ACQUISITIONS AND JOINT VENTURES (Tables)

6 Months Ended

Jun. 30, 2012

Pro Forma Information on Consolidated Results of Operations Related to Acquisitions

This information does not purport to represent International Paper’s actual results of operations if the transaction described above would have occurred on January 1, 2011, nor is it necessarily indicative of future results.

	Six Months Ended June 30,
In millions, except per share amounts	2012		2011
Net sales	$	14,024	$	15,022
Earnings (loss) from continuing operations (1)		295		445
Net earnings (loss) (1)		309		481
Diluted earnings (loss) from continuing operations per common share (1)		0.67		1.03
Diluted net earnings (loss) per common share (1)		0.70		1.11

(1) Attributable to International Paper Company common shareholders.

Andhra Pradesh Paper Mills Limited

Fair Value of Assets and Liabilities Acquired

The following table summarizes the preliminary allocation of the purchase price to the fair value of assets and liabilities acquired as of October 14, 2011.

In millions
Cash and temporary investments	$	3
Accounts and notes receivable, net		7
Inventory		43
Other current assets		13
Plants, properties and equipment		352
Goodwill		117
Deferred tax asset		4
Other intangible assets		91
Other long-term assets		1
Total assets acquired		631
Accounts payable and accrued liabilities		67
Long-term debt		47
Other liabilities		11
Deferred tax liability		90
Total liabilities assumed		215
Noncontrolling interest		37
Net assets acquired	$	379

Identifiable Finite and Indefinite Intangible Assets Acquired in Connection With Acquisition

The identifiable intangible assets acquired in connection with the APPM acquisition included the following:

In millions	Estimated Fair  Value		Average Remaining Useful Life
			(at acquisition date)
Asset Class:
Non-compete agreement	$	58		6 years
Tradename		20		Indefinite
Fuel supply agreements		5		2 years
Power purchase arrangements		5		5 years
Wholesale distribution network		3		18 years
Total	$	91

Temple-Inland Inc.

Fair Value of Assets and Liabilities Acquired

The following summarizes the preliminary allocation of the purchase price to the fair value of assets and liabilities acquired as of February 13, 2012.

In millions
Accounts and notes receivable	$	468
Inventory		484
Deferred income tax assets – current		215
Other current assets		57
Plants, properties and equipment		2,875
Financial assets of special purpose entities		2,475
Goodwill		2,057
Other intangible assets		670
Deferred charges and other assets		261
Total assets acquired		9,562
Notes payable and current maturities of long-term debt		130
Accounts payable and accrued liabilities		676
Long-term debt		527
Nonrecourse financial liabilities of special purpose entities		2,140
Deferred income tax liability		1,436
Pension benefit obligation		338
Postretirement and postemployment benefit obligation		99
Other liabilities		390
Total liabilities assumed		5,736
Noncontrolling interest		92
Net assets acquired	$	3,734

Identifiable Finite and Indefinite Intangible Assets Acquired in Connection With Acquisition

The identifiable intangible assets acquired in connection with the Temple-Inland acquisition included the following:

In millions	Estimated Fair  Value		Average Remaining Useful Life
			(at acquisition date)
Asset Class:
Customer relationships	$	537		12-17 years
Developed technology		8		5-10 years
Tradenames		112		Indefinite
Favorable contracts		13		4-7 years
Total	$	670