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