International Paper 2015 Annual Report Download - page 28

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11
as we do. In general, joint ventures are intended to be
operated for the benefit of all co-owners, rather than for
our exclusive benefit. Operating a business as a joint
venture often requires additional organizational
formalities as well as time-consuming procedures for
sharing information and making decisions. In joint
ventures, we are required to pay more attention to our
relationship with our co-owners as well as with the joint
venture, and if a co-owner changes, our relationship
may be adversely affected. In addition, the benefits from
a successful joint venture are shared among the co-
owners, so that we do not receive all the benefits from
our successful joint ventures.
WE MAY NOT ACHIEVE THE EXPECTED BENEFITS
FROM STRATEGIC ACQUISITIONS, JOINT
VENTURES, DIVESTITURES AND OTHER
CORPORATE TRANSACTIONS. Our strategy for
long-term growth, productivity and profitability
depends, in part, on our ability to accomplish prudent
strategic acquisitions, joint ventures, divestitures and
other corporate transactions and to realize the benefits
we expect from such transactions, and we are subject
to the risk that we may not achieve the expected
benefits. Among the benefits we expect from potential
as well as completed acquisitions and joint ventures are
synergies, cost savings, growth opportunities or access
to new markets (or a combination thereof), and in the
case of divestitures, the realization of proceeds from
the sale of businesses and assets to purchasers placing
higher strategic value on such businesses and assets
than does International Paper.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
FORESTLANDS
As of December 31, 2015, the Company owned or
managed approximately 335,000 acres of forestlands
in Brazil, and had, through licenses and forest
management agreements, harvesting rights on
government-owned forestlands in Russia. All owned
lands in Brazil are independently third-party certified for
sustainable forestry under the Brazilian National Forest
Certification Program (CERFLOR) and the Forest
Stewardship Council (FSC).
MILLS AND PLANTS
A listing of our production facilities by segment, the vast
majority of which we own, can be found in Appendix I
hereto, which is incorporated herein by reference.
The Company’s facilities are in good operating
condition and are suited for the purposes for which they
are presently being used. We continue to study the
economics of modernization or adopting other
alternatives for higher cost facilities.
CAPITAL INVESTMENTS AND DISPOSITIONS
Given the size, scope and complexity of our business
interests, we continually examine and evaluate a wide
variety of business opportunities and planning
alternatives, including possible acquisitions and sales
or other dispositions of properties. You can find a
discussion about the level of planned capital
investments for 2016 on page 33 and 34, and
dispositions and restructuring activities as of
December 31, 2015, on pages 20 through 24 of Item 7.
Management’s Discussion and Analysis of Financial
Condition and Results of Operations, and on page 54
and pages 56 and 57 of Item 8. Financial Statements
and Supplementary Data.
ITEM 3. LEGAL PROCEEDINGS
Information concerning the Company’s legal
proceedings is set forth in Note 11 Commitments and
Contingencies on pages 61 through 64 of Item 8.
Financial Statements and Supplementary Data.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.