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 |
Exhibit Number | Description | |
99.1 |
International Paper Company | |||
Date: October 25, 2017 | By: | /s/ VINCENT P. BONNOT | |
Name: | Vincent P. Bonnot | ||
Title: | Vice President - Finance and Controller |
Third Quarter 2017 | Second Quarter 2017 | Third Quarter 2016 | ||||||||||
Net Earnings | $ | 0.95 | $ | 0.19 | $ | 0.75 | ||||||
Add Back – Discontinued Operations (Gain) Loss | — | — | — | |||||||||
Net Earnings (Loss) from Continuing Operations | 0.95 | 0.19 | 0.75 | |||||||||
Add Back – Non-Operating Pension Expense | 0.05 | 0.05 | 0.06 | |||||||||
Add Back – Net Special Items Expense (Income) | 0.08 | 0.41 | 0.10 | |||||||||
Adjusted Operating Earnings* | $ | 1.08 | $ | 0.65 | $ | 0.91 |
* | Adjusted operating earnings (non-GAAP) is defined as net earnings from continuing operations attributable to International Paper Company (GAAP) excluding special items and non-operating pension expense. 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. |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||
Net Sales | $ | 5,913 | $ | 5,266 | $ | 5,772 | $ | 17,196 | $ | 15,698 | |||||||||||
Costs and Expenses | |||||||||||||||||||||
Cost of products sold | 4,024 | (a) | 3,622 | (e) | 4,105 | (i) | 12,069 | (p) | 11,345 | (t) | |||||||||||
Selling and administrative expenses | 431 | (b) | 380 | (f) | 422 | (j) | 1,275 | (q) | 1,142 | (u) | |||||||||||
Depreciation, amortization and cost of timber harvested | 373 | (c) | 314 | 357 | 1,075 | (c) | 899 | ||||||||||||||
Distribution expenses | 386 | 353 | 390 | 1,155 | 1,012 | ||||||||||||||||
Taxes other than payroll and income taxes | 44 | 41 | 43 | 132 | 123 | ||||||||||||||||
Restructuring and other charges | — | 46 | (g) | (16 | ) | (k) | (16 | ) | (k) | 47 | (v) | ||||||||||
Net (gains) losses on sales and impairment of businesses | — | 5 | (h) | 9 | (l) | 9 | (l) | 70 | (w) | ||||||||||||
Litigation settlement | — | — | 354 | (m) | 354 | (m) | — | ||||||||||||||
Net bargain purchase gain on acquisition of business | — | — | — | (6 | ) | (r) | — | ||||||||||||||
Interest expense, net | 152 | 132 | 137 | (n) | 431 | (n) | 384 | ||||||||||||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 503 | (a-c) | 373 | (e-h) | (29 | ) | (i-n) | 718 | (c,k-n,p-r) | 676 | (t-w) | ||||||||||
Income tax provision (benefit) | 153 | (d) | 107 | (89 | ) | (o) | 147 | (s) | 139 | (x) | |||||||||||
Equity earnings (loss), net of taxes | 45 | 43 | 20 | 113 | 151 | ||||||||||||||||
Earnings (Loss) From Continuing Operations | 395 | (a-d) | 309 | (e-h) | 80 | (i-o) | 684 | (c,k-n,p-s) | 688 | (t-x) | |||||||||||
Discontinued operations, net of taxes | — | — | — | — | (5 | ) | (y) | ||||||||||||||
Net Earnings (Loss) | 395 | (a-d) | 309 | (e-h) | 80 | (i-o) | 684 | (c,k-n,p-s) | 683 | (t-y) | |||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | — | (3 | ) | — | — | (3 | ) | ||||||||||||||
Net Earnings (Loss) Attributable to International Paper Company | $ | 395 | (a-d) | $ | 312 | (e-h) | $ | 80 | (i-o) | $ | 684 | (c,k-n,p-s) | $ | 686 | (t-y) | ||||||
Basic Earnings Per Common Share Attributable to International Paper Common Shareholders | |||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 0.96 | (a-d) | $ | 0.76 | (e-h) | $ | 0.19 | (i-o) | $ | 1.65 | (c,k-n,p-s) | $ | 1.68 | (t-x) | ||||||
Discontinued operations | — | — | — | — | (0.01 | ) | (y) | ||||||||||||||
Net earnings (loss) | $ | 0.96 | (a-d) | $ | 0.76 | (e-h) | $ | 0.19 | (i-o) | $ | 1.65 | (c,k-n,p-s) | $ | 1.67 | (t-y) | ||||||
Diluted Earnings Per Common Share Attributable to International Paper Common Shareholders | |||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 0.95 | (a-d) | $ | 0.75 | (e-h) | $ | 0.19 | (i-o) | $ | 1.64 | (c,k-n,p-s) | $ | 1.66 | (t-x) | ||||||
Discontinued operations | — | — | — | — | (0.01 | ) | (y) | ||||||||||||||
Net earnings (loss) | $ | 0.95 | (a-d) | $ | 0.75 | (e-h) | $ | 0.19 | (i-o) | $ | 1.64 | (c,k-n,p-s) | $ | 1.65 | (t-y) | ||||||
Average Shares of Common Stock Outstanding - Diluted | 417.4 | 415.3 | 416.4 | 417.4 | 415.5 | ||||||||||||||||
Cash Dividends Per Common Share | $ | 0.4625 | $ | 0.4400 | $ | 0.4625 | $ | 1.3875 | $ | 1.3200 | |||||||||||
Amounts Attributable to International Paper Common Shareholders | |||||||||||||||||||||
Earnings (loss) from continuing operations, net of tax | $ | 395 | (a-d) | $ | 312 | (e-h) | $ | 80 | (i-o) | $ | 684 | (c,k-n,p-s) | $ | 691 | (t-x) | ||||||
Discontinued operations, net of tax | — | — | — | — | (5 | ) | (y) | ||||||||||||||
Net earnings | $ | 395 | (a-d) | $ | 312 | (e-h) | $ | 80 | (i-o) | $ | 684 | (c,k-n,p-s) | $ | 686 | (t-y) |
(a) | Includes a pre-tax charge of $7 million ($4 million after taxes) related to the Global Cellulose Fibers and Industrial Packaging businesses for abandoned property at our mills. |
(b) | Includes a pre-tax charge of $6 million ($4 million after taxes) for integration costs associated with the pulp business acquired in December 2016. |
(c) | Includes a pre-tax charge of $10 million ($7 million after taxes) for accelerated amortization of a Brazil Packaging intangible asset. |
(d) | Includes a tax expense of $19 million for international investment restructuring. |
(e) | Includes a pre-tax charge of $8 million ($5 million after taxes) for the write-off of certain regulatory pre-engineering costs. |
(f) | Includes a pre-tax charge of $7 million ($4 million after taxes) for costs associated with the agreement to purchase the Weyerhaeuser Pulp business. |
(g) | Includes a pre-tax charge of $29 million ($18 million after taxes) for debt extinguishment costs and a pre-tax charge of $17 million ($11 million after taxes) to write-off costs associated with the India Packaging business evaluation. |
(h) | Includes a pre-tax charge of $5 million ($4 million after taxes) for costs associated with the sale of our Asia corrugated packaging business. |
(i) | Includes a pre-tax charge of $5 million ($3 million after taxes) related to the Global Cellulose Fibers, Consumer Packaging, Industrial Packaging and Printing Papers businesses for abandoned property at our mills. |
(j) | Includes a pre-tax charge of $5 million ($3 million after taxes) for integration costs associated with the pulp business acquired in December 2016. |
(k) | Includes a gain of $14 million ($9 million after taxes) related to the sale of our investment in ArborGen and a gain of $2 million (before and after taxes) for other items. |
(l) | Includes a pre-tax charge of $9 million ($4 million after taxes) for the impairment of the assets of our Foodservice business in Asia. |
(m) | Includes a pre-tax charge of $354 million ($219 million after taxes) related to the agreement to settle the Kleen Products anti-trust class action lawsuit. |
(n) | Includes a pre-tax gain of $4 million ($2 million after taxes) for interest income related to an income tax refund claim. |
(o) | Includes a net tax benefit of $47 million primarily due to income tax refund claims. |
(p) | Includes a pre-tax charge of $14 million ($8 million after taxes) to amortize the inventory fair value step-up for the pulp business acquired in December 2016, and pre-tax charges of $14 million ($9 million after taxes) related to the Global Cellulose Fibers, Consumer Packaging, Industrial Packaging and Printing Papers businesses for abandoned property at our mills. |
(q) | Includes a pre-tax charge of $15 million ($9 million after taxes) for costs associated with the pulp business acquisition in December 2016. |
(r) | Includes a net bargain purchase gain of $6 million (before and after taxes) associated with the June 2016 Holmen Paper mill acquisition in Madrid, Spain. |
(s) | Includes a net tax benefit of $47 million primarily due to income tax refund claims and a tax expense of $34 million for international investment restructuring. |
(t) | Includes a pre-tax charge of $439 million ($270 million after taxes) for a settlement accounting charge associated with term-vested lump sum pension payments, and a pre-tax charge of $8 million ($5 million after taxes) for the write-off of certain regulatory pre-engineering costs. |
(u) | Includes a pre-tax charge of $12 million ($7 million after taxes) for costs associated with the agreement to purchase the Weyerhaeuser Pulp business. |
(v) | Includes a pre-tax gain of $8 million ($5 million after taxes) related to the sale of our investment in Arizona Chemical, a pre-tax charge of $29 million ($18 million after taxes) for debt extinguishment costs, a pre-tax charge of $17 million ($11 million after taxes) for costs associated with the write-off of the India Packaging business evaluation, and a pre-tax charge of $9 million ($6 million after taxes) for costs associated with the Riegelwood mill conversion to 100% pulp production. |
(w) | Includes a pre-tax charge of $70 million ($58 million after taxes) for the impairment of the assets of our Asia corrugated packaging business and costs associated with the sale of that business. |
(x) | Includes a tax benefit of $57 million related to the legal restructuring of our Brazil Packaging business, a tax expense of $23 million associated with 2016 cash pension contributions, a tax benefit of $14 million related to the closure of a U.S. federal tax audit, and a tax benefit of $6 million related to an international legal entity restructuring. |
(y) | Includes a pre-tax charge of $8 million ($5 million after taxes) for a legal settlement associated with the xpedx business. |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||
Net Earnings (Loss) Attributable to International Paper Company | $ | 395 | $ | 312 | $ | 80 | $ | 684 | $ | 686 | |||||||||||
Add back: Discontinued operations (gain) loss | — | — | — | — | 5 | (e) | |||||||||||||||
Earnings (Loss) from Continuing Operations, including non-controlling interest | 395 | 312 | 80 | 684 | 691 | ||||||||||||||||
Add back: Non-operating pension expense | 20 | 26 | 21 | 60 | 352 | (g) | |||||||||||||||
Add back: Special items expense (gain) | 34 | (a) | 42 | (b) | 169 | (c) | 224 | (d) | 46 | (f) | |||||||||||
Adjusted Operating Earnings | $ | 449 | $ | 380 | $ | 270 | $ | 968 | $ | 1,089 | |||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||
Diluted Earnings per Common Share as Reported | $ | 0.95 | $ | 0.75 | $ | 0.19 | $ | 1.64 | $ | 1.65 | |||||||||||
Add back: Discontinued operations (gain) loss | — | — | — | — | 0.01 | ||||||||||||||||
Continuing Operations | 0.95 | 0.75 | 0.19 | 1.64 | 1.66 | ||||||||||||||||
Add back: Non-operating pension expense | 0.05 | 0.06 | 0.05 | 0.14 | 0.85 | ||||||||||||||||
Add back: Special items expense (gain) | 0.08 | 0.10 | 0.41 | 0.54 | 0.11 | ||||||||||||||||
Adjusted Operating Earnings per Share | $ | 1.08 | $ | 0.91 | $ | 0.65 | $ | 2.32 | $ | 2.62 |
(a) | See footnotes (a) - (d) on the Consolidated Statement of Operations |
(b) | See footnotes (e) - (h) on the Consolidated Statement of Operations |
(c) | See footnotes (i) - (o) on the Consolidated Statement of Operations |
(d) | See footnotes (c), (k) - (n), (p) - (s) on the Consolidated Statement of Operations |
(e) | See footnote (y) on the Consolidated Statement of Operations |
(f) | See footnotes (u) - (x) on the Consolidated Statement of Operations |
(g) | See footnote (t) on the Consolidated Statement of Operations |
(1) | The Company calculates Adjusted Operating Earnings (non-GAAP) 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 attributable to International Paper 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, | |||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||
Industrial Packaging | $ | 3,734 | $ | 3,491 | $ | 3,706 | $ | 10,939 | $ | 10,422 | |||||||||||
Global Cellulose Fibers | 654 | 242 | 612 | 1,830 | 713 | ||||||||||||||||
Printing Papers | 1,039 | 1,019 | 1,017 | 3,051 | 3,003 | ||||||||||||||||
Consumer Packaging | 491 | 494 | 474 | 1,431 | 1,490 | ||||||||||||||||
Corporate and Inter-segment Sales | (5 | ) | 20 | (37 | ) | (55 | ) | 70 | |||||||||||||
Net Sales | $ | 5,913 | $ | 5,266 | $ | 5,772 | $ | 17,196 | $ | 15,698 | |||||||||||
Operating Profit by Business Segment | |||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||
Industrial Packaging | $ | 469 | (a) | $ | 423 | (f) | $ | 50 | (a) | $ | 884 | (a) | $ | 1,277 | (f) | ||||||
Global Cellulose Fibers | 49 | (b) | (38 | ) | (g) | 7 | (b) | (14 | ) | (b) | (109 | ) | (g) | ||||||||
Printing Papers | 135 | 167 | 86 | (c) | 321 | (c) | 419 | ||||||||||||||
Consumer Packaging | 54 | 61 | (14 | ) | (d) | 73 | (d) | 150 | (h) | ||||||||||||
Total Business Segment Operating Profit | $ | 707 | $ | 613 | $ | 129 | $ | 1,264 | $ | 1,737 | |||||||||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | $ | 503 | $ | 373 | $ | (29 | ) | $ | 718 | $ | 676 | ||||||||||
Interest expense, net | 152 | 132 | 137 | (e) | 431 | (e) | 384 | ||||||||||||||
Noncontrolling interest/equity earnings adjustment (j) | — | 1 | (1 | ) | (1 | ) | 1 | ||||||||||||||
Corporate items, net | 19 | 11 | 4 | 34 | 57 | ||||||||||||||||
Special items, net | — | 54 | (16 | ) | (16 | ) | 46 | ||||||||||||||
Non-operating pension expense | 33 | 42 | 34 | 98 | 573 | (i) | |||||||||||||||
Adjusted Operating Profit | $ | 707 | $ | 613 | $ | 129 | $ | 1,264 | $ | 1,737 | |||||||||||
Equity Earnings (Loss) in Ilim Holdings S.A., Net of Taxes | $ | 48 | $ | 46 | $ | 21 | $ | 119 | $ | 154 |
(a) | Includes a charge of $10 million for the three months and nine months ended September 30, 2017 for the accelerated amortization of an intangible asset in Brazil, a charge of $354 million for the three months ended June 30, 2017 and the nine months ended September 30, 2017 related to the agreement to settle the Kleen Products anti-trust class action lawsuit, a gain of $6 million for the nine months ended September 30, 2017 for a net bargain purchase gain associated with the June 2016 acquisition of Holmen Paper's newsprint mill in Madrid, Spain and charges of $5 million, $3 million and $9 million for the three months ended September 30, 2017 and June 30, 2017 and nine months ended September 30, 2017, respectively, for other items. |
(b) | Includes a charge of $14 million for the nine months ended September 30, 2017 for the amortization of the inventory fair value step-up for the pulp business acquired in December 2016, charges of $6 million, $5 million and $15 million for the three months ended September 30, 2017 and June 30, 2017 and nine months ended September 30, 2017, respectively, for costs associated with the acquisition and integration of that business and charges of $2 million and $3 million for the three months and nine months ended September 30, 2017, respectively, for other items. |
(c) | Includes a charge of $2 million for the three months ended June 30, 2017 and nine months ended September 30, 2017 for other items. |
(d) | Includes a charge of $9 million for the three months ended June 30, 2017 and nine months ended September 30, 2017 for the impairment of the assets of our Foodservice business in Asia. |
(e) | Includes a gain of $4 million for the three months ended June 30, 2017 and nine months ended September 30, 2017 for interest income associated with an income tax refund claim. |
(f) | Includes charges of $5 million and $70 million for the three months and nine months ended September 30, 2016, respectively, for the impairment of the assets of our corrugated packaging business in Asia and costs associated with the sale of that business. |
(g) | Includes charges of $7 million and $12 million for the three months and nine months ended September 30, 2016, respectively, for costs associated with the agreement to purchase the Weyerhaeuser pulp business. |
(h) | Includes a charge of $9 million for the nine months ended September 30, 2016 for costs associated with the Riegelwood mill conversion to 100% pulp production. |
(i) | Includes a charge of $439 million for the nine months ended September 30, 2016 for a settlement accounting charge associated with term-vested lump sum |
(j) | Operating profits for business 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, 2017 | ||||||||||||||||||||
Industrial Packaging | Global Cellulose Fibers | Printing Papers | Consumer Packaging | Total | ||||||||||||||||
Operating Profit (Loss) as Reported | $ | 469 | $ | 49 | $ | 135 | $ | 54 | $ | 707 | ||||||||||
Special Items Expense (Income) (a) | 15 | 8 | — | — | 23 | |||||||||||||||
Operating Profit (Loss) Before Special Items | $ | 484 | $ | 57 | $ | 135 | $ | 54 | $ | 730 | ||||||||||
Three Months Ended September 30, 2016 | ||||||||||||||||||||
Industrial Packaging | Global Cellulose Fibers | Printing Papers | Consumer Packaging | Total | ||||||||||||||||
Operating Profit (Loss) as Reported | $ | 423 | $ | (38 | ) | $ | 167 | $ | 61 | $ | 613 | |||||||||
Special Items Expense (Income) (b) | 5 | 7 | — | — | 12 | |||||||||||||||
Operating Profit (Loss) Before Special Items | $ | 428 | $ | (31 | ) | $ | 167 | $ | 61 | $ | 625 | |||||||||
Three Months Ended June 30, 2017 | ||||||||||||||||||||
Industrial Packaging | Global Cellulose Fibers | Printing Papers | Consumer Packaging | Total | ||||||||||||||||
Operating Profit (Loss) as Reported | $ | 50 | $ | 7 | $ | 86 | $ | (14 | ) | $ | 129 | |||||||||
Special Items Expense (Income) (c) | 357 | 5 | 2 | 9 | 373 | |||||||||||||||
Operating Profit (Loss) Before Special Items | $ | 407 | $ | 12 | $ | 88 | $ | (5 | ) | $ | 502 | |||||||||
Nine Months Ended September 30, 2017 | ||||||||||||||||||||
Industrial Packaging | Global Cellulose Fibers | Printing Papers | Consumer Packaging | Total | ||||||||||||||||
Operating Profit (Loss) as Reported | $ | 884 | $ | (14 | ) | $ | 321 | $ | 73 | $ | 1,264 | |||||||||
Special Items Expense (Income) (c) | 367 | 32 | 2 | 9 | 410 | |||||||||||||||
Operating Profit (Loss) Before Special Items | $ | 1,251 | $ | 18 | $ | 323 | $ | 82 | $ | 1,674 | ||||||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
Industrial Packaging | Global Cellulose Fibers | Printing Papers | Consumer Packaging | Total | ||||||||||||||||
Operating Profit (Loss) as Reported | $ | 1,277 | $ | (109 | ) | $ | 419 | $ | 150 | $ | 1,737 | |||||||||
Special Items Expense (Income) (d) | 70 | 12 | — | 9 | 91 | |||||||||||||||
Operating Profit (Loss) Before Special Items | $ | 1,347 | $ | (97 | ) | $ | 419 | $ | 159 | $ | 1,828 |
(a) | See footnotes (a) - (b) on Sales and Earnings by Business Segment |
(b) | See footnotes (f) - (g) on Sales and Earnings by Business Segment |
(c) | See footnotes (a) - (d) on Sales and Earnings by Business Segment |
(d) | See footnotes (f) - (h) on Sales and Earnings by Business Segment |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||
Industrial Packaging (In thousands of short tons) | |||||||||||||||
Corrugated Packaging (c) | 2,599 | 2,640 | 2,648 | 7,784 | 7,801 | ||||||||||
Containerboard | 828 | 801 | 797 | 2,438 | 2,311 | ||||||||||
Recycling | 924 | 977 | 925 | 2,799 | 2,873 | ||||||||||
Saturated Kraft | 45 | 51 | 41 | 132 | 142 | ||||||||||
Gypsum /Release Kraft | 54 | 49 | 58 | 165 | 142 | ||||||||||
Bleached Kraft | 7 | 7 | 6 | 20 | 18 | ||||||||||
EMEA Packaging (c) (d) | 350 | 344 | 400 | 1,124 | 1,091 | ||||||||||
Asian Box (c) (e) | — | — | — | — | 208 | ||||||||||
Brazilian Packaging (c) | 93 | 93 | 87 | 266 | 254 | ||||||||||
Industrial Packaging | 4,900 | 4,962 | 4,962 | 14,728 | 14,840 | ||||||||||
Global Cellulose Fibers (In thousands of metric tons) (b) | 933 | 415 | 896 | 2,706 | 1,233 | ||||||||||
Printing Papers (In thousands of short tons) | |||||||||||||||
U.S. Uncoated Papers | 497 | 467 | 465 | 1,451 | 1,402 | ||||||||||
European & Russian Uncoated Papers | 365 | 358 | 380 | 1,104 | 1,120 | ||||||||||
Brazilian Uncoated Papers | 280 | 274 | 288 | 832 | 800 | ||||||||||
Indian Uncoated Papers | 58 | 51 | 67 | 186 | 175 | ||||||||||
Uncoated Papers | 1,200 | 1,150 | 1,200 | 3,573 | 3,497 | ||||||||||
Consumer Packaging (In thousands of short tons) | |||||||||||||||
North American Consumer Packaging | 296 | 301 | 289 | 876 | 915 | ||||||||||
European Coated Paperboard | 103 | 105 | 94 | 296 | 298 | ||||||||||
Consumer Packaging | 399 | 406 | 383 | 1,172 | 1,213 |
September 30, 2017 | December 31, 2016 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and Temporary Investments | $ | 998 | $ | 1,033 | ||||
Accounts and Notes Receivable, Net | 3,343 | 3,001 | ||||||
Inventories | 2,465 | 2,438 | ||||||
Other | 405 | 198 | ||||||
Total Current Assets | 7,211 | 6,670 | ||||||
Plants, Properties and Equipment, Net | 14,065 | 13,990 | ||||||
Forestlands | 468 | 456 | ||||||
Investments | 336 | 360 | ||||||
Financial Assets of Special Purpose Entities | 7,047 | 7,033 | ||||||
Goodwill | 3,420 | 3,364 | ||||||
Deferred Charges and Other Assets | 1,266 | 1,220 | ||||||
Total Assets | $ | 33,813 | $ | 33,093 | ||||
Liabilities and Equity | ||||||||
Current Liabilities | ||||||||
Notes Payable and Current Maturities of Long-Term Debt | $ | 958 | $ | 239 | ||||
Accounts Payable and Accrued Liabilities | 3,911 | 3,830 | ||||||
Total Current Liabilities | 4,869 | 4,069 | ||||||
Long-Term Debt | 11,373 | 11,075 | ||||||
Nonrecourse Financial Liabilities of Special Purpose Entities | 6,289 | 6,284 | ||||||
Deferred Income Taxes | 3,505 | 3,127 | ||||||
Pension Benefit Obligation | 2,069 | 3,400 | ||||||
Postretirement and Postemployment Benefit Obligation | 315 | 330 | ||||||
Other Liabilities | 460 | 449 | ||||||
Equity | ||||||||
Invested Capital | (4 | ) | (477 | ) | ||||
Retained Earnings | 4,918 | 4,818 | ||||||
Total International Paper Shareholders’ Equity | 4,914 | 4,341 | ||||||
Noncontrolling interests | 19 | 18 | ||||||
Total Equity | 4,933 | 4,359 | ||||||
Total Liabilities and Equity | $ | 33,813 | $ | 33,093 |
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Operating Activities | ||||||||
Net earnings (loss) | $ | 684 | $ | 683 | ||||
Depreciation, amortization and cost of timber harvested | 1,075 | 899 | ||||||
Deferred income tax expense (benefit), net | 295 | 45 | ||||||
Restructuring and other charges | (16 | ) | 47 | |||||
Pension plan contributions | (1,250 | ) | (750 | ) | ||||
Net bargain purchase gain on acquisition of business | (6 | ) | — | |||||
Net (gains) losses on sales and impairments of businesses | 9 | 70 | ||||||
Ilim dividends received | 129 | 58 | ||||||
Equity (earnings) loss, net | (113 | ) | (151 | ) | ||||
Periodic pension expense, net | 237 | 718 | ||||||
Other, net | 92 | 67 | ||||||
Changes in current assets and liabilities | ||||||||
Accounts and notes receivable | (293 | ) | (83 | ) | ||||
Inventories | (70 | ) | (6 | ) | ||||
Accounts payable and accrued liabilities | 5 | (37 | ) | |||||
Interest payable | (11 | ) | 24 | |||||
Other | (198 | ) | (18 | ) | ||||
Cash Provided By (Used For) Operating Activities | 569 | 1,566 | ||||||
Investment Activities | ||||||||
Invested in capital projects | (935 | ) | (903 | ) | ||||
Acquisitions, net of cash acquired | (45 | ) | (56 | ) | ||||
Proceeds from divestitures, net of cash divested | 4 | 105 | ||||||
Proceeds from sale of fixed assets | 22 | 13 | ||||||
Other | (54 | ) | (130 | ) | ||||
Cash Provided By (Used For) Investment Activities | (1,008 | ) | (971 | ) | ||||
Financing Activities | ||||||||
Repurchases of common stock and payments of restricted stock tax withholding | (46 | ) | (132 | ) | ||||
Issuance of debt | 1,366 | 3,447 | ||||||
Reduction of debt | (369 | ) | (1,855 | ) | ||||
Change in book overdrafts | 5 | (5 | ) | |||||
Dividends paid | (573 | ) | (543 | ) | ||||
Debt tender premiums | (1 | ) | (31 | ) | ||||
Other | (2 | ) | (3 | ) | ||||
Cash Provided By (Used for) Financing Activities | 380 | 878 | ||||||
Effect of Exchange Rate Changes on Cash | 24 | 39 | ||||||
Change in Cash and Temporary Investments | (35 | ) | 1,512 | |||||
Cash and Temporary Investments | ||||||||
Beginning of the period | 1,033 | 1,050 | ||||||
End of the period | $ | 998 | $ | 2,562 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cash provided by (used for) Operating Activities | $ | (709 | ) | $ | 341 | $ | 569 | $ | 1,566 | ||||||
Adjustments: | |||||||||||||||
Cash invested in capital projects | (271 | ) | (266 | ) | (935 | ) | (903 | ) | |||||||
Cash contribution to pension plan | 1,250 | 500 | 1,250 | 750 | |||||||||||
Cash payment for Kleen Settlement | 354 | — | 354 | — | |||||||||||
Free Cash Flow | $ | 624 | $ | 575 | $ | 1,238 | $ | 1,413 |
\;^/?V'/V//&OC7Q7JEYKOBGQ;XM_9G^"_B?Q/XCUS496GO
M]7UWQ%KG@F:\UK4YIF9I;BYE>61CEF[ _G4_P""?G_!6?\ X-YOBC^U]\%/
MA9^QI^Q!X)^#/[1OQ&\2W?ACX;_$#PW^Q7\%_A1J&CWU]H.H2ZI;MX\\*6ZZ
MCH=I/H=G?12B$F.9@5; D8G\0_\ @K+X!\%?%/\ X.S_ (-_#7XD>&=(\:>
MO'GQ*_8I\*^+_"7B"T2^T3Q1X?UKP;X'M=1T?5]-FB<75C/:SE61T*,0-Y50
MSI_?EX&_X)_?L(_"_P 7:%\0/AG^Q3^R/\.O'OA:\;4?"_C?P+^S;\&_"/B_
MPWJ#VT]FU_H/B70/!EO>Z1>&TNKF(RV\T;F.XDC+;78'L]?_ &2_V8/%?Q/M
M?C=XI_9I_9Z\2_&FPETJ\TWXN>(?@W\.]:^)VFZAH$*0:#=6GC_4/##ZM%-9
MQ)&EK(EVCVR6Z+#M'W0#_/>_X+D?L