New York | 13-0872805 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
6400 Poplar Avenue, Memphis, Tennessee | 38197 | |
(Address of principal executive offices) | (ZIP Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description | |
99.1 | Press Release of International Paper Company dated October 28, 2015. |
International Paper Company | |||
Date: October 28, 2015 | By: | /s/ TERRI L. HERRINGTON | |
Name: | Terri L. Herrington | ||
Title: | Vice President - Finance and Controller |
Exhibit Number | Description | |
99.1 | Press Release of International Paper Company dated October 28, 2015. |
Third Quarter 2015 | Second Quarter 2015 | Third Quarter 2014 | ||||||||||
Net Earnings | $ | 0.53 | $ | 0.54 | $ | 0.83 | ||||||
Less – Discontinued Operations (Gain) Loss | — | — | (0.04 | ) | ||||||||
Net Earnings (Loss) from Continuing Operations | 0.53 | 0.54 | 0.79 | |||||||||
Add Back – Net Special Items Expense | 0.33 | 0.36 | 0.08 | |||||||||
Add Back – Non-Operating Pension Expense | 0.11 | 0.07 | 0.08 | |||||||||
Operating Earnings* | $ | 0.97 | $ | 0.97 | $ | 0.95 |
* | Operating Earnings is defined as net earnings from continuing operations attributable to International Paper Company (GAAP) excluding special items and non-operating pension expense. |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||||
Net Sales | $ | 5,691 | $ | 6,051 | $ | 5,714 | $ | 16,922 | $ | 17,674 | |||||||||||
Costs and Expenses | |||||||||||||||||||||
Cost of products sold | 3,891 | 4,055 | (d) | 3,968 | (i) | 11,703 | 12,149 | (d) | |||||||||||||
Selling and administrative expenses | 417 | 467 | (e) | 403 | 1,226 | 1,331 | (n) | ||||||||||||||
Depreciation, amortization and cost of timber harvested | 329 | 358 | 328 | 980 | 1,060 | ||||||||||||||||
Distribution expenses | 334 | 394 | 367 | 1,058 | 1,137 | ||||||||||||||||
Taxes other than payroll and income taxes | 39 | 43 | 44 | 127 | 137 | ||||||||||||||||
Restructuring and other charges | 25 | (a) | 24 | (f) | 194 | (j) | 219 | (l) | 830 | (o) | |||||||||||
Impairment of business | 186 | (b) | — | — | 186 | (b) | — | ||||||||||||||
Interest expense, net | 141 | 158 | (g) | 144 | 422 | 465 | (g) | ||||||||||||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 329 | (a,b) | 552 | (d-g) | 266 | (i,j) | 1,001 | (b,l) | 565 | (d,g,n,o) | |||||||||||
Income tax provision (benefit) | 106 | (c) | 147 | 110 | (k) | 346 | (m) | 89 | (p) | ||||||||||||
Equity earnings (loss), net of taxes | (13 | ) | (72 | ) | 62 | 84 | (64 | ) | |||||||||||||
Earnings (Loss) From Continuing Operations | 210 | (a-c) | 333 | (d-g) | 218 | (i-k) | 739 | (b,l,m) | 412 | (d,g,n-p) | |||||||||||
Discontinued operations, net of taxes | — | 16 | (h) | — | — | (4 | ) | (q) | |||||||||||||
Net Earnings (Loss) | 210 | (a-c) | 349 | (d-h) | 218 | (i-k) | 739 | (b,l,m) | 408 | (d,g,n-q) | |||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (10 | ) | (6 | ) | (9 | ) | (21 | ) | (13 | ) | |||||||||||
Net Earnings (Loss) Attributable to International Paper Company | $ | 220 | (a-c) | $ | 355 | (d-h) | $ | 227 | (i-k) | $ | 760 | (b,l,m) | $ | 421 | (d,g,n-q) | ||||||
Basic Earnings Per Common Share Attributable to International Paper Common Shareholders | |||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 0.53 | (a-c) | $ | 0.80 | (d-g) | $ | 0.54 | (i-k) | $ | 1.81 | (b,l,m) | $ | 0.99 | (d,g,n-p) | ||||||
Discontinued operations | — | 0.04 | (h) | — | — | (0.01 | ) | (q) | |||||||||||||
Net earnings (loss) | $ | 0.53 | (a-c) | $ | 0.84 | (d-h) | $ | 0.54 | (i-k) | $ | 1.81 | (b,l,m) | $ | 0.98 | (d,g,n-q) | ||||||
Diluted Earnings Per Common Share Attributable to International Paper Common Shareholders | |||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 0.53 | (a-c) | $ | 0.79 | (d-g) | $ | 0.54 | (i-k) | $ | 1.80 | (b,l,m) | $ | 0.98 | (d,g,n-p) | ||||||
Discontinued operations | — | 0.04 | (h) | — | — | (0.01 | ) | (q) | |||||||||||||
Net earnings (loss) | $ | 0.53 | (a-c) | $ | 0.83 | (d-h) | $ | 0.54 | (i-k) | $ | 1.80 | (b,l,m) | $ | 0.97 | (d,g,n-q) | ||||||
Average Shares of Common Stock Outstanding - Diluted | 417.5 | 428.6 | 421.9 | 421.9 | 433.7 | ||||||||||||||||
Cash Dividends Per Common Share | $ | 0.4000 | $ | 0.3500 | $ | 0.4000 | $ | 1.2000 | $ | 1.0500 | |||||||||||
Amounts Attributable to International Paper Common Shareholders | |||||||||||||||||||||
Earnings (loss) from continuing operations, net of tax | $ | 220 | (a-c) | $ | 339 | (d-g) | $ | 227 | (i-k) | $ | 760 | (b,l,m) | $ | 425 | (d,g,n-p) | ||||||
Discontinued operations, net of tax | — | 16 | (h) | — | — | (4 | ) | (q) | |||||||||||||
Net earnings | $ | 220 | (a-c) | $ | 355 | (d-h) | $ | 227 | (i-k) | $ | 760 | (b,l,m) | $ | 421 | (d,g,n-q) |
(a) | Includes a pre-tax charge of $17 million ($11 million after taxes) for costs associated with the Timber Monetization restructure, a pre-tax charge of $7 million ($4 million after taxes) related to the sale of the Carolina Coated Bristols brand and costs associated with the Riegelwood mill conversion to 100% pulp production, and a charge of $1 million (before and after taxes) for costs associated with the Coated Paperboard sheet plant closures. |
(b) | Includes a pre-tax charge of $186 million ($192 million after taxes) for asset write-offs associated with the announced definitive agreement to sell our 55% equity share in the IP-Sun JV. |
(c) | Includes a tax benefit of $67 million related to the impairment of the IP-Sun JV. |
(d) | Includes a pre-tax charge of $5 million ($3 million after taxes) for a refund of previously claimed state tax credits. |
(e) | Includes a gain of $18 million (before and after taxes) for the resolution of a legal contingency in India, a pre-tax charge of $35 million ($21 million after taxes) for costs associated with a multi-employer pension plan withdrawal liability, a pre-tax charge of |
(f) | Includes a pre-tax charge of $13 million ($8 million after taxes) for debt extinguishment costs, a pre-tax charge of $3 million ($2 million after taxes) for costs associated with the shutdown of our Courtland mill, a pre-tax charge of $5 million ($3 million after taxes) for costs associated with the restructuring of the Company's EMEA Packaging business, and a net pre-tax loss of $3 million ($2 million after taxes) for other items. |
(g) | Includes interest income of $2 million (before and after taxes) associated with the resolution of a legal contingency in India, and a pre-tax expense of $8 million ($4 million after taxes) associated with a foreign tax amnesty program. |
(h) | Includes a net pre-tax gain of $11 million ($14 million after taxes) for the recovery of costs related to the spin-off of the xpedx business and a $2 million tax benefit associated with the Building Products divestiture. |
(i) | Includes a pre-tax gain of $4 million ($2 million after taxes) for the partial reversal of a 2014 accrual for the repayment of previously claimed state tax credits. |
(j) | Includes a pre-tax charge of $207 million ($133 million after taxes) for debt premium costs, a net pre-tax gain of $14 million ($9 million after taxes) related to the sale of the Carolina Coated Bristols brand and costs associated with the Riegelwood mill conversion to 100% pulp production, and a charge of $1 million (before and after taxes) for costs associated with the Coated Paperboard sheet plant closures. |
(k) | Includes a tax expense of $23 million for the 2014 tax impact of the 2015 cash pension contribution of $750 million and a tax expense of $5 million for other items. |
(l) | Includes a pre-tax charge of $207 million ($133 million after taxes) for debt premium costs, a net pre-tax gain of $7 million ($5 million after taxes) related to the sale of the Carolina Coated Bristols brand and costs associated with the Riegelwood mill conversion to 100% pulp production, a charge of $2 million (before and after taxes) for costs associated with the Coated Paperboard sheet plant closures, and a pre-tax charge of $17 million ($11 million after taxes) for costs associated with the Timber Monetization restructure. |
(m) | Includes a tax benefit of $67 million related to the impairment of the IP-Sun JV, a tax expense of $23 million for the 2014 tax impact of the 2015 cash pension contribution of $750 million and a tax expense of $5 million for other items. |
(n) | Includes a gain of $18 million (before and after taxes) for the resolution of a legal contingency in India, a pre-tax charge of $35 million ($21 million after taxes) for costs associated with a multi-employer pension plan withdrawal liability, a pre-tax charge of $24 million ($13 million after taxes) for costs associated with a foreign tax amnesty program, and pre-tax charges of $15 million ($9 million after taxes) for integration costs associated with the acquisition of Temple-Inland. |
(o) | Includes a pre-tax charge of $275 million ($168 million after taxes) for debt extinguishment costs, pre-tax charges of $547 million ($334 million after taxes) for costs associated with the shutdown of our Courtland mill, pre-tax charges of $4 million ($3 million after taxes) for costs associated with Coated Paperboard sheet plant closures, pre-tax charges of $5 million ($3 million after taxes) for costs associated with the restructuring of the Company's EMEA Packaging business, a charge of $4 million (before and after taxes) for costs associated with the restructuring of the Company's box operations in Asia, and a pre-tax gain of $5 million ($4 million after taxes) associated with our Brazil Packaging business. |
(p) | Includes a tax expense of $10 million associated with a state legislative change and a tax benefit of $1 million for other items. |
(q) | Includes net pre-tax charges of $23 million ($16 million after taxes) for costs associated with the spin-off of the xpedx business, pre-tax charges of $1 million (a gain of $1 million after taxes) for costs associated with the restructuring of xpedx and pre-tax charges of $2 million ($0 million after taxes) for costs associated with the Building Products divestiture. |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||||
Operating Earnings | $ | 407 | $ | 409 | $ | 409 | $ | 1,173 | $ | 1,069 | |||||||||||
Non-Operating Pension | (46 | ) | (33 | ) | (31 | ) | (121 | ) | (97 | ) | |||||||||||
Special Items | (141 | ) | (a) | (37 | ) | (b) | (151 | ) | (c) | (292 | ) | (d) | (547 | ) | (e) | ||||||
Earnings (Loss) from Continuing Operations, including non-controlling interest | 220 | 339 | 227 | 760 | 425 | ||||||||||||||||
Discontinued operations | — | 16 | (f) | — | — | (4 | ) | (g) | |||||||||||||
Net Earnings (Loss) as Reported Attributable to International Paper Company | $ | 220 | $ | 355 | $ | 227 | $ | 760 | $ | 421 | |||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
Diluted Earnings per Common Share | 2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||
Operating Earnings Per Share | $ | 0.97 | $ | 0.95 | $ | 0.97 | $ | 2.78 | $ | 2.46 | |||||||||||
Non-Operating Pension | (0.11 | ) | (0.08 | ) | (0.07 | ) | (0.28 | ) | (0.22 | ) | |||||||||||
Special Items | (0.33 | ) | (0.08 | ) | (0.36 | ) | (0.70 | ) | (1.26 | ) | |||||||||||
Continuing Operations | 0.53 | 0.79 | 0.54 | 1.80 | 0.98 | ||||||||||||||||
Discontinued operations | — | 0.04 | — | — | (0.01 | ) | |||||||||||||||
Diluted Earnings per Common Share as Reported | $ | 0.53 | $ | 0.83 | $ | 0.54 | $ | 1.80 | $ | 0.97 |
(a) | See footnotes (a) - (c) on the Consolidated Statement of Operations |
(b) | See footnotes (d) - (g) on the Consolidated Statement of Operations |
(c) | See footnotes (i) - (k) on the Consolidated Statement of Operations |
(d) | See footnotes (b), (l), (m) on the Consolidated Statement of Operations |
(e) | See footnotes (d), (g), (n)- (p) on the Consolidated Statement of Operations |
(f) | See footnote (h) on the Consolidated Statement of Operations |
(g) | See footnote (q) on the Consolidated Statement of Operations |
(1) | The Company calculates Operating Earnings by excluding the after-tax effect of non-operating pension expense and items considered by management to be unusual from the earnings reported under U.S. generally accepted accounting principles (“GAAP”). Management uses this measure to focus on on-going operations, and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present operating results. International Paper believes that using this information, along with net earnings, provides for a more complete analysis of the results of operations by quarter. Net earnings is the most directly comparable GAAP measure. |
(2) | Since diluted earnings per share are computed independently for each period, nine-month per share amounts may not equal the sum of the respective quarters. |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||||
Industrial Packaging | $ | 3,642 | $ | 3,754 | $ | 3,694 | $ | 10,889 | $ | 11,247 | |||||||||||
Printing Papers | 1,258 | 1,453 | 1,249 | 3,735 | 4,280 | ||||||||||||||||
Consumer Packaging | 809 | 876 | 797 | 2,384 | 2,548 | ||||||||||||||||
Corporate and Inter-segment Sales | (18 | ) | (32 | ) | (26 | ) | (86 | ) | (401 | ) | |||||||||||
Net Sales | $ | 5,691 | $ | 6,051 | $ | 5,714 | $ | 16,922 | $ | 17,674 | |||||||||||
Operating Profit by Industry Segment | |||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||||
Industrial Packaging | $ | 553 | $ | 527 | (b) | $ | 528 | $ | 1,549 | $ | 1,517 | (b) | |||||||||
Printing Papers | 179 | 177 | (c) | 101 | 389 | (164 | ) | (c) | |||||||||||||
Consumer Packaging | (153 | ) | (a) | 77 | (d) | 47 | (a) | (60 | ) | (a) | 127 | (d) | |||||||||
Operating Profit | 579 | 781 | 676 | 1,878 | 1,480 | ||||||||||||||||
Interest expense, net | (141 | ) | (152 | ) | (e) | (144 | ) | (422 | ) | (459 | ) | (e) | |||||||||
Noncontrolling interest/equity earnings adjustment (f) | (6 | ) | (2 | ) | (5 | ) | (10 | ) | — | ||||||||||||
Corporate items, net | (10 | ) | (3 | ) | (8 | ) | (27 | ) | (16 | ) | |||||||||||
Restructuring and other charges | (17 | ) | (18 | ) | (203 | ) | (220 | ) | (281 | ) | |||||||||||
Non-operating pension expense | (76 | ) | (54 | ) | (50 | ) | (198 | ) | (159 | ) | |||||||||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | $ | 329 | $ | 552 | $ | 266 | $ | 1,001 | $ | 565 | |||||||||||
Equity Earnings (Loss) in Ilim Holdings S.A., Net of Taxes | $ | (9 | ) | $ | (70 | ) | $ | 67 | $ | 97 | $ | (58 | ) |
(a) | Includes a charge of $186 million for the three months and nine months ended September 30, 2015 for asset write-offs associated with the announced definitive agreement to sell our 55% equity share in the IP-Sun JV, a net expense of $7 million and a net gain of $14 million for the three months ended September 30, 2015 and June 30, 2015, respectively, and a net gain of $7 million for the nine months ended September 30, 2015 related to the sale of the Carolina Coated Bristols brand and the conversion of the Riegelwood mill to 100% pulp production, and charges of $1 million and $1 million for the three months ended September 30, 2015 and June 30, 2015, respectively, and a charge of $2 million for the nine months ended September 30, 2015 for costs associated with the Coated Paperboard sheet plant closures. |
(b) | Includes charges of $1 million and $15 million for the three months and nine months ended September 30, 2014, respectively, for integration costs associated with the acquisition of Temple-Inland, a gain of $5 million for the nine months ended September 30, 2014 associated with our Brazil Packaging business, charges of $35 million for the three months and nine months ended September 30, 2014 for costs associated with a multi-employer pension plan withdrawal liability, charges of $5 million for the three months and nine months ended September 30, 2014 for costs related to the restructuring of our EMEA packaging business, and charges of $1 million and $3 million for the three months and nine months ended September 30, 2014, respectively, for other items. |
(c) | Includes charges of $3 million and $547 million for the three months and nine months ended September 30, 2014, respectively, for costs associated with the shutdown of our Courtland Mill, a gain of $20 million (including $2 million of interest income) for the three months and nine months ended September 30, 2014 for the resolution of a legal contingency for India, and charges of $32 million (including $8 million of interest expense) for the three months and nine months ended September 30, 2014 for costs associated with a foreign tax amnesty program. |
(d) | Includes charges of $2 million and $4 million for the three months and nine months ended September 30, 2014, respectively, for costs associated with the Coated Paperboard sheet plant closures. |
(e) | Excludes net interest expense of $6 million that is included in the Printing Papers segment operating profit for the three months and nine months ended September 30, 2014. |
(f) | Operating profits for industry segments include each segment’s percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings. |
Three Months Ended September 30, 2015 | ||||||||||||||||
Industrial Packaging | Printing Papers | Consumer Packaging | Total | |||||||||||||
Operating Profit Before Special Items | $ | 553 | $ | 179 | $ | 41 | $ | 773 | ||||||||
Special Items (a) | — | — | (194 | ) | (194 | ) | ||||||||||
Operating Profit as Reported | $ | 553 | $ | 179 | $ | (153 | ) | $ | 579 | |||||||
Three Months Ended September 30, 2014 | ||||||||||||||||
Industrial Packaging | Printing Papers | Consumer Packaging | Total | |||||||||||||
Operating Profit Before Special Items | $ | 569 | $ | 192 | $ | 79 | $ | 840 | ||||||||
Special Items (b) | (42 | ) | (15 | ) | (2 | ) | (59 | ) | ||||||||
Operating Profit as Reported | $ | 527 | $ | 177 | $ | 77 | $ | 781 | ||||||||
Three Months Ended June 30, 2015 | ||||||||||||||||
Industrial Packaging | Printing Papers | Consumer Packaging | Total | |||||||||||||
Operating Profit Before Special Items | $ | 528 | $ | 101 | $ | 34 | $ | 663 | ||||||||
Special Items (a) | — | — | 13 | 13 | ||||||||||||
Operating Profit as Reported | $ | 528 | $ | 101 | $ | 47 | $ | 676 | ||||||||
Nine Months Ended September 30, 2015 | ||||||||||||||||
Industrial Packaging | Printing Papers | Consumer Packaging | Total | |||||||||||||
Operating Profit Before Special Items | $ | 1,549 | $ | 389 | $ | 121 | $ | 2,059 | ||||||||
Special Items (a) | — | — | (181 | ) | (181 | ) | ||||||||||
Operating Profit as Reported | $ | 1,549 | $ | 389 | $ | (60 | ) | $ | 1,878 | |||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||
Industrial Packaging | Printing Papers | Consumer Packaging | Total | |||||||||||||
Operating Profit Before Special Items | $ | 1,570 | $ | 395 | $ | 131 | $ | 2,096 | ||||||||
Special Items (b) | (53 | ) | (559 | ) | (4 | ) | (616 | ) | ||||||||
Operating Profit as Reported | $ | 1,517 | $ | (164 | ) | $ | 127 | $ | 1,480 |
(a) | See footnote (a) on Sales and Earnings by Industry Segment |
(b) | See footnotes (b) - (d) on Sales and Earnings by Industry Segment |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||
Industrial Packaging (In thousands of short tons) | |||||||||||||||
Corrugated Packaging | 2,609 | 2,618 | 2,608 | 7,717 | 7,767 | ||||||||||
Containerboard | 783 | 755 | 818 | 2,375 | 2,264 | ||||||||||
Recycling | 588 | 537 | 610 | 1,788 | 1,850 | ||||||||||
Saturated Kraft | 37 | 49 | 38 | 112 | 143 | ||||||||||
Gypsum /Release Kraft | 46 | 49 | 43 | 125 | 129 | ||||||||||
Bleached Kraft | 6 | 7 | 6 | 17 | 21 | ||||||||||
EMEA Packaging | 340 | 331 | 352 | 1,039 | 1,023 | ||||||||||
Asian Box | 93 | 102 | 81 | 260 | 295 | ||||||||||
Brazilian Packaging | 78 | 76 | 78 | 228 | 238 | ||||||||||
Industrial Packaging | 4,580 | 4,524 | 4,634 | 13,661 | 13,730 | ||||||||||
Printing Papers (In thousands of short tons) | |||||||||||||||
U.S. Uncoated Papers | 485 | 506 | 453 | 1,404 | 1,479 | ||||||||||
European & Russian Uncoated Papers | 364 | 362 | 366 | 1,110 | 1,122 | ||||||||||
Brazilian Uncoated Papers | 294 | 278 | 254 | 783 | 821 | ||||||||||
Indian Uncoated Papers | 55 | 58 | 63 | 182 | 173 | ||||||||||
Uncoated Papers | 1,198 | 1,204 | 1,136 | 3,479 | 3,595 | ||||||||||
Market Pulp (b) | 446 | 471 | 428 | 1,291 | 1,312 | ||||||||||
Consumer Packaging (In thousands of short tons) | |||||||||||||||
North American Consumer Packaging | 371 | 396 | 371 | 1,080 | 1,129 | ||||||||||
European Coated Paperboard | 96 | 91 | 89 | 284 | 253 | ||||||||||
Asian Coated Paperboard | 339 | 332 | 315 | 958 | 1,007 | ||||||||||
Consumer Packaging | 806 | 819 | 775 | 2,322 | 2,389 |
(a) | Sales volumes include third party and inter-segment sales and exclude sales of equity investees. |
(b) | Includes North American, European and Brazilian volumes and internal sales to mills. |
September 30, 2015 | December 31, 2014 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and Temporary Investments | $ | 1,104 | $ | 1,881 | ||||
Accounts and Notes Receivable, Net | 2,832 | 3,083 | ||||||
Inventories | 2,340 | 2,424 | ||||||
Deferred Income Tax Assets | 326 | 331 | ||||||
Assets Held for Sale | 1,095 | — | ||||||
Other | 212 | 240 | ||||||
Financial Assets of Special Purpose Entities | 4,845 | — | ||||||
Total Current Assets | 12,754 | 7,959 | ||||||
Plants, Properties and Equipment, Net | 11,832 | 12,728 | ||||||
Forestlands | 356 | 507 | ||||||
Investments | 260 | 248 | ||||||
Financial Assets of Special Purpose Entities | 2,159 | 2,145 | ||||||
Goodwill | 3,472 | 3,773 | ||||||
Deferred Charges and Other Assets | 1,148 | 1,324 | ||||||
Total Assets | $ | 31,981 | $ | 28,684 | ||||
Liabilities and Equity | ||||||||
Current Liabilities | ||||||||
Notes Payable and Current Maturities of Long-Term Debt | $ | 753 | $ | 742 | ||||
Liabilities Held for Sale | 943 | — | ||||||
Accounts Payable and Accrued Liabilities | 3,631 | 4,167 | ||||||
Nonrecourse Financial Liabilities of Special Purpose Entities | 4,220 | — | ||||||
Total Current Liabilities | 9,547 | 4,909 | ||||||
Long-Term Debt | 8,887 | 8,631 | ||||||
Nonrecourse Financial Liabilities of Special Purpose Entities | 2,056 | 2,050 | ||||||
Deferred Income Taxes | 3,191 | 3,063 | ||||||
Pension Benefit Obligation | 3,017 | 3,819 | ||||||
Postretirement and Postemployment Benefit Obligation | 363 | 396 | ||||||
Other Liabilities | 450 | 553 | ||||||
Equity | ||||||||
Invested Capital | (307 | ) | 706 | |||||
Retained Earnings | 4,656 | 4,409 | ||||||
Total Shareholders’ Equity | 4,349 | 5,115 | ||||||
Noncontrolling interests | 121 | 148 | ||||||
Total Equity | 4,470 | 5,263 | ||||||
Total Liabilities and Equity | $ | 31,981 | $ | 28,684 |
Nine Months Ended September 30, | ||||||||
2015 | 2014 | |||||||
Operating Activities | ||||||||
Net earnings (loss) | $ | 739 | $ | 408 | ||||
Depreciation, amortization and cost of timber harvested | 980 | 1,068 | ||||||
Deferred income tax expense (benefit), net | 101 | (139 | ) | |||||
Restructuring and other charges | 219 | 865 | ||||||
Pension plan contributions | (750 | ) | (353 | ) | ||||
Equity (earnings) loss, net | (84 | ) | 64 | |||||
Periodic pension expense, net | 350 | 290 | ||||||
Impairment of business | 186 | — | ||||||
Other, net | 132 | 66 | ||||||
Changes in current assets and liabilities | ||||||||
Accounts and notes receivable | (166 | ) | (214 | ) | ||||
Inventories | (221 | ) | (118 | ) | ||||
Accounts payable and accrued liabilities | 77 | (49 | ) | |||||
Interest payable | 24 | 16 | ||||||
Other | 3 | 29 | ||||||
Cash Provided By (Used For) Operations | 1,590 | 1,933 | ||||||
Investment Activities | ||||||||
Invested in capital projects | (998 | ) | (961 | ) | ||||
Proceeds from divestitures | — | 385 | ||||||
Investment in Special Purpose Entities | (198 | ) | — | |||||
Proceeds from sale of fixed assets | 32 | 49 | ||||||
Other | (35 | ) | (31 | ) | ||||
Cash Provided By (Used For) Investment Activities | (1,199 | ) | (558 | ) | ||||
Financing Activities | ||||||||
Repurchases of common stock and payments of restricted stock tax withholding | (505 | ) | (891 | ) | ||||
Issuance of common stock | 2 | 59 | ||||||
Issuance of debt | 2,440 | 1,970 | ||||||
Reduction of debt | (2,202 | ) | (1,762 | ) | ||||
Change in book overdrafts | 15 | 20 | ||||||
Dividends paid | (503 | ) | (451 | ) | ||||
Acquisition of redeemable noncontrolling interest | — | (114 | ) | |||||
Debt tender premiums | (211 | ) | (269 | ) | ||||
Other | — | (4 | ) | |||||
Cash Provided By (Used for) Financing Activities | (964 | ) | (1,442 | ) | ||||
Cash Included in Assets Held for Sale | (143 | ) | — | |||||
Effect of Exchange Rate Changes on Cash | (61 | ) | (17 | ) | ||||
Change in Cash and Temporary Investments | (777 | ) | (84 | ) | ||||
Cash and Temporary Investments | ||||||||
Beginning of the period | 1,881 | 1,802 | ||||||
End of the period | $ | 1,104 | $ | 1,718 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Cash provided by operations | $ | 837 | $ | 933 | $ | 1,590 | $ | 1,933 | |||||||
Adjustments: | |||||||||||||||
Cash invested in capital projects | (325 | ) | (327 | ) | (998 | ) | (961 | ) | |||||||
Cash contribution to pension plan | — | 90 | 750 | 353 | |||||||||||
Free Cash Flow | $ | 512 | $ | 696 | $ | 1,342 | $ | 1,325 |
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