International Paper 2012 Annual Report Download - page 90

(a) Represents accumulated goodwill impairment charges since
the adoption of ASC 350, “Intangibles – Goodwill and Other” in
2002.
(b) Represents the effects of foreign currency translations and
reclassifications.
(c) Represents purchase price adjustments related to the final-
ization of the SCA Packaging Asia acquisition.
(d) Reflects an increase related to the acquisition of Andhra Pra-
desh Paper Mills in India partially offset by a reduction from tax
benefits generated by the deduction of goodwill amortization
for tax purposes in Brazil.
(e) Represents the joint venture between IP Asia and Sun Paper
Industry Co, Ltd.
No goodwill impairment charges were recorded in
2012, 2011 or 2010.
OTHER INTANGIBLES
Identifiable intangible assets comprised the follow-
ing:
2012 2011
In millions at
December 31
Gross
Carrying
Amount Accumulated Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Customer
relationships
and lists $ 644 $112 $227 $ 82
Non-compete
agreements 83 30 72 19
Tradenames,
patents and
trademarks 144 16 51 21
Land and water
rights 87 6 60 3
Fuel and power
agreements 17 12 30 16
Software 22 19 37 29
Other 83 19 27 13
Total (a) $1,080 $214 $504 $183
(a) The increase in 2012 is primarily due to the acquisition of
Temple-Inland.
The Company recognized the following amounts as
amortization expense related to intangible assets:
In millions 2012 2011 2010
Amortization expense related to intangible
assets $58 $32 $31
Based on current intangibles subject to amortization,
estimated amortization expense for each of the suc-
ceeding years is as follows: 2013 – $37 million, 2014
– $36 million, 2015 – $29 million, 2016 – $29 million,
2017 – $28 million, and cumulatively thereafter –
$706 million.
NOTE 9 INCOME TAXES
The components of International Paper’s earnings
from continuing operations before income taxes and
equity earnings by taxing jurisdiction were as fol-
lows:
In millions 2012 2011 2010
Earnings (loss)
U.S. $ 478 $ 874 $198
Non-U.S. 546 584 624
Earnings (loss) from continuing operations
before income taxes and equity earnings $1,024 $1,458 $822
The provision (benefit) for income taxes (excluding
noncontrolling interests) by taxing jurisdiction was
as follows:
In millions 2012 2011 2010
Current tax provision (benefit)
U.S. federal $14 $ (78) $(249)
U.S. state and local 11 (19) (19)
Non-U.S. 102 91 67
$127 $ (6) $(201)
Deferred tax provision (benefit)
U.S. federal $226 $207 $ 301
U.S. state and local 646 45
Non-U.S. (28) 64 76
$204 $317 $ 422
Income tax provision $331 $311 $ 221
The Company’s deferred income tax provision
(benefit) includes a $25 million provision, an $8 mil-
lion benefit and a $0 million provision for 2012, 2011
and 2010, respectively, for the effect of changes in
non-U.S. and U.S. state tax rates.
International Paper made income tax payments, net
of refunds, of $95 million, $44 million and $(135) mil-
lion in 2012 , 2011 and 2010, respectively.
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