GOODWILL AND OTHER INTANGIBLES (Tables)

9 Months Ended

Sep. 30, 2012

Changes in Goodwill Balances

The following table presents changes in goodwill balances as allocated to each business segment for the nine-month period ended September 30, 2012:

In millions	Industrial Packaging			Printing Papers				Consumer Packaging				Distribution		Total
Balance as of January 1, 2012
Goodwill	$	1,157		$	2,439			$	1,779			$	400	$	5,775
Accumulated impairment losses (a)	—			(1,765		)		(1,664		)		—		(3,429		)
	1,157			674				115				400		2,346
Reclassifications and other (b)	—			(35		)		—				—		(35		)
Additions/reductions	2,089		(c)	3			(d)	3			(e)	—		2,095
Balance as of September 30, 2012
Goodwill	3,246			2,407				1,782				400		7,835
Accumulated impairment losses (a)	—			(1,765		)		(1,664		)		—		(3,429		)
Total	$	3,246		$	642			$	118			$	400	$	4,406

(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) Represents the acquisition of Temple-Inland, net of amounts written off related to the divestiture of two Temple-Inland Mills (Ontario, California and New Johnsonville, Tennessee) and one International Paper mill (Oxnard (Hueneme), California).

(d) Reflects an increase related to a purchase price adjustment for Andhra Pradesh Paper Mills in India partially offset by a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil.

(e) Represents the impact of the change in estimate of the contributed land in the Shandong IP & Sun Food Packaging Co., Ltd. joint venture in China entered into in 2011.

Identifiable Intangible Assets

Identifiable intangible assets comprised the following:

	September 30, 2012				December 31, 2011
In millions	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships and lists	$	567	$	107	$	227	$	82
Non-compete agreements	92		26		72		19
Tradenames, patents and trademarks	143		29		51		21
Land and water rights	64		5		60		3
Fuel and power agreements	20		12		30		16
Software	22		22		37		29
Other	37		15		27		13
Total	$	945	$	216	$	504	$	183

Amortization Expense Of Intangible Assets

The Company recognized the following amounts as amortization expense related to intangible assets:

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2012		2011		2012		2011
Amortization expense related to intangible assets	$	28	$	8	$	43	$	25