International Paper 2014 Annual Report Download - page 92

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56
As of December 31, 2014, 788 employees had left the
Company under these programs.
2013: During 2013, total restructuring and other
charges of $156 million before taxes ($98 million after
taxes) were recorded. These charges included:
In millions
Before-Tax
Charges
After-Tax
Charges
Early debt extinguishment costs (see
Note 13) $25$
16
Courtland mill shutdown (a) 118 72
Box plant closures (13) (8)
Augusta paper machine shutdown (b) 45 28
Insurance reimbursements (30) (19)
Other (c) 11 9
Total $ 156 $ 98
(a) Includes $73 million of accelerated depreciation and other non-
cash charges, $42 million of severance charges and $3 million
of other charges which are recorded in the Printing Papers
segment. During 2013, the Company accelerated depreciation
for certain Courtland assets, and diligently evaluated certain
other assets for possible alternative uses by one of our other
businesses. The net book value of these assets at December
31, 2013 was approximately $470 million.
(b) Includes $39 million of accelerated depreciation charges, $2
million of severance charges and $4 million of other charges
which are recorded in the Consumer Packaging segment.
(c) Includes $2 million of severance charges.
Included in the $156 million of organization
restructuring and other charges is $46 million of
severance charges.
The following table presents a rollforward of the
severance and other costs for approximately 1,384
employees included in the 2013 restructuring charges.
In millions
Severance
and Other
Additions and adjustments $46
Cash payments in 2013 (5)
Cash payments in 2014 (41)
Balance, December 31, 2014 $—
As of December 31, 2014, all of these employees had
left the Company under these programs.
2012: During 2012, total restructuring and other
charges of $65 million before taxes ($46 million after
taxes) were recorded. These charges included:
In millions
Before-Tax
Charges
After-Tax
Charges
Early debt extinguishment costs
(see Note 13) $48$30
EMEA packaging restructuring (a) 17 12
Other —4
Total $65$46
(a) Includes $17 million of severance charges.
Included in the $65 million of organizational
restructuring and other charges is $17 million of
severance charges.
The following table presents a rollforward of the
severance and other costs for approximately 366
employees included in the 2012 restructuring charges:
In millions
Severance
and Other
Additions and adjustments $17
Cash payments in 2012 (3)
Cash payments in 2013 (4)
Cash payments in 2014 (6)
Balance, December 31, 2014 $4
As of December 31, 2014, 300 employees had left the
Company under these programs.
ALTERNATIVE FUEL MIXTURE TAX CREDIT
On July 19, 2011 the Company filed an amended 2009
tax return claiming alternative fuel mixture tax credits
as non-taxable income. The amended position has
been accepted by the Internal Revenue Service (IRS)
in the closing of the IRS tax audit for the years 2006 -
2009. As a result, during 2013, the Company
recognized an income tax benefit of $753 million related
to the non-taxability of the alternative fuel mixture tax
credits.
NOTE 6 ACQUISITIONS AND JOINT VENTURES
OLMUKSAN
2014: In May 2014, the Company conducted a
voluntary tender offer for the remaining outstanding
12.6% public shares of Olmuksan. The Company also
purchased outstanding shares of Olmuksan outside of
the tender offer. As of December 31, 2014, the
Company owned 91.7% of Olmuksan's outstanding and
issued shares.
2013: On January 3, 2013, International Paper
completed the acquisition (effective date of acquisition
on January 1, 2013) of the shares of its joint venture
partner, Sabanci Holding, in the Turkish corrugated
packaging company, Olmuksa International Paper
Sabanci Ambalaj Sanayi ve Ticaret A.S., now called
Olmuksan International Paper Ambalaj Sanayi ve
Ticaret A.S. (Olmuksan), for a purchase price of $56
million. The acquired shares represented 43.7% of
Olmuksan's shares. Prior to this acquisition,
International Paper held a 43.7% equity interest in
Olmuksan.
Because the transaction resulted in International Paper
becoming the majority shareholder, owning 87.4% of
Olmuksan's outstanding and issued shares, its