In millions, except per share amounts and stock prices | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | |||||||||||||||
2013 | ||||||||||||||||||||
Net sales | $ | 7,090 | $ | 7,335 | $ | 7,406 | $ | 7,249 | $ | 29,080 | ||||||||||
Gross margin (a) | 1,870 | 1,921 | 2,093 | 1,973 | 7,857 | |||||||||||||||
Earnings (loss) from continuing operations before income taxes and equity earnings | 230 | (b) | 363 | (d) | 411 | (e) | (155 | ) | (g) | 849 | (b,d,e,g) | |||||||||
Gain (loss) from discontinued operations | 26 | 24 | (10 | ) | 5 | 45 | ||||||||||||||
Net earnings (loss) attributable to International Paper Company | 318 | (b,c) | 259 | (d) | 382 | (e,f) | 436 | (g,h,i) | 1,395 | (b-i) | ||||||||||
Basic earnings (loss) per share attributable to International Paper Company common shareholders: | ||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 0.66 | (b) | $ | 0.53 | (d) | $ | 0.88 | (e) | $ | 0.98 | (g) | $ | 3.05 | (b,d,e,g) | |||||
Gain (loss) from discontinued operations | 0.06 | 0.05 | (0.02 | ) | 0.01 | 0.10 | ||||||||||||||
Net earnings (loss) | 0.72 | (b,c) | 0.58 | (d) | 0.86 | (e,f) | 0.99 | (g,h,i) | 3.15 | (b-i) | ||||||||||
Diluted earnings (loss) per share attributable to International Paper Company common shareholders: | ||||||||||||||||||||
Earnings (loss) from continuing operations | 0.65 | (b) | 0.52 | (d) | 0.87 | (e) | 0.97 | (g) | 3.01 | (b,d,e,g) | ||||||||||
Gain (loss) from discontinued operations | 0.06 | 0.05 | (0.02 | ) | 0.01 | 0.10 | ||||||||||||||
Net earnings (loss) | 0.71 | (b,c) | 0.57 | (d) | 0.85 | (e,f) | 0.98 | (g,h, i) | 3.11 | (b-i) | ||||||||||
Dividends per share of common stock | 0.3000 | 0.3000 | 0.3000 | 0.3500 | 1.2500 | |||||||||||||||
Common stock prices | ||||||||||||||||||||
High | $ | 47.25 | $ | 49.10 | $ | 50.33 | $ | 49.52 | $ | 50.33 | ||||||||||
Low | 39.47 | 42.36 | 43.95 | 42.92 | 39.47 | |||||||||||||||
2012 | ||||||||||||||||||||
Net sales | $ | 6,655 | $ | 7,077 | $ | 7,026 | $ | 7,075 | $ | 27,833 | ||||||||||
Gross margin (a) | 1,671 | 1,807 | 1,886 | 1,882 | 7,246 | |||||||||||||||
Earnings (loss) from continuing operations before income taxes and equity earnings | 213 | (j) | 204 | (k) | 320 | (l) | 287 | (m) | 1,024 | (j-m) | ||||||||||
Gain from discontinued operations | 5 | 16 | 14 | 10 | 45 | |||||||||||||||
Net earnings (loss) attributable to International Paper Company | 188 | (j) | 134 | (k) | 237 | (l) | 235 | (m,n) | 794 | (j-n) | ||||||||||
Basic earnings (loss) per share attributable to International Paper Company common shareholders: | ||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 0.42 | (j) | $ | 0.27 | (k) | $ | 0.51 | (l) | $ | 0.52 | (m) | $ | 1.72 | (j-m) | |||||
Gain from discontinued operations | 0.01 | 0.04 | 0.03 | 0.02 | 0.10 | |||||||||||||||
Net earnings (loss) | 0.43 | (j) | 0.31 | (k) | 0.54 | (l) | 0.54 | (m,n) | 1.82 | (j-n) | ||||||||||
Diluted earnings (loss) per share attributable to International Paper Company common shareholders: | ||||||||||||||||||||
Earnings (loss) from continuing operations | 0.42 | (j) | 0.27 | (k) | 0.51 | (l) | 0.51 | (m) | 1.70 | (j-m) | ||||||||||
Gain from discontinued operations | 0.01 | 0.04 | 0.03 | 0.02 | 0.10 | |||||||||||||||
Net earnings (loss) | 0.43 | (j) | 0.31 | (k) | 0.54 | (l) | 0.53 | (m,n) | 1.80 | (j-n) | ||||||||||
Dividends per share of common stock | 0.2625 | 0.2625 | 0.2625 | 0.3000 | 1.0875 | |||||||||||||||
Common stock prices | ||||||||||||||||||||
High | $ | 36.50 | $ | 35.59 | $ | 37.25 | $ | 39.88 | $ | 39.88 | ||||||||||
Low | 29.45 | 27.29 | 28.29 | 32.95 | 27.29 |
(a) | Gross margin represents net sales less cost of products sold, excluding depreciation, amortization and cost of timber harvested. |
(b) | Includes a pre-tax charge of $12 million ($8 million after taxes) for integration costs associated with the acquisition of Temple-Inland, a pre-tax charge of $44 million ($27 million after taxes) for costs associated with the permanent shutdown of a paper machine at our Augusta mill, a pre-tax charge of $6 million ($4 million after taxes) for debt extinguishment costs, a pre-tax charge of $7 million ($4 million after taxes) for costs associated with the restructuring of our xpedx operations, interest income of $6 million ($4 million after taxes) related to the closing of a U.S. federal income tax audit, and pre-tax charges of $2 million ($1 million after taxes) for other items. |
(c) | Includes a tax benefit of $93 million associated with the closing of a U.S. federal income tax audit and a net tax expense of $2 million related to internal restructurings. In addition, the first quarter tax rate includes a benefit of approximately $35 million related to the enactment into law of The American Taxpayer Relief Act of 2012 in January 2013. |
(d) | Includes a pre-tax charge of $6 million ($4 million after taxes) for an environmental reserve related to the Company's property in Cass Lake, Minnesota, a pre-tax charge of $14 million ($8 million after taxes) for integration costs associated with the acquisition of Temple-Inland, a pre-tax charge of $9 million ($5 million after taxes) to adjust the value of two Company airplanes to market value, a pre-tax gain of $30 million ($19 million after taxes) for insurance reimbursements related to the 2012 Guaranty Bank legal settlement, a pre-tax charge of $3 million ($2 million after taxes) for debt extinguishment costs, a pre-tax charge of $17 million ($10 million after taxes) for costs associated with the restructuring of our xpedx operations, a pre-tax charge of $3 million ($2 million after taxes) for costs associated with the spin-off of the xpedx operations, a gain of $13 million (before and after taxes) related to a bargain purchase adjustment on the first-quarter 2013 acquisition of a majority share of our operations in Turkey, and charges of $3 million (before and after taxes) for other items. |
(e) | Includes a pre-tax charge of $24 million ($15 million after taxes) for integration costs associated with the acquisition of Temple-Inland, a pre-tax charge of $51 million ($31 million after taxes) for costs associated with the announced shutdown of our Courtland mill, a pre-tax charge of $15 million ($9 million after taxes) for debt extinguishment costs, a pre-tax charge of $6 million ($4 million after taxes for costs associated with the restructuring of our xpedx operations, a pre-tax charge of $11 million ($7 million after taxes) for costs associated with the spin-off of the xpedx operations, a pre-tax gain of $9 million ($6 million after taxes) associated with the sale of the Bellevue box plant facility which was closed in 2010, a pre-tax charge of $1 million ($0 million after taxes) for costs associated with the divestiture of three containerboard mills in 2012 and charges of $2 million (before and after taxes) for other items. |
(f) | Includes a tax benefit of $31 million for an income tax reserve release. In addition, the third quarter tax rate includes a $30 million benefit related to the adjustment of the tax basis in certain of the Company's fixed assets. |
(g) | Includes a pre-tax charge of $12 million ($7 million after taxes) for integration costs associated with the acquisition of Temple-Inland, a pre-tax charge of $67 million ($41 million after taxes) for costs associated with the announced shutdown of our Courtland mill, a pre-tax charge of $8 million ($5 million after taxes) for costs associated with the spin-off of the xpedx operations, a pre-tax charge of $4 million ($3 million after taxes) for costs associated with the restructuring of the Asia Box operations, a pre-tax charge of $400 million ($366 million after taxes) for the impairment of goodwill in the Company's xpedx business, a pre-tax charge of $127 million ($122 million after taxes) for the impairment of goodwill and a trade name intangible asset of the Company's India Papers business, a pre- tax charge of $2 million ($1 million after taxes) for an adjustment associated with the Company's divestiture of the Shorewood operations, and a net pre-tax loss of $0 million ($1 million after taxes) for other items. |
(h) | Includes a tax benefit of $651 million associated with the closing of a U.S. federal tax audit and a net tax benefit of $3 million for other items. |
(i) | Includes pre-tax noncontrolling interest income of $4 million ($3 million after taxes) associated with the write-off of a trade name intangible asset in our India Papers business. |
(l) | Includes a pre-tax charge of $9 million ($5 million after taxes) for an inventory write-off, severance and other charges related to the restructuring of the Company's xpedx operations, a pre-tax charge of $58 million ($34 million after taxes) for integration costs associated with the acquisition of Temple-Inland, a pre-tax charge of $13 million ($8 million after taxes) for debt extinguishment costs, a pre-tax charge of $16 million ($11 million after taxes) for costs associated with the restructuring of the Company's Packaging business in EMEA, a pre-tax charge of $19 million ($49 million after taxes) for costs associated with the containerboard mill divestitures and a pre-tax gain of $5 million ($0 million after taxes) for other items. |