International Paper 2014 Annual Report Download - page 56

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20
per share attributable to common shareholders were
$0.32 in the 2014 fourth quarter, compared with $0.83 in
the 2014 third quarter and $0.98 in the 2013 fourth quarter.
Free cash flow of $739 million generated in the 2014 fourth
quarter was higher than the $696 million generated in the
2014 third quarter and the $598 million generated in the
2013 fourth quarter (see reconciliation on page 32).
Operating Earnings and Operating Earnings Per Share
are non-GAAP measures. Diluted earnings (loss) per
share attributable to International Paper Company
common shareholders is the most directly comparable
GAAP measure. The Company calculates Operating
Earnings by excluding the after-tax effect of items
considered by management to be unusual from the
earnings reported under GAAP, non-operating pension
expense and discontinued operations. Management uses
this measure to focus on on-going operations, and
believes that it is useful to investors because it enables
them to perform meaningful comparisons of past and
present operating results. The Company believes that
using this information, along with the most directly
comparable GAAP measure, provides for a more
complete analysis of the results of operations. The
following are 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.
2014 2013 2012
Operating Earnings (Loss) Per Share
Attributable to Shareholders $3.00 $ 3.06 $ 2.51
Non-operating pension expense (0.30) (0.44) (0.26)
Special items (1.39) 1.18 (0.62)
Diluted Earnings (Loss) Per Share from
Continuing Operations 1.31 3.80 1.63
Discontinued operations (0.02) (0.69) 0.17
Diluted Earnings (Loss) Per Share
Attributable to Shareholders $1.29 $ 3.11 $ 1.80
Three Months
Ended
December 31,
2014
Three Months
Ended
September 30,
2014
Three Months
Ended
December 31,
2013
Operating
Earnings
(Loss) Per
Share
Attributable
to
Shareholders $ 0.53 $ 0.95 $ 0.81
Non-operating
pension
expense (0.07) (0.08) (0.11)
Special items (0.12) (0.08) 1.08
Diluted
Earnings
(Loss) Per
Share from
Continuing
Operations 0.34 0.79 1.78
Discontinued
operations (0.02) 0.04 (0.80)
Diluted
Earnings
(Loss) Per
Share
Attributable
to
Shareholders $0.32$ 0.83 $ 0.98
Results of Operations
Industry 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. Industry segment operating profits are defined
as earnings before taxes, equity earnings, noncontrolling
interests, interest expense, corporate items and
corporate special items. Industry segment operating
profits are defined by the Securities and Exchange
Commission as a non-GAAP financial measure, and are
not GAAP alternatives to net income or any other
operating measure prescribed by accounting principles
generally accepted in the United States.
International Paper operates in three segments: Industrial
Packaging, Printing Papers and Consumer Packaging.