GOODWILL AND OTHER INTANGIBLES (Tables)

6 Months Ended

Jun. 30, 2012

Changes in Goodwill Balances

The following table presents changes in goodwill balances as allocated to each business segment for the six-month period ended June 30, 2012:

In millions	Industrial Packaging			Printing Papers			Consumer Packaging			Distribution		Total
Balance as of January 1, 2012
Goodwill	$	1,157		$	2,439		$	1,779		$	400	$	5,775
Accumulated impairment losses (a)		0			(1,765	)		(1,664	)		0		(3,429	)
		1,157			674			115			400		2,346
Reclassifications and other (b)		(1	)		(42	)		(1	)		0		(44	)
Additions/reductions		1,938	(c)		(13	)(d)		3	(e)		0		1,928
Balance as of June 30, 2012
Goodwill		3,094			2,384			1,781			400		7,659
Accumulated impairment losses (a)		0			(1,765	)		(1,664	)		0		(3,429	)
Total	$	3,094		$	619		$	117		$	400	$	4,230

(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) Represents the acquisition of Temple-Inland, net of amounts reclassified to Assets held for sale in the accompanying consolidated balance sheet related to the required divestiture of two Temple-Inland Mills (Ontario, California and New Johnsonville, Tennessee) and one International Paper mill (Oxnard, California).

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

(e) Represents the impact of the change in estimate of the contributed land in the Shandong IP & Sun Food Packaging Co., Ltd. joint venture in China entered into in 2011.

Identifiable Intangible Assets

Identifiable intangible assets were comprised of the following:

	June 30, 2012				December 31, 2011
In millions	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships and lists	$	615	$	85	$	227	$	82
Non-compete agreements		68		23		72		19
Tradenames, patents and trademarks		149		22		51		21
Land and water rights		69		5		60		3
Fuel and power agreements		29		18		30		16
Software		25		23		37		29
Other		16		3		27		13
Total	$	971	$	179	$	504	$	183

Amortization Expense Of Intangible Assets

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

	Three Months Ended June  30,				Six Months Ended June  30,
In millions	2012		2011		2012		2011
Amortization expense related to intangible assets	$	7	$	9	$	15	$	17