adjustment, financial assets | $ 5 | |
Accretion expense for amortization of purchase accounting adjustment, financial liabiities | $ 2 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Class B Interest In Entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Other Ownership Interests, Contributed Capital | $ 5,000 |
VARIABLE INTEREST ENTITIES AN65
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Narrative (Details) a in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Oct. 31, 2007USD ($)a | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2006USD ($)a | Dec. 31, 2015USD ($) | Sep. 30, 2012USD ($) | Dec. 31, 2007USD ($) | ||
Variable Interest Entity [Line Items] | ||||||||
International Paper debt obligations held by the Entities | $ 9,400 | |||||||
Cash and temporary investments | 1,155 | $ 1,050 | ||||||
Remainder of the borrowing included in long-term debt | 8,824 | 8,844 | ||||||
Additional debt included in notes payable and current maturities | 551 | 426 | ||||||
Debt reductions | [1] | 0 | $ 217 | |||||
Accretion income for amortization of purchase accounting adjustment, financial assets | 5 | |||||||
Accretion expense for amortization of purchase accounting adjustment, financial liabiities | 2 | |||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
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 Interest In Entities [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Class B interests held in entities in December 2006 | 5,000 | |||||||
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 | |||||||
Letters of credit issued that support Timber Notes | $ 4,800 | |||||||
ip_Extension Loans requiring LC banks to maintain credit rating at or above a specified threshold | $ 1,100 | |||||||
Notes receivable, fair value disclosure | 4,800 | |||||||
Long-term debt, fair value | 4,370 | |||||||
Deferred tax liabilities, other | 1,400 | |||||||
2015 Refinance Loans [Domain] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Remainder of the borrowing included in long-term debt | 4,200 | |||||||
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 | $ 2,100 | |||||||
Timber Notes [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Forestlands acreage sales | a | 5,600 | |||||||
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 | |||||||
Deferred tax liabilities, other | $ 840 | |||||||
[1] | Reductions related to notes with interest rates ranging from 5.30% to 6.25% with original maturities from 2015 to 2025 for the three months ended March 31, 2015. |
DEBT Debt Extinguishment (Detai
DEBT Debt Extinguishment (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Extinguishment of Debt [Line Items] | |||
Debt reductions | [1] | $ 0 | $ 217 |
Write off of deferred debt issuance cost | $ 0 | $ 1 | |
[1] | Reductions related to notes with interest rates ranging from 5.30% to 6.25% with original maturities from 2015 to 2025 for the three months ended March 31, 2015. |
DEBT Debt Extinguishment Footno
DEBT Debt Extinguishment Footnotes (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Extinguishment of Debt [Line Items] | ||
Weighted Average Number of Shares Outstanding, Basic | 410.8 | 421.2 |
Debt instrument, interest rate, stated percentage rate range, minimum | 5.30% | |
Debt instrument, interest rate, stated percentage rate range, maximum | 6.25% | |
Debt instrument, maturity date range, start | Jan. 1, 2015 | |
Debt instrument, maturity date range, end | Jan. 1, 2025 |
DEBT Narrative (Details)
DEBT Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Apr. 01, 2016 | ||
Debt Instrument [Line Items] | |||||
Extinguishment of debt, amount | [1] | $ 0 | $ 217 | ||
Debt instrument, maturity date range, end | Jan. 1, 2025 | ||||
Debt and capital lease obligations | 9,400 | ||||
Debt fair value | 10,200 | ||||
Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from issuance of secured debt | $ 400 | ||||
Debt instrument, interest rate, stated percentage | 1.22% | ||||
Repayments of secured debt | $ 185 | ||||
Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, expiration date | Dec. 31, 2016 | ||||
Subsequent Event [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of secured debt | $ 100 | ||||
Line of credit facility, maximum borrowing capacity | $ 250 | ||||
Line of credit facility, commitment fee percentage | 0.15% | ||||
Proceeds from lines of credit | $ 230 | ||||
Subsequent Event [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of debt, amount | $ 261 | ||||
[1] | Reductions related to notes with interest rates ranging from 5.30% to 6.25% with original maturities from 2015 to 2025 for the three months ended March 31, 2015. |
DERIVATIVES AND HEDGING ACTIV69
DERIVATIVES AND HEDGING ACTIVITIES Schedule of Notional Amounts of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Notional Amount | $ 45 | $ 35 | |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Notional Amount | 0 | 38 | |
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Notional Amount | 7 | 16 | |
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Notional Amount | 310 | [1] | 290 |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Notional Amount | $ 0 | $ 17 | |
[1] | These contracts had maturities of two years or less as of March 31, 2016. |
DERIVATIVES AND HEDGING ACTIV70
DERIVATIVES AND HEDGING ACTIVITIES Schedule of Notional Amounts of Financial Instruments Other (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 2 years |
DERIVATIVES AND HEDGING ACTIV71
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 4 | $ 6 |
Foreign Exchange Forward [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 4 | $ 6 |
DERIVATIVES AND HEDGING ACTIV72
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
InterestIncomeExpense [Member] | Debt [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $ 0 | $ (2) |
Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
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 | (2) | (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 | 0 | (2) |
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 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Designated as Hedging Instrument [Member] | Cost of Products Sold [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 1 | (3) |
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) | 1 | (3) |
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 | $ 2 |
DERIVATIVES AND HEDGING ACTIV73
DERIVATIVES AND HEDGING ACTIVITIES Schedule of Interest Rate Derivative Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative [Line Items] | ||
Notional Amount Of Derivative Instrument, Terminated | $ 55 | $ 0 |
Notional Amount Of Derivative Instrument, Undesignated | 0 | 0 |
Notional Amount Of Derivative Instrument, Issued | 0 | 0 |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount Of Derivative Instrument, Undesignated | 0 | 0 |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount Of Derivative Instrument, Terminated | 55 | 0 |
Notional Amount Of Derivative Instrument, Issued | $ 0 | $ 0 |
DERIVATIVES AND HEDGING ACTIV74
DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | $ 10 | $ 5 | |||
Derivative Liabilities | 8 | 8 | |||
Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 8 | 5 | |||
Derivative Liabilities | 1 | 1 | |||
Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 2 | 0 | |||
Derivative Liabilities | 7 | 7 | |||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 2 | [1] | 0 | ||
Derivative Liabilities | 0 | 0 | |||
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 0 | 0 | |||
Derivative Liabilities | 7 | [2] | 7 | [3] | |
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 8 | [4] | 5 | [1] | |
Derivative Liabilities | [5] | $ 1 | $ 1 | ||
[1] | Included in Other current assets in the accompanying consolidated balance sheet. | ||||
[2] | Includes $5 million recorded in Other accrued liabilities and $2 million recorded in Other liabilities in the accompanying consolidated balance sheet. | ||||
[3] | Includes $4 million recorded in Other accrued liabilities and $3 million recorded in Other liabilities in the accompanying consolidated balance sheet. | ||||
[4] | Includes $7 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | ||||
[5] | Included in Other accrued liabilities in the accompanying consolidated balance sheet. |
DERIVATIVES AND HEDGING ACTIV75
DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet Other (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 10 | $ 5 |
Derivative Liabilities | 8 | 8 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 7 | |
Deferred Charges and Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | |
Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 5 | 4 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 2 | 3 |
Foreign Exchange Forward [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 2 | 5 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 8 | 5 |
Derivative Liabilities | 1 | 1 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 1 | $ 1 |
DERIVATIVES AND HEDGING ACTIV76
DERIVATIVES AND HEDGING ACTIVITIES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
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 | 5 | |
Fair Values of Derivative Instruments Containing Credit Risk-Related Contingent Features in a Net Liability Position | $ 0 | $ 1 |
RETIREMENT PLANS Net Periodic P
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 37 | $ 39 |
Interest cost | 156 | 149 |
Expected return on plan assets | (206) | (196) |
Actuarial loss | 94 | 119 |
Amortization of prior service cost | 10 | 11 |
Net periodic benefit expense | $ 91 | $ 122 |
RETIREMENT PLANS Narrative (Det
RETIREMENT PLANS Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Non Qualified [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefits paid | $ 5 |
STOCK-BASED COMPENSATION Schedu
STOCK-BASED COMPENSATION Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Employee service share-based compensation, tax benefit from compensation expense | $ 33 | $ 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 | $ 26 | $ 33 |
STOCK-BASED COMPENSATION Narrat
STOCK-BASED COMPENSATION Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / 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 | $ | $ 193 |
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 12 months 11 days |
Granted, nonvested shares / units | 2.6 |
Granted, nonvested, weighted average grant date fair value | $ / shares | $ 37.26 |
Stock Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant under ICP | 14.2 |
INDUSTRY SEGMENT INFORMATION Sa
INDUSTRY SEGMENT INFORMATION Sales by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Net Sales | $ 5,110 | $ 5,517 |
Industrial Packaging [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 3,452 | 3,553 |
Printing Papers [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 1,184 | 1,228 |
Consumer Packaging [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 495 | 778 |
Corporate and Intersegment Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ (21) | $ (42) |
INDUSTRY SEGMENT INFORMATION Op
INDUSTRY SEGMENT INFORMATION Operating Profit by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | $ 497 | $ 623 | ||
Interest expense, net | (123) | (137) | ||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 317 | 406 | ||
Equity earnings (loss), net of taxes | 63 | 35 | ||
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 | 62 | 39 | ||
Corporate and Intersegment Sales [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Interest expense, net | (123) | (137) | ||
Noncontrolling interests/equity earnings adjustment | [1] | 0 | 1 | |
Corporate items, net | (21) | (9) | ||
Restructuring and other charges | 8 | 0 | ||
Non-operating pension expense | (44) | (72) | ||
Industrial Packaging [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | 396 | [2] | 468 | |
Printing Papers [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | 85 | 109 | ||
Consumer Packaging [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | $ 16 | [3] | $ 46 | |
[1] | Operating profits for industry segments include each segment's percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings. | |||
[2] | Includes a charge of $37 million for the three months ended March 31, 2016 for the impairment of the assets of our corrugated packaging business in Asia and costs associated with the announced definitive agreement to sell the business. | |||
[3] | Includes a charge of $9 million for the three months ended March 31, 2016 for costs associated with the Riegelwood mill conversion to 100% pulp production. |
INDUSTRY SEGMENT INFORMATION 83
INDUSTRY SEGMENT INFORMATION Operating Profit by Industry Segment Footnotes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Impairment of long-lived assets to be disposed of | $ (37) | $ 0 |
Restructuring and other charges | 1 | $ 0 |
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 | 9 | |
IP Asia Packaging [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Impairment of long-lived assets to be disposed of | $ 37 |
INDUSTRY SEGMENT INFORMATION Na
INDUSTRY SEGMENT INFORMATION Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Income (loss) from equity method investments | $ 63 | $ 35 | |
Reportable Subsegments [Member] | Ilim Holding [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of equity interest | 50.00% | ||
Equity method investments | $ 234 | $ 172 | |
Equity method investment, difference between carrying amount and underlying equity | 164 | $ 161 | |
Related party transaction, purchases from related party | 39 | 43 | |
Ilim Holding [Member] | Reportable Subsegments [Member] | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from equity method investments | $ 62 | $ 39 |
SUBSEQUENT EVENT Narrative (Det
SUBSEQUENT EVENT Narrative (Details) - Subsequent Event [Member] - Weyerhaeuser Pulp Business [Member] $ in Millions | May. 02, 2016USD ($)Facilities |
Subsequent Event [Line Items] | |
Payments to acquire businesses, gross | $ | $ 2,200 |
Estimated realized tax benefit | $ | $ 300 |
2611 Pulp Mills [Member] | |
Subsequent Event [Line Items] | |
Number of facilities to be acquired | Facilities | 5 |
Converting facility [Member] | |
Subsequent Event [Line Items] | |
Number of facilities to be acquired | Facilities | 2 |