International Paper 2014 Annual Report Download - page 96

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60
L.L.C. to joint venture partner Deltic Timber Corporation
for $20 million in assumed liabilities and cash.
On July 19, 2013 the Company finalized the sale of its
Temple-Inland Building Products division to Georgia-
Pacific Building Products, LLC for approximately $726
million in cash.
2012: Upon the acquisition of Temple-Inland,
management committed to a plan to sell the Temple-
Inland Building Products business, and on December
12, 2012, International Paper reached an agreement to
sell the business (including Del-Tin Fiber L.L.C.) to
Georgia-Pacific for $750 million in cash, subject to
satisfaction of customary closing conditions, including
satisfactory review by the DOJ, and to certain pre-and
post-closing purchase price adjustments. The assets to
be sold included 16 manufacturing facilities.
The operating results of the Temple-Inland Building
Products business have been included in Discontinued
operations from the date of acquisition.
Related to these divestitures, the Company recorded
income (loss) of $(12) million, $45 million and $45
million for the years ended December 31, 2014, 2013
and 2012, respectively. These amounts are included in
Discontinued operations, net of tax in the consolidated
statement of operations.
OTHER DIVESTITURES AND IMPAIRMENTS
2014: During 2014, the Company recorded a net pre-
tax charge of $47 million ($36 million after taxes) for the
loss on the sale of a business by our equity method
investee, ASG (formerly referred to as AGI-
Shorewood), and the subsequent partial impairment of
this ASG investment.
The net 2014 loss totaling $38 million, including the ASG
impairment discussed above, related to other
divestitures and impairments is included in Net (gains)
losses on sales and impairments of businesses in the
accompanying consolidated statement of operations.
2013: During 2013, the Company recorded net pre-tax
charges of $3 million ($1 million after taxes) for
adjustments related to the divestiture of three
containerboard mills in 2012 and the sale of the
Shorewood business. This loss is included in Net
(gains) losses on sales and impairments of businesses
in the accompanying consolidated statement of
operations.
2012: As referenced in Note 6, on July 2, 2012,
International Paper finalized the sales of its Ontario and
Oxnard (Hueneme), California containerboard mills to
New-Indy Containerboard LLC, and its New
Johnsonville, Tennessee containerboard mill to Hood
Container Corporation. During 2012, the Company
recorded pre-tax charges of $29 million ($55 million
after taxes) for costs associated with the divestitures of
these mills. Also during 2012, in anticipation of the
divestiture of the Hueneme mill, a pre-tax charge of $62
million ($38 million after taxes) was recorded to adjust
the long-lived assets of the mill to their fair value.
The net 2012 loss totaling $86 million related to other
divestitures and impairments is included in Net (gains)
losses on sales and impairments of businesses in the
accompanying consolidated statement of operations.
NOTE 8 SUPPLEMENTARY FINANCIAL
STATEMENT INFORMATION
TEMPORARY INVESTMENTS
In millions at December 31 2014 2013
Temporary Investments $1,480 $1,398
ACCOUNTS AND NOTES RECEIVABLE
Accounts and notes receivable, net of allowances, by
classification were:
In millions at December 31 2014 2013
Accounts and notes receivable:
Trade $2,860 $3,497
Other 223 259
Total $3,083 $3,756
INVENTORIES
In millions at December 31 2014 2013
Raw materials $494$372
Finished pulp, paper and packaging
products 1,273 1,834
Operating supplies 562 572
Other 95 47
Inventories $2,424 $2,825
The last-in, first-out inventory method is used to value
most of International Paper’s U.S. inventories.
Approximately 66% of total raw materials and finished
products inventories were valued using this method. If
the first-in, first-out method had been used, it would
have increased total inventory balances by
approximately $334 million and $417 million at
December 31, 2014 and 2013, respectively.
PLANTS, PROPERTIES AND EQUIPMENT
In millions at December 31 2014 2013
Pulp, paper and packaging facilities $ 31,805 $32,268
Other properties and equipment 1,263 1,478
Gross cost 33,068 33,746
Less: Accumulated depreciation 20,340 20,074
Plants, properties and equipment, net $ 12,728 $13,672