International Paper 2015 Annual Report Download - page 74

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57
and 2013, respectively, is included in Cash Provided By
(Used For) Investing Activities in the consolidated
statement of cash flows.
2013: On April 1, 2013, the Company finalized the
sale of Temple-Inland's 50% interest in Del-Tin Fiber
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.
Related to these divestitures, the Company recorded
income (loss) of $0 million, $(12) million and $45 million
for the years ended December 31, 2015, 2014 and
2013, respectively. These amounts are included in
Discontinued operations, net of tax in the consolidated
statement of operations.
OTHER DIVESTITURES AND IMPAIRMENTS
2015: On October 13, 2015, the Company finalized the
sale of its 55% interest in IP Asia Coated Paperboard
(IP-Sun JV) business, within the Company's Consumer
Packaging segment, to its Chinese coated board joint
venture partner, Shandong Sun Holding Group Co., Ltd.
for RMB 149 million (approximately USD $23 million).
During the third quarter of 2015, a determination was
made that the current book value of the asset group
exceeded its estimated fair value of $23 million, which
was the agreed upon selling price. The 2015 loss
includes the net pre-tax impairment charge of $174
million ($113 million after taxes). A pre-tax charge of
$186 million was recorded during the third quarter in
the Company's Consumer Packaging segment to write
down the long-lived assets of this business to their
estimated fair value. In the fourth quarter of 2015, upon
the sale and corresponding deconsolidation of IP-Sun
JV from the Company's consolidated balance sheet,
final adjustments were made resulting in a reduction
of the impairment of $12 million. The amount of pre-tax
losses related to noncontrolling interest of the IP-Sun
JV included in the Company's consolidated statement
of operations for the years ended December 31, 2015,
2014 and 2013 were $19 million, $12 million and $8
million, respectively. The amount of pre-tax losses
related to the IP-Sun JV included in the Company's
consolidated statement of operations for the years
ended December 31, 2015, 2014 and 2013 were $226
million, $51 million and $41 million, respectively.
The net 2015 loss totaling $174 million related to the
impairment of Sun-JV is included in Net (gains) losses
on sales and impairments of businesses in the
accompanying consolidated statement of operations.
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.
NOTE 8 SUPPLEMENTARY FINANCIAL
STATEMENT INFORMATION
TEMPORARY INVESTMENTS
In millions at December 31 2015 2014
Temporary Investments $738$1,480
ACCOUNTS AND NOTES RECEIVABLE
Accounts and notes receivable, net of allowances, by
classification were:
In millions at December 31 2015 2014
Accounts and notes receivable:
Trade $2,480 $2,860
Other 195 223
Total $2,675 $3,083
INVENTORIES
In millions at December 31 2015 2014
Raw materials $339$494
Finished pulp, paper and packaging
products 1,248 1,273
Operating supplies 563 562
Other 78 95
Inventories $2,228 $2,424
The last-in, first-out inventory method is used to value
most of International Paper’s U.S. inventories.
Approximately 78% 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 $345 million and $334 million at
December 31, 2015 and 2014, respectively.