International Paper 2014 Annual Report Download - page 57

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The following table presents a reconciliation of net
earnings (loss) attributable to International Paper
Company to its total industry segment operating profit:
In millions 2014 2013 2012
Net Earnings (Loss) Attributable to
International Paper Company $ 555 $1,395 $ 794
Deduct – Discontinued operations:
(Earnings) from operations (11) (109)(120)
Special items (gain) loss 24 418 43
Earnings (Loss) From Continuing
Operations Attributable to
International Paper Company 568 1,704 717
Add back (deduct):
Income tax provision 123 (498) 306
Equity (earnings) loss, net of taxes 200 39 (61)
Net earnings (loss) attributable to
noncontrolling interests (19) (17) 5
Earnings (Loss) From Continuing
Operations Before Income Taxes
and Equity Earnings 872 1,228 967
Interest expense, net 601 612 671
Noncontrolling interests / equity
earnings included in operations 2(1) —
Corporate items 51 61 87
Special items:
Restructuring and other charges 282 10 51
Net losses (gains) on sales and
impairments of businesses 38 —(2)
Non-Operating Pension Expense 212 323 159
$2,058 $2,233 $1,933
Industry Segment Operating Profit
Industrial Packaging $1,896 $1,801 $1,066
Printing Papers (16) 271 599
Consumer Packaging 178 161 268
Total Industry Segment Operating
Profit $2,058 $2,233 $1,933
Industry segment operating profits in 2014 included a net
loss from special items of $732 million compared with
$336 million in 2013 and $286 million in 2012.
Operationally, compared with 2013, the benefit from
higher average sales price realizations and favorable mix
($563 million) and lower other costs ($16 million) were
offset by lower sales volumes ($35 million), higher
operating costs ($138 million), higher input costs ($141
million), higher maintenance outage costs ($3 million) and
higher costs associated with the closure of our Courtland,
Alabama mill ($41 million).
The principal changes in operating profit by segment
were as follows:
• Industrial Packaging’s profits of $1.9 billion were $95
million higher than in 2013 as the net benefit of higher
average sales price realizations and mix were
partially offset by lower sales volumes, higher
operating costs, higher maintenance outage costs
and higher input costs. In addition, 2014 operating
profits included $16 million of costs associated with
the integration of Temple-Inland, a goodwill
impairment charge of $100 million related to our Asia
Industrial Packaging business, a charge of $35
million for costs associated with a multi-employer
pension plan withdrawal liability and a net charge of
$7 million for other items. Operating profits in 2013
included $62 million of costs associated with the
integration of Temple-Inland and a $13 million gain
for a bargain purchase adjustment on the acquisition
of a majority share of our operations in Turkey.
• Printing Papers’ operating loss of $16 million
represented a $287 million reduction in operating
profits from 2013. The benefits of higher average
sales price realizations and a more favorable mix,
lower maintenance outage costs, the absence of a
provision for bad debt related to a large envelope
customer that was booked in 2013, and lower foreign
exchange and other costs were more than offset by
lower sales volumes, higher operating costs, higher
input costs and higher costs associated with the
closure of our Courtland, Alabama mill. The 2014
operating loss also included a special items charge
of $554 million for costs associated with the
shutdown of our Courtland, Alabama mill, a gain of
$20 million for the resolution of a legal contingency
in India and a charge of $32 million for costs
associated with a foreign tax amnesty program.
Operating profits in 2013 included $118 million of
costs associated with the shutdown of our Courtland,
Alabama mill and net charges of $123 million for the