International Paper 2014 Annual Report Download - page 94

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The following table summarizes the final allocation of
the purchase price to the fair value of assets and
liabilities acquired as of January 14, 2013, which was
completed in the fourth quarter of 2013.
In millions
Cash and temporary investments $16
Accounts and notes receivable 5
Inventory 27
Plants, properties and equipment 290
Goodwill 260
Other intangible assets 110
Other long-term assets 2
Total assets acquired 710
Accounts payable and accrued liabilities 68
Deferred income tax liability 37
Total liabilities assumed 105
Noncontrolling interest 134
Net assets acquired $ 471
The identifiable intangible assets acquired in
connection with the Orsa IP acquisition included the
following:
In millions
Estimated
Fair Value
Average
Remaining
Useful Life
Asset Class:
(at acquisition
date)
Customer relationships $ 88 12 years
Trademark 3 6 years
Wood supply agreement 19 25 years
Total $ 110
Pro forma information related to the acquisition of Orsa
IP has not been included as it does not have a material
effect on the Company's consolidated results of
operations.
Due to the complex organizational structure of Orsa IP's
operations, and the extended time required to prepare
consolidated financial information in accordance with
accounting principles generally accepted in the United
States, the Company reports Orsa IP's operating results
on a one-month lag basis.
TEMPLE-INLAND, INC.
2012: On February 13, 2012, International Paper
completed the acquisition of Temple-Inland, Inc.
(Temple-Inland). International Paper acquired all of the
outstanding common stock of Temple-Inland for $32.00
per share in cash, totaling approximately $3.7 billion,
and assumed approximately $700 million of Temple-
Inland’s debt. As a condition to allowing the transaction
to proceed, the Company entered into an agreement
on a Final Judgment with the Antitrust Division of the
U.S. Department of Justice (DOJ) that required the
Company to divest three containerboard mills, with
approximately 970,000 tons of aggregate
containerboard capacity. On July 2, 2012, International
Paper sold its Ontario and Oxnard (Hueneme),
California containerboard mills to New-Indy
Containerboard LLC, and its New Johnsonville,
Tennessee containerboard mill to Hood Container
Corporation. By completing these transactions, the
Company satisfied its divestiture obligations under the
Final Judgment. See Note 7 for further details of these
divestitures.
Temple-Inland's results of operations are included in
the consolidated financial statements from the date of
acquisition on February 13, 2012.
The following table summarizes the allocation of the
purchase price to the fair value of assets and liabilities
acquired as of February 13, 2012, which was finalized
in the fourth quarter of 2012.
In millions
Accounts and notes receivable $466
Inventory 484
Deferred income tax assets – current 140
Other current assets 57
Plants, properties and equipment 2,911
Financial assets of special purpose entities 2,091
Goodwill 2,139
Other intangible assets 693
Deferred charges and other assets 54
Total assets acquired 9,035
Notes payable and current maturities of long-term
debt 130
Accounts payable and accrued liabilities 704
Long-term debt 527
Nonrecourse financial liabilities of special purpose
entities 2,030
Deferred income tax liability 1,252
Pension benefit obligation 338
Postretirement and postemployment benefit obligation 99
Other liabilities 221
Total liabilities assumed 5,301
Net assets acquired $ 3,734