Segment Information

6 Months Ended

Jul. 02, 2011

Segment Information [Abstract]

Segment Information

Note 12 - Segment Information

We have two business segments: corrugated packaging and building products.  Corrugated packaging manufactures linerboard and corrugating medium (collectively referred to as containerboard), which we convert into corrugated packaging, and lightweight gypsum facing paper.  Building products manufactures a variety of building products.

We evaluate performance based on operating income before items not included in segments and income taxes.  Items not included in segments represent items managed on a company-wide basis and include corporate general and administrative expense, share-based and long-term incentive compensation, other operating and non-operating income (expense), and interest income and expense.  Other operating income (expense) includes gain or loss on sale of assets, asset impairments, closure related severance costs, and unusual income and expense items.  The accounting policies of the segments are the same as those described in the accounting policy notes to the financial statements.  Intersegment sales are recorded at market prices.  Intersegment sales and shared service expense allocations are netted in costs and expenses.

TEMPLE-INLAND INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

		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

(a) Items not included in segments consist of:

		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	)