International Paper 2012 Annual Report Download - page 28

PART I.
ITEM 1. BUSINESS
GENERAL
International Paper Company (the “Company” or
“International Paper,” which may also be referred to
as “we” or “us”) is a global paper and packaging
company that is complemented by an extensive
North American merchant distribution system, with
primary markets and manufacturing operations in
North America, Europe, Latin America, Russia, Asia
and North Africa. We are a New York corporation,
incorporated in 1941 as the successor to the New
York corporation of the same name organized in
1898. Our home page on the Internet is
www.internationalpaper.com. You can learn more
about us by visiting that site.
In the United States at December 31, 2012, the
Company operated 28 pulp, paper and packaging
mills, 187 converting and packaging plants, 18
recycling plants and three bag facilities. Production
facilities at December 31, 2012 in Europe, Asia, Latin
America and South America included 11 pulp, paper
and packaging mills, 65 converting and packaging
plants, and two recycling plants. We distribute print-
ing, packaging, graphic arts, maintenance and
industrial products principally through over 88 dis-
tribution branches in the United States and 32 dis-
tribution branches located in Canada, Mexico and
Asia. At December 31, 2012, we owned or managed
approximately 327,000 acres of forestland in Brazil
and had, through licenses and forest management
agreements, harvesting rights on government-
owned forestlands in Russia. Substantially all of our
businesses have experienced, and are likely to con-
tinue to experience, cycles relating to industry
capacity and general economic conditions.
For management and financial reporting purposes,
our businesses are separated into four segments:
Industrial Packaging; Printing Papers; Consumer
Packaging; and Distribution. Beginning January 1,
2011, the Forest Products business was no longer
reported by the Company as a separate industry
segment due to the immateriality of the results of the
remaining business on the Company’s consolidated
financial statements. A description of these business
segments can be found on pages 26 and 27 of
Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations. The
Company’s 50% equity interest in Ilim Holding S.A. is
also a separate reportable industry segment.
From 2008 through 2012, International Paper’s capi-
tal expenditures approximated $4.9 billion, exclud-
ing mergers and acquisitions. These expenditures
reflect our continuing efforts to improve product
quality and environmental performance, as well as
lower costs, maintain reliability of operations and
improve forestlands. Capital spending for continuing
operations in 2012 was approximately $1.4 billion
and is expected to be approximately $1.4 billion in
2013. You can find more information about capital
expenditures on page 34 of Item 7. Management’s
Discussion and Analysis of Financial Condition and
Results of Operations.
Discussions of acquisitions can be found on pages
34 and 35 of Item 7. Management’s Discussion and
Analysis of Financial Condition and Results of Oper-
ations.
You can find discussions of restructuring charges
and other special items on pages 24 through 26 of
Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations.
Throughout this Annual Report on Form 10-K, we
“incorporate by reference” certain information in
parts of other documents filed with the Securities and
Exchange Commission (SEC). The SEC permits us to
disclose important information by referring to it in that
manner. Please refer to such information. Our annual
reports on Form 10-K, quarterly reports on Form 10-Q
and current reports on Form 8-K, along with all other
reports and any amendments thereto filed with or
furnished to the SEC, are publicly available free of
charge on the Investor Relations section of our Inter-
net Web site at www.internationalpaper.com as soon
as reasonably practicable after we electronically file
such material with, or furnish it to, the SEC. The
information contained on or connected to our Web
site is not incorporated by reference into this Form 10-
K and should not be considered part of this or any
other report that we filed with or furnished to the SEC.
FINANCIAL INFORMATION CONCERNING
INDUSTRY SEGMENTS
The financial information concerning segments is set
forth in Note 18 Financial Information by Industry
Segment and Geographic Area on pages 86 and 87 of
Item 8. Financial Statements and Supplementary Data.
FINANCIAL INFORMATION ABOUT
INTERNATIONAL AND U.S. OPERATIONS
The financial information concerning international
and U.S. operations and export sales is set forth in
Note 18 Financial Information by Industry Segment
and Geographic Area on page 87 of Item 8. Financial
Statements and Supplementary Data.
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