Goodwill And Other Intangibles (Note)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

The following tables present changes in the goodwill balances as allocated to each business segment for the years ended December 31, 2016 and 2015:



In millions	Industrial Packaging				Global Cellulose Fibers			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)	(4		)		—			33				—			29
Additions/reductions	(5		)	(c)	19		(d)	(14		)	(e)	—			—
Impairment loss	—				—			—				—			—
Balance as of December 31, 2016
Goodwill	3,316				19			2,143				1,664			7,142
Accumulated impairment losses (a)	(237		)		—			(1,877		)		(1,664		)	(3,778		)
Total		$3,079				$19			$266				$—			$3,364


(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 the U.S.


(d)	Reflects the acquisition of the newly acquired pulp business.


(e)	Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil.



In millions	Industrial Packaging				Global Cellulose Fibers		Printing Papers				Consumer Packaging				Total
Balance as of January 1, 2015
Goodwill		$3,396				$—		$2,234				$1,784				$7,414
Accumulated impairment losses (a)	(100		)		—		(1,877		)		(1,664		)		(3,641		)
	3,296				—		357				120				3,773
Reclassifications and other (b)	(70		)		—		(95		)		(3		)		(168		)
Additions/reductions	(1		)		—		(15		)	(c)	(117		)	(d)	(133		)
Impairment loss	(137		)	(e)	—		—				—				(137		)
Balance as of December 31, 2015
Goodwill	3,325				—		2,124				1,664				7,113
Accumulated impairment losses (a)	(237		)		—		(1,877		)		(1,664		)		(3,778		)
Total		$3,088				$—		$247				$—				$3,335


(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.


(d)	Reduction due to the sale and de-consolidation of Shandong Sun joint venture in Asia.


(e)	Reflects a charge for goodwill impairment related to our Brazil Industrial Packaging business.

In the fourth quarter of 2015, in conjunction with the annual testing of its reporting units for possible goodwill impairments, the Company calculated the estimated fair value of its Brazil Packaging business and determined that all of the goodwill in the business, totaling $137 million, should be written off. The decline in the fair value of the Brazil Packaging business and resulting impairment charge was due to the negative impacts on the cash flows of the business caused by the continued decline of the overall Brazilian economy.

OTHER INTANGIBLES

Identifiable intangible assets comprised the following:



	2016				2015
In millions at December 31	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships and lists	$	605	$	211	$	495	$	166
Non-compete agreements	69		64		69		56
Tradenames, patents and trademarks, and developed technology	173		56		61		54
Land and water rights	10		2		33		6
Software	21		20		22		20
Other	48		26		46		29
Total	$	926	$	379	$	726	$	331

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



In millions	2016		2015		2014
Amortization expense related to intangible assets	$	54	$	60	$	73

Based on current intangibles subject to amortization, estimated amortization expense for each of the succeeding years is as follows: 2017 – $60 million, 2018 – $53 million, 2019 – $51 million, 2020 – $51 million, 2021 – $51 million, and cumulatively thereafter – $275 million.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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