(Mark One)
|
|
þ
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the
Quarterly Period Ended _______July 2, 2011_______
|
OR
|
|
¨
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the
Transition Period From ____________to ____________
|
Delaware
|
75-1903917
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
Large accelerated filer þ
|
Accelerated filer ¨
|
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company ¨
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Class
|
Number of common shares outstanding
as of July 2, 2011
|
Common Stock (par value $1.00 per share)
|
108,649,374
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Page 1 of 39
|
The Exhibit Index is page 33.
|
Page
|
|
PART I. FINANCIAL INFORMATION
|
|
Item 1. Financial Statements
|
|
3
|
|
4
|
|
5
|
|
6
|
|
17
|
|
28
|
|
29
|
|
PART II. OTHER INFORMATION
|
|
30
|
|
30
|
|
31
|
|
31
|
|
31
|
|
31
|
|
31
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32
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Item 1. | Financial Statements |
(Unaudited)Second Quarter-End 2011
|
Year-End 2010
|
|||||
(In millions)
|
||||||
ASSETS
|
||||||
Current Assets
|
||||||
Cash and cash equivalents
|
$
|
43
|
$
|
28
|
||
Trade receivables, net of allowance for doubtful accounts of $16 in 2011 and 2010
|
514
|
471
|
||||
Inventories:
|
||||||
Work in process and finished goods
|
106
|
90
|
||||
Raw materials
|
217
|
253
|
||||
Supplies and other
|
149
|
142
|
||||
Total inventories
|
472
|
485
|
||||
Deferred tax asset
|
127
|
108
|
||||
Income taxes receivable
|
13
|
—
|
||||
Prepaid expenses and other
|
39
|
44
|
||||
Total current assets
|
1,208
|
1,136
|
||||
Property and Equipment
|
||||||
Land and buildings
|
721
|
684
|
||||
Machinery and equipment
|
3,716
|
3,640
|
||||
Construction in progress
|
63
|
74
|
||||
Less allowances for depreciation
|
(2,840
|
)
|
(2,771
|
)
|
||
Total property and equipment
|
1,660
|
1,627
|
||||
Financial Assets of Special Purpose Entities
|
2,474
|
2,475
|
||||
Goodwill
|
394
|
394
|
||||
Other Assets
|
271
|
277
|
||||
TOTAL ASSETS
|
$
|
6,007
|
$
|
5,909
|
||
LIABILITIES
|
||||||
Current Liabilities
|
||||||
Accounts payable
|
$
|
220
|
$
|
219
|
||
Accrued employee compensation and benefits
|
115
|
109
|
||||
Accrued interest
|
15
|
17
|
||||
Accrued property taxes
|
15
|
13
|
||||
Other accrued expenses
|
135
|
134
|
||||
Current portion of long-term debt
|
—
|
—
|
||||
Current portion of pension and postretirement benefits
|
16
|
16
|
||||
Total current liabilities
|
516
|
508
|
||||
Long-Term Debt
|
733
|
718
|
||||
Nonrecourse Financial Liabilities of Special Purpose Entities
|
2,140
|
2,140
|
||||
Deferred Tax Liability
|
739
|
700
|
||||
Liability for Pension Benefits
|
323
|
308
|
||||
Liability for Postretirement Benefits
|
110
|
110
|
||||
Other Long-Term Liabilities
|
390
|
404
|
||||
TOTAL LIABILITIES
|
4,951
|
4,888
|
||||
SHAREHOLDERS’ EQUITY
|
||||||
Temple-Inland Inc. Shareholders’ Equity
|
||||||
Preferred stock — par value $1 per share: authorized 25,000,000 shares; none issued
|
—
|
—
|
||||
Common stock — par value $1 per share: authorized 200,000,000 shares; issued 123,605,344 shares in 2011 and 2010, including shares held in the treasury
|
124
|
124
|
||||
Additional paid-in capital
|
413
|
426
|
||||
Accumulated other comprehensive loss
|
(243
|
)
|
(257
|
)
|
||
Retained earnings
|
1,227
|
1,220
|
||||
Cost of shares held in the treasury: 14,955,970 shares in 2011 and 15,654,157 shares in 2010
|
(556
|
)
|
(584
|
)
|
||
Total Temple-Inland Inc. shareholders’ equity
|
965
|
929
|
||||
Noncontrolling Interest of Special Purpose Entities
|
91
|
92
|
||||
TOTAL SHAREHOLDERS’ EQUITY
|
1,056
|
1,021
|
||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
6,007
|
$
|
5,909
|
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(Dollars in millions, except per share)
|
||||||||||||
NET REVENUES
|
$
|
1,016
|
$
|
976
|
$
|
2,011
|
$
|
1,881
|
||||
COSTS AND EXPENSES
|
||||||||||||
Cost of sales
|
(885
|
)
|
(853
|
)
|
(1,745
|
)
|
(1,678
|
)
|
||||
Selling
|
(28
|
)
|
(28
|
)
|
(58
|
)
|
(55
|
)
|
||||
General and administrative
|
(51
|
)
|
(45
|
)
|
(100
|
)
|
(84
|
)
|
||||
Other operating income (expense)
|
(7
|
)
|
(1
|
)
|
(16
|
)
|
(2
|
)
|
||||
(971
|
)
|
(927
|
)
|
(1,919
|
)
|
(1,819
|
)
|
|||||
OPERATING INCOME
|
45
|
49
|
92
|
62
|
||||||||
Other non-operating income (expense)
|
––
|
––
|
(4
|
)
|
––
|
|||||||
Interest income on financial assets of special purpose entities
|
––
|
1
|
––
|
2
|
||||||||
Interest expense on nonrecourse financial liabilities of special purpose entities
|
(4
|
)
|
(5
|
)
|
(9
|
)
|
(9
|
)
|
||||
Interest expense on debt
|
(11
|
)
|
(13
|
)
|
(23
|
)
|
(26
|
)
|
||||
INCOME BEFORE TAXES
|
30
|
32
|
56
|
29
|
||||||||
Income tax expense
|
(11
|
)
|
(12
|
)
|
(22
|
)
|
(14
|
)
|
||||
NET INCOME
|
19
|
20
|
34
|
15
|
||||||||
Net (income) loss attributable to noncontrolling interest of special purpose entities
|
––
|
––
|
1
|
1
|
||||||||
NET INCOME ATTRIBUTABLE TO TEMPLE-INLAND INC
|
$
|
19
|
$
|
20
|
$
|
35
|
$
|
16
|
||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
||||||||||||
Basic
|
108.6
|
107.9
|
108.5
|
107.8
|
||||||||
Diluted
|
110.8
|
109.7
|
110.6
|
109.5
|
||||||||
EARNINGS PER SHARE
|
||||||||||||
Basic
|
$
|
0.18
|
$
|
0.19
|
$
|
0.33
|
$
|
0.15
|
||||
Diluted
|
$
|
0.17
|
$
|
0.18
|
$
|
0.32
|
$
|
0.15
|
||||
DIVIDENDS PER SHARE
|
$
|
0.13
|
$
|
0.11
|
$
|
0.26
|
$
|
0.22
|
First Six Months
|
|||||||||
2011
|
2010
|
||||||||
(In millions)
|
|||||||||
CASH PROVIDED BY (USED FOR) OPERATIONS
|
|||||||||
Net income
|
$
|
34
|
$
|
15
|
|||||
Adjustments:
|
|||||||||
Depreciation and amortization
|
97
|
96
|
|||||||
Asset impairment charges
|
2
|
8
|
|||||||
Loss related to purchase and retirement of long-term debt
|
4
|
––
|
|||||||
Non-cash share-based and long-term incentive compensation
|
39
|
14
|
|||||||
Cash payment for share-based awards settled
|
(17
|
)
|
(17
|
)
|
|||||
Non-cash pension and postretirement expense
|
36
|
36
|
|||||||
Cash contribution to pension and postretirement plans
|
(5
|
)
|
(23
|
)
|
|||||
Deferred income taxes
|
15
|
3
|
|||||||
Other
|
6
|
(5
|
)
|
||||||
Changes in:
|
|||||||||
Receivables
|
(42
|
)
|
(57
|
)
|
|||||
Inventories
|
14
|
(13
|
)
|
||||||
Accounts payable and accrued expenses
|
(19
|
)
|
19
|
||||||
Prepaid expenses and other
|
(8
|
)
|
18
|
||||||
156
|
94
|
||||||||
CASH PROVIDED BY (USED FOR) INVESTING
|
|||||||||
Capital expenditures
|
(129
|
)
|
(85
|
)
|
|||||
Sale of non-strategic assets and operations
|
––
|
2
|
|||||||
Other
|
(2
|
)
|
(2
|
)
|
|||||
(131
|
)
|
(85
|
)
|
||||||
CASH PROVIDED BY (USED FOR) FINANCING
|
|||||||||
Payments of debt
|
(54
|
)
|
––
|
||||||
Borrowings under accounts receivable securitization facility, net
|
65
|
35
|
|||||||
Borrowings under revolving credit facility, net
|
––
|
––
|
|||||||
Fees related to revolving credit facility
|
––
|
(6
|
)
|
||||||
Fees related to special purpose entities
|
1
|
(4
|
)
|
||||||
Changes in book overdrafts
|
(4
|
)
|
(4
|
)
|
|||||
Cash dividends paid to shareholders
|
(28
|
)
|
(23
|
)
|
|||||
Exercise of stock options
|
8
|
4
|
|||||||
Tax benefit on share-based compensation
|
1
|
––
|
|||||||
(11
|
)
|
2
|
|||||||
Effect of exchange rate changes on cash and cash equivalents
|
1
|
1
|
|||||||
Net increase in cash and cash equivalents
|
15
|
12
|
|||||||
Cash and cash equivalents at beginning of period
|
28
|
36
|
|||||||
Cash and cash equivalents at end of period
|
$
|
43
|
$
|
48
|
Defined Benefits
|
Postretirement Benefits
|
||||||||||||||||
Qualified
|
Supplemental
|
Total
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
||||||||||
Second Quarter:
|
(In millions)
|
||||||||||||||||
Service costs – benefits earned during the period
|
$
|
7
|
$
|
6
|
$
|
––
|
$
|
1
|
$
|
7
|
$
|
7
|
$
|
1
|
$
|
1
|
|
Interest cost on projected benefit obligation
|
20
|
20
|
1
|
––
|
21
|
20
|
1
|
1
|
|||||||||
Expected return on plan assets
|
(18
|
)
|
(18
|
)
|
––
|
––
|
(18
|
)
|
(18
|
)
|
––
|
––
|
|||||
Amortization of prior service costs
|
––
|
––
|
––
|
––
|
––
|
––
|
(1
|
)
|
(1
|
)
|
|||||||
Amortization of actuarial net loss
|
5
|
5
|
––
|
1
|
5
|
6
|
––
|
––
|
|||||||||
Benefit expense
|
$
|
14
|
$
|
13
|
$
|
1
|
$
|
2
|
$
|
15
|
$
|
15
|
$
|
1
|
$
|
1
|
|
First Six Months:
|
|||||||||||||||||
Service costs – benefits earned during the period
|
$
|
13
|
$
|
12
|
$
|
1
|
$
|
1
|
$
|
14
|
$
|
13
|
$
|
1
|
$
|
1
|
|
Interest cost on projected benefit obligation
|
40
|
40
|
1
|
1
|
41
|
41
|
3
|
3
|
|||||||||
Expected return on plan assets
|
(37
|
)
|
(37
|
)
|
––
|
––
|
(37
|
)
|
(37
|
)
|
––
|
––
|
|||||
Amortization of prior service costs
|
1
|
1
|
1
|
1
|
2
|
2
|
(1
|
)
|
(1
|
)
|
|||||||
Amortization of actuarial net loss
|
10
|
10
|
––
|
1
|
10
|
11
|
––
|
––
|
|||||||||
Benefit expense
|
$
|
27
|
$
|
26
|
$
|
3
|
$
|
4
|
$
|
30
|
$
|
30
|
$
|
3
|
$
|
3
|
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
Cash-settled restricted or performance stock units
|
$
|
17
|
$
|
3
|
$
|
31
|
$
|
7
|
||||
Stock-settled restricted stock units
|
1
|
1
|
2
|
1
|
||||||||
Stock options
|
1
|
3
|
4
|
4
|
||||||||
Total share-based compensation expense
|
19
|
7
|
37
|
12
|
||||||||
Fixed value cash awards
|
1
|
1
|
2
|
2
|
||||||||
Total share-based and long-term incentive compensation expense
|
$
|
20
|
$
|
8
|
$
|
39
|
$
|
14
|
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
Cost of sales
|
$
|
1
|
$
|
1
|
$
|
3
|
$
|
2
|
||||
Selling expense
|
––
|
1
|
1
|
1
|
||||||||
General and administrative expense
|
19
|
6
|
35
|
11
|
||||||||
Total share-based and long-term incentive compensation expense
|
$
|
20
|
$
|
8
|
$
|
39
|
$
|
14
|
Cash-Settled Units
|
Weighted Average Grant Date Fair Value Per Share
|
Aggregate Current Value
|
|||||||
(In thousands)
|
(In millions)
|
||||||||
Not vested beginning of year
|
2,627
|
$
|
12
|
||||||
Granted
|
447
|
24
|
|||||||
Vested and settled
|
(651
|
)
|
19
|
||||||
Forfeited
|
(6
|
)
|
17
|
||||||
Not vested at second quarter-end 2011
|
2,417
|
12
|
$
|
73
|
|||||
Not vested units at second quarter-end 2011 subject to:
|
|||||||||
Time vesting requirements
|
439
|
$
|
13
|
||||||
Performance requirements
|
1,978
|
60
|
|||||||
2,417
|
$
|
73
|
Stock-Settled Units
|
Weighted Average Grant Date Fair Value Per Share
|
Aggregate Current Value
|
||||||
(In thousands)
|
(In millions)
|
|||||||
Not vested beginning of year
|
369
|
$
|
20
|
$
|
||||
Granted
|
241
|
24
|
||||||
Vested and settled
|
––
|
––
|
||||||
Forfeited
|
––
|
––
|
||||||
Not vested at second quarter-end 2011
|
610
|
$
|
21
|
$
|
18
|
Shares
|
Weighted Average Exercise Price Per Share
|
Weighted Average Remaining Contractual Term
|
Aggregate Intrinsic Value (Current value less exercise price)
|
|||||||||
(In thousands)
|
(In years)
|
(In millions)
|
||||||||||
Outstanding beginning of year
|
7,416
|
$
|
15
|
|
||||||||
Granted
|
431
|
24
|
||||||||||
Exercised
|
(714
|
)
|
15
|
|||||||||
Forfeited
|
(29
|
)
|
14
|
|||||||||
Outstanding at second quarter-end 2011
|
7,104
|
16
|
6
|
$
|
101
|
|||||||
Exercisable at second quarter-end 2011
|
5,158
|
16
|
6
|
$
|
71
|
First Six Months
|
||||||
2011
|
2010
|
|||||
Expected dividend yield
|
2.2
|
%
|
3.2
|
%
|
||
Expected stock price volatility
|
65.0
|
%
|
66.6
|
%
|
||
Risk-free interest rate
|
3.3
|
%
|
3.2
|
%
|
||
Expected life of options (in years)
|
8
|
8
|
||||
Weighted average estimated fair value of options at grant date
|
$
|
13.40
|
$
|
10.23
|
Second Quarter
|
First Six Months
|
|||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||||
(In millions)
|
||||||||||||||||||
Equity in earnings of joint ventures
|
$
|
––
|
$
|
2
|
$
|
––
|
$
|
2
|
||||||||||
Gain (loss) on sale or retirement of operating property and equipment
|
(1
|
)
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
||||||||||
Costs and asset impairments, primarily related to box plant transformation
|
(7
|
)
|
(2
|
)
|
(16
|
)
|
(12
|
)
|
||||||||||
Litigation (See Note 14)
|
3
|
––
|
3
|
––
|
||||||||||||||
Unsolicited tender offer costs (See Note 3)
|
(2
|
)
|
––
|
(2
|
)
|
––
|
||||||||||||
Alternative fuel mixture tax credits, net of costs
|
––
|
––
|
––
|
10
|
||||||||||||||
Other operating income (expense)
|
$
|
(7
|
)
|
$
|
(1
|
)
|
$
|
(16
|
)
|
$
|
(2
|
)
|
First Six Months 2011
|
|||
(In millions)
|
|||
Beginning of year
|
$
|
––
|
|
Additions
|
1
|
||
Cash payments
|
(1
|
)
|
|
End of period
|
$
|
––
|
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
Earnings for basic and diluted earnings per share:
|
||||||||||||
Net income
|
$
|
19
|
$
|
20
|
$
|
34
|
$
|
15
|
||||
Less: Distributed and undistributed amounts allocated to participating securities
|
––
|
–––
|
––
|
–––
|
||||||||
19
|
20
|
34
|
15
|
|||||||||
Less: Net (income) loss attributable to noncontrolling interest of special purpose entities
|
––
|
–––
|
1
|
1
|
||||||||
Net income available to common shareholders
|
$
|
19
|
$
|
20
|
$
|
35
|
$
|
16
|
||||
Weighted average shares outstanding:
|
||||||||||||
Weighted average shares outstanding - basic
|
108.6
|
107.9
|
108.5
|
107.8
|
||||||||
Dilutive effect of stock options and unvested stock-settled restricted stock units
|
2.2
|
1.8
|
2.1
|
1.7
|
||||||||
Weighted average shares outstanding - diluted
|
110.8
|
109.7
|
110.6
|
109.5
|
Second Quarter-End
|
|||||
2011
|
2010
|
||||
(Shares in thousands)
|
|||||
Options held
|
305
|
451
|
|||
Options exercisable
|
305
|
436
|
|||
Weighted average exercise price
|
$
|
20
|
$
|
19
|
|
Weighted average remaining contractual term (in years)
|
4
|
5
|
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(Shares in thousands)
|
||||||||||||
Options outstanding held by employees
|
––
|
649
|
1,058
|
1,358
|
||||||||
Options outstanding held by employees of spun-off entities
|
––
|
160
|
160
|
279
|
First Six Months
|
||||||||||||||||||
2011
|
2010
|
|||||||||||||||||
Temple-Inland Inc. Shareholders’ Equity
|
Noncontrolling Interest
|
Total Shareholders’ Equity
|
Temple-Inland Inc. Shareholders’ Equity
|
Noncontrolling Interest
|
Total Shareholders’ Equity
|
|||||||||||||
(In millions, except per share amounts)
|
||||||||||||||||||
Beginning of year
|
$
|
929
|
$
|
92
|
$
|
1,021
|
$
|
794
|
$
|
92
|
$
|
886
|
||||||
Comprehensive income, net of tax:
|
||||||||||||||||||
Net income (loss)
|
35
|
(1
|
)
|
34
|
16
|
(1
|
)
|
15
|
||||||||||
Defined benefit plans
|
9
|
––
|
9
|
10
|
––
|
10
|
||||||||||||
Foreign currency translation adjustment
|
5
|
––
|
5
|
3
|
––
|
3
|
||||||||||||
Total Comprehensive Income
|
48
|
28
|
||||||||||||||||
Dividends paid on common stock –
($0.26 per share in 2011 and $0.22 per share in 2010)
|
(28
|
)
|
––
|
(28
|
)
|
(23
|
)
|
––
|
(23
|
)
|
||||||||
Share-based compensation, net of distributions
|
15
|
––
|
15
|
9
|
––
|
9
|
||||||||||||
Balance at second quarter-end
|
$
|
965
|
$
|
91
|
$
|
1,056
|
$
|
809
|
$
|
91
|
$
|
900
|
Corrugated Packaging
|
Building Products
|
Items Not Included in Segments
and Eliminations
|
Total
|
|||||||||
(In millions)
|
||||||||||||
Second Quarter 2011:
|
||||||||||||
Revenues from external customers
|
$
|
845
|
$
|
171
|
$
|
––
|
$
|
1,016
|
||||
Depreciation and amortization
|
37
|
10
|
2
|
49
|
||||||||
Equity income from joint ventures
|
––
|
––
|
––
|
––
|
||||||||
Income (loss) before taxes
|
96
|
(8
|
)
|
(58
|
)(a)
|
30
|
||||||
Capital expenditures
|
61
|
5
|
1
|
67
|
||||||||
First Six Months 2011 or at
Second Quarter-End 2011:
|
||||||||||||
Revenues from external customers
|
$
|
1,666
|
$
|
345
|
$
|
––
|
$
|
2,011
|
||||
Depreciation and amortization
|
74
|
20
|
3
|
97
|
||||||||
Equity income from joint ventures
|
––
|
––
|
––
|
––
|
||||||||
Income (loss) before taxes
|
194
|
(14)
|
(124
|
)(a)
|
56
|
|||||||
Total assets
|
2,525
|
534
|
2,948
|
6,007
|
||||||||
Investment in equity method investees and joint ventures
|
2
|
23
|
––
|
25
|
||||||||
Goodwill
|
265
|
129
|
––
|
394
|
||||||||
Capital expenditures
|
119
|
8
|
2
|
129
|
||||||||
Second Quarter 2010:
|
||||||||||||
Revenues from external customers
|
$
|
786
|
$
|
190
|
$
|
––
|
$
|
976
|
||||
Depreciation and amortization
|
35
|
10
|
3
|
48
|
||||||||
Equity income from joint ventures
|
––
|
2
|
––
|
2
|
||||||||
Income (loss) before taxes
|
63
|
15
|
(46
|
)(a)
|
32
|
|||||||
Capital expenditures
|
48
|
4
|
––
|
52
|
||||||||
First Six Months 2010 or at
Second Quarter-End 2010:
|
||||||||||||
Revenues from external customers
|
$
|
1,538
|
$
|
343
|
$
|
––
|
$
|
1,881
|
||||
Depreciation and amortization
|
70
|
21
|
5
|
96
|
||||||||
Equity income from joint ventures
|
––
|
2
|
––
|
2
|
||||||||
Income (loss) before taxes
|
109
|
6
|
(86
|
)(a)
|
29
|
|||||||
Total assets
|
2,336
|
554
|
2,871
|
5,761
|
||||||||
Investment in equity method investees and joint ventures
|
3
|
25
|
––
|
28
|
||||||||
Goodwill
|
265
|
129
|
––
|
394
|
||||||||
Capital expenditures
|
73
|
8
|
4
|
85
|
||||||||
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(In millions)
|
||||||||||||
General and administrative expense
|
$
|
(17
|
)
|
$
|
(19
|
)
|
$
|
(34
|
)
|
$
|
(37
|
)
|
Share-based and long-term incentive compensation
|
(20
|
)
|
(8
|
)
|
(39
|
)
|
(14
|
)
|
||||
Other operating income (expense)
|
(6
|
)
|
(2
|
)
|
(15
|
)
|
(2
|
)
|
||||
Other non-operating income (expense)
|
––
|
––
|
(4
|
)
|
––
|
|||||||
Net interest income (expense) on financial assets and nonrecourse financial liabilities of special purpose entities
|
(4
|
)
|
(4
|
)
|
(9
|
)
|
(7
|
)
|
||||
Interest expense on debt
|
(11
|
)
|
(13
|
)
|
(23
|
)
|
(26
|
)
|
||||
$
|
(58
|
)
|
$
|
(46
|
)
|
$
|
(124
|
)
|
$
|
(86
|
)
|
|
Other operating income (expense) applies to:
|
||||||||||||
Corrugated packaging
|
$
|
(4
|
)
|
$
|
(2
|
)
|
$
|
(13
|
)
|
$
|
(2
|
)
|
Building products
|
––
|
––
|
––
|
––
|
||||||||
Unallocated
|
(2
|
)
|
––
|
(2
|
)
|
––
|
||||||
$
|
(6
|
)
|
$
|
(2
|
)
|
$
|
(15
|
)
|
$
|
(2
|
)
|
At Second Quarter-End 2011
|
At Year-End 2010
|
|||||||||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||||||||
Value
|
Value
|
Value
|
Value
|
Valuation Technique
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||
Financial Liabilities
|
||||||||||||||||||||||
Fixed-rate, long-term debt
|
$
|
490
|
$
|
534
|
$
|
540
|
$
|
577
|
Level 2 – Market Approach
|
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
·
|
general economic, market, or business conditions
|
·
|
the opportunities (or lack thereof) that may be presented to us and that we may pursue
|
·
|
fluctuations in costs and expenses including the costs of raw materials, purchased energy, and freight
|
·
|
changes in interest rates
|
·
|
demand for new housing
|
·
|
accuracy of accounting assumptions related to impaired assets, pension and postretirement costs, contingency reserves, and income taxes
|
·
|
competitive actions by other companies
|
·
|
changes in laws or regulations
|
·
|
our ability to execute certain strategic and business improvement initiatives
|
·
|
the accuracy of certain judgments and estimates concerning the integration of acquired operations
|
·
|
future events related to IP’s unsolicited tender offer for all outstanding shares of our common stock
|
·
|
other factors, many of which are beyond our control
|
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(In millions, except per share)
|
||||||||||||
Revenues
|
||||||||||||
Corrugated packaging
|
$
|
845
|
$
|
786
|
$
|
1,666
|
$
|
1,538
|
||||
Building products
|
171
|
190
|
345
|
343
|
||||||||
Total revenues
|
$
|
1,016
|
$
|
976
|
$
|
2,011
|
$
|
1,881
|
||||
Segment operating income
|
||||||||||||
Corrugated packaging
|
$
|
96
|
$
|
63
|
$
|
194
|
$
|
109
|
||||
Building products
|
(8
|
)
|
15
|
(14
|
)
|
6
|
||||||
Total segment operating income
|
88
|
78
|
180
|
115
|
||||||||
Items not included in segments
|
||||||||||||
General and administrative expense
|
(17
|
)
|
(19
|
)
|
(34
|
)
|
(37
|
)
|
||||
Share-based and long-term incentive compensation
|
(20
|
)
|
(8
|
)
|
(39
|
)
|
(14
|
)
|
||||
Other operating income (expense)
|
(6
|
)
|
(2
|
)
|
(15
|
)
|
(2
|
)
|
||||
Other non-operating income (expense)
|
––
|
––
|
(4
|
)
|
––
|
|||||||
Net interest income (expense) on financial assets and nonrecourse financial liabilities of special purpose entities
|
(4
|
)
|
(4
|
)
|
(9
|
)
|
(7
|
)
|
||||
Interest expense on debt
|
(11
|
)
|
(13
|
)
|
(23
|
)
|
(26
|
)
|
||||
Income before taxes
|
30
|
32
|
56
|
29
|
||||||||
Income tax expense
|
(11
|
)
|
(12
|
)
|
(22
|
)
|
(14
|
)
|
||||
Net income
|
19
|
20
|
34
|
15
|
||||||||
Net (income) loss attributable to noncontrolling interest of special purpose entities
|
––
|
––
|
1
|
1
|
||||||||
Net income attributable to Temple-Inland Inc.
|
$
|
19
|
$
|
20
|
$
|
35
|
$
|
16
|
||||
Average basic shares outstanding
|
108.6
|
107.9
|
108.5
|
107.8
|
||||||||
Average diluted shares outstanding
|
110.8
|
109.7
|
110.6
|
109.5
|
||||||||
Earnings per basic share
|
$
|
0.18
|
$
|
0.19
|
$
|
0.33
|
$
|
0.15
|
||||
Earnings per diluted share
|
$
|
0.17
|
$
|
0.18
|
$
|
0.32
|
$
|
0.15
|
||||
ROI, annualized
|
7.8
|
%
|
5.0
|
%
|
·
|
In corrugated packaging, higher box prices and benefits from box plant transformation more than offset higher input costs compared with first six months 2010. In building products, higher lumber and particleboard volumes were offset by lower lumber prices and higher input costs compared with first six months 2010.
|
·
|
Other operating income (expense) includes a $16 million charge primarily related to Box Plant Transformation II, a $3 million credit due to the reversal of a litigation reserve related to alleged violations of the California on duty meal break laws, and $2 million in costs related to an unsolicited tender offer.
|
·
|
Share-based and long-term incentive compensation increased $25 million compared with first six months 2010, primarily due to the effect of the higher market price of our common stock on our cash-settled awards.
|
·
|
We recognized a loss of $4 million related to the purchase and retirement of $50 million of our 7.875% Senior Notes due 2012.
|
·
|
We experienced lower prices and flat volumes on an average week basis for our corrugated packaging products compared with first six months 2009. We also experienced higher prices for lumber and MDF, lower prices for gypsum wallboard and particleboard, and higher volumes for gypsum wallboard, particleboard and MDF.
|
·
|
A significant increase in input costs, principally recycled fiber, wood fiber and freight, more than offset our continuing initiatives to lower costs, improve asset utilization, and increase operating efficiencies.
|
·
|
Share-based and long-term incentive compensation decreased $12 million compared with first six months 2009 primarily due to the effect of the lower market price of our common stock on our cash-settled awards.
|
·
|
Other operating income (expense) included a $12 million charge associated with facility closures related to Box Plant Transformation II and a $10 million benefit related to alternative fuel mixture tax credits.
|
·
|
We recognized a one-time income tax expense of $3 million related to the impact of the Patient Protection and Affordable Care Act on the Medicare Part D retiree drug subsidy program.
|
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(Dollars in millions)
|
||||||||||||
Revenues
|
$
|
845
|
$
|
786
|
$
|
1,666
|
$
|
1,538
|
||||
Costs and expenses
|
(749
|
)
|
(723
|
)
|
(1,472
|
)
|
(1,429
|
)
|
||||
Segment operating income
|
$
|
96
|
$
|
63
|
$
|
194
|
$
|
109
|
||||
Segment ROI
|
18.1
|
%
|
10.8
|
%
|
Second Quarter 2011
versus
Second Quarter 2010
|
First Six Months 2011
versus
First Six Months 2010
|
||||
Increase/(Decrease)
|
|||||
Corrugated packaging
|
|||||
Average prices
|
5
|
%
|
7
|
%
|
|
Shipments, average week
|
3
|
%
|
––
|
||
Industry shipments, average week(a)
|
(1
|
)%
|
––
|
||
Paperboard
|
|||||
Average prices
|
5
|
%
|
14
|
%
|
|
Shipments, in thousand tons
|
14
|
17
|
|
(a) Source: Fibre Box Association
|
Second Quarter 2011
versus
Second Quarter 2010
|
First Six Months 2011
versus
First Six Months 2010
|
||||||||
Increase/(Decrease)
(In millions)
|
|||||||||
Wood fiber
|
$
|
––
|
$
|
(4
|
)
|
||||
Recycled fiber
|
16
|
20
|
|||||||
Energy, principally natural gas
|
4
|
(2
|
)
|
||||||
Freight
|
12
|
23
|
|||||||
Chemicals
|
7
|
13
|
|||||||
Depreciation
|
2
|
4
|
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
Number of converting facilities (at quarter-end)
|
58
|
60
|
58
|
60
|
||||||||
Corrugated packaging shipments, in thousand tons
|
847
|
838
|
1,687
|
1,684
|
||||||||
Paperboard production, in thousand tons
|
1,024
|
994
|
2,044
|
1,987
|
||||||||
Percent containerboard production used internally
|
91
|
%
|
92
|
%
|
92
|
%
|
93
|
%
|
||||
Percent total fiber requirements sourced from recycled fiber
|
41
|
%
|
41
|
%
|
41
|
%
|
43
|
%
|
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(Dollars in millions)
|
||||||||||||
Revenues
|
$
|
171
|
$
|
190
|
$
|
345
|
$
|
343
|
||||
Costs and expenses
|
(179
|
)
|
(175
|
)
|
(359
|
)
|
(337
|
)
|
||||
Segment operating income (loss)
|
$
|
(8
|
)
|
$
|
15
|
$
|
(14
|
)
|
$
|
6
|
||
Segment ROI
|
(5.8
|
)%
|
2.4
|
%
|
Second Quarter 2011
versus
Second Quarter 2010
|
First Six Months 2011
versus
First Six Months 2010
|
||||||||
Increase/(Decrease)
|
|||||||||
Lumber:
|
|||||||||
Average prices
|
(25
|
)%
|
(19
|
)%
|
|||||
Shipments
|
2
|
%
|
15
|
%
|
|||||
Gypsum wallboard:
|
|||||||||
Average prices
|
1
|
%
|
3
|
%
|
|||||
Shipments
|
(8
|
)%
|
(1
|
)%
|
|||||
Particleboard:
|
|||||||||
Average prices
|
––
|
%
|
1
|
%
|
|||||
Shipments
|
6
|
%
|
9
|
%
|
|||||
MDF:
|
|||||||||
Average prices
|
2
|
%
|
6
|
%
|
|||||
Shipments
|
(14
|
)%
|
(7
|
)%
|
Second Quarter 2011
versus
Second Quarter 2010
|
First Six Months 2011
versus
First Six Months 2010
|
||||||||
Increase/(Decrease)
(In millions)
|
|||||||||
Wood fiber
|
$
|
(2
|
)
|
$
|
8
|
||||
Energy, principally natural gas
|
1
|
1
|
|||||||
Chemicals
|
2
|
6
|
|||||||
Freight
|
3
|
9
|
First Six Months
|
||||||
2011
|
2010
|
|||||
(In millions)
|
||||||
Cash received from:
|
||||||
Operations
|
211
|
127
|
(a)
|
|||
Working capital
|
(55
|
)
|
(33
|
)(b)
|
||
Cash received from operations
|
156
|
94
|
||||
Sale of non-strategic assets and other
|
––
|
2
|
||||
Exercise of stock options and related tax benefits
|
9
|
4
|
||||
Borrowings, net
|
11
|
35
|
||||
Total sources
|
176
|
135
|
||||
Cash used to:
|
||||||
Return to shareholders through dividends
|
(28
|
)
|
(23
|
)
|
||
Reinvest in the business through:
|
||||||
Capital expenditures
|
(129
|
)
|
(85
|
)
|
||
Other
|
(5
|
)
|
(16
|
)
|
||
Total uses
|
(162
|
)
|
(124
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
1
|
1
|
||||
Change in cash and cash equivalents
|
$
|
15
|
$
|
12
|
(a)
|
Includes $15 million of voluntary, discretionary contributions to our qualified defined benefit plan.
|
(b)
|
Includes $14 million of alternative fuel mixture tax credits that were accrued at year-end 2009.
|
Committed Credit Agreements
|
Accounts Receivable Securitization Facility
|
Total
|
|||||||||||||||
(In millions)
|
|||||||||||||||||
Committed
|
$
|
710
|
$
|
250
|
$
|
960
|
|||||||||||
Less: Borrowings and commitments
|
(30
|
)
|
(218
|
)
|
(248
|
)
|
|||||||||||
Unused borrowing capacity at second quarter-end 2011
|
$
|
680
|
$
|
32
|
$
|
712
|
Consolidated
|
Corrugated Packaging
|
Building Products
|
|||||||
(Dollars in millions)
|
|||||||||
First Six Months 2011
|
|||||||||
Return:
|
|||||||||
Segment operating income determined in accordance with GAAP
|
$
|
180
|
$
|
194
|
$
|
(14
|
)
|
||
Items not included in segments:
|
|||||||||
General and administrative expense
|
(34
|
)
|
N/A
|
N/A
|
|||||
Share-based and long-term incentive compensation
|
(39
|
)
|
N/A
|
N/A
|
|||||
$
|
107
|
$
|
194
|
$
|
(14
|
)
|
|||
Investment:
|
|||||||||
Beginning of year total assets or segment assets determined in accordance with GAAP
|
$
|
5,909
|
$
|
2,475
|
$
|
532
|
|||
Adjustments:
|
|||||||||
Current liabilities (excluding current portion of long-term debt)
|
(508
|
)
|
(330
|
)
|
(53
|
)
|
|||
Financial assets of special purpose entities
|
(2,475
|
)
|
N/A
|
N/A
|
|||||
Municipal bonds related to capital leases included in other assets
|
(188
|
)
|
N/A
|
N/A
|
|||||
$
|
2,738
|
$
|
2,145
|
$
|
479
|
||||
ROI, annualized
|
7.8
|
%
|
18.1
|
%
|
(5.8
|
)%
|
|||
First Six Months 2010
|
|||||||||
Return:
|
|||||||||
Segment operating income determined in accordance with GAAP
|
$
|
115
|
$
|
109
|
$
|
6
|
|||
Items not included in segments:
|
|||||||||
General and administrative expense
|
(37
|
)
|
N/A
|
N/A
|
|||||
Share-based and long-term incentive compensation
|
(14
|
)
|
N/A
|
N/A
|
|||||
$
|
64
|
$
|
109
|
$
|
6
|
||||
Investment:
|
|||||||||
Beginning of year total assets or segment assets determined in accordance with GAAP
|
$
|
5,709
|
$
|
2,295
|
$
|
545
|
|||
Adjustments:
|
|||||||||
Current liabilities (excluding current portion of long-term debt)
|
(471
|
)
|
(276
|
)
|
(44
|
)
|
|||
Financial assets of special purpose entities
|
(2,475
|
)
|
N/A
|
N/A
|
|||||
Municipal bonds related to capital leases included in other assets
|
(188
|
)
|
N/A
|
N/A
|
|||||
$
|
2,575
|
$
|
2,019
|
$
|
501
|
||||
ROI, annualized
|
5.0
|
%
|
10.8
|
%
|
2.4
|
%
|
Second Quarter
|
First Six Months
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(Dollars in millions)
|
||||||||||||
Revenues
|
||||||||||||
Corrugated Packaging
|
||||||||||||
Corrugated packaging
|
$
|
788
|
$
|
738
|
$
|
1,560
|
$
|
1,449
|
||||
Paperboard (a)
|
57
|
48
|
106
|
89
|
||||||||
$
|
845
|
$
|
786
|
$
|
1,666
|
$
|
1,538
|
|||||
Building Products
|
||||||||||||
Lumber
|
$
|
55
|
$
|
71
|
$
|
114
|
$
|
121
|
||||
Gypsum wallboard
|
37
|
40
|
75
|
73
|
||||||||
Particleboard
|
41
|
38
|
82
|
74
|
||||||||
Medium density fiberboard
|
18
|
21
|
38
|
39
|
||||||||
Fiberboard
|
7
|
9
|
13
|
16
|
||||||||
Other
|
13
|
11
|
23
|
20
|
||||||||
$
|
171
|
$
|
190
|
$
|
345
|
$
|
343
|
|||||
Unit sales
|
||||||||||||
Corrugated Packaging
|
||||||||||||
Corrugated packaging, thousands of tons
|
847
|
838
|
1,687
|
1,684
|
||||||||
Paperboard, thousands of tons (a)
|
109
|
95
|
203
|
186
|
||||||||
956
|
933
|
1,890
|
1,870
|
|||||||||
Building Products
|
||||||||||||
Lumber, million board feet
|
209
|
205
|
416
|
363
|
||||||||
Gypsum wallboard, million square feet
|
299
|
326
|
627
|
632
|
||||||||
Particleboard, million square feet
|
117
|
110
|
236
|
217
|
||||||||
Medium density fiberboard, million square feet
|
31
|
36
|
66
|
71
|
||||||||
Fiberboard, million square feet
|
36
|
45
|
67
|
79
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
Total Number of Shares
Purchased
|
Average
Price Paid
per Share
|
Total Number of Shares Purchased
as Part of Publicly Announced Plans
or Programs
|
Maximum Number
of Shares That May Yet be Purchased Under the Plans
or Programs
|
|||||||||||||||
Month 1 (4/1/2011 – 4/30/2011)
|
426
|
(b)
|
$
|
23.33
|
––
|
6,650,000
|
|||||||||||||
Month 2 (5/1/2011 – 5/31/2011)
|
––
|
––
|
––
|
6,650,000
|
|||||||||||||||
Month 3 (6/1/2011 – 6/30/2011)
|
8,823
|
(b)
|
29.60
|
––
|
6,650,000
|
||||||||||||||
Total
|
9,249
|
$
|
29.32
|
––
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
[Removed and Reserved]
|
Item 5.
|
Other Information
|
Item 6.
|
31.1
|
–
|
Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
–
|
Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
–
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
–
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.1
|
–
|
The following materials from Temple-Inland's Quarterly Report on Form 10-Q for the quarter ended July 3, 2010, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements.
|
TEMPLE-INLAND INC.
(Registrant)
|
||
Dated: August 8, 2011
|
By:
|
/s/ Randall D. Levy
|
Name: Randall D. Levy
|
||
Title: Chief Financial Officer
|
||
By:
|
/s/ Troy L. Hester
|
|
Name: Troy L. Hester
|
||
Title: Corporate Controller and
Principal Accounting Officer
|
Exhibit
No.
|
Description
|
Page
No.
|
31.1
|
Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
34
|
31.2
|
Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
36
|
32.1
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
38
|
32.2
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
39
|
101.1
|
The following materials from Temple-Inland's Quarterly Report on Form 10-Q for the quarter ended July 3, 2011, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements.
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Temple-Inland Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in the report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: August 8, 2011
|
/s/ Doyle R. Simons
|
|
Doyle R. Simons
|
||
Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Temple-Inland Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in the report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: August 8, 2011
|
/s/ Randall D. Levy
|
|
Randall D. Levy
|
||
Chief Financial Officer
|
/s/ Doyle R. Simons
|
|
Doyle R. Simons
|
|
Chief Executive Officer
|
|
August 8, 2011
|
/s/ Randall D. Levy
|
|
Randall D. Levy
|
|
Chief Financial Officer
|
|
August 8, 2011
|
CONSOLIDATED BALANCE SHEETS Parenthetical (USD $)
In Millions, except Share data |
Jul. 02, 2011
|
Jan. 01, 2011
|
---|---|---|
Current Assets | ||
Allowance for doubtful accounts receivable | $ 16 | $ 16 |
Temple-Inland Inc. Shareholders' Equity | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 123,605,344 | 123,605,344 |
Treasury stock, shares | 14,955,970 | 15,654,157 |
Other Operating Income (Expense) (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 02, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating Income (Expense) |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accruals Related To Transformation Activities | Activity within our accruals for box plant transformation activities follows:
|
Document And Entity Information (USD $)
|
6 Months Ended | |
---|---|---|
Jul. 02, 2011
|
Jul. 03, 2010
|
|
Entity Registrant Name | TEMPLE INLAND INC | |
Entity Central Index Key | 0000731939 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $ 1,887,700,000 | |
Entity Common Stock, Shares Outstanding | 108,649,374 | |
Document Fiscal Year Focus | 2011 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 02, 2011 |
Segment Information (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 02, 2011
|
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
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Items not Included in Segment Information | (a) Items not included in segments consist of:
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Non-operating Income (Expense)
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6 Months Ended |
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Jul. 02, 2011
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Non-operating Income (Expense) [Abstract] | |
Non-operating Income (Expense) | Note 7 - Non-operating Income (Expense) Other non-operating income (expense) in first six months 2011 consists of a $4 million loss resulting from the purchase and retirement of $50 million of our 7.875% Senior Notes due 2012. |
Fair Values and Fair Value Measurements of Financial Instruments (Tables)
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Jul. 02, 2011
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Fair Values and Fair Value Measurements of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement of Long-term Debt | Information about our fixed-rate, long-term debt that is not measured at fair value follows:
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