International Paper 2014 Annual Report Download - page 61

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25
In addition, restructuring and other charges totaling
$569 million before taxes ($349 million after taxes) were
recorded in the Industrial Packaging, Printing Papers
and Consumer Packaging industry segments including:
• a $554 million charge before taxes ($338 million
after taxes) for costs related to the shutdown of
the Courtland, Alabama mill, and
• a $15 million charge before taxes ($11 million after
taxes) for other items.
2013: During 2013, corporate restructuring and other
charges totaling a gain of $5 million before taxes ($3
million after taxes) were recorded. These charges
included:
• a $25 million charge before taxes ($16 million after
taxes) for costs related to the early extinguishment
of debt (see Note 13 Debt and Lines of Credit on
pages 69 and 70 of Item 8. Financial Statements
and Supplementary Data), and
• a $30 million gain before taxes ($19 million after
taxes) for insurance reimbursements related to
the Guaranty Bank legal settlement.
In addition, restructuring and other charges totaling
$161 million before taxes ($101 million after taxes) were
recorded in the Industrial Packaging, Printing Papers
and Consumer Packaging industry segments including:
• a $118 million charge before taxes ($72 million
after taxes) for costs related to the shutdown of
the Courtland, Alabama mill,
• a $45 million charge before taxes ($28 million after
taxes) for costs related to the shutdown of a paper
machine at the Augusta, Georgia mill, and
• a $2 million gain before taxes (loss of $1 million
after taxes) for other items.
2012: During 2012, corporate restructuring and other
charges totaling $51 million before taxes ($35 million
after taxes) were recorded. These charges included:
• a $48 million charge before taxes ($30 million after
taxes) for costs related to the early extinguishment
of debt (see Note 13 Debt and Lines of Credit on
pages 69 and 70 of Item 8. Financial Statements
and Supplementary Data), and
• a $3 million charge before taxes ($5 million after
taxes) for other items.
In addition, restructuring and other charges totaling $14
million before taxes ($11 million after taxes) were
recorded in the Industrial Packaging and Consumer
Packaging industry segments including:
• a $17 million charge before taxes ($12 million after
taxes) related to the restructuring of our Packaging
business in EMEA, and
• a $3 million gain before taxes ($1 million after
taxes) for other items.
Impairments of Goodwill
In the fourth quarter of 2014, in conjunction with the
annual testing of its reporting units for possible goodwill
impairments, the Company calculated the estimated
fair value of its Asia Industrial Packaging business using
expected discounted future cash flows and determined
that due to a change in the strategic outlook, all of the
goodwill of this business, totaling $100 million, should
be written off. The decline in the fair value of the Asia
Industrial Packaging business and resulting impairment
charge was due to a change in the strategic outlook for
the business.
In the fourth quarter of 2013, in conjunction with the
annual testing of its reporting units for possible goodwill
impairments, the Company calculated the estimated
fair value of its India Papers business using expected
discounted future cash flows and determined that due
to a change in the strategic outlook, all of the goodwill
of this business, totaling $112 million, should be written
off. The decline in the fair value of the India Papers
reporting unit and resulting impairment charge was due
to a change in the strategic outlook for the India Papers
operations.
Also in the fourth quarter of 2013, the Company
calculated the estimated fair value of its xpedx business
using the discounted future cash flows and wrote off all
of the goodwill of its xpedx business, totaling $400
million, which has been included in Discontinued
operations in the accompanying consolidated
statement of operations. The decline in the fair value of
the xpedx reporting unit and resulting impairment
charge was due to a significant decline in earnings and
a change in the strategic outlook for the xpedx
operations.
Also during 2013, the Company recorded a pre-tax
charge of $15 million ($7 million after taxes and
noncontrolling interest) for the impairment of a trade
name intangible asset related to our India Papers
business.
No goodwill impairment charges were recorded in
2012.