International Paper 2014 Annual Report Download - page 52

16
FINANCIAL GLOSSARY
Current ratio—
current assets divided by current liabilities.
Total debt to capital ratio—
long-term debt plus notes payable and current
maturities of long-term debt divided by long-term
debt, notes payable and current maturities of long-
term debt and total shareholders’ equity.
Return on shareholders’ equity—
net earnings attributable to International Paper
Company divided by average shareholders’ equity
(computed monthly).
FOOTNOTES TO FIVE-YEAR FINANCIAL SUMMARY
(a) All periods presented have been restated to reflect
the xpedx business and the Temple-Inland Building
Products business as discontinued operations, if
applicable.
2014:
(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 the operating earnings 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 a tax benefit of $90 million related to
internal restructurings and a net tax expense of $9
million for other items.
2013:
(e) 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 settlement, 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.
(f) 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. Also includes 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 million after taxes)
for expenses associated with the divestiture of the
Temple-Inland Building Products business.
(g) 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.