International Paper 2015 Annual Report Download - page 36

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The following table presents a reconciliation of net
earnings (loss) attributable to International Paper
Company to its total industry segment operating profit:
In millions 2015 2014 2013
Net Earnings (Loss) Attributable to
International Paper Company $ 938 $ 555 $ 1,395
Deduct – Discontinued operations:
(Earnings) from operations —(11) (109)
Special items (gain) loss —24 418
Earnings (Loss) From Continuing
Operations Attributable to
International Paper Company 938 568 1,704
Add back (deduct):
Income tax provision 466 123 (498)
Equity (earnings) loss, net of taxes (117)200 39
Net earnings (loss) attributable to
noncontrolling interests (21) (19) (17)
Earnings (Loss) From Continuing
Operations Before Income Taxes
and Equity Earnings 1,266 872 1,228
Interest expense, net 555 601 612
Noncontrolling interests / equity
earnings included in operations 82(1)
Corporate items 36 51 61
Special items:
Restructuring and other charges 238 282 10
Net losses (gains) on sales and
impairments of businesses —38 —
Non-Operating Pension Expense 258 212 323
$2,361 $2,058 $2,233
Industry Segment Operating Profit
Industrial Packaging $1,853 $1,896 $1,801
Printing Papers 533 (16) 271
Consumer Packaging (25) 178 161
Total Industry Segment Operating
Profit $2,361 $2,058 $2,233
Industry segment operating profits in 2015 included a net
loss from special items of $321 million compared with
$732 million in 2014 and $336 million in 2013.
Operationally, compared with 2014, the benefit from lower
input costs ($232 million) was offset by lower average
sales price realizations and mix ($226 million), lower sales
volumes ($38 million), higher operating costs ($16
million), higher maintenance outage costs ($37 million)
and higher other costs ($23 million).
The principal changes in operating profit by segment
were as follows:
• Industrial Packaging’s profits of $1.9 billion were $43
million lower than in 2014 as the benefit of lower
input costs was offset by lower average sales price
realizations and mix, lower sales volumes, higher
operating costs and higher maintenance outage
costs. In addition, 2015 operating profits included a
goodwill and trade name impairment charge of $137
million related to our Brazil Packaging business.
Operating profits in 2014 included $16 million of
costs associated with the integration of Temple-
Inland, a goodwill impairment charge of $100 million
related to our Asia Industrial Packaging business, a
charge of $35 million for costs associated with a
multi-employer pension plan withdrawal liability and
a net charge of $7 million for other items.
• Printing Papers’ profits of $533 million represented
a $549 million increase in operating profits from
2014. The benefits from lower input costs, lower
costs associated with the closure of our Courtland,
Alabama mill and lower foreign exchange impact
were offset by lower average sales price realizations
and mix, lower sales volumes, higher operating
costs and higher maintenance outage costs. The
2014 operating loss included a special items charge
of $554 million for costs associated with the
shutdown of our Courtland, Alabama mill, a gain of
$20 million for the resolution of a legal contingency
in India and a charge of $32 million for costs
associated with a foreign tax amnesty program.
• Consumer Packaging’s operating loss of $25 million
represented a $203 million reduction in operating
profits from 2014. The benefits from higher sales
volumes, lower planned maintenance downtime
costs and lower input costs were offset by lower
average sales price realizations and mix, higher
operating costs, and higher foreign exchange and
other expenses. In addition, 2015 operating profits
included an asset impairment charge of $174 million