In millions | Industrial Packaging | Printing Papers | Consumer Packaging | Distribution | Total | ||||||||||||||
Balance as of January 1, 2013 | |||||||||||||||||||
Goodwill | $ | 3,165 | $ | 2,396 | $ | 1,783 | $ | 400 | $ | 7,744 | |||||||||
Accumulated impairment losses (a) | — | (1,765 | ) | (1,664 | ) | — | (3,429 | ) | |||||||||||
3,165 | 631 | 119 | 400 | 4,315 | |||||||||||||||
Reclassifications and other (b) | (28 | ) | (63 | ) | 3 | — | (88 | ) | |||||||||||
Additions/reductions | 293 | (c) | (22 | ) | (d) | 1 | — | 272 | |||||||||||
Impairment loss | — | (112 | ) | (e) | — | (400 | ) | (e) | (512 | ) | |||||||||
Balance as of December 31, 2013 | |||||||||||||||||||
Goodwill | 3,430 | 2,311 | 1,787 | 400 | 7,928 | ||||||||||||||
Accumulated impairment losses (a) | — | (1,877 | ) | (1,664 | ) | (400 | ) | (3,941 | ) | ||||||||||
Total | $ | 3,430 | $ | 434 | $ | 123 | $ | — | $ | 3,987 |
(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) | Reflects $260 million for Orsa IP, the newly formed joint venture in Brazil and the adjustment of $54 million ($33 million after-tax) previously included as a trade name intangible asset in Deferred Charges and Other Assets on the balance sheet. |
(d) | Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil. |
(e) | Represents the impairment of goodwill for the India Papers business and xpedx. |
In millions | Industrial Packaging | Printing Papers | Consumer Packaging | Distribution | Total | |||||||||||||
Balance as of January 1, 2012 | ||||||||||||||||||
Goodwill | $ | 1,157 | $ | 2,439 | $ | 1,779 | $ | 400 | $ | 5,775 | ||||||||
Accumulated impairment losses (a) | — | (1,765 | ) | (1,664 | ) | — | (3,429 | ) | ||||||||||
1,157 | 674 | 115 | 400 | 2,346 | ||||||||||||||
Reclassifications and other (b) | 1 | (40 | ) | 1 | — | (38 | ) | |||||||||||
Additions/reductions | 2,007 | (c) | (3 | ) | (d) | 3 | (e) | — | 2,007 | |||||||||
Balance as of December 31, 2012 | ||||||||||||||||||
Goodwill | 3,165 | 2,396 | 1,783 | 400 | 7,744 | |||||||||||||
Accumulated impairment losses (a) | — | (1,765 | ) | (1,664 | ) | — | (3,429 | ) | ||||||||||
Total | $ | 3,165 | $ | 631 | $ | 119 | $ | 400 | $ | 4,315 |
(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) | Reflects the acquisition of Temple-Inland, net of amounts written off related to the divestiture of two Temple-Inland mills (Ontario, California and New Johnsonville, Tennessee) and one International Paper mill (Oxnard, (Hueneme), California). Also excludes the goodwill for Building Products which was reclassified to Businesses Held for Sale. |
(d) | Reflects an increase related to a purchase price adjustment of Andhra Pradesh 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 impact of the change in estimate of the contributed land in the Shandong IP & Sun Food Packaging Co., Ltd. joint venture in China entered into in 2011. |
2013 | 2012 | ||||||||||||
In millions at December 31 | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||
Customer relationships and lists | $ | 602 | $ | 139 | $ | 644 | $ | 112 | |||||
Non-compete agreements | 76 | 46 | 83 | 30 | |||||||||
Tradenames, patents and trademarks | 67 | (a) | 33 | 144 | 16 | ||||||||
Land and water rights | 76 | 5 | 87 | 6 | |||||||||
Fuel and power agreements | 7 | 2 | 17 | 12 | |||||||||
Software | 17 | 15 | 22 | 19 | |||||||||
Other | 75 | 32 | 83 | 19 | |||||||||
Total | $ | 920 | $ | 272 | $ | 1,080 | $ | 214 |
(a) | Includes $15 million recorded to write-off a tradename intangible asset of the Company's India Papers business. This amount is included in Impairment of goodwill and other intangibles in the accompanying consolidated statement of operations. |
In millions | 2013 | 2012 | 2011 | ||||||
Amortization expense related to intangible assets | $ | 87 | $ | 58 | $ | 32 |