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8-K - FORM 8-K - INTERNATIONAL PAPER CO /NEW/d8k.htm
EX-99.2 - SLIDES OF INTERNATIONAL PAPER COMPANY - INTERNATIONAL PAPER CO /NEW/dex992.htm

Exhibit 99.1

LOGO

News Release

International Paper Reports Solid First Quarter Earnings

Strong Global Operations, Continued Strong Free Cash Flow

MEMPHIS, Tenn. – April 28th, 2011 – International Paper (NYSE: IP) today reported first-quarter 2011 net earnings attributable to common shareholders totaling $342 million ($0.78 per share) compared with net earnings of $316 million ($0.73 per share) in the fourth quarter of 2010 and a loss of $162 million ($0.38 per share) in the first quarter of 2010. Amounts in all periods include the impact of special items.

Diluted Earnings Per Share Attributable to International Paper Shareholders

 

     First
Quarter
2011
    Fourth
Quarter
2010
    First
Quarter
2010
 

Net Earnings (Loss)

   $ 0.78      $ 0.73      $ (0.38

Less - Discontinued Operations (Gain) Loss

     (0.11     —          —     
                        

Earnings (Loss) from Continuing Operations

   $ 0.67      $ 0.73      $ (0.38

Add Back - Net Special Items Expense (Income)

     0.07        (0.05     0.42   
                        

Earnings from Continuing Operations and Before Special Items

   $ 0.74      $ 0.68      $ 0.04   

Earnings from continuing operations and before special items in the 2011 first quarter totaled $322 million ($0.74 per share), compared with $296 million ($0.68 per share) in the fourth quarter of 2010 and $16 million ($0.04 per share) in the first quarter of 2010.

Quarterly net sales were $6.4 billion compared with $6.5 billion in the fourth quarter of 2010 and $5.8 billion in the first quarter of 2010.

Operating profits were $585 million in the first quarter of 2011, up from $561 million in the fourth quarter of 2010 both of which included special items.

“First-quarter results reflect continued strong performances across all of our global mill businesses,” said John Faraci, chairman and chief executive officer. “Industrial Packaging and Printing Papers continued to post solid results, and Consumer Packaging delivered significantly higher earnings. Europe continued its strong performances in paper and packaging and the contribution from our Ilim joint venture also increased. As a result of these strong across-the-board results, first-quarter free cash flow was in-line with our expectations and we remain confident in our earnings and cash flow outlook for 2011.”


SEGMENT INFORMATION

To measure the performance of the company’s business segments from quarter to quarter without variations caused by special items, management focuses on business segment operating profits excluding those items. First-quarter 2011 segment operating profits and business trends, excluding special items, compared with the prior quarter are as follows:

Industrial Packaging operating profit was $274 million ($279 million including special items) compared with an operating profit of $274 million ($261 million including special items) in the fourth quarter of 2010. First-quarter earnings were impacted by lower volume due to seasonality and unusually harsh weather in January and February. In addition, higher input costs and annual planned mill maintenance outage expenses occurred in the first quarter. These higher expenses were largely offset by favorable operations and lower costs.

Printing Papers operating profit was $209 million ($201 million including special items) compared with an operating profit of $236 million ($234 million including special items) in the fourth quarter of 2010. Quarterly earnings decreased due to globally higher input costs and increased U.S. mill operating costs, partially offset by lower operating costs in our European mills. In North America, the pulp business recorded significantly higher planned maintenance outage expenses, but these were more than offset by lower outage expenses in North American and European papers.

Consumer Packaging operating profit was $101 million ($100 million including special items) compared with an operating profit of $64 million ($60 million including special items) in the fourth quarter of 2010. North American Coated Paperboard operating earnings reflect improved market demand, higher sales price realizations, improved operations and lower planned maintenance outages, partially offset by higher input costs. Earnings also improved in Asia and Europe.

xpedx, the company’s North American distribution business, reported operating earnings of $12 million ($5 million including special items) compared with $9 million in the fourth quarter of 2010. Improved sales margins and the absence of one-time costs that were recorded in the 2010 fourth quarter offset seasonally lower sales volumes.

Net corporate expenses for the 2011 first quarter totaled $44 million, compared with $63 million in the fourth quarter of 2010 and $51 million in the first quarter of 2010. The decrease from both the 2010 fourth quarter and the 2010 first quarter reflects lower pension costs.

EFFECTIVE TAX RATE

The effective tax rate from continuing operations and before special items for the first quarter of 2011 was 33%, compared with 28% in the fourth quarter of 2010. The higher first quarter rate reflects an increased portion of forecasted annual earnings in higher tax jurisdictions and the favorable impact on the fourth quarter rate of the passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 which extended the research and development tax credit and the non-taxability of certain dividend payments between related controlled foreign corporations.


EFFECTS OF SPECIAL ITEMS

Special items in the first quarter of 2011 included pre-tax charges of $45 million ($28 million after taxes) for restructuring and other charges, a loss of $8 million (before and after taxes) for asset impairment charges at our Inverurie, Scotland mill which was closed in 2009 and a $7 million gain (before and after taxes) for a bargain purchase price adjustment on an acquisition by our joint venture in Turkey. Restructuring and other charges included pre-tax charges of $32 million ($19 million after taxes) for early debt extinguishment costs, $3 million ($2 million after taxes) for severance and benefit costs associated with the company’s 2008 overhead cost reduction initiative, $7 million ($4 million after taxes) for costs associated with the restructuring of our xpedx operations and $3 million (before and after taxes) for other items.

Special items in the fourth quarter of 2010 included pre-tax charges of $35 million ($22 million after taxes) for restructuring and other charges, a pre-tax gain of $25 million ($15 million after taxes) related to the partial redemption of the company’s interests in Arizona Chemical, an $18 million pre-tax charge ($11 million after taxes) for an environmental reserve related to the Company’s property in Cass Lake, Minnesota , a charge of $2 million (before and after taxes) for asset impairment costs associated with the Inverurie, Scotland mill and a net $40 million tax benefit related to cellulosic bio-fuel tax credits. Restructuring and other charges included pre-tax charges of $12 million ($7 million after taxes) for closure costs for the Bellevue, Washington and Spartanburg, South Carolina box plant facilities, a pre-tax charge of $13 million ($8 million after taxes) for early debt extinguishment costs, a pre-tax charge of $5 million ($3 million after taxes) for severance and benefit costs associated with the company’s 2008 overhead cost reduction initiative, a pre-tax charge of $4 million ($3 million after taxes) for costs associated with the reorganization of the company’s Shorewood operations, a pre-tax charge of $3 million ($2 million after taxes) for closure costs for three box plants in Asia and a pre-tax gain of $2 million ($1 million after taxes) for other items.

Special items in the first quarter of 2010 included a pre-tax charge of $215 million ($132 million after taxes) for restructuring and other charges and a $46 million after-tax expense to reduce deferred tax assets related to incentive compensation ($14 million) and post-retirement prescription drug coverage (Medicare Part D reimbursements) ($32 million). Restructuring and other charges included a $204 million pre-tax charge ($124 million after taxes) associated with the closure of the Franklin, Virginia mill (including $190 million of accelerated depreciation), a $4 million pre-tax charge ($2 million after taxes) for early debt extinguishment costs, a $3 million pre-tax charge ($2 million after taxes) associated with the reorganization of the company’s Shorewood operations, and charges of $4 million (before and after taxes) for other items.

DISCONTINUED OPERATIONS

Discontinued Operations in the first quarter of 2011 includes a pre-tax gain of $50 million ($30 million after taxes) for an earnout provision related to the sale of the Company’s Kraft Papers business completed in January 2007. Also, the Company sold its Brazilian Coated Paper business in the third quarter of 2006. Tax contingency reserves were included in the business’ operating results in 2005 and 2006 for which the related statute of limitations has expired. The reserves were reversed and a tax benefit of $15 million plus associated interest income of $6 million ($4 million after taxes) was recorded in the first quarter of 2011.


EARNINGS WEBCAST

The company will hold a webcast to review earnings at 9:00 a.m. EDT / 8:00 a.m. CDT today. All interested parties are invited to listen to the webcast live via the company’s Internet site at http://www.internationalpaper.com by clicking on the Investors tab and going to the Presentations page. A replay of the webcast will also be available beginning approximately two hours after the call. Parties who wish to participate in the webcast via teleconference may dial +1 (706) 679-8242 or, within the U.S. only, (877) 316-2541 and ask to be connected to the International Paper First-Quarter Earnings Call. The conference ID number is 53716779. Participants should call in no later than 8:45 a.m. EDT/7:45 a.m. CDT. An audio-only replay will be available for four weeks following the call. To access the replay, dial +1 (706) 645-9291 or, within the U.S. only, (800) 642-1687, and when prompted for the conference ID, enter 53716779.

International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company’s North American distribution company. Headquartered in Memphis, Tennessee the company employs about 59,500 people in more than 24 countries and serves customers worldwide. 2010 net sales were more than $25 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.

This press release contains forward-looking statements. These statements reflect management’s current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ relate to: (i) increases in interest rates; (ii) industry conditions, including but not limited to changes in the cost or availability of raw materials, energy and transportation costs, competition we face, cyclicality and changes in consumer preferences, demand and pricing for its products; (iii) global economic conditions and political changes, including but not limited to the impairment of financial institutions, changes in currency exchange rates, credit ratings issued by recognized credit rating organizations, the amount of our future pension funding obligation, changes in tax laws and pension and health care costs; (iv) unanticipated expenditures related to the cost of compliance with existing and new environmental and other governmental regulations and to actual or potential litigation; and (v) whether we experience a material disruption at one of our manufacturing facilities and risks inherent in conducting business through a joint venture. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company’s Securities and Exchange Commission filings.

###

Contacts:

Media: Tom Ryan, 901-419-4333; Investors: Thomas A. Cleves, 901-419-7566; and Emily Nix, 901-419-4987


INTERNATIONAL PAPER COMPANY

Consolidated Statement of Operations

Preliminary and Unaudited

(In millions, except per share amounts)

 

     Three Months Ended     Three Months Ended  
     March 31,     December 31,  
     2011     2010     2010  

Net Sales

   $ 6,387      $ 5,807      $ 6,531   
                        

Costs and Expenses

      

Cost of products sold

     4,625        4,464        4,770 (f) 

Selling and administrative expenses

     485        421        533   

Depreciation, amortization and cost of timber harvested

     340        371        360   

Distribution expenses

     340        317        332   

Taxes other than payroll and income taxes

     40        45        42   

Restructuring and other charges

     45 (a)      215 (d)      35 (g) 

Net (gains) losses on sales and impairments of businesses

     8 (b)      —          (23 )(h) 

Interest expense, net

     136        149        150   
                        

Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings

     368        (175     332   

Income tax provision (benefit)

     123        (24 )(e)      50 (i) 

Equity earnings (losses), net of taxes

     53 (c)      (2     37   
                        

Earnings (Loss) From Continuing Operations

     298 (a-c)      (153 )(d,e)      319 (f-i) 

Discontinued operations, net of taxes

     49        —          —     
                        

Net Earnings (Loss)

   $ 347 (a-c)    $ (153 )(d,e)    $ 319 (f-i) 

Less: Net earnings attributable to noncontrolling interests

     5        9        3   
                        

Net Earnings (Loss) Attributable to International Paper Company

   $ 342 (a-c)    $ (162 )(d,e)    $ 316 (f-i) 
                        

Basic Earnings (Loss) Per Common Share Attributable to International Paper Common Shareholders

      

Earnings (loss) from continuing operations

   $ 0.68 (a-c)    $ (0.38 )(d,e)    $ 0.74 (f-i) 

Discontinued operations

     0.11        —          —     
                        

Net earnings (loss)

   $ 0.79 (a-c)    $ (0.38 )(d,e)    $ 0.74 (f-i) 
                        

Diluted Earnings (Loss) Per Common Share Attributable to International Paper Common Shareholders

      

Earnings (loss) from continuing operations

   $ 0.67 (a-c)    $ (0.38 )(d,e)    $ 0.73 (f-i) 

Discontinued operations

     0.11        —          —     
                        

Net earnings (loss)

   $ 0.78 (a-c)    $ (0.38 )(d,e)    $ 0.73 (f-i) 
                        

Average Shares of Common Stock Outstanding—Diluted

     433.8        428.8        434.7   
                        

Cash Dividends Per Common Share

   $ 0.1875      $ 0.025      $ 0.125   
                        

Amounts Attributable to International Paper Common Shareholders

      

Earnings (loss) from continuing operations, net of tax

   $ 293      $ (162   $ 316   

Discontinued operations, net of tax

     49      $ —        $ —     
                        

Net Earnings (loss)

   $ 342      $ (162   $ 316   
                        

The accompanying notes are an integral part of this consolidated statement of operations.

 

(a) Includes a pre-tax charge of $32 million ($19 million after taxes) for early debt extinguishment costs, a pre-tax charge of $7 million ($4 million after taxes) for costs associated with the restructuring of the Company’s xpedx operations, a pre-tax charge of $3 million ($2 million after taxes) for severance and benefit costs associated with the Company’s 2008 cost reduction initiative, and charges of $3 million (before and after taxes) for other items.
(b) Includes a charge of $8 million (before and after taxes) for asset impairment costs associated with the Inverurie, Scotland mill which was closed in 2009.
(c) Includes a gain of $7 million (before and after taxes) related to a bargain price adjustment on an acquisition by our joint venture in Turkey.
(d) Includes a pre-tax charge of $204 million ($124 million after taxes) for shutdown costs for the Franklin mill (including $190 million of accelerated depreciation), a pre-tax charge of $4 million ($2 million after taxes) for early debt extinguishment costs, a pre-tax charge of $3 million ($2 million after taxes) for costs associated with the reorganization of the Company’s Shorewood operations and charges of $4 million (before and after taxes) for other items.
(e) Includes a $14 million tax expense and a $32 million tax expense for incentive compensation and Medicare Part D deferred tax write-offs, respectively.
(f) Includes a pre-tax charge of $18 million ($11 million after taxes) for an environmental reserve related to the Company’s property in Cass Lake, Minnesota.
(g) Includes a pre-tax charge of $12 million ($7 million after taxes) for closure costs for the Bellevue and Spartanburg box plants, a pre-tax charge of $13 million ($8 million after taxes) for early debt extinguishment costs, a pre-tax charge of $5 million ($3 million after taxes) for severance and benefit costs associated with the Company’s 2008 overhead cost reduction initiative, a pre-tax charge of $4 million ($3 million after taxes) for costs associated with the reorganization of the Company’s Shorewood operations, a pre-tax charge of $3 million ($2 million after taxes) for costs associated with the shutdown of three box plants in Asia and a net pre-tax gain of $2 million ($1 million after taxes) for other items.
(h) Includes a pre-tax gain of $25 million ($15 million after taxes) related to the partial redemption of the Company’s interests in Arizona Chemical, and a charge of $2 million (before and after taxes) for asset impairment costs associated with the Inverurie, Scotland mill which was closed in 2009.
(i) Includes a tax benefit of $40 million related to cellulosic bio-fuel tax credits.


International Paper Company

Reconciliation of Earnings Before Special Items to Net Earnings

Attributable to International Paper Company

Preliminary and Unaudited

(In millions except for per share amounts)

 

     Three Months Ended    

Three Months Ended

December 31,

 
     March 31,    
     2011     2010     2010  

Earnings Before Special Items

   $ 322      $ 16      $ 296   

Restructuring and other charges

     (28     (132     (33

Net gains (losses) on sales and impairments of businesses

     (8     —          13   

Income tax items

     —          (46     40   

Bargain purchase price adjustment recorded in equity earnings

     7        —          —     
                        

Earnings (Loss) from Continuing Operations

     293        (162     316   

Discontinued operations

     49        —          —     
                        

Net Earnings (Loss) as Reported

   $ 342      $ (162   $ 316   
                        

 

     Three Months Ended     Three Months Ended  
     March 31,     December 31,  
Diluted Earnings Per Common Share    2011     2010     2010  

Earnings Per Share Before Special Items

   $ 0.74      $ 0.04      $ 0.68   

Restructuring and other charges

     (0.07     (0.31     (0.07

Net gains (losses) on sales and impairments of businesses

     (0.02     —          0.03   

Income tax items

     —          (0.11     0.09   

Bargain purchase price adjustment recorded in equity earnings

     0.02        —          —     
                        

Earnings (Loss) Per Common Share from Continuing Operations

     0.67        (0.38     0.73   

Discontinued operations

     0.11        —          —     
                        

Diluted Earnings (Loss) per Common Share as Reported

   $ 0.78      $ (0.38   $ 0.73   
                        

Notes:

 

(1) The Company calculates Earnings Before Special Items by excluding the after-tax effect of items considered by management to be unusual from the earnings reported under U.S. generally accepted accounting principles (“GAAP”). Management uses this measure to focus on on-going operations, and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present operating results. International Paper believes that using this information, along with net earnings, provides for a more complete analysis of the results of operations by quarter. Net earnings is the most directly comparable GAAP measure.


International Paper

Sales and Earnings by Industry Segment

Preliminary and Unaudited

(In Millions)

Sales by Industry Segment

 

     Three Months
Ended

March  31,
    Three Months
Ended
December 31,
 
     2011     2010     2010  

Industrial Packaging

   $ 2,555      $ 2,220      $ 2,570   

Printing Papers

     1,530        1,405        1,540   

Consumer Packaging

     905        805        880   

Distribution

     1,640        1,580        1,770   

Forest Products (1)

     —          10        —     

Corporate and Inter-segment Sales

     (243     (213     (229
                        

Net Sales

   $ 6,387      $ 5,807      $ 6,531   
                        

Operating Profit by Industry Segment

 

      
     Three Months
Ended

March 31,
    Three Months
Ended
December 31,
 
     2011     2010     2010  

Industrial Packaging

   $ 279 (3)    $ 41 (3)    $ 261 (3) 

Printing Papers

     201 (4)      (78 )(4)      234 (4) 

Consumer Packaging

     100 (5)      28 (5)      60 (5) 

Distribution

     5 (6)      21        9   

Forest Products (1)

     —          8        (3
                        

Operating Profit (2)

     585        20        561   

Interest expense, net

     (136     (149     (150

Noncontrolling interest/equity earnings adjustment (7)

     (2     8        (5

Corporate items, net

     (44     (51     (63

Restructuring and other charges

     (35     (3     (36

Net gains (losses) on sales and impairments of businesses

     —          —          25   
                        

Earnings (Loss) From Continuing Operations

      

Before Income Taxes and Equity Earnings

   $ 368      $ (175   $ 332   
                        

Equity Earnings (Loss) in Ilim Holdings S.A.,

      

Net of Taxes (2)

   $ 44      $ (3   $ 31   
                        

 

(1) The Company has substantially completed its land sales and earnings for future land sales are expected to be insignificant. Beginning in 2011, Forest Products will no longer be reported as a separate industry segment.
(2) In addition to the operating profits shown above, International Paper recorded equity earnings, net of taxes, of $44 million and $31 million for the three months ended March 31, 2011 and December 31, 2010, respectively, and equity losses, net of taxes, of $3 million for the three months ended March 31, 2010, related to the equity investment in Ilim Holdings S.A., a separate reportable industry segment.
(3) Includes charges of $2 million each for the three months ended March 31, 2011 and March 31, 2010, respectively, for additional closure costs for the Etienne mill in France, a gain of $7 million for the three months ended March 31, 2011 for a bargain purchase price adjustment on an acquisition by our joint venture in Turkey, a net charge of $3 million and a gain of $2 million for the three months ended March 31, 2010 and December 31, 2010, respectively, related to closure costs for U.S. mills closed in 2009, charges of $12 million for closure costs for the Bellevue and Spartanburg box plants for the three months ended December 31, 2010, and charges of $3 million for closure costs for three Asian box plants for the three months ended December 31, 2010.
(4) Includes charges of $8 million and $2 million for the three months ended March 31, 2011 and December 31, 2010, respectively, for asset impairment costs associated with the Inverurie mill and charges of $204 million for the three months ended March 31, 2010, for shutdown costs for the Franklin mill.
(5) Includes charges of $1 million, $3 million, and $4 million for the three months ended March 31, 2011, March 31, 2010 and December 31, 2010, respectively, related to the reorganization of the Company’s Shorewood operations.
(6) Includes charges of $7 million for the three months ended March 31, 2011 associated with the restructuring of the Company’s xpedx operations.
(7) Operating profits for industry segments include each segment’s percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings.


International Paper Company

Reconciliation of Operating Profit to Operating Profit Before Special Items

(In millions)

 

     Three Months Ended March 31, 2011        
     Industrial
Packaging
    Printing
Papers
    Consumer
Packaging
     Distribution      Total        

Operating Profit as Reported

   $ 279      $ 201      $ 100       $ 5       $ 585     

Restructuring and other charges

     2        —          1         7         10     

Net losses on sales and impairments of businesses

     —          8        —           —           8     

Bargain purchase price adjustment recorded in equity earnings

     (7     —          —           —           (7  
                                            

Operating Profit Before Special Items

   $ 274      $ 209      $ 101       $ 12       $ 596     
                                            
     Three Months Ended March 31, 2010  
     Industrial
Packaging
    Printing
Papers
    Consumer
Packaging
     Distribution      Forest
Products
    Total  

Operating Profit as Reported

   $ 41      $ (78   $ 28       $ 21       $ 8      $ 20   

Restructuring and other charges

     5        204        3         —           —          212   
                                                  

Operating Profit Before Special Items

   $ 46      $ 126      $ 31       $ 21       $ 8      $ 232   
                                                  
     Three Months Ended December 31, 2010  
     Industrial
Packaging
    Printing
Papers
    Consumer
Packaging
     Distribution      Forest
Products
    Total  

Operating Profit as Reported

   $ 261      $ 234      $ 60       $ 9       $ (3   $ 561   

Restructuring and other charges

     13        —          4         —           —          17   

Net losses on sales and impairments of businesses

     —          2        —           —           —          2   
                                                  

Operating Profit Before Special Items

   $ 274      $ 236      $ 64       $ 9       $ (3   $ 580   
                                                  


International Paper

Sales Volume by Product (1)

Preliminary and Unaudited

International Paper Consolidated

 

     Three Months
Ended
March 31,
     Three Months
Ended
December 31,

2010
 
     2011      2010     

Industrial Packaging (In thousands of short tons)

        

Corrugated Packaging

     1,810         1,809         1,832   

Containerboard

     555         631         591   

Recycling

     643         580         626   

Saturated Kraft

     39         41         40   

Bleached Kraft

     23         22         19   

European Industrial Packaging

     273         258         272   

Asian Box (2)

     103         39         110   
                          

Industrial Packaging

     3,446         3,380         3,490   
                          

Printing Papers (In thousands of short tons)

        

U.S. Uncoated Papers

     662         700         644   

European & Russian Uncoated Papers

     312         308         306   

Brazilian Uncoated Papers

     273         248         289   
                          

Uncoated Papers

     1,247         1,256         1,239   
                          

Market Pulp (3)

     341         351         369   
                          

Consumer Packaging (In thousands of short tons)

        

U.S. Coated Paperboard

     364         339         341   

European Coated Paperboard

     84         90         87   

Asian Coated Paperboard

     222         221         219   

Other Consumer Packaging

     45         40         45   
                          

Consumer Packaging

     715         690         692   
                          

 

(1) Sales volumes include third party and inter-segment sales and exclude sales of equity investees.
(2) Includes SCA Packaging volumes from date of acquisition in June 2010.
(3) Includes internal sales to mills.


INTERNATIONAL PAPER COMPANY

Consolidated Balance Sheet

Preliminary and Unaudited

(In Millions)

 

     March 31,
2011
     December 31,
2010
 

Assets

     

Current Assets

     

Cash and Temporary Investments

   $ 2,049       $ 2,073   

Accounts and Notes Receivable, Net

     3,428         3,039   

Inventories

     2,390         2,347   

Deferred Income Tax Assets

     343         339   

Other

     278         230   
                 

Total Current Assets

     8,488         8,028   
                 

Plants, Properties and Equipment, Net

     11,952         12,002   

Forestlands

     763         747   

Investments

     1,095         1,092   

Goodwill

     2,320         2,308   

Deferred Charges and Other Assets

     977         1,191   
                 

Total Assets

   $ 25,595       $ 25,368   
                 

Liabilities and Equity

     

Current Liabilities

     

Notes Payable and Current Maturities of Long-Term Debt

   $ 375       $ 313   

Accounts Payable and Accrued Liabilities

     4,122         4,190   
                 

Total Current Liabilities

     4,497         4,503   
                 

Long-Term Debt

     8,156         8,358   

Deferred Income Taxes

     2,805         2,793   

Pension Benefit Obligation

     1,463         1,482   

Postretirement and Postemployment Benefit Obligation

     491         499   

Other Liabilities

     608         649   

Equity

     

Invested Capital

     4,645         4,418   

Retained Earnings

     2,675         2,416   
                 

Total Shareholders’ Equity

     7,320         6,834   
                 

Noncontrolling interests

     255         250   
                 

Total Equity

     7,575         7,084   
                 

Total Liabilities and Equity

   $ 25,595       $ 25,368   
                 


INTERNATIONAL PAPER COMPANY

Consolidated Statement of Cash Flows

Preliminary and Unaudited

(In Millions)

 

     Three Months Ended
March 31,
 
     2011     2010  

Operating Activities

    

Net Earnings (Loss)

     298        (153

Depreciation, amortization and cost of timber harvested

     340        371   

Deferred income tax expense (benefit), net

     (2     76   

Restructuring and other charges

     45        215   

Payments related to restructuring and legal reserves

     —          (2

Net losses on sales and impairments of businesses

     8        —     

Equity (earnings) loss, net

     (53     2   

Periodic pension expense, net

     45        59   

Other, net

     60        (104

Changes in current assets and liabilities

    

Accounts and notes receivable

     (365     (206

Inventories

     7        (51

Accounts payable and accrued liabilities

     14        (14

Interest payable

     42        42   

Other

     75        (76
                

Cash Provided by Operations

     514        159   
                

Investment Activities

    

Invested in capital projects

     (181     (120

Proceeds from divestitures

     50        —     

Escrow arrangement

     (105     —     

Other

     (71     (31
                

Cash Used for Investment Activities

     (307     (151
                

Financing Activities

    

Repurchases of common stock and payments of restricted stock tax withholding

     (29     (26

Issuance of debt

     49        38   

Reduction of debt

     (152     (120

Change in book overdrafts

     (33     (27

Dividends paid

     (82     (11

Other

     (33     (3
                

Cash Used for Financing Activities

     (280     (149
                

Effect of Exchange Rate Changes on Cash

     49        (2
                

Change in Cash and Temporary Investments

     (24     (143

Cash and Temporary Investments

    

Beginning of the period

     2,073        1,892   
                

End of the period

   $ 2,049      $ 1,749