International Paper 2014 Annual Report Download - page 31

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In millions, except per share amounts, at December 31 2014 2013
FINANCIAL SUMMARY
Net Sales $ 23,617 $ 23,483
Operating Profit 2,058(a) 2,233(a)
Earnings from Continuing Operations Before Income Taxes
and Equity Earnings 872(b) 1,228(d)
Net Earnings 536(b,c) 1,378(d,e)
Net Earnings Attributable to Noncontrolling Interests (19) (17)
Net Earnings Attributable to International Paper Company 555(b,c) 1,395(d,e)
Total Assets 28,684 31,528
Total Shareholders’ Equity Attributable to International Paper Company 5,115 8,105
PER SHARE OF COMMON STOCK
Basic Earnings Per Share Attributable to International Paper
Company Common Shareholders $ 1.30(b,c) $ 3.15(d,e)
Diluted Earnings Per Share Attributable to International Paper
Company Common Shareholders $ 1.29(b,c) $ 3.11(d,e)
Cash Dividends 1.4500 1.2500
Total Shareholders’ Equity 12.18 18.57
SHAREHOLDER PROFILE
Shareholders of Record at December 31 13,351 14,169
Shares Outstanding at December 31 420.1 436.3
Average Common Shares Outstanding 427.7 443.3
Average Common Shares Outstanding—Assuming Dilution 432.0 448.1
(a) See the reconciliation of net earnings (loss) attributable to International Paper Company to its total industry segment operating profit on page 21 and the
operating profit table on page 85 for details of operating profit by industry segment.
(b) Includes restructuring and other charges of $846 million before taxes ($518 million after taxes) including pre-tax charges of $276 million ($169 million after
taxes) for early debt extinguishment costs, pre-tax charges of $554 million ($338 million after taxes) for costs associated with the shutdown of our
Courtland, Alabama mill and a net pre-tax charge of $16 million ($11 million after taxes) for other items. Also included are a pre-tax charge of $47 million
($ 36 million after taxes) for a loss on the sale of a business by ASG in which we hold an investment and the subsequent partial impairment of our ASG
investment, a goodwill impairment charge of $100 million (before and after taxes) related to our Asia Industrial Packaging business, pre-tax charges of $35
million ($21 million after taxes) for a multi-employer pension withdrawal liability, a pre-tax charge of $ 32 million ($17 million after taxes) for costs associated
with a foreign tax amnesty program, a gain of $20 million (before and after taxes) for the resolution of a legal contingency in India, pre-tax charges of $16
million ($10 million after taxes) for costs associated with the integration of Temple-Inland, and a net gain of $4 million ($2 million after taxes) for other items.
(c) Includes a tax benefit of $90 million related to internal restructurings and a net tax expense of $9 million for other items. Also includes the operating earn-
ings of the xpedx business through the date of the spin-off on July 1, 2014, net pre-tax charges of $24 million ($16 million after taxes) for costs associated
with the spin-off of the xpedx business, pre-tax charges of $1 million (a gain of $1 million after taxes) for costs associated with the restructuring of xpedx
and pre-tax charges of $16 million ($9 million after taxes) for costs associated with the Building Products divestiture.
(d) Includes restructuring and other charges of $156 million before taxes ($98 million after taxes) including pre-tax charges of $25 million ($16 million after
taxes) for early debt extinguishment costs, pre-tax charges of $118 million ($72 million after taxes) for costs associated with the shutdown of our
Courtland, Alabama mill, a pre-tax gain of $30 million ($19 million after taxes) for insurance reimbursements related to the 2012 Guaranty Bank legal set-
tlement, a pre-tax charge of $45 million ($28 million after taxes) for costs associated with the permanent shutdown of a paper machine at our Augusta,
Georgia mill, and a net pre-tax gain of $2 million (a loss of $1 million after taxes) for other items. Also included are a pre-tax goodwill and trade name
intangible asset impairment of $127 million ($122 million after taxes) related to our India Papers business, pre-tax charges of $9 million ($5 million after
taxes) to adjust the value of two Company airplanes to fair value, pre-tax charges of $62 million ($ 38 million after taxes) for integration costs associated
with the acquisition of Temple-Inland, pre-tax charges of $6 million ($4 million after taxes) for an environmental reserve related to the Company’s property
in Cass Lake, Minnesota, and a gain of $13 million (before and after taxes) related to a bargain purchase adjustment on the acquisition of a majority share
of our operations in Turkey.
(e) Includes a tax benefit of $744 million associated with the closings of U.S. federal tax audits, a tax benefit of $31 million for an income tax reserve release
and a net tax loss of $1 million for other items. Also includes the operating results of the xpedx business for the full year and the Temple-Inland Building
Products business through the date of sale in July 2013, pre-tax charges of $32 million ($19 million after taxes) for costs associated with the restructuring
of the Company’s xpedx operations, pre-tax charges of $22 million ($14 million after taxes) for costs associated with the spin-off of our xpedx operations,
a pre-tax goodwill impairment charge of $400 million ($366 million after taxes) related to our xpedx business and pre-tax charges of $23 million ($19 mil-
lion after taxes) for expenses associated with the divestiture of the Temple-Inland Building Products business.
FINANCIAL HIGHLIGHTS
In millions, at December 31 2014 2013 2012
CALCULATION OF EBITDA BEFORE SPECIAL ITEMS
Earnings from Continuing Operations Before Interest,
Income Taxes and Equity Earnings $ 1,479 $ 1,840 $ 1,638
Depreciation, Amortization and Cost of Timber Harvested 1,406 1,531 1,473
Special Items 1,046 341 335
Non-operating Pension Expense 212 323 159
EBITDA BEFORE SPECIAL ITEMS 4,143 4,035 3,605
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
For reconciliations of free cash flow to cash provided by operations, see page 32.
For reconciliations of Operating Earnings per share attributable to International Paper Company common shareholders
to diluted earnings (loss) per share attributable to International Paper Company common shareholders, see page 20.