ACQUISITIONS AND JOINT VENTURES (Tables)

9 Months Ended

Sep. 30, 2012

Pro Forma Information on Consolidated Results of Operations Related to Acquisitions

This information does not purport to represent International Paper’s actual results of operations if the transaction described above would have occurred on January 1, 2011, nor is it necessarily indicative of future results.

	Nine Months Ended September 30,
In millions, except per share amounts	2012		2011
Net sales	$	21,050	$	22,616
Earnings (loss) from continuing operations (1)	519		856
Net earnings (loss) (1)	546		895
Diluted earnings (loss) from continuing operations per common share (1)	1.18		1.96
Diluted net earnings (loss) per common share (1)	1.24		2.04

(1) Attributable to International Paper Company common shareholders.

Andhra Pradesh Paper Mills Limited

Fair Value of Assets and Liabilities Acquired

The following table summarizes the allocation of the purchase price to the fair value of assets and liabilities acquired as of October 14, 2011.

In millions
Cash and temporary investments	$	3
Accounts and notes receivable, net	7
Inventory	43
Other current assets	13
Plants, properties and equipment	352
Goodwill	138
Deferred tax asset	4
Other intangible assets	91
Other long-term assets	1
Total assets acquired	652
Accounts payable and accrued liabilities	67
Long-term debt	47
Other liabilities	11
Deferred tax liability	90
Total liabilities assumed	215
Noncontrolling interest	37
Net assets acquired	$	400

Identifiable Finite and Indefinite Intangible Assets Acquired in Connection With Acquisition

The identifiable intangible assets acquired in connection with the APPM acquisition included the following:

In millions	Estimated Fair  Value		Average Remaining Useful Life
			(at acquisition date)
Asset Class:
Non-compete agreement	$	58	6 years
Tradename	20		Indefinite
Fuel supply agreements	5		2 years
Power purchase arrangements	5		5 years
Wholesale distribution network	3		18 years
Total	$	91

Temple-Inland Inc.

Fair Value of Assets and Liabilities Acquired

The following summarizes the preliminary allocation of the purchase price to the fair value of assets and liabilities acquired as of February 13, 2012.

In millions
Accounts and notes receivable	$	468
Inventory	484
Deferred income tax assets – current	217
Other current assets	57
Plants, properties and equipment	2,866
Financial assets of special purpose entities	2,091
Goodwill	2,207
Other intangible assets	602
Deferred charges and other assets	261
Total assets acquired	9,253
Notes payable and current maturities of long-term debt	130
Accounts payable and accrued liabilities	681
Long-term debt	527
Nonrecourse financial liabilities of special purpose entities	2,030
Deferred income tax liability	1,291
Pension benefit obligation	338
Postretirement and postemployment benefit obligation	99
Other liabilities	423
Total liabilities assumed	5,519
Net assets acquired	$	3,734

Identifiable Finite and Indefinite Intangible Assets Acquired in Connection With Acquisition

The identifiable intangible assets acquired in connection with the Temple-Inland acquisition included the following:

In millions	Estimated Fair  Value		Average Remaining Useful Life
			(at acquisition date)
Asset Class:
Customer relationships	$	456	12-17 years
Developed technology	7		5-10 years
Tradenames	103		Indefinite
Favorable contracts	10		4-7 years
Non-compete agreement	26		2 years
Total	$	602