Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | IP | |
Entity Registrant Name | INTERNATIONAL PAPER CO /NEW/ | |
Entity Central Index Key | 51,434 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 414,091,479 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Sales | $ 5,621 | $ 5,132 |
Costs and Expenses | ||
Cost of products sold | 3,948 | 3,638 |
Selling and administrative expenses | 421 | 393 |
Depreciation, amortization and cost of timber harvested | 325 | 320 |
Distribution expenses | 366 | 348 |
Taxes other than payroll and income taxes | 44 | 42 |
Restructuring and other charges | 22 | 0 |
Net bargain purchase gain on acquisition of business | 0 | (6) |
Interest expense, net | 135 | 142 |
Non-operating pension expense | 4 | 38 |
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 356 | 217 |
Income tax provision (benefit) | 89 | 73 |
Equity earnings (loss), net of taxes | 95 | 48 |
Earnings (Loss) From Continuing Operations | 362 | 192 |
Discontinued operations, net of taxes | 368 | 17 |
Net Earnings (Loss) | 730 | 209 |
Less: Net earnings (loss) attributable to noncontrolling interests | 1 | 0 |
Net Earnings (Loss) Attributable to International Paper Company | $ 729 | $ 209 |
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||
Earnings (loss) from continuing operations | $ 0.87 | $ 0.47 |
Discontinued operations, net of taxes | 0.89 | 0.04 |
Net earnings (loss) | 1.76 | 0.51 |
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||
Earnings (loss) from continuing operations | 0.86 | 0.46 |
Discontinued operations, net of taxes | 0.88 | 0.04 |
Net earnings (loss) | $ 1.74 | $ 0.50 |
Average Shares of Common Stock Outstanding – assuming dilution | 418.2 | 416 |
Cash Dividends Per Common Share | $ 0.4750 | $ 0.4625 |
Amounts Attributable to International Paper Company Common Shareholders | ||
Earnings (loss) from continuing operations | $ 361 | $ 192 |
Discontinued operations, net of taxes | 368 | 17 |
Net Earnings (Loss) Attributable to International Paper Company | $ 729 | $ 209 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Earnings (Loss) | $ 730 | $ 209 |
Other Comprehensive Income (Loss), Net of Tax: | ||
Change in cumulative foreign currency translation adjustment | 42 | 148 |
Net gains/losses on cash flow hedging derivatives: | ||
Net gains (losses) arising during the period | (3) | 9 |
Reclassification adjustment for (gains) losses included in net earnings (loss) | (2) | (2) |
Total Other Comprehensive Income (Loss), Net of Tax | 103 | 211 |
Comprehensive Income (Loss) | 833 | 420 |
Net (earnings) loss attributable to noncontrolling interests | (1) | 0 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | (1) |
Comprehensive Income (Loss) Attributable to International Paper Company | 832 | 419 |
U.S. Plans | ||
Other Comprehensive Income (Loss), Net of Tax: | ||
Amortization of pension and post-retirement prior service costs and net loss: | 66 | 57 |
Foreign Plan [Member] | ||
Other Comprehensive Income (Loss), Net of Tax: | ||
Pension and postretirement liability adjustments: | $ 0 | $ (1) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and temporary investments | $ 1,141 | $ 1,018 |
Accounts and notes receivable, net | 3,416 | 3,287 |
Contract assets | 388 | 0 |
Inventories | 2,057 | 2,313 |
Assets held for sale | 0 | 1,377 |
Other current assets | 258 | 282 |
Total Current Assets | 7,260 | 8,277 |
Plants, Properties and Equipment, net | 13,335 | 13,265 |
Forestlands | 453 | 448 |
Investments | 1,490 | 390 |
Financial Assets of Special Purpose Entities (Note 15) | 7,056 | 7,051 |
Goodwill | 3,414 | 3,411 |
Deferred Charges and Other Assets | 1,022 | 1,061 |
Total Assets | 34,030 | 33,903 |
Current Liabilities | ||
Notes payable and current maturities of long-term debt | 587 | 311 |
Accounts payable | 2,534 | 2,458 |
Accrued payroll and benefits | 352 | 485 |
Liabilities held for sale | 0 | 805 |
Other accrued liabilities | 992 | 1,043 |
Total Current Liabilities | 4,465 | 5,102 |
Long-Term Debt | 10,759 | 10,846 |
Nonrecourse Financial Liabilities of Special Purpose Entities (Note 15) | 6,293 | 6,291 |
Deferred Income Taxes | 2,480 | 2,291 |
Pension Benefit Obligation | 1,893 | 1,939 |
Postretirement and Postemployment Benefit Obligation | 317 | 326 |
Other Liabilities | 558 | 567 |
Equity | ||
Common stock, $1 par value, 2018 – 448.9 shares and 2017 – 448.9 shares | 449 | 449 |
Paid-in capital | 6,175 | 6,206 |
Retained earnings | 6,783 | 6,180 |
Accumulated other comprehensive loss | (4,530) | (4,633) |
Shareholders' Equity before Treasury Stock, Total | 8,877 | 8,202 |
Less: Common stock held in treasury, at cost, 2018 – 34.8 shares and 2017 – 36.0 shares | 1,632 | 1,680 |
Total International Paper Shareholders’ Equity | 7,245 | 6,522 |
Noncontrolling interests | 20 | 19 |
Total Equity | 7,265 | 6,541 |
Total Liabilities and Equity | $ 34,030 | $ 33,903 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares | 448.9 | 448.9 |
Common stock held in treasury, shares | 34.8 | 36 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Operating Activities | |||
Net earnings (loss) | $ 730 | $ 209 | |
Depreciation, amortization and cost of timber harvested | 325 | 345 | |
Deferred income tax provision (benefit), net | 157 | 7 | |
Restructuring and other charges | 22 | 0 | |
Net gain on transfer of North American Consumer Packaging business to Graphic Packaging | (516) | 0 | |
Net bargain purchase gain on acquisition of business | 0 | (6) | |
Ilim dividends received | 116 | 127 | |
Equity (earnings) loss, net | (95) | (48) | |
Periodic pension expense, net | 42 | 78 | |
Other, net | 14 | 45 | |
Changes in current assets and liabilities | |||
Accounts and notes receivable | (122) | (57) | |
Contract assets | (22) | 0 | |
Inventories | 21 | (15) | |
Accounts payable and accrued liabilities | 11 | 22 | |
Interest payable | (34) | (18) | |
Other | 14 | (56) | |
Cash Provided By (Used For) Operations | 663 | 633 | |
Investment Activities | |||
Invested in capital projects | (489) | (374) | |
Proceeds from divestitures, net of cash divested | 1 | 0 | |
Proceeds from sale of fixed assets | 1 | 1 | |
Other | (2) | (27) | |
Cash Provided By (Used For) Investment Activities | (489) | (400) | |
Financing Activities | |||
Repurchases of common stock and payments of restricted stock tax withholding | (31) | (46) | |
Issuance of debt | 223 | 186 | |
Reduction of debt | (34) | (227) | |
Change in book overdrafts | (17) | (6) | |
Dividends paid | (197) | (191) | |
Cash Provided By (Used For) Financing Activities | (56) | (284) | |
Effect of Exchange Rate Changes on Cash | 5 | 16 | |
Change in Cash and Temporary Investments | 123 | (35) | |
Cash and Temporary Investments | |||
Beginning of period | 1,018 | 1,033 | $ 1,033 |
End of period | $ 1,141 | $ 998 | $ 1,018 |
BASIS OF PRESENTATION Footnote
BASIS OF PRESENTATION Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation [Note Text Block] | NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of International Paper Company’s (International Paper’s, the Company’s or our) financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first three months of the year may not necessarily be indicative of full year results. It is suggested that these condensed financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , which have previously been filed with the Securities and Exchange Commission. |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Developments [Note Text Block] | NOTE 2 - RECENT ACCOUNTING DEVELOPMENTS Comprehensive Income In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This guidance gives entities the option to reclassify stranded tax effects caused by the newly-enacted U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." The objective of this new guidance is the improvement of the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition to that main objective, the amendments in this guidance make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. The Company early adopted the provisions of this guidance on January 1, 2018, with no material impact on the financial statements. Retirement Benefits The Company adopted the provision of ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" on January 1, 2018. Under this new guidance, employers present the service costs component of the net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component is eligible for capitalization in assets. Employers present the other components separately from the line items(s) that includes the service cost and outside of any subtotal of operating income. In addition, disclosure of the line(s) used to present the other components of net periodic benefit cost are required if the components are not presented separately in the income statement. The following table details the impact of the retrospective adoption of this standard on 2017 first quarter amounts reported in the accompanying condensed consolidated statement of operations and on full-year amounts for 2017, 2016 and 2015 reported in in the Company's 2017 Form 10-K. The retrospective adoption had no impact on Net earnings (loss). Condensed Consolidated Statement of Operations Three Months Ended March 31, 2017 In millions Previously Reported Impact of Adoption Increase/(Decrease) As Revised Cost of products sold $ 3,669 $ (31 ) $ 3,638 Selling and administrative expenses 400 (7 ) 393 Non-operating pension expense — 38 38 Year Ended December 31, 2017 In millions Previously Reported Impact of Adoption Increase/(Decrease) As Revised Cost of products sold $ 15,300 $ (499 ) $ 14,801 Selling and administrative expenses 1,653 (32 ) 1,621 Non-operating pension expense — 531 531 Year Ended December 31, 2016 In millions Previously Reported Impact of Adoption Increase/(Decrease) As Revised Cost of products sold $ 14,057 $ (639 ) $ 13,418 Selling and administrative expenses 1,484 (26 ) 1,458 Non-operating pension expense — 665 665 Year Ended December 31, 2015 In millions Previously Reported Impact of Adoption Increase/(Decrease) As Revised Cost of products sold $ 14,313 $ (270 ) $ 14,043 Selling and administrative expenses 1,539 (43 ) 1,496 Non-operating pension expense — 313 313 Business Combinations In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." Under the new guidance, an entity must first determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of transferred assets and activities is not a business. If this threshold is not met, the entity then evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. This guidance was effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. The Company adopted the provisions of this guidance on January 1, 2018 with no material impact on the financial statements. Income Taxes In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." This ASU requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period in which the transfer occurs rather than defer the income tax effects which is current practice. This new guidance was effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. The guidance requires companies to apply a modified retrospective approach with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. The Company adopted the provisions of this guidance on January 1, 2018, with no material impact on the financial statements. Stock Compensation In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting." This guidance clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Under this guidance, entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. This guidance was effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. The Company adopted the provisions of this guidance on January 1, 2018, with no material impact on the financial statements. Leases In February 2016, the FASB issued ASU 2016-02, "Leases Topic (842): Leases." This ASU will require most leases to be recognized on the balance sheet which will increase reported assets and liabilities. Lessor accounting will remain substantially similar to current U.S. GAAP. This ASU is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years, and mandates a modified retrospective transition method for all entities. The Company expects to adopt this guidance using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We expect to recognize a liability and corresponding asset associated with in-scope operating and finance leases but are still in the process of determining those amounts and the processes required to account for leasing activity on an ongoing basis. The Company has formed a global implementation team, including representatives from accounting, tax, legal, global sourcing, information technology, policies and controls and operations. Surveys were developed and utilized to gather initial information regarding existing leases and the various processes that currently exist to procure, track and account for leases globally. The implementation team has selected and began working with a third-party vendor to implement a lease accounting solution to deliver the accounting and disclosures required under the new lease accounting guidance. Revenue Recognition On January 1, 2018, the Company adopted the new revenue recognition standard ASC 606, "Revenue from Contracts With Customers," (new revenue standard) and all related amendments, using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of Retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company recorded a net increase to opening Retained earnings of $73 million as of January 1, 2018, due to the cumulative impact of adopting the new revenue standard, with the impact primarily related to our customized products. The impacts of the adoption of the new revenue standard on the Company's condensed consolidated financial statements were as follows: Condensed Consolidated Statement of Operations Three Months Ended March 31, 2018 In millions As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Net sales $ 5,621 $ 5,599 $ 22 Cost of products sold 3,948 3,932 16 Distribution expenses 366 367 (1 ) Income tax provision (benefit), net 89 87 2 Earnings (loss) from continuing operations 362 357 5 Net earnings (loss) 730 725 5 Earnings per share attributable to International Paper Company Shareholders Basic $ 1.76 $ 1.75 $ 0.01 Diluted 1.74 1.73 0.01 Condensed Consolidated Balance Sheet March 31, 2018 In millions As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Contract assets $ 388 $ — $ 388 Inventories 2,057 2,324 (267 ) Other current assets 258 274 (16 ) Other accrued liabilities 992 975 17 Deferred income taxes 2,480 2,470 10 Retained earnings 6,783 6,705 78 Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2018 In millions As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Net earnings (loss) $ 730 $ 725 $ 5 Deferred income tax provision (benefit), net 157 171 (14 ) Contract assets (22 ) — (22 ) Inventories 21 5 16 Accounts payable and accrued liabilities 11 12 (1 ) Other 14 (2 ) 16 Historically, the Company has recognized all of its revenue on a point-in-time basis across its businesses. The trigger for International Paper's point-in-time recognition is when the customer takes title to the goods and assumes the risks and rewards for the goods. As such, the adoption of ASC 606 did not have a material impact on the Company's revenue recognition for point-in-time goods. However, across the majority of our businesses, there are certain goods designed to customers' unique specifications, including customer logos and labels (customized goods). Due to the manually intensive process and significant costs that would be required to rework these products, and in many cases contractual restrictions, the Company has determined that these products do not have an alternative future use under ASC 606. The majority of the customized goods discussed above are covered by non-cancelable purchase orders or customer agreements and the Company has determined that in most cases, it does have an enforceable right to payment for these goods. As such, the Company's adoption of ASC 606 resulted in the acceleration of revenue for customized products without an alternative future use and where the Company has a legally enforceable right to payment for production of products completed to date. The Company now records a contract asset for revenue recognized on our customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss for the products passes to the customer. Due to the recurring nature of our sales of these customized goods, the impact of adopting ASC 606 is not expected to have a material impact on our operations or our cash flows in any period. |
REVENUE RECOGNITION Footnote
REVENUE RECOGNITION Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 3 - REVENUE RECOGNITION Disaggregated Revenue A geographic disaggregation of revenues across our company segmentation in the following table provides information to assist in evaluating the nature, timing and uncertainty of revenue and cash flows and how they may be impacted by economic factors. Three Months Ended March 31, 2018 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 3,102 $ 545 $ 440 $ 58 $ 4,145 EMEA 452 75 336 (5 ) 858 Pacific Rim and Asia 34 57 64 16 171 Americas, other than U.S. 239 — 213 (5 ) 447 Total $ 3,827 $ 677 $ 1,053 $ 64 $ 5,621 Operating Segments North American Industrial Packaging $ 3,369 $ — $ — $ — $ 3,369 EMEA Industrial Packaging 362 — — — 362 Brazilian Industrial Packaging 62 — — — 62 European Coated Paperboard 92 — — — 92 Global Cellulose Fibers — 677 — — 677 North American Printing Papers — — 458 — 458 Brazilian Papers — — 229 — 229 European Papers — — 319 — 319 Indian Papers — — 52 — 52 Intra-segment Eliminations (58 ) — (5 ) — (63 ) Corporate & Inter-segment Sales — — — 64 64 Total $ 3,827 $ 677 $ 1,053 $ 64 $ 5,621 (a) Net sales are attributed to countries based on the location of the seller. The nature of the Company's contracts can vary based on the business, customer type and region; however, in all instances it is International Paper's customary business practice to receive a valid order from the customer, in which each parties' rights and related payment terms are clearly identifiable. Revenue Contract Balances The opening and closing balances of the Company's contract assets and current contract liabilities are as follows: In millions Contract Assets (Short-Term) Contract Liabilities (Short-Term) Beginning Balance - January 1, 2018 $ 366 $ 53 Ending Balance - March 31, 2018 388 38 Increase / (Decrease) $ 22 $ (15 ) A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months. A contract asset is created when the Company recognizes revenue on its customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes to the customer. The difference between the opening and closing balances of the Company's contract assets and contract liabilities primarily results from the timing difference between the Company's performance and the point at which we have an unconditional right to payment or receive pre-payment from the customer, respectively. Performance Obligations and Significant Judgments International Paper's principal business is to manufacture and sell fiber-based packaging, pulp and paper goods. As a general rule, none of our businesses provide equipment installation or other ancillary services outside producing and shipping packaging, pulp and paper goods to customers. The Company's revenue is primarily derived from fixed consideration; however, we do have contract terms that give rise to variable consideration, primarily cash discounts and volume rebates. International Paper offers early payment discounts to customers across the Company's businesses. The Company estimates the expected cash discounts and other customer refunds based on the historical experience across the Company's portfolio of customers to record reductions in revenue which is consistent with the most likely amount method outlined in ASC 606. Management has concluded that this method is the best estimate of the consideration the Company will be entitled to from its customers. Contracts or purchase orders with customers could include a single type of product or it could include multiple types/grades of products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contracts or purchase orders. The Company does not bundle prices; however, we do negotiate with customers on pricing and rebates for the same products based on a variety of factors (e.g. level of contractual volume, geographical location, etc.). Management has concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product. Generally, the Company recognizes revenue on a point in time basis when the customer takes title to the goods and assumes the risks and rewards for the goods. Related to customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time which in this case, is generally as the goods are produced. Practical Expedients and Exemptions As part of our adoption of the new revenue standard, the Company has elected to present all sales taxes on a net basis, account for shipping and handling activities as fulfillment activities, recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period of the asset the Company would recognize is one year or less and not record interest income or interest expense when the difference in timing of control transfer and customer payment is one year or less. The election of these practical expedients results in accounting treatments consistent with our historical accounting policies and therefore, these elections and expedients do not have a material impact on comparability of our financial statements. |
EQUITY Footnote
EQUITY Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Equity [Note Text Block] | NOTE 4 - EQUITY A summary of the changes in equity for the three months ended March 31, 2018 and 2017 is provided below: Three Months Ended 2018 2017 In millions, except per share amounts Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, January 1 $ 6,522 $ 19 $ 6,541 $ 4,341 $ 18 $ 4,359 Adoption of ASC 606 revenue from contracts with customers 73 — 73 — — — Issuance of stock for various plans, net 38 — 38 54 — 54 Repurchase of stock (31 ) — (31 ) (46 ) — (46 ) Common stock dividends ($.4750 per share in 2018 and $.4625 per share in 2017) (199 ) — (199 ) (195 ) — (195 ) Transactions of equity method investees 10 — 10 2 — 2 Comprehensive income (loss) 832 1 833 419 1 420 Ending Balance, March 31 $ 7,245 $ 20 $ 7,265 $ 4,575 $ 19 $ 4,594 |
OTHER COMPREHENSIVE INCOME Foot
OTHER COMPREHENSIVE INCOME Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Other Comprehensive Income [Note Text Block] | NOTE 5 - OTHER COMPREHENSIVE INCOME The following table presents changes in accumulated other comprehensive income (AOCI) for the three -months ended March 31, 2018 and 2017 : Three Months Ended In millions 2018 2017 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (2,527 ) $ (3,072 ) Other comprehensive income (loss) before reclassifications — (1 ) Amounts reclassified from accumulated other comprehensive income 66 57 Balance at end of period (2,461 ) (3,016 ) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (2,111 ) (2,287 ) Other comprehensive income (loss) before reclassifications 40 148 Amounts reclassified from accumulated other comprehensive income 2 — Other comprehensive income (loss) attributable to noncontrolling interest — (1 ) Balance at end of period (2,069 ) (2,140 ) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period 5 (3 ) Other comprehensive income (loss) before reclassifications (3 ) 9 Amounts reclassified from accumulated other comprehensive income (2 ) (2 ) Balance at end of period — 4 Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (4,530 ) $ (5,152 ) The following table presents details of the reclassifications out of AOCI for the three -months ended March 31, 2018 and 2017 : In millions: Amounts Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI Three Months Ended 2018 2017 Defined benefit pension and postretirement items: Prior-service costs $ (4 ) $ (6 ) (a) Non-operating pension expense Actuarial gains (losses) (84 ) (87 ) (a) Non-operating pension expense Total pre-tax amount (88 ) (93 ) Tax (expense) benefit 22 36 Net of tax (66 ) (57 ) Change in cumulative foreign currency translation adjustments: Business acquisitions/divestitures 2 — Discontinued operations, net of taxes Tax (expense) benefit — — Net of tax 2 — Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts 3 3 (b) Cost of products sold Total pre-tax amount 3 3 Tax (expense)/benefit (1 ) (1 ) Net of tax 2 2 Total reclassifications for the period $ (62 ) $ (55 ) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 18 for additional details). (b) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 17 for additional details). |
EARNINGS PER SHARE ATTRIBUTABLE
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Note Text Block] | NOTE 6 - EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS Basic earnings per common share are computed by dividing earnings by the weighted average number of common shares outstanding. Diluted earnings per common share are computed assuming that all potentially dilutive securities were converted into common shares. There are no adjustments required to be made to net income for purposes of computing basic and diluted EPS. A reconciliation of the amounts included in the computation of basic earnings (loss) per share, and diluted earnings (loss) per share is as follows: Three Months Ended In millions, except per share amounts 2018 2017 Earnings (loss) from continuing operations attributable to International Paper Company common shareholders $ 361 $ 192 Weighted average common shares outstanding 413.5 412.1 Effect of dilutive securities Restricted stock performance share plan 4.7 3.9 Weighted average common shares outstanding – assuming dilution 418.2 416.0 Basic earnings (loss) per share from continuing operations $ 0.87 $ 0.47 Diluted earnings (loss) per common share from continuing operations $ 0.86 $ 0.46 |
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities [Note Text Block] | NOTE 7 - RESTRUCTURING AND OTHER CHARGES 2018: The Company recorded a $22 million pre-tax charge, primarily related to the severance of 221 employees in conjunction with the optimization of our EMEA Packaging business. 2017: There were no restructuring and other charges recorded during the three months ended March 31, 2017. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions [Note Text Block] | NOTE 8 - ACQUISITIONS Tangier, Morocco Facility On June 30, 2017, the Company completed the acquisition of Europac's Tangier, Morocco facility, a corrugated packaging facility, for €40 million (approximately $46 million using the June 30, 2017 exchange rate). After working capital and other post-closing adjustments, final consideration exchanged was €33 million (approximately $38 million using the June 30, 2017 exchange rate). The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of June 30, 2017: In millions June 30, 2017 Cash and temporary investments $ 1 Accounts and notes receivable 7 Inventory 3 Plants, properties and equipment 31 Goodwill 4 Other intangible assets 5 Deferred charges and other assets 5 Total assets acquired 56 Accounts payable and accrued liabilities 5 Long-term debt 11 Other long-term liabilities 2 Total liabilities assumed 18 Net assets acquired $ 38 Adjustments, if any, to provisional amounts will be finalized within the measurement period of up to one year from the acquisition date. Pro forma information related to the acquisition of the Europac business has not been included as it is impractical to obtain the information due to the lack of availability of financial data and does not have a material effect on the Company’s consolidated results of operations. The Company has accounted for the above acquisition under ASC 805, "Business Combinations" and the results of operations have been included in International Paper's financial statements beginning with the date of acquisition. |
DIVESTITURES _ SPINOFF Footnote
DIVESTITURES / SPINOFF Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Note Text Block] | NOTE 9 - DIVESTITURES Discontinued Operations 2017: On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which included its North American Coated Paperboard and Foodservice businesses, to a subsidiary of Graphic Packaging Holding Company in exchange for a 20.5% ownership interest in a subsidiary of Graphic Packaging Holding Company that holds the assets of the combined business. International Paper is accounting for its ownership interest in the combined business under the equity method. The Company determined the fair value of its investment in the combined business and recorded a pre-tax gain of $516 million ( $385 million after taxes), on the transfer in the first quarter of 2018, subject to final working capital settlement. See Note 11 for further discussion on the Company's investment in Graphic Packaging International, LLC. All historical operating results for North American Consumer Packaging are included in Discontinued operations, net of tax in the accompany consolidated statement of operations. The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued operations, net of tax, related to the transfer of the North American Consumer Packaging business for all periods presented in the consolidated statement of operations: Three Months Ended In millions 2018 2017 Net Sales $ — $ 379 Costs and Expenses Cost of products sold — 271 Selling and administrative expenses 23 23 Depreciation, amortization and cost of timber harvested — 24 Distribution expenses — 31 Taxes other than payroll and income taxes — 3 (Gain) loss on transfer of business (516 ) — Earnings (Loss) Before Income Taxes and Equity Earnings 493 27 Income tax provision (benefit) 125 10 Discontinued Operations, Net of Taxes $ 368 $ 17 Total cash provided by (used for) operations related to the North American Consumer Packaging business of $(23) million and $23 million for the three months ended March 31, 2018 and March 31, 2017 is included in Cash Provided By (Used For) Operations in the consolidated statement of cash flows. Total cash provided by (used for) investing activities related to the North American Consumer Packaging business of $1 million and $(25) million for the three months ended March 31, 2018 and March 31, 2017 , is included in Cash Provided By (Used For) Investing Activities in the consolidated statement of cash flows. |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Statement Information [Note Text Block] | NOTE 10 - SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Temporary Investments Temporary investments with an original maturity of three months or less are treated as cash equivalents and are stated at cost. Temporary investments totaled $723 million and $661 million at March 31, 2018 and December 31, 2017 , respectively. Accounts and Notes Receivable In millions March 31, 2018 December 31, 2017 Accounts and notes receivable, net: Trade $ 3,117 $ 3,017 Other 299 270 Total $ 3,416 $ 3,287 The allowance for doubtful accounts was $75 million and $73 million at March 31, 2018 and December 31, 2017 , respectively. Inventories In millions March 31, 2018 December 31, 2017 Raw materials $ 285 $ 274 Finished pulp, paper and packaging 1,075 1,337 Operating supplies 589 615 Other 108 87 Total $ 2,057 $ 2,313 Depreciation Accumulated depreciation was $20.8 billion and $20.5 billion at March 31, 2018 and December 31, 2017 . Depreciation expense was $306 million and $299 million for the three months ended March 31, 2018 and 2017 , respectively. Interest Interest payments made during the three months ended March 31, 2018 and 2017 were $223 million and $212 million , respectively. Amounts related to interest were as follows: Three Months Ended In millions 2018 2017 Interest expense $ 180 $ 187 Interest income 45 45 Capitalized interest costs 8 6 Asset Retirement Obligations The Company had recorded liabilities of $86 million related to asset retirement obligations at both March 31, 2018 and December 31, 2017. |
EQUITY METHOD INVESTMENTS Footn
EQUITY METHOD INVESTMENTS Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 11 - EQUITY METHOD INVESTMENTS The Company accounts for the following investments in affiliated companies under the equity method of accounting. Graphic Packaging International, LLC On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which includes its North American Coated Paperboard and Foodservice businesses, to a subsidiary of Graphic Packaging International Partners, LLC (GPIP) in exchange for a 20.5% ownership interest in GPIP. GPIP subsequently transferred the North American Consumer Packaging business to Graphic Packaging International, LLC (GPI), a wholly-owned subsidiary of GPIP that holds the assets of the combined business. The Company recorded equity earnings of $2 million for the three months ended March 31, 2018 . At March 31, 2018 , the Company's investment in GPI was $1.1 billion , which was $525 million more than the Company's proportionate share of the entity's underlying net assets. The difference primarily relates to the basis difference between the fair value of our investment and the underlying net assets and is generally amortized over a period consistent with the underlying long-lived assets. The Company is party to various agreements with GPI under which it sells fiber and other products to GPI. Sales under these agreements were $60 million for the three months ended March 31, 2018 . Summarized financial information for Graphic Packaging International, LLC is presented in the following tables: Balance Sheet In millions March 31, 2018 Current assets $ 1,814 Noncurrent assets 5,297 Current liabilities 975 Noncurrent liabilities 3,274 Income Statement Three Months Ended In millions 2018 Net sales $ 1,476 Gross profit 223 Income from continuing operations 62 Net income 62 Ilim Holding S.A. The Company has a 50% equity interest in Ilim Holding S.A. a nd it’s subsidiaries (Ilim) that is a separate business segment, whose primary operations are in Russia. The Company recorded equity earnings (losses), net of taxes, of $92 million and $50 million for the three months ended March 31, 2018 and 2017 , respectively. The Company received cash dividends from the joint venture of $116 million and $127 million during the first three months of 2018 and 2017, respectively. At March 31, 2018 and December 31, 2017 , the Company's investment in Ilim was $330 million and $338 million , respectively, which was $157 million and $154 million , respectively, more than the Company's proportionate share of the joint venture's underlying net assets. The differences primarily relate to purchase price fair value adjustments and currency translation adjustments. The Company is party to a joint marketing agreement with JSC Ilim Group, a subsidiary of Ilim, under which the Company purchases, markets and sells paper produced by JSC Ilim Group. Purchases under this agreement were $53 million and $47 million for the three months ended March 31, 2018 and 2017 , respectively. Summarized financial information for Ilim is presented in the following tables: Balance Sheet In millions March 31, 2018 December 31, 2017 Current assets $ 581 $ 689 Noncurrent assets 1,740 1,696 Current liabilities 787 1,039 Noncurrent liabilities 1,174 972 Noncontrolling interests 11 6 Income Statement Three Months Ended In millions 2018 2017 Net sales $ 677 $ 449 Gross profit 375 207 Income from continuing operations 189 106 Net income 183 100 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles [Note Text Block] | NOTE 12 - GOODWILL AND OTHER INTANGIBLES Goodwill The following table presents changes in goodwill balances as allocated to each business segment for the three -months ended March 31, 2018 : In millions Industrial Packaging Global Cellulose Fibers Printing Papers Total Balance as of January 1, 2018 Goodwill $ 3,382 $ 52 $ 2,150 $ 5,584 Accumulated impairment losses (a) (296 ) — (1,877 ) (2,173 ) 3,086 52 273 3,411 Reclassifications and other (b) 2 — 1 3 Additions/reductions — — — — Balance as of March 31, 2018 Goodwill 3,384 52 2,151 5,587 Accumulated impairment losses (296 ) — (1,877 ) (2,173 ) Total $ 3,088 $ 52 $ 274 $ 3,414 (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. Other Intangibles Identifiable intangible assets comprised the following: March 31, 2018 December 31, 2017 In millions Gross Carrying Amount Accumulated Amortization Net Intangible Assets Gross Carrying Amount Accumulated Amortization Net Intangible Assets Customer relationships and lists $ 610 $ 256 $ 354 $ 610 $ 247 $ 363 Non-compete agreements 71 71 — 72 72 — Tradenames, patents and trademarks, and developed technology 173 77 96 172 72 100 Land and water rights 8 2 6 8 2 6 Software 27 25 2 24 23 1 Other 40 30 10 38 26 12 Total $ 929 $ 461 $ 468 $ 924 $ 442 $ 482 The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended In millions 2018 2017 Amortization expense related to intangible assets $ 14 $ 16 |
INCOME TAXES Footnote
INCOME TAXES Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Note Text Block] | NOTE 13 - INCOME TAXES International Paper made income tax payments, net of refunds, of $20 million and $29 million for the three months ended March 31, 2018 and 2017 , respectively. The Company currently estimates, that as a result of ongoing discussions, pending tax settlements and expirations of statutes of limitations, the amount of unrecognized tax benefits could be reduced by approximately $10 million during the next 12 months. International Paper uses the flow-through method to account for investment tax credits earned on eligible open loop-biomass facilities and Combined Heat and Power system expenditures. Under this method, the investment tax credits are recognized as a reduction to income tax expense in the year they are earned rather than a reduction in the asset basis. The Company recorded a tax benefit of $6 million and $0 million for the three months ended March 31, 2018 and 2017 , respectively. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act ("the Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35% to 21% ; (2) requiring companies to pay a one-time deemed repatriation transition tax (the “Transition Tax”) on certain earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax (“AMT”) and changing how AMT credits can be realized; (6) capital expensing; (7) eliminating the deduction on U.S. manufacturing activities; and (8) creating new limitations on deductible interest expense and executive compensation. The Securities Exchange Commission staff issued Staff Accounting Bulletin (“SAB”) 118 which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In connection with our initial analysis of the impact of the Tax Act, we recorded a provisional net tax benefit of $1.22 billion in the period ending December 31, 2017. The net tax benefit primarily consisted of a net tax benefit for the re-measurement of U.S. deferred taxes of $1.454 billion and an expense for the Transition Tax of $231 million . For various reasons that are discussed more fully below, as of the quarter ended March 31, 2018, we have not completed our accounting for the income tax effects of the Tax Act. Our accounting for the following elements of the Tax Act is incomplete as of March 31, 2018. The estimates reported in the period ending December 31, 2017, were not adjusted in the period ending March 31, 2018. As of the period ended March 31, 2018, there has been no change or clarification in guidance issued or interpretations or assumptions we have made that caused a change to the estimates reported in the period ending December 31, 2017. Reduction of U.S. federal corporate tax rate: The Tax Act reduced the corporate tax rate to 21% , effective January 1, 2018. For certain of our deferred tax assets and liabilities, we recorded a provisional net decrease of $1.451 billion with a corresponding adjustment to deferred income tax benefit in the same amount for the year ended December 31, 2017. While we are able to make a reasonable estimate of the impact of the reduction in the corporate rate, it may be affected by other analysis related to the Tax Act, including but not limited to, the state tax effect of adjustments made to federal temporary differences. Deemed Repatriation Transition Tax: This is a tax on previously untaxed accumulated and current earnings and profits (“E&P”) of foreign subsidiaries. To determine the amount of the transition tax, we must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. We were able to make a reasonable estimate of the Transition Tax and recorded a provisional Transition Tax obligation of $231 million in the tax period ending December 31, 2017. Valuation Allowances: The Company has assessed whether its U.S. state and local income tax valuation allowance analysis is affected by various aspects of the Tax Act (e.g. deemed repatriation of foreign income, acceleration of cost recovery). Since, as discussed herein, the Company has recorded provisional amounts related to elements of the Tax Act, any corresponding determination of the need for or change in a valuation allowance is also provisional. For certain of our state deferred tax assets, we recorded a net $3 million provisional decrease in the recorded valuation allowance with a corresponding adjustment to deferred income tax benefit in the same amount for the year ended December 31, 2017. While we are able to make a reasonable estimate of the impact of the Tax Act on state attributes, the resolution of, or changes from, other factors noted herein may result in changes in our recorded valuation allowance. The Tax Act may impact decisions surrounding the Company’s permanent reinvestment assertions related to its foreign investments and could have an impact on the Company’s accounting for untaxed outside basis differences. We previously considered the earnings in our non-U.S. subsidiaries to be permanently reinvested, and, accordingly deferred income taxes were not provided for such basis differences which totaled approximately $5.9 billion at December 31, 2017. While the transition tax resulted in a reduction in these basis differences, an actual repatriation from our non-U.S. subsidiaries could still be subject to additional taxes, including, but not limited to, foreign withholding taxes and U.S. state income taxes. In light of the Tax Act, the Company is evaluating its global cash management and non-U.S. repatriation strategy but we have yet to determine whether we plan to change our prior assertion. Accordingly, we have not recorded any deferred taxes attributable to our investments in our non-U.S. subsidiaries. These estimates may change materially due to, among other things, further clarification of existing guidance that may be issued by U.S. taxing authorities or regulatory bodies and/or changes in interpretations and assumptions we have preliminarily made. We will continue to analyze the Tax Act to finalize its financial statement impact, including the mandatory deemed repatriation of foreign earnings, re-measurement of deferred taxes and all other provisions of the legislation and will record the effects of any changes to provisional amounts in the period we can complete our analysis or are first able to make a reasonable estimate, but no later than December 2018. Because of the complexity of the new Global Intangible Low Tax Income (GILTI) rules, we are continuing to evaluate this provision of the Act and the application of ASC 740. Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). Our selection of an accounting policy related to the new GILTI tax rules will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Because whether we expect to have future U.S. inclusions in taxable income related to GILTI depends on a number of different aspects of our estimated future results of global operations, we are not yet able to reasonably estimate the long-term effects of this provision of the Act. Therefore, we have not recorded any potential deferred tax effects related to GILTI in our financial statements and have not made a policy decision regarding whether to record deferred taxes on GILTI or use the period cost method. We expect to complete our accounting within the prescribed measurement period. |
COMMITMENTS AND CONTINGENCIES F
COMMITMENTS AND CONTINGENCIES Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Note Text Block] | NOTE 14 - COMMITMENTS AND CONTINGENCIES Environmental International Paper has been named as a potentially responsible party (PRP) in environmental remediation actions under various federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Many of these proceedings involve the cleanup of hazardous substances at large commercial landfills that received waste from many different sources. While joint and several liability is authorized under CERCLA and equivalent state laws, as a practical matter, liability for CERCLA cleanups is typically allocated among the many PRPs. There are other remediation costs typically associated with the cleanup of hazardous substances at the Company’s current, closed or formerly-owned facilities, and recorded as liabilities in the balance sheet. Remediation costs are recorded in the consolidated financial statements when they become probable and reasonably estimable. International Paper has estimated the probable liability associated with these matters to be approximately $131 million ( $143 million undiscounted) in the aggregate at March 31, 2018 . Other than as described below, completion of required remedial actions is not expected to have a material effect on our consolidated financial statements. Cass Lake: One of the matters included above arises out of a closed wood-treating facility located in Cass Lake, Minnesota. In June 2011, the United States Environmental Protection Agency (EPA) selected and published a proposed soil remedy at the site with an estimated cost of $46 million . The overall remediation reserve for the site is currently $51 million to address the selection of an alternative for the soil remediation component of the overall site remedy, which includes the ongoing groundwater remedy. In October 2011, the EPA released a public statement indicating that the final soil remedy decision would be delayed. In March 2016, the EPA issued a proposed plan concerning clean-up standards at a portion of the site, the estimated cost of which is included within the reserve referenced above. In October 2012, the Natural Resource Trustees for this site provided notice to International Paper and other PRPs of their intent to perform a Natural Resource Damage Assessment. It is premature to predict the outcome of the assessment or to estimate a loss or range of loss, if any, which may be incurred. Kalamazoo River: The Company is a PRP with respect to the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund Site in Michigan. The EPA asserts that the site is contaminated by polychlorinated biphenyls (PCBs) primarily as a result of discharges from various paper mills located along the Kalamazoo River, including a paper mill (the Allied Paper Mill) formerly owned by St. Regis Paper Company (St. Regis). The Company is a successor in interest to St. Regis. • In March 2016, the Company and other PRPs received a special notice letter from the EPA (i) inviting participation in implementing a remedy for a portion of the site, and (ii) demanding reimbursement of EPA past costs totaling $37 million , including $19 million in past costs previously demanded by the EPA. The Company responded to the special notice letter. In December 2016, the EPA issued a unilateral administrative order to the Company and other PRPs to perform the remedy. The Company responded to the unilateral administrative order, agreeing to comply with the order subject to its sufficient cause defenses. • In April 2016, the EPA issued a separate unilateral administrative order to the Company and certain other PRPs for a time-critical removal action (TCRA) of PCB-contaminated sediments from a different portion of the site. The Company responded to the unilateral administrative order and agreed along with two other parties to comply with the order subject to its sufficient cause defenses. • In October 2016, the Company and another PRP received a special notice letter from the EPA inviting participation in the remedial design component of the landfill remedy for the Allied Paper Mill. The record of decision establishing the final landfill remedy for the Allied Paper Mill was issued by the EPA in September 2016. The Company responded to the Allied Paper Mill special notice letter in late December 2016. In February 2017, the EPA informed the Company that it would make other arrangements for the performance of the remedial design. The Company’s CERCLA liability has not been finally determined with respect to these or any other portions of the site, and except as noted above, the Company has declined to perform any work or reimburse the EPA at this time. $79 million as of the filing of the complaint) and for future remediation costs. The suit alleges that a mill, during the time it was allegedly owned and operated by St. Regis, discharged PCB contaminated solids and paper residuals resulting from paper de-inking and recycling. NCR Corporation and Weyerhaeuser Company are also named as defendants in the suit. In mid-2011, the suit was transferred from the District Court for the Eastern District of Wisconsin to the District Court for the Western District of Michigan. The trial of the initial liability phase took place in February 2013. Weyerhaeuser conceded prior to trial that it was a liable party with respect to the site. In September 2013, an opinion and order was issued in the suit. The order concluded that the Company (as the successor to St. Regis) was not an “operator,” but was an “owner,” of the mill at issue during a portion of the relevant period and is therefore liable under CERCLA. The order also determined that NCR is a liable party as an "arranger for disposal" of PCBs in waste paper that was de-inked and recycled by mills along the Kalamazoo River. The order did not address the Company's responsibility, if any, for past or future costs. The parties’ responsibility, including that of the Company, was the subject of a second trial, which was concluded in late 2015. In March 2018, the Court issued an Opinion addressing the Company's liability for past costs. The Court fixed the past cost amount at approximately $50 million (plus interest to be determined) and allocated to the Company a 15% share of responsibility for those past costs. The Court did not address responsibility for future remediation costs in its decision. As to future remediation costs, the Company remains unable to estimate our maximum reasonably possible loss with respect to this site. However, we do not believe that any material loss is probable. Harris County: International Paper and McGinnis Industrial Maintenance Corporation (MIMC), a subsidiary of Waste Management, Inc. (WMI), are PRPs at the San Jacinto River Waste Pits Superfund Site in Harris County, Texas. The PRPs have been actively participating in the activities at the site and share the costs of these activities. In September 2016, the EPA issued a proposed remedial action plan (PRAP) for the site, which identified the preferred remedy as the removal of the contaminated material currently protected by an armored cap. In addition, the EPA selected a preferred remedy for the separate southern impoundment that requires offsite disposal. In January 2017, the PRPs submitted comments on the PRAP. On October 11, 2017, the EPA issued a Record of Decision (ROD) selecting the final remedy for the site: removal and relocation of the waste material from both the northern and southern impoundments. The EPA did not specify the methods or practices needed to perform this work. While the EPA’s selected remedy was accompanied by a cost estimate of approximately $115 million , we do not believe that estimate provides a reasonable basis for accrual under GAAP because the estimate was based on a technological method for performing the work that we believe is not feasible. Subsequent to the issuance of the ROD, there have been several meetings between the EPA and the PRPs, and the Company continues to work with the EPA and MIMC/WMI to develop the remedial design. To this end, in April 2018, the PRPs entered into an Administrative Order on Consent (AOC) with the EPA, agreeing to work together to develop the remedial design over the next 29 months . The AOC does not include any agreement to perform waste removal or other construction activity at the site. Rather, it involves adaptive management techniques and a pre-design investigation, the objectives of which include filling data gaps (including but not limited to post-Hurricane Harvey technical data generated prior to the ROD and not incorporated into the selected remedy), refining areas and volumes of materials to be addressed, determining if the excavation remedy is able to be implemented in a manner protective of human health and the environment, and investigating potential impacts to infrastructure in the vicinity. The Company has identified a number of concerns and uncertainties regarding the remedy described in the ROD and regarding the EPA’s estimates for the costs and time required to implement the selected remedy. Because of ongoing questions regarding cost effectiveness, technical feasibility, timing and other technical data, it is uncertain how the ROD will be implemented. Consequently, while additional losses are probable as a result of the selected remedy, we are currently unable to determine any adjustment to our immaterial recorded liability. It remains reasonably possible that additional losses could be material as the remedial design process with the EPA continues over the coming quarters. International Paper and MIMC/WMI are also defending an additional lawsuit related to the site brought by approximately 600 individuals who allege property damage and personal injury. Because this case is still in the discovery phase, it is premature to predict the outcome or to estimate a loss or range of loss, if any, which may be incurred. Antitrust Containerboard: In June 2016, a lawsuit captioned Ashley Furniture Indus., Inc. v. Packaging Corporation of America (W.D. Wis.) , was filed in federal court in Wisconsin against ten defendants, including the Company, Temple-Inland and Weyerhaeuser Company. The Ashley Furniture lawsuit alleges a civil violation of Section 1 of the Sherman Act (in particular, that defendants conspired to limit the supply and thereby increase prices of containerboard products), and also asserts Wisconsin state antitrust claims. In January 2011, International Paper was named as a defendant in a lawsuit filed in state court in Cocke County, Tennessee alleging that International Paper violated Tennessee law by conspiring to limit the supply and fix the prices of containerboard from mid-2005 to the present. Plaintiffs in the state court action seek certification of a class of Tennessee indirect purchasers of containerboard products, damages and costs, including attorneys' fees. No class certification materials have been filed to date in the Tennessee action. The Company disputes the allegations made in the Ashley Furniture and Tennessee lawsuits and is vigorously defending each. At this time, however, because the actions are in a preliminary stage, we are unable to predict an outcome or estimate a range of reasonably possible loss. Contract Signature: In August 2014, a lawsuit captioned Signature Industrial Services LLC et al. v. International Paper Company was filed in state court in Texas. The Signature lawsuit arises out of approximately $1 million in disputed invoices related to the installation of new equipment at the Company's Orange, Texas mill. In addition to the invoices in dispute, Signature and its president allege consequential damages arising from the Company's nonpayment of those invoices. The lawsuit was tried before a jury in Beaumont, Texas, in May 2017. On June 1, 2017, the jury returned a verdict awarding approximately $125 million in damages to the plaintiffs. The Court issued a judgment on December 14, 2017, awarding the plaintiffs a total of approximately $137 million in actual and consequential damages, fees, costs and pre-judgment interest, and awarding post-judgment interest. The Company has appealed this judgment. The Company has numerous and strong bases for appeal, and we believe we will prevail on appeal. Because the appellate proceedings are in a preliminary stage, we are unable to estimate a range of reasonably possible loss, but we expect the amount of any loss to be immaterial. General The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, personal injury, labor and employment, contracts, sales of property, intellectual property and other matters, some of which allege substantial monetary damages. While any proceeding or litigation has the element of uncertainty, the Company believes that the outcome of any of these lawsuits or claims that are pending or threatened or all of them combined (other than those that cannot be assessed due to their preliminary nature) will not have a material effect on its consolidated financial statements. |
VARIABLE INTEREST ENTITIES AND
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Variable Interest Entities And Preferred Securities Of Subsidiaries [Abstract] | |
Variable Interest Entities and Preferred Securities of Subsidiaries [Note Text Block] | NOTE 15 - VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Variable Interest Entities As of March 31, 2018 , the fair value of the Timber Notes and Extension Loans is $4.68 billion and $4.22 billion , respectively, for the 2015 Financing Entities. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 14 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Activity between the Company and the 2015 Financing Entities was as follows: Three Months Ended In millions 2018 2017 Revenue (a) $ 24 $ 24 Expense (a) 32 32 Cash receipts (b) 47 47 Cash payments (c) 64 64 (a) The revenue and expense are included in Interest expense, net in the accompanying statement of operations. (b) The cash receipts are interest received on the Financial assets of special purpose entities. (c) The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. As of March 31, 2018 , the fair value of the Timber Notes and Extension Loans is $2.22 billion and $2.07 billion , respectively, for the 2007 Financing Entities. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 14 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Activity between the Company and the 2007 Financing Entities was as follows: Three Months Ended In millions 2018 2017 Revenue (a) $ 15 $ 13 Expense (b) 14 15 Cash receipts (c) 9 6 Cash payments (d) 12 9 (a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million for each of the three months ended March 31, 2018 and 2017 , respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of special purpose entities. (b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million for each of the three months ended March 31, 2018 and 2017 , respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Nonrecourse financial liabilities of special purpose entities. (c) The cash receipts are interest received on the Financial assets of special purpose entities. (d) The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
DEBT Footnote
DEBT Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt [Note Text Block] | NOTE 16 - DEBT In December 2017, International Paper received $660 million in cash proceeds from a new loan entered into as part of the transfer of the North American Consumer Packaging business to a subsidiary of Graphic Packing Holding Company discussed in Note 9 . The Company used the cash proceeds, together with available cash, to pay down existing debt of approximately $900 million . The $660 million term loan was subsequently assumed by Graphic Packaging International, LLC on January 1, 2018 and was classified as Liabilities held for sale at December 31, 2017, in the accompanying consolidated balance sheet. In June 2016, International Paper entered into a commercial paper program with a borrowing capacity of $750 million . Under the terms of the program, individual maturities on borrowings may vary, but not exceed one year from the date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. As of March 31, 2018 , the Company had $375 million of borrowings outstanding under the program at a weighted average interest rate of 2.33% . At March 31, 2018 , the fair value of International Paper’s $11.3 billion of debt was approximately $11.8 billion . The fair value of the Company’s long-term debt is estimated based on the quoted market prices for the same or similar issues. International Paper’s long-term debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 14 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities [Note Text Block] | NOTE 17 - DERIVATIVES AND HEDGING ACTIVITIES As a multinational company we are exposed to market risks, such as changes in interest rates, currency exchanges rates and commodity prices. For detailed information regarding the Company’s hedging activities and related accounting, refer to Note 14 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows: In millions March 31, 2018 December 31, 2017 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts (a) $ 376 $ 329 Derivatives Not Designated as Hedging Instruments: Electricity contract 8 13 Foreign exchange contracts 6 10 (a) These contracts had maturities of two years or less as of March 31, 2018 . The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Three Months Ended In millions 2018 2017 Foreign exchange contracts $ — $ 9 Interest rate contracts (3 ) — Total $ (3 ) $ 9 During the next 12 months, the amount of the March 31, 2018 AOCI balance, after tax, that is expected to be reclassified to earnings is a gain of $4 million . The amounts of gains and losses recognized in the statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows: Gain (Loss) Reclassified from AOCI (Effective Portion) Location of Gain (Loss) Reclassified from AOCI (Effective Portion) Three Months Ended In millions 2018 2017 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 2 $ 2 Cost of products sold Total $ 2 $ 2 Gain (Loss) Recognized Location of Gain (Loss) In Statement of Operations Three Months Ended In millions 2018 2017 Derivatives Not Designated as Hedging Instruments: Electricity contract $ (2 ) $ (1 ) Cost of products sold Total $ (2 ) $ (1 ) Fair Value Measurements For a discussion of the Company’s fair value measurement policies under the fair value hierarchy, refer to Note 14 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . The Company has not changed its valuation techniques for measuring the fair value of any financial assets or liabilities during the year. Transfers between levels, if any, are recognized at the end of the reporting period. The following table provides a summary of the impact of our derivative instruments in the balance sheet: Fair Value Measurements Level 2 – Significant Other Observable Inputs Assets Liabilities In millions March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 9 (a) $ 11 (b) $ 2 (c) $ 1 (c) Total derivatives designated as hedging instruments 9 11 2 1 Derivatives not designated as hedging instruments Electricity contract — — 8 (d) 8 (d) Total derivatives not designated as hedging instruments — — 8 8 Total derivatives $ 9 $ 11 $ 10 $ 9 (a) Includes $8 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying balance sheet. (b) Includes $10 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying balance sheet. (c) Included in Other accrued liabilities in the accompanying balance sheet. (d) Includes $5 million recorded in Other accrued liabilities and $3 million recorded in Other liabilities in the accompanying consolidated balance sheet. The above contracts are subject to enforceable master netting arrangements that provide rights of offset with each counterparty when amounts are payable on the same date in the same currency or in the case of certain specified defaults. Management has made an accounting policy election to not offset the fair value of recognized derivative assets and derivative liabilities in the balance sheet. The amounts owed to the counterparties and owed to the Company are considered immaterial with respect to each counterparty and in the aggregate with all counterparties. |
RETIREMENT PLANS Footnote
RETIREMENT PLANS Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Plans [Note Text Block] | NOTE 18 - RETIREMENT PLANS International Paper sponsors and maintains the Retirement Plan of International Paper Company (the Pension Plan), a tax-qualified defined benefit pension plan that provides retirement benefits to substantially all U.S. salaried employees and hourly employees (receiving salaried benefits) hired prior to July 1, 2004, and substantially all other U.S. hourly and union employees who work at a participating business unit regardless of hire date. These employees generally are eligible to participate in the Pension Plan upon attaining 21 years of age and completing one year of eligibility service. U.S. salaried employees and hourly employees (receiving salaried benefits) hired after June 30, 2004, are not eligible for the Pension Plan, but receive a company contribution to their individual savings plan accounts; however, salaried employees hired by Temple Inland prior to March 1, 2007 or Weyerhaeuser Company's Cellulose Fibers division prior to December 1, 2011 also participate in the Pension Plan. The Pension Plan provides defined pension benefits based on years of credited service and either final average earnings (salaried employees and hourly employees receiving salaried benefits), hourly job rates or specified benefit rates (hourly and union employees). The Company will freeze participation, including credited service and compensation, for salaried employees under the Pension Plan, the Pension Restoration Plan and the two SERP plans for all service on or after January 1, 2019. This change will not affect benefits accrued through December 31, 2018. Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: Three Months Ended In millions 2018 2017 Service cost $ 38 $ 40 Interest cost 118 138 Expected return on plan assets (200 ) (192 ) Actuarial loss 82 85 Amortization of prior service cost 4 7 Net periodic pension expense $ 42 $ 78 The components of net periodic pension expense other than the service cost component are included in Non-operating pension expense in the Consolidated Statement of Operations. The Company’s funding policy for our pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that the Company may determine to be appropriate considering the funded status of the plan, tax deductibility, the cash flows generated by the Company, and other factors. No cash contributions were made to the qualified pension plan in the first three months of 2018 and 2017. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $14 million for the three months ended March 31, 2018 . |
STOCK-BASED COMPENSATION Footno
STOCK-BASED COMPENSATION Footnote | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation [Note Text Block] | NOTE 19 - STOCK-BASED COMPENSATION International Paper has an Incentive Compensation Plan (ICP) which is administered by the Management Development and Compensation Committee of the Board of Directors (the Committee). The ICP authorizes the grants of restricted stock, restricted or deferred stock units, performance awards payable in cash or stock upon the attainment of specified performance goals, dividend equivalents, stock options, stock appreciation rights, other stock-based awards and cash-based awards at the discretion of the Committee. As of March 31, 2018 , 11.8 million shares were available for grant under the ICP. Stock-based compensation expense and related income tax benefits were as follows: Three Months Ended In millions 2018 2017 Total stock-based compensation expense (selling and administrative) $ 31 $ 42 Income tax benefits related to stock-based compensation 22 48 At March 31, 2018 , $177 million , net of estimated forfeitures, of compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future service had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 2.3 years. Performance Share Plan During the first three months of 2018 , the Company granted 1.8 million performance units at an average grant date fair value of $62.97 . |
INDUSTRY SEGMENT INFORMATION
INDUSTRY SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 20 - BUSINESS SEGMENT INFORMATION International Paper’s business segments, Industrial Packaging, Global Cellulose Fibers and Printing Papers, are consistent with the internal structure used to manage these businesses. All segments are differentiated on a common product, common customer basis consistent with the business segmentation generally used in the Forest Products industry. The Company also holds a 50% interest in Ilim Holding S.A. and a 20.5% interest in Graphic Packaging International LLC, which are separate reportable industry segments. See Note 11 for details of the Company's ownership in each of these investments. Business segment operating profits are used by International Paper's management to measure the earnings performance of its businesses. Management believes that this measure allows a better understanding of trends in costs, operating efficiencies, prices and volumes. Business segment operating profits are defined as earnings (loss) from continuing operations before income taxes and equity earnings, but including the impact of equity earnings and noncontrolling interests, excluding corporate items, corporate special items and non-operating pension expense. Sales by business segment for the three months and three months ended March 31, 2018 and 2017 were as follows: Three Months Ended In millions 2018 2017 Industrial Packaging $ 3,827 $ 3,577 Global Cellulose Fibers 677 564 Printing Papers 1,053 995 Corporate and Intersegment Sales 64 (4 ) Net Sales $ 5,621 $ 5,132 Operating profit by business segment for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended In millions 2018 2017 Industrial Packaging $ 437 $ 384 Global Cellulose Fibers 11 (70 ) Printing Papers 64 100 Business Segment Operating Profits 512 414 Earnings (loss) from continuing operations before income taxes and equity earnings 356 217 Interest expense, net 135 142 Noncontrolling interests/equity earnings adjustment (1 ) — Corporate items, net 9 24 Corporate special items, net 9 — Non-operating pension expense 4 31 $ 512 $ 414 |
RECENT ACCOUNTING DEVELOPMENT27
RECENT ACCOUNTING DEVELOPMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table details the impact of the retrospective adoption of this standard on 2017 first quarter amounts reported in the accompanying condensed consolidated statement of operations and on full-year amounts for 2017, 2016 and 2015 reported in in the Company's 2017 Form 10-K. The retrospective adoption had no impact on Net earnings (loss). Condensed Consolidated Statement of Operations Three Months Ended March 31, 2017 In millions Previously Reported Impact of Adoption Increase/(Decrease) As Revised Cost of products sold $ 3,669 $ (31 ) $ 3,638 Selling and administrative expenses 400 (7 ) 393 Non-operating pension expense — 38 38 Year Ended December 31, 2017 In millions Previously Reported Impact of Adoption Increase/(Decrease) As Revised Cost of products sold $ 15,300 $ (499 ) $ 14,801 Selling and administrative expenses 1,653 (32 ) 1,621 Non-operating pension expense — 531 531 Year Ended December 31, 2016 In millions Previously Reported Impact of Adoption Increase/(Decrease) As Revised Cost of products sold $ 14,057 $ (639 ) $ 13,418 Selling and administrative expenses 1,484 (26 ) 1,458 Non-operating pension expense — 665 665 Year Ended December 31, 2015 In millions Previously Reported Impact of Adoption Increase/(Decrease) As Revised Cost of products sold $ 14,313 $ (270 ) $ 14,043 Selling and administrative expenses 1,539 (43 ) 1,496 Non-operating pension expense — 313 313 |
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block] | The impacts of the adoption of the new revenue standard on the Company's condensed consolidated financial statements were as follows: Condensed Consolidated Statement of Operations Three Months Ended March 31, 2018 In millions As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Net sales $ 5,621 $ 5,599 $ 22 Cost of products sold 3,948 3,932 16 Distribution expenses 366 367 (1 ) Income tax provision (benefit), net 89 87 2 Earnings (loss) from continuing operations 362 357 5 Net earnings (loss) 730 725 5 Earnings per share attributable to International Paper Company Shareholders Basic $ 1.76 $ 1.75 $ 0.01 Diluted 1.74 1.73 0.01 Condensed Consolidated Balance Sheet March 31, 2018 In millions As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Contract assets $ 388 $ — $ 388 Inventories 2,057 2,324 (267 ) Other current assets 258 274 (16 ) Other accrued liabilities 992 975 17 Deferred income taxes 2,480 2,470 10 Retained earnings 6,783 6,705 78 Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2018 In millions As Reported Balances Without Adoption of ASC 606 Impact of Adoption Increase/(Decrease) Net earnings (loss) $ 730 $ 725 $ 5 Deferred income tax provision (benefit), net 157 171 (14 ) Contract assets (22 ) — (22 ) Inventories 21 5 16 Accounts payable and accrued liabilities 11 12 (1 ) Other 14 (2 ) 16 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, 2018 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 3,102 $ 545 $ 440 $ 58 $ 4,145 EMEA 452 75 336 (5 ) 858 Pacific Rim and Asia 34 57 64 16 171 Americas, other than U.S. 239 — 213 (5 ) 447 Total $ 3,827 $ 677 $ 1,053 $ 64 $ 5,621 Operating Segments North American Industrial Packaging $ 3,369 $ — $ — $ — $ 3,369 EMEA Industrial Packaging 362 — — — 362 Brazilian Industrial Packaging 62 — — — 62 European Coated Paperboard 92 — — — 92 Global Cellulose Fibers — 677 — — 677 North American Printing Papers — — 458 — 458 Brazilian Papers — — 229 — 229 European Papers — — 319 — 319 Indian Papers — — 52 — 52 Intra-segment Eliminations (58 ) — (5 ) — (63 ) Corporate & Inter-segment Sales — — — 64 64 Total $ 3,827 $ 677 $ 1,053 $ 64 $ 5,621 |
Contract with Customer, Asset and Liability [Table Text Block] | The opening and closing balances of the Company's contract assets and current contract liabilities are as follows: In millions Contract Assets (Short-Term) Contract Liabilities (Short-Term) Beginning Balance - January 1, 2018 $ 366 $ 53 Ending Balance - March 31, 2018 388 38 Increase / (Decrease) $ 22 $ (15 ) |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity [Table Text Block] | A summary of the changes in equity for the three months ended March 31, 2018 and 2017 is provided below: Three Months Ended 2018 2017 In millions, except per share amounts Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, January 1 $ 6,522 $ 19 $ 6,541 $ 4,341 $ 18 $ 4,359 Adoption of ASC 606 revenue from contracts with customers 73 — 73 — — — Issuance of stock for various plans, net 38 — 38 54 — 54 Repurchase of stock (31 ) — (31 ) (46 ) — (46 ) Common stock dividends ($.4750 per share in 2018 and $.4625 per share in 2017) (199 ) — (199 ) (195 ) — (195 ) Transactions of equity method investees 10 — 10 2 — 2 Comprehensive income (loss) 832 1 833 419 1 420 Ending Balance, March 31 $ 7,245 $ 20 $ 7,265 $ 4,575 $ 19 $ 4,594 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in accumulated other comprehensive income (AOCI) for the three -months ended March 31, 2018 and 2017 : Three Months Ended In millions 2018 2017 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (2,527 ) $ (3,072 ) Other comprehensive income (loss) before reclassifications — (1 ) Amounts reclassified from accumulated other comprehensive income 66 57 Balance at end of period (2,461 ) (3,016 ) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (2,111 ) (2,287 ) Other comprehensive income (loss) before reclassifications 40 148 Amounts reclassified from accumulated other comprehensive income 2 — Other comprehensive income (loss) attributable to noncontrolling interest — (1 ) Balance at end of period (2,069 ) (2,140 ) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period 5 (3 ) Other comprehensive income (loss) before reclassifications (3 ) 9 Amounts reclassified from accumulated other comprehensive income (2 ) (2 ) Balance at end of period — 4 Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (4,530 ) $ (5,152 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents details of the reclassifications out of AOCI for the three -months ended March 31, 2018 and 2017 : In millions: Amounts Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI Three Months Ended 2018 2017 Defined benefit pension and postretirement items: Prior-service costs $ (4 ) $ (6 ) (a) Non-operating pension expense Actuarial gains (losses) (84 ) (87 ) (a) Non-operating pension expense Total pre-tax amount (88 ) (93 ) Tax (expense) benefit 22 36 Net of tax (66 ) (57 ) Change in cumulative foreign currency translation adjustments: Business acquisitions/divestitures 2 — Discontinued operations, net of taxes Tax (expense) benefit — — Net of tax 2 — Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts 3 3 (b) Cost of products sold Total pre-tax amount 3 3 Tax (expense)/benefit (1 ) (1 ) Net of tax 2 2 Total reclassifications for the period $ (62 ) $ (55 ) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 18 for additional details). (b) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 17 for additional details). |
EARNINGS PER SHARE ATTRIBUTAB31
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of the amounts included in the computation of basic earnings (loss) per share, and diluted earnings (loss) per share is as follows: Three Months Ended In millions, except per share amounts 2018 2017 Earnings (loss) from continuing operations attributable to International Paper Company common shareholders $ 361 $ 192 Weighted average common shares outstanding 413.5 412.1 Effect of dilutive securities Restricted stock performance share plan 4.7 3.9 Weighted average common shares outstanding – assuming dilution 418.2 416.0 Basic earnings (loss) per share from continuing operations $ 0.87 $ 0.47 Diluted earnings (loss) per common share from continuing operations $ 0.86 $ 0.46 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of June 30, 2017: In millions June 30, 2017 Cash and temporary investments $ 1 Accounts and notes receivable 7 Inventory 3 Plants, properties and equipment 31 Goodwill 4 Other intangible assets 5 Deferred charges and other assets 5 Total assets acquired 56 Accounts payable and accrued liabilities 5 Long-term debt 11 Other long-term liabilities 2 Total liabilities assumed 18 Net assets acquired $ 38 |
DIVESTITURES _ SPINOFF (Tables)
DIVESTITURES / SPINOFF (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued operations, net of tax, related to the transfer of the North American Consumer Packaging business for all periods presented in the consolidated statement of operations: Three Months Ended In millions 2018 2017 Net Sales $ — $ 379 Costs and Expenses Cost of products sold — 271 Selling and administrative expenses 23 23 Depreciation, amortization and cost of timber harvested — 24 Distribution expenses — 31 Taxes other than payroll and income taxes — 3 (Gain) loss on transfer of business (516 ) — Earnings (Loss) Before Income Taxes and Equity Earnings 493 27 Income tax provision (benefit) 125 10 Discontinued Operations, Net of Taxes $ 368 $ 17 |
SUPPLEMENTAL FINANCIAL STATEM34
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts and Notes Receivable In millions March 31, 2018 December 31, 2017 Accounts and notes receivable, net: Trade $ 3,117 $ 3,017 Other 299 270 Total $ 3,416 $ 3,287 |
Inventories [Table Text Block] | Inventories In millions March 31, 2018 December 31, 2017 Raw materials $ 285 $ 274 Finished pulp, paper and packaging 1,075 1,337 Operating supplies 589 615 Other 108 87 Total $ 2,057 $ 2,313 |
Interest Income and Interest Expense Disclosure [Table Text Block] | Amounts related to interest were as follows: Three Months Ended In millions 2018 2017 Interest expense $ 180 $ 187 Interest income 45 45 Capitalized interest costs 8 6 |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Graphic Packaging LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | Balance Sheet In millions March 31, 2018 Current assets $ 1,814 Noncurrent assets 5,297 Current liabilities 975 Noncurrent liabilities 3,274 Income Statement Three Months Ended In millions 2018 Net sales $ 1,476 Gross profit 223 Income from continuing operations 62 Net income 62 |
Ilim Holding | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | Summarized financial information for Ilim is presented in the following tables: Balance Sheet In millions March 31, 2018 December 31, 2017 Current assets $ 581 $ 689 Noncurrent assets 1,740 1,696 Current liabilities 787 1,039 Noncurrent liabilities 1,174 972 Noncontrolling interests 11 6 Income Statement Three Months Ended In millions 2018 2017 Net sales $ 677 $ 449 Gross profit 375 207 Income from continuing operations 189 106 Net income 183 100 |
GOODWILL AND OTHER INTANGIBLE36
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill Balances [Table Text Block] | The following table presents changes in goodwill balances as allocated to each business segment for the three -months ended March 31, 2018 : In millions Industrial Packaging Global Cellulose Fibers Printing Papers Total Balance as of January 1, 2018 Goodwill $ 3,382 $ 52 $ 2,150 $ 5,584 Accumulated impairment losses (a) (296 ) — (1,877 ) (2,173 ) 3,086 52 273 3,411 Reclassifications and other (b) 2 — 1 3 Additions/reductions — — — — Balance as of March 31, 2018 Goodwill 3,384 52 2,151 5,587 Accumulated impairment losses (296 ) — (1,877 ) (2,173 ) Total $ 3,088 $ 52 $ 274 $ 3,414 (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. |
Finite and Indefinite-Lived Intangible Assets [Table Text Block] | Identifiable intangible assets comprised the following: March 31, 2018 December 31, 2017 In millions Gross Carrying Amount Accumulated Amortization Net Intangible Assets Gross Carrying Amount Accumulated Amortization Net Intangible Assets Customer relationships and lists $ 610 $ 256 $ 354 $ 610 $ 247 $ 363 Non-compete agreements 71 71 — 72 72 — Tradenames, patents and trademarks, and developed technology 173 77 96 172 72 100 Land and water rights 8 2 6 8 2 6 Software 27 25 2 24 23 1 Other 40 30 10 38 26 12 Total $ 929 $ 461 $ 468 $ 924 $ 442 $ 482 |
Amortization Expense of Intangible Assets [Table Text Block] | The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended In millions 2018 2017 Amortization expense related to intangible assets $ 14 $ 16 |
VARIABLE INTEREST ENTITIES AN37
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
2006 Financing Entities | |
Activity Between Company And Entities [Table Text Block] | Activity between the Company and the 2015 Financing Entities was as follows: Three Months Ended In millions 2018 2017 Revenue (a) $ 24 $ 24 Expense (a) 32 32 Cash receipts (b) 47 47 Cash payments (c) 64 64 (a) The revenue and expense are included in Interest expense, net in the accompanying statement of operations. (b) The cash receipts are interest received on the Financial assets of special purpose entities. (c) The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. |
2007 Financing Entities | |
Activity Between Company And Entities [Table Text Block] | Activity between the Company and the 2007 Financing Entities was as follows: Three Months Ended In millions 2018 2017 Revenue (a) $ 15 $ 13 Expense (b) 14 15 Cash receipts (c) 9 6 Cash payments (d) 12 9 (a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million for each of the three months ended March 31, 2018 and 2017 , respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of special purpose entities. (b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million for each of the three months ended March 31, 2018 and 2017 , respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Nonrecourse financial liabilities of special purpose entities. (c) The cash receipts are interest received on the Financial assets of special purpose entities. (d) The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
DERIVATIVES AND HEDGING ACTIV38
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Financial Instruments [Table Text Block] | The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows: In millions March 31, 2018 December 31, 2017 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts (a) $ 376 $ 329 Derivatives Not Designated as Hedging Instruments: Electricity contract 8 13 Foreign exchange contracts 6 10 (a) These contracts had maturities of two years or less as of March 31, 2018 . |
Gains Or Losses Recognized In Accumulated Other Comprehensive Income (AOCI), Net Of Tax, Related To Derivative Instruments [Table Text Block] | The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Three Months Ended In millions 2018 2017 Foreign exchange contracts $ — $ 9 Interest rate contracts (3 ) — Total $ (3 ) $ 9 |
Gains And Losses Recognized In Consolidated Statement Of Operations On Qualifying And Non-Qualifying Financial Instruments [Table Text Block] | The amounts of gains and losses recognized in the statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows: Gain (Loss) Reclassified from AOCI (Effective Portion) Location of Gain (Loss) Reclassified from AOCI (Effective Portion) Three Months Ended In millions 2018 2017 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 2 $ 2 Cost of products sold Total $ 2 $ 2 Gain (Loss) Recognized Location of Gain (Loss) In Statement of Operations Three Months Ended In millions 2018 2017 Derivatives Not Designated as Hedging Instruments: Electricity contract $ (2 ) $ (1 ) Cost of products sold Total $ (2 ) $ (1 ) |
Schedule of Interest Rate Derivative Activity [Table Text Block] | |
Impact Of Derivative Instruments In Consolidated Balance Sheet [Table Text Block] | The following table provides a summary of the impact of our derivative instruments in the balance sheet: Fair Value Measurements Level 2 – Significant Other Observable Inputs Assets Liabilities In millions March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 9 (a) $ 11 (b) $ 2 (c) $ 1 (c) Total derivatives designated as hedging instruments 9 11 2 1 Derivatives not designated as hedging instruments Electricity contract — — 8 (d) 8 (d) Total derivatives not designated as hedging instruments — — 8 8 Total derivatives $ 9 $ 11 $ 10 $ 9 (a) Includes $8 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying balance sheet. (b) Includes $10 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying balance sheet. (c) Included in Other accrued liabilities in the accompanying balance sheet. (d) Includes $5 million recorded in Other accrued liabilities and $3 million recorded in Other liabilities in the accompanying consolidated balance sheet. |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans [Table Text Block] | Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: Three Months Ended In millions 2018 2017 Service cost $ 38 $ 40 Interest cost 118 138 Expected return on plan assets (200 ) (192 ) Actuarial loss 82 85 Amortization of prior service cost 4 7 Net periodic pension expense $ 42 $ 78 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits [Table Text Block] | Stock-based compensation expense and related income tax benefits were as follows: Three Months Ended In millions 2018 2017 Total stock-based compensation expense (selling and administrative) $ 31 $ 42 Income tax benefits related to stock-based compensation 22 48 |
INDUSTRY SEGMENT INFORMATION (T
INDUSTRY SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment [Table Text Block] | Sales by business segment for the three months and three months ended March 31, 2018 and 2017 were as follows: Three Months Ended In millions 2018 2017 Industrial Packaging $ 3,827 $ 3,577 Global Cellulose Fibers 677 564 Printing Papers 1,053 995 Corporate and Intersegment Sales 64 (4 ) Net Sales $ 5,621 $ 5,132 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating profit by business segment for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended In millions 2018 2017 Industrial Packaging $ 437 $ 384 Global Cellulose Fibers 11 (70 ) Printing Papers 64 100 Business Segment Operating Profits 512 414 Earnings (loss) from continuing operations before income taxes and equity earnings 356 217 Interest expense, net 135 142 Noncontrolling interests/equity earnings adjustment (1 ) — Corporate items, net 9 24 Corporate special items, net 9 — Non-operating pension expense 4 31 $ 512 $ 414 |
RECENT ACCOUNTING DEVELOPMENT42
RECENT ACCOUNTING DEVELOPMENTS Schedule of New Accounting Pronouncements and Changes in Accounting Principles (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Item Effected [Line Items] | |||||
Cost of products sold | $ 3,948 | $ 3,638 | |||
Selling and administrative expenses | $ 421 | 393 | |||
Previous Accounting Guidance [Member] | |||||
Item Effected [Line Items] | |||||
Cost of products sold | 3,669 | $ 15,300 | $ 14,057 | $ 14,313 | |
Selling and administrative expenses | 400 | 1,653 | 1,484 | 1,539 | |
Non-operating pension expense | 0 | 0 | 0 | 0 | |
Adjustments for New Accounting Pronouncement [Member] | |||||
Item Effected [Line Items] | |||||
Cost of products sold | (31) | (499) | (639) | (270) | |
Selling and administrative expenses | (7) | (32) | (26) | (43) | |
Non-operating pension expense | 38 | 531 | 665 | 313 | |
Accounting Standards Update 2017-07 [Member] | |||||
Item Effected [Line Items] | |||||
Cost of products sold | 3,638 | 14,801 | 13,418 | 14,043 | |
Selling and administrative expenses | 393 | 1,621 | 1,458 | 1,496 | |
Non-operating pension expense | $ 38 | $ 531 | $ 665 | $ 313 |
RECENT ACCOUNTING DEVELOPMENT43
RECENT ACCOUNTING DEVELOPMENTS Schedule of Prospective Adoption of New Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Item Effected [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 73 | $ 0 | ||
Net Sales | $ 5,621 | $ 5,132 | ||
Cost of products sold | 3,948 | 3,638 | ||
Distribution expenses | 366 | 348 | ||
Income tax provision (benefit) | 89 | 73 | ||
Earnings (loss) from continuing operations | 362 | 192 | ||
Net earnings (loss) | $ 730 | $ 209 | ||
Earnings Per Share, Basic | $ 1.76 | $ 0.51 | ||
Earnings Per Share, Diluted | $ 1.74 | $ 0.50 | ||
Contract assets | $ (388) | 0 | ||
Inventories | 2,057 | 2,313 | ||
Other current assets | 258 | 282 | ||
Other accrued liabilities | 992 | 1,043 | ||
Deferred Income Taxes | 2,480 | 2,291 | ||
Retained earnings | 6,783 | 6,180 | ||
Deferred income tax provision (benefit), net | 157 | $ 7 | ||
Contract assets | (22) | 0 | ||
Inventories | 21 | (15) | ||
Accounts payable and accrued liabilities | 11 | 22 | ||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 14 | $ (56) | ||
Previous Accounting Guidance [Member] | ||||
Item Effected [Line Items] | ||||
Net Sales | 5,599 | |||
Cost of products sold | 3,932 | |||
Distribution expenses | 367 | |||
Income tax provision (benefit) | 87 | |||
Earnings (loss) from continuing operations | 357 | |||
Net earnings (loss) | $ 725 | |||
Earnings Per Share, Basic | $ 1.75 | |||
Earnings Per Share, Diluted | $ 1.73 | |||
Contract assets | $ 0 | |||
Inventories | 2,324 | |||
Other current assets | 274 | |||
Other accrued liabilities | 975 | |||
Deferred Income Taxes | 2,470 | |||
Retained earnings | 6,705 | |||
Deferred income tax provision (benefit), net | 171 | |||
Contract assets | 0 | |||
Inventories | 5 | |||
Accounts payable and accrued liabilities | 12 | |||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (2) | |||
Adjustments for New Accounting Pronouncement [Member] | ||||
Item Effected [Line Items] | ||||
Net Sales | 22 | |||
Cost of products sold | 16 | |||
Distribution expenses | (1) | |||
Income tax provision (benefit) | 2 | |||
Earnings (loss) from continuing operations | 5 | |||
Net earnings (loss) | $ 5 | |||
Earnings Per Share, Basic | $ 0.01 | |||
Earnings Per Share, Diluted | $ 0.01 | |||
Contract assets | $ (388) | |||
Inventories | (267) | |||
Other current assets | (16) | |||
Other accrued liabilities | 17 | |||
Deferred Income Taxes | 10 | |||
Retained earnings | 78 | |||
Deferred income tax provision (benefit), net | (14) | |||
Contract assets | 22 | |||
Inventories | 16 | |||
Accounts payable and accrued liabilities | (1) | |||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | $ 16 | |||
Accounting Standards Update 2014-09 [Member] | ||||
Item Effected [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 73 |
RECENT ACCOUNTING DEVELOPMENT44
RECENT ACCOUNTING DEVELOPMENTS Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 73 | $ 0 |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 73 |
REVENUE RECOGNITION Disaggregat
REVENUE RECOGNITION Disaggregation of Revenue (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 5,621 |
North American Industrial Packaging | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 3,369 |
EMEA Industrial Packaging | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 362 |
Brazilian Industrial Packaging | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 62 |
European Coated Paperboard | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 92 |
Global Cellulose Fibers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 677 |
North American Printing Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 458 |
Brazilian Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 229 |
European Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 319 |
Indian Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 52 |
United States | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 4,145 |
EMEA | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 858 |
Pacific Rim and Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 171 |
Americas, other than U.S. | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 447 |
Industrial Packaging | North American Industrial Packaging | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 3,369 |
Industrial Packaging | EMEA Industrial Packaging | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 362 |
Industrial Packaging | Brazilian Industrial Packaging | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 62 |
Industrial Packaging | European Coated Paperboard | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 92 |
Industrial Packaging | United States | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 3,102 |
Industrial Packaging | EMEA | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 452 |
Industrial Packaging | Pacific Rim and Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 34 |
Industrial Packaging | Americas, other than U.S. | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 239 |
Global Cellulose Fibers | Global Cellulose Fibers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 677 |
Global Cellulose Fibers | United States | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 545 |
Global Cellulose Fibers | EMEA | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 75 |
Global Cellulose Fibers | Pacific Rim and Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 57 |
Global Cellulose Fibers | Americas, other than U.S. | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Printing Papers | North American Printing Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 458 |
Printing Papers | Brazilian Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 229 |
Printing Papers | European Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 319 |
Printing Papers | Indian Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 52 |
Printing Papers | United States | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 440 |
Printing Papers | EMEA | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 336 |
Printing Papers | Pacific Rim and Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 64 |
Printing Papers | Americas, other than U.S. | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 213 |
Operating Segments [Member] | Industrial Packaging | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 3,827 |
Operating Segments [Member] | Global Cellulose Fibers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 677 |
Operating Segments [Member] | Printing Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 1,053 |
Intersegment Eliminations [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 64 |
Intersegment Eliminations [Member] | United States | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 58 |
Intersegment Eliminations [Member] | EMEA | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | (5) |
Intersegment Eliminations [Member] | Pacific Rim and Asia | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 16 |
Intersegment Eliminations [Member] | Americas, other than U.S. | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | (5) |
Geography Eliminations [Member] | Industrial Packaging | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 3,827 |
Geography Eliminations [Member] | Global Cellulose Fibers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 677 |
Geography Eliminations [Member] | Printing Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 1,053 |
Subsegments Consolidation Items [Domain] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | (63) |
Subsegments Consolidation Items [Domain] | Industrial Packaging | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | (58) |
Subsegments Consolidation Items [Domain] | Printing Papers | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ (5) |
REVENUE RECOGNITION Contract As
REVENUE RECOGNITION Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, Net, Current | $ 388 | $ 366 |
Contract with Customer, Liability, Current | 38 | $ 53 |
Contract with customer, asset, increase (decrease) | 22 | |
Contract with customer, liability increase (decrease) | $ (15) |
EQUITY Table (Details)
EQUITY Table (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Balance, January 1 | $ 6,541 | $ 4,359 | ||
Adoption of ASC 606 revenue from contracts with customers | $ 73 | $ 0 | ||
Issuance of stock for various plans, net | 38 | 54 | ||
Repurchase of stock | (31) | (46) | ||
Common stock dividends ($.4750 per share in 2018 and $.4625 per share in 2017) | (199) | (195) | ||
Transactions of equity method investees | 10 | 2 | ||
Comprehensive income (loss) | 833 | 420 | ||
Ending Balance, March 31 | 7,265 | 4,594 | ||
Total International Paper Shareholders’ Equity | ||||
Balance, January 1 | 6,522 | 4,341 | ||
Adoption of ASC 606 revenue from contracts with customers | 73 | 0 | ||
Issuance of stock for various plans, net | 38 | 54 | ||
Repurchase of stock | (31) | (46) | ||
Common stock dividends ($.4750 per share in 2018 and $.4625 per share in 2017) | (199) | (195) | ||
Transactions of equity method investees | 10 | 2 | ||
Comprehensive income (loss) | 832 | 419 | ||
Ending Balance, March 31 | 7,245 | 4,575 | ||
Noncontrolling Interests | ||||
Balance, January 1 | 19 | 18 | ||
Adoption of ASC 606 revenue from contracts with customers | $ 0 | $ 0 | ||
Issuance of stock for various plans, net | 0 | 0 | ||
Repurchase of stock | 0 | 0 | ||
Common stock dividends ($.4750 per share in 2018 and $.4625 per share in 2017) | 0 | 0 | ||
Transactions of equity method investees | 0 | 0 | ||
Comprehensive income (loss) | 1 | 1 | ||
Ending Balance, March 31 | $ 20 | $ 19 |
EQUITY Phantom (Details)
EQUITY Phantom (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Line Items] | ||
Common stock dividends, per share | $ 0.4750 | $ 0.4625 |
Total International Paper Shareholders’ Equity | ||
Equity [Line Items] | ||
Common stock dividends, per share | 0.4750 | 0.4625 |
Noncontrolling Interests | ||
Equity [Line Items] | ||
Common stock dividends, per share | $ 0.4750 | $ 0.4625 |
OTHER COMPREHENSIVE INCOME Sche
OTHER COMPREHENSIVE INCOME Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income | $ 62 | $ 55 |
Net Current Period Other Comprehensive Income (Loss) | 103 | 211 |
Ending Balance | (4,530) | (5,152) |
Defined Benefit Pension and Postretirement Items (a) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (2,527) | (3,072) |
Other comprehensive income (loss) before reclassifications | 0 | (1) |
Amounts reclassified from accumulated other comprehensive income | 66 | 57 |
Ending Balance | (2,461) | (3,016) |
Change in Cumulative Foreign Currency Translation Adjustments (a) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (2,111) | (2,287) |
Other comprehensive income (loss) before reclassifications | 40 | 148 |
Amounts reclassified from accumulated other comprehensive income | 2 | 0 |
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest | 0 | (1) |
Ending Balance | (2,069) | (2,140) |
Net Gains and Losses on Cash Flow Hedging Derivatives (a) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 5 | (3) |
Other comprehensive income (loss) before reclassifications | (3) | 9 |
Amounts reclassified from accumulated other comprehensive income | (2) | (2) |
Ending Balance | $ 0 | $ 4 |
OTHER COMPREHENSIVE INCOME Sc50
OTHER COMPREHENSIVE INCOME Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Tax (expense)/benefit | $ (89) | $ (73) | |
Earnings (Loss) From Continuing Operations | 362 | 192 | |
Total reclassifications for the period | (62) | (55) | |
Prior-service costs | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (4) | (6) |
Actuarial gains (losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (84) | (87) |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (88) | (93) | |
Tax (expense)/benefit | 22 | 36 | |
Earnings (Loss) From Continuing Operations | (66) | (57) | |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2 | 0 | |
Tax (expense)/benefit | 0 | 0 | |
Earnings (Loss) From Continuing Operations | 2 | 0 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3 | 3 | |
Tax (expense)/benefit | (1) | (1) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | Foreign Exchange Contract | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | 3 | 3 |
Net Gains and Losses on Cash Flow Hedging Derivatives (a) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Earnings (Loss) From Continuing Operations | 2 | 2 | |
Total reclassifications for the period | $ 2 | $ 2 | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 18 for additional details). | ||
[2] | This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 17 for additional details). |
EARNINGS PER SHARE ATTRIBUTAB51
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS Table (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings (loss) from continuing operations attributable to International Paper Company common shareholders | $ 361 | $ 192 |
Weighted average common shares outstanding | 413.5 | 412.1 |
Weighted average common shares outstanding – assuming dilution | 418.2 | 416 |
Basic earnings (loss) per share from continuing operations | $ 0.87 | $ 0.47 |
Diluted earnings (loss) per common share from continuing operations | $ 0.86 | $ 0.46 |
Restricted stock performance share plan | ||
Effect of dilutive securities | 4.7 | 3.9 |
RESTRUCTURING AND OTHER CHARG52
RESTRUCTURING AND OTHER CHARGES Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | $ 0 | |
EMEA Industrial Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | $ 22 | |
Restructuring and related cost, expected number of positions eliminated | 221 |
ACQUISITIONS Business Combinati
ACQUISITIONS Business Combination, Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,414 | $ 3,411 | |
Tangier, Morocco Facility | |||
Business Acquisition [Line Items] | |||
Cash and temporary investments | $ 1 | ||
Accounts and notes receivable | 7 | ||
Inventory | 3 | ||
Plants, properties and equipment | 31 | ||
Goodwill | 4 | ||
Other intangible assets | 5 | ||
Deferred charges and other assets | 5 | ||
Total assets acquired | 56 | ||
Accounts payable and accrued liabilities | 5 | ||
Long-term debt | 11 | ||
Other long-term liabilities | 2 | ||
Total liabilities assumed | 18 | ||
Net assets acquired | $ 38 |
ACQUISITIONS Narrative (Details
ACQUISITIONS Narrative (Details) - 3 months ended Jun. 30, 2017 - Tangier, Morocco Facility € in Millions, $ in Millions | USD ($) | EUR (€) |
Business Acquisition [Line Items] | ||
Payments to acquire businesses, gross | $ 46 | € 40 |
Acquisitions, net of cash acquired | $ 38 | € 33 |
DIVESTITURES _ SPINOFF Disposal
DIVESTITURES / SPINOFF Disposal Group Including Discontinued Operations Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
(Gain) loss on transfer of business | $ 516 | $ 0 |
Discontinued Operations, Net of Taxes | 368 | 17 |
North American Consumer Packaging [Member] | Discontinued Operations, Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net Sales | 0 | 379 |
Cost of products sold | 0 | 271 |
Selling and administrative expenses | 23 | 23 |
Depreciation, amortization and cost of timber harvested | 0 | 24 |
Distribution expenses | 0 | 31 |
Taxes other than payroll and income taxes | 0 | 3 |
(Gain) loss on transfer of business | (516) | 0 |
Earnings (Loss) Before Income Taxes and Equity Earnings | 493 | 27 |
Income tax provision (benefit) | 125 | 10 |
Discontinued Operations, Net of Taxes | $ 368 | $ 17 |
DIVESTITURES _ SPINOFF Narrativ
DIVESTITURES / SPINOFF Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain (Loss) on Disposition of Assets | $ 516 | |
Gain (loss) on disposition of business, net of taxes | $ 385 | |
North American Consumer Packaging [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest after Disposal | 20.50% | |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | $ (23) | $ 23 |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | $ 1 | $ (25) |
SUPPLEMENTAL FINANCIAL STATEM57
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Accounts and Notes Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts, Notes, Loans and Financing Receivable, Net, Current | $ 3,416 | $ 3,287 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts, Notes, Loans and Financing Receivable, Net, Current | 3,117 | 3,017 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts, Notes, Loans and Financing Receivable, Net, Current | $ 299 | $ 270 |
SUPPLEMENTAL FINANCIAL STATEM58
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Inventories by Major Category (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 285 | $ 274 |
Finished pulp, paper and packaging | 1,075 | 1,337 |
Operating supplies | 589 | 615 |
Other | 108 | 87 |
Total | $ 2,057 | $ 2,313 |
SUPPLEMENTAL FINANCIAL STATEM59
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Interest Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental Income Statement Elements [Abstract] | ||
Interest expense | $ 180 | $ 187 |
Interest income | 45 | 45 |
Capitalized interest costs | $ 8 | $ 6 |
SUPPLEMENTAL FINANCIAL STATEM60
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |||
Temporary investments | $ 723 | $ 661 | |
Allowance for doubtful accounts | 75 | 73 | |
Accumulated depreciation | 20,800 | 20,500 | |
Depreciation expense | 306 | $ 299 | |
Interest payments | 223 | $ 212 | |
Asset retirement obligation | $ 86 | $ 86 |
EQUITY METHOD INVESTMENTS Summa
EQUITY METHOD INVESTMENTS Summarized Financial Information of Equity Method Investees (Details) - Reportable Subsegments - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Graphic Packaging LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | $ 1,814 | ||
Noncurrent assets | 5,297 | ||
Current liabilities | 975 | ||
Noncurrent liabilities | 3,274 | ||
Net sales | 1,476 | ||
Gross profit | 223 | ||
Income from continuing operations | 62 | ||
Net income | 62 | ||
Ilim Holding | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 581 | $ 689 | |
Noncurrent assets | 1,740 | 1,696 | |
Current liabilities | 787 | 1,039 | |
Noncurrent liabilities | 1,174 | 972 | |
Net sales | 677 | $ 449 | |
Gross profit | 375 | 207 | |
Income from continuing operations | 189 | 106 | |
Net income | 183 | $ 100 | |
Noncontrolling interests | $ 11 | $ 6 |
EQUITY METHOD INVESTMENTS Narra
EQUITY METHOD INVESTMENTS Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity earnings (loss), net of taxes | $ 95 | $ 48 | |
Ilim dividends received | $ 116 | 127 | |
Reportable Subsegments | Graphic Packaging LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of equity interest | 20.50% | ||
Equity earnings (loss), net of taxes | $ 2 | ||
Equity method investments | 1,100 | ||
Equity method investment, difference between carrying amount and underlying equity | 525 | ||
Revenue from related parties | $ 60 | ||
Reportable Subsegments | Ilim Holding | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of equity interest | 50.00% | ||
Equity earnings (loss), net of taxes | $ 92 | 50 | |
Ilim dividends received | 116 | 127 | |
Equity method investments | 330 | $ 338 | |
Equity method investment, difference between carrying amount and underlying equity | 157 | $ 154 | |
Related party transaction, purchases from related party | $ 53 | $ 47 |
GOODWILL AND OTHER INTANGIBLE63
GOODWILL AND OTHER INTANGIBLES Changes in Goodwill Balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | ||
Goodwill [Line Items] | |||
Beginning balance | $ 5,584 | ||
Accumulated impairment losses (a) | [1] | (2,173) | |
Total | 3,414 | $ 3,411 | |
Reclassifications and other (b) | [2] | 3 | |
Additions/reductions | 0 | ||
Ending balance | 5,587 | ||
Accumulated impairment losses (a) | [1] | (2,173) | |
Industrial Packaging | |||
Goodwill [Line Items] | |||
Beginning balance | 3,382 | ||
Accumulated impairment losses (a) | [1] | (296) | |
Total | 3,088 | 3,086 | |
Reclassifications and other (b) | [2] | 2 | |
Additions/reductions | 0 | ||
Ending balance | 3,384 | ||
Accumulated impairment losses (a) | [1] | (296) | |
Global Cellulose Fibers | |||
Goodwill [Line Items] | |||
Beginning balance | 52 | ||
Accumulated impairment losses (a) | [1] | 0 | |
Total | 52 | 52 | |
Reclassifications and other (b) | [2] | 0 | |
Additions/reductions | 0 | ||
Ending balance | 52 | ||
Accumulated impairment losses (a) | [1] | 0 | |
Printing Papers | |||
Goodwill [Line Items] | |||
Beginning balance | 2,150 | ||
Accumulated impairment losses (a) | [1] | (1,877) | |
Total | 274 | $ 273 | |
Reclassifications and other (b) | [2] | 1 | |
Additions/reductions | 0 | ||
Ending balance | 2,151 | ||
Accumulated impairment losses (a) | [1] | $ (1,877) | |
[1] | Represents accumulated goodwill impairment charges since the adoption of ASC 350, "Intangibles-Goodwill and Other" in 2002. | ||
[2] | Represents the effects of foreign currency translations and reclassifications. |
GOODWILL AND OTHER INTANGIBLE64
GOODWILL AND OTHER INTANGIBLES Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 929 | $ 924 |
Accumulated Amortization | 461 | 442 |
Net Intangible Assets | 468 | 482 |
Customer relationships and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 610 | 610 |
Accumulated Amortization | 256 | 247 |
Net Intangible Assets | 354 | 363 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 71 | 72 |
Accumulated Amortization | 71 | 72 |
Net Intangible Assets | 0 | 0 |
Tradenames, patents and trademarks, and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 173 | 172 |
Accumulated Amortization | 77 | 72 |
Net Intangible Assets | 96 | 100 |
Land and water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8 | 8 |
Accumulated Amortization | 2 | 2 |
Net Intangible Assets | 6 | 6 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27 | 24 |
Accumulated Amortization | 25 | 23 |
Net Intangible Assets | 2 | 1 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 40 | 38 |
Accumulated Amortization | 30 | 26 |
Net Intangible Assets | $ 10 | $ 12 |
GOODWILL AND OTHER INTANGIBLE65
GOODWILL AND OTHER INTANGIBLES Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense related to intangible assets | $ 14 | $ 16 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Deferred income tax provision (benefit), net | $ 157 | $ 7 | |
Income tax payments, net of refunds | 20 | 29 | |
Estimated reduction of unrecognized tax benefits | 10 | ||
Investment tax credit | $ 6 | $ 0 | |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 35.00% | |
Tax Cuts and Jobs Act of 2017, Income tax expense benefit, incomplete accounting, provisional amount | $ 1,220 | ||
Tax Cuts and Jobs Act of 2017, Income tax expense benefit, incomplete accounting, provisional amount, remeasurement of U.S. deferred taxes | 1,454 | ||
Tax Cuts and Jobs Act of 2017, Income tax expense benefit, incomplete accounting, provisional amount, transition tax | 231 | ||
Tax Cuts and Jobs Act of 2017, Change in tax rate, income tax expense benefit, incomplete accounting, provisional amount | 1,451 | ||
Tax Cuts and Jobs Act of 2017, Increase decrease in valuation allowance for deferred tax assets, incomplete accounting, provisional amount | 3 | ||
Basis differences related to earnings in Non-U.S. subsidiaries | 5,900 | ||
Domestic Tax Authority [Member] | |||
Deferred income tax provision (benefit), net | 1,451 | ||
State and Local Jurisdiction [Member] | |||
Deferred income tax provision (benefit), net | $ 3 |
COMMITMENTS AND CONTINGENCIES E
COMMITMENTS AND CONTINGENCIES Environmental Remediation Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2011 |
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 131 | |
Accrual for Environmental Loss Contingencies, Gross | 143 | |
Cass Lake, Minnesota | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 51 | $ 46 |
COMMITMENTS AND CONTINGENCIES L
COMMITMENTS AND CONTINGENCIES Litigation (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2010 | Mar. 31, 2018USD ($)Plaintiffs | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Ashley Furniture Lawsuit [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Number of Defendants | 10 | |||||
Signature Industrial Services LLC et al. v. International Paper | ||||||
Loss Contingencies [Line Items] | ||||||
Disputed invoices, value | $ 1 | |||||
Loss Contingency, damages awarded, value | $ 137 | $ 125 | ||||
Kalamazoo River Superfund Site | Time Critical Removal Action | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages sought, value | $ 37 | $ 19 | ||||
Kalamazoo River Superfund Site | Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC Cost Recovery Action | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, damages awarded, value | $ 50 | |||||
Responsible party percentage | 15.00% | |||||
Loss contingency, damages sought, value | $ 79 | |||||
San Jacinto River Superfund Site | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages sought, value | $ 115 | |||||
Remediation design period | 29 months | |||||
San Jacinto River Superfund Site | Medical Monitoring and Damages | ||||||
Loss Contingencies [Line Items] | ||||||
Number of plaintiffs seeking damages | Plaintiffs | 600 |
VARIABLE INTEREST ENTITIES AN69
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Activity Between Company and Entities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
2015 Financing Entities | |||
Variable Interest Entity [Line Items] | |||
Revenue | [1] | $ 24 | $ 24 |
Expense | [1] | 32 | 32 |
Cash receipts | [2] | 47 | 47 |
Cash payments | [3] | 64 | 64 |
2007 Financing Entities | |||
Variable Interest Entity [Line Items] | |||
Revenue | [4] | 15 | 13 |
Expense | [5] | 14 | 15 |
Cash receipts | [6] | 9 | 6 |
Cash payments | [7] | $ 12 | $ 9 |
[1] | The revenue and expense are included in Interest expense, net in the accompanying statement of operations. | ||
[2] | The cash receipts are interest received on the Financial assets of special purpose entities. | ||
[3] | The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. | ||
[4] | The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million for each of the three months ended March 31, 2018 and 2017, respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of special purpose entities. | ||
[5] | The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million for each of the three months ended March 31, 2018 and 2017, respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Nonrecourse financial liabilities of special purpose entities. | ||
[6] | The cash receipts are interest received on the Financial assets of special purpose entities. | ||
[7] | The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
VARIABLE INTEREST ENTITIES AN70
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Activity Between Company and Entities Footnotes (Details) - 2007 Financing Entities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Accretion income for amortization of purchase accounting adjustment, financial assets | $ 5 | $ 5 |
Accretion expense for amortization of purchase accounting adjustment, financial liabiities | $ 2 | $ 2 |
VARIABLE INTEREST ENTITIES AN71
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Narrative (Details) $ in Millions | Mar. 31, 2018USD ($) |
2015 Financing Entities | |
Variable Interest Entity [Line Items] | |
Notes receivable, fair value disclosure | $ 4,680 |
Long-term debt, fair value | 4,220 |
2007 Financing Entities | |
Variable Interest Entity [Line Items] | |
Notes receivable, fair value disclosure | 2,220 |
Long-term debt, fair value | $ 2,070 |
DEBT Narrative (Details)
DEBT Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2018 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | |||
Debt and capital lease obligations | $ 11,300 | ||
Debt fair value | 11,800 | ||
Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from Other Debt | $ 660 | ||
Extinguishment of Debt, Type [Domain] | |||
Debt Instrument [Line Items] | |||
Repayments of Other Debt | $ 900 | ||
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 750 | ||
Line of credit, current | $ 375 | ||
Debt, Weighted Average Interest Rate | 2.33% |
DERIVATIVES AND HEDGING ACTIV73
DERIVATIVES AND HEDGING ACTIVITIES Schedule of Notional Amounts of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Foreign Exchange Contract | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Notional Amount | $ 6 | $ 10 | |
Energy Related Derivative | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Notional Amount | 8 | 13 | |
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Notional Amount | [1] | $ 376 | $ 329 |
[1] | These contracts had maturities of two years or less as of March 31, 2018. |
DERIVATIVES AND HEDGING ACTIV74
DERIVATIVES AND HEDGING ACTIVITIES Schedule of Notional Amounts of Financial Instruments Other (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum Length of Time Hedged in Cash Flow Hedge | 2 years |
DERIVATIVES AND HEDGING ACTIV75
DERIVATIVES AND HEDGING ACTIVITIES Gains Losses Recognized in Accumulated Other Comprehensive Income AOCI Net of Tax Related to Derivative Instruments (Details) - Other Comprehensive Income (Loss) - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (3) | $ 9 |
Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | 9 |
Interest Rate Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (3) | $ 0 |
DERIVATIVES AND HEDGING ACTIV76
DERIVATIVES AND HEDGING ACTIVITIES Gains and Losses Recognized in Consolidated Statement of Operations on Qualifying and Non-Qualifying Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cost of Products Sold | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 2 | $ 2 |
Cost of Products Sold | Cash Flow Hedging | Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 2 | 2 |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (2) | (1) |
Not Designated as Hedging Instrument | Cost of Products Sold | Energy Related Derivative | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (2) | $ (1) |
DERIVATIVES AND HEDGING ACTIV77
DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | $ 9 | $ 11 | |||
Derivative Liabilities | 10 | 9 | |||
Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 9 | 11 | |||
Derivative Liabilities | 2 | 1 | |||
Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 0 | 0 | |||
Derivative Liabilities | 8 | 8 | |||
Energy Related Derivative | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 0 | 0 | |||
Derivative Liabilities | [1] | 8 | 8 | ||
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 9 | [2] | 11 | [3] | |
Derivative Liabilities | [4] | $ 2 | $ 1 | ||
[1] | Includes $5 million recorded in Other accrued liabilities and $3 million recorded in Other liabilities in the accompanying consolidated balance sheet. | ||||
[2] | Includes $8 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying balance sheet. | ||||
[3] | . | ||||
[4] | . |
DERIVATIVES AND HEDGING ACTIV78
DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet Other (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | $ 9 | $ 11 | |
Derivative Liabilities | 10 | 9 | |
Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [1] | 8 | 10 |
Deferred Charges and Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | [1] | 1 | 1 |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 9 | 11 | |
Derivative Liabilities | 2 | 1 | |
Designated as Hedging Instrument | Other Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 2 | 1 | |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 8 | 8 | |
Not Designated as Hedging Instrument | Other Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 5 | ||
Not Designated as Hedging Instrument | Other Noncurrent Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 3 | ||
Not Designated as Hedging Instrument | Energy Related Derivative | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 0 | 0 | |
Derivative Liabilities | [2] | $ 8 | $ 8 |
[1] | Includes $8 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying balance sheet. | ||
[2] | Includes $5 million recorded in Other accrued liabilities and $3 million recorded in Other liabilities in the accompanying consolidated balance sheet. |
DERIVATIVES AND HEDGING ACTIV79
DERIVATIVES AND HEDGING ACTIVITIES Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain / (Loss) Recorded to AOCI After Tax, That Is Expected to be Reclassified to Earnings | $ 4 |
RETIREMENT PLANS Net Periodic P
RETIREMENT PLANS Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans (Details) - U.S. Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 38 | $ 40 |
Interest cost | 118 | 138 |
Expected return on plan assets | (200) | (192) |
Actuarial loss | 82 | 85 |
Amortization of prior service cost | 4 | 7 |
Net periodic pension expense | $ 42 | $ 78 |
RETIREMENT PLANS Narrative (Det
RETIREMENT PLANS Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Age to participate in the pension plan | 21 | |
Years of eligibility to participate in pension plan | 1 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 | $ 0 |
Non Qualified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefits paid | $ 14 |
STOCK-BASED COMPENSATION Schedu
STOCK-BASED COMPENSATION Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Income tax benefits related to stock-based compensation | $ 22 | $ 48 |
Selling, General and Administrative Expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense (selling and administrative) | $ 31 | $ 42 |
STOCK-BASED COMPENSATION Narrat
STOCK-BASED COMPENSATION Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures | $ | $ 177 |
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures, weighted-average period (in years) | 1 year 15 months 23 days |
Granted, nonvested shares / units | 1.8 |
Granted, nonvested, weighted average grant date fair value | $ / shares | $ 62.97 |
Stock Compensation Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant under ICP | 11.8 |
INDUSTRY SEGMENT INFORMATION Sa
INDUSTRY SEGMENT INFORMATION Sales by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Net Sales | $ 5,621 | $ 5,132 |
Industrial Packaging | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 3,827 | 3,577 |
Global Cellulose Fibers | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 677 | 564 |
Printing Papers | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 1,053 | 995 |
Corporate and Intersegment Sales | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 64 | $ (4) |
INDUSTRY SEGMENT INFORMATION Op
INDUSTRY SEGMENT INFORMATION Operating Profit by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit | $ 512 | $ 414 |
Earnings (loss) from continuing operations before income taxes and equity earnings | 356 | 217 |
Interest expense, net | (135) | (142) |
Noncontrolling interests/equity earnings adjustment | (1) | 0 |
Corporate items, net | 9 | 24 |
Corporate special items, net | 9 | 0 |
Non-operating pension expense | 4 | 38 |
Non-operating pension expense | 31 | |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Interest expense, net | 135 | 142 |
Industrial Packaging | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit | 437 | 384 |
Global Cellulose Fibers | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit | 11 | (70) |
Printing Papers | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit | $ 64 | $ 100 |
INDUSTRY SEGMENT INFORMATION Na
INDUSTRY SEGMENT INFORMATION Narrative (Details) - Reportable Subsegments | Mar. 31, 2018 |
Ilim Holding | |
Segment Reporting Information [Line Items] | |
Percentage of equity interest | 50.00% |
Graphic Packaging LLC [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of equity interest | 20.50% |