Company Quick10K Filing
International Paper
Price41.66 EPS3
Shares449 P/E14
MCap18,701 P/FCF7
Net Debt9,260 EBIT2,317
TEV27,961 TEV/EBIT12
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-01
10-K 2019-12-31 Filed 2020-02-19
10-Q 2019-09-30 Filed 2019-11-01
10-Q 2019-06-30 Filed 2019-07-31
10-Q 2019-03-31 Filed 2019-05-03
10-K 2018-12-31 Filed 2019-02-20
10-Q 2018-09-30 Filed 2018-11-02
10-Q 2018-06-30 Filed 2018-08-03
10-Q 2018-03-31 Filed 2018-05-08
10-K 2017-12-31 Filed 2018-02-22
10-Q 2017-09-30 Filed 2017-11-03
10-Q 2017-06-30 Filed 2017-08-04
10-Q 2017-03-31 Filed 2017-05-05
10-K 2016-12-31 Filed 2017-02-22
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-05
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-02-25
10-Q 2015-09-30 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-02-26
10-Q 2014-09-30 Filed 2014-11-06
10-Q 2014-06-30 Filed 2014-08-06
10-Q 2014-03-31 Filed 2014-05-07
10-K 2013-12-31 Filed 2014-02-27
10-Q 2013-09-30 Filed 2013-11-06
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-08
10-K 2012-12-31 Filed 2013-02-26
10-Q 2012-06-30 Filed 2012-08-07
10-Q 2012-03-31 Filed 2012-05-07
10-K 2011-12-31 Filed 2012-02-27
10-Q 2011-09-30 Filed 2011-11-07
10-Q 2011-06-30 Filed 2011-08-09
10-Q 2011-03-31 Filed 2011-05-06
10-K 2010-12-31 Filed 2011-02-25
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-06-30 Filed 2010-08-06
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-02-25
8-K 2020-05-11 Shareholder Vote
8-K 2020-04-30 Earnings, Exhibits
8-K 2020-04-28 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2020-03-25 Enter Agreement, Off-BS Arrangement
8-K 2020-01-30 Earnings, Exhibits
8-K 2020-01-23 Other Events
8-K 2019-10-31 Earnings, Exhibits
8-K 2019-07-25 Earnings, Exhibits
8-K 2019-06-10 Other Events, Exhibits
8-K 2019-05-29 Regulation FD, Other Events, Exhibits
8-K 2019-05-13 Shareholder Vote
8-K 2019-04-25 Earnings, Exhibits
8-K 2019-02-11 Officers, Regulation FD, Exhibits
8-K 2019-01-31 Earnings, Exhibits
8-K 2018-12-31 Officers
8-K 2018-10-25 Earnings, Exhibits
8-K 2018-09-25 Enter Agreement
8-K 2018-07-26 Earnings, Exhibits
8-K 2018-06-19 Officers, Regulation FD, Exhibits
8-K 2018-05-07 Shareholder Vote
8-K 2018-04-26 Earnings, Exhibits
8-K 2018-03-20 Officers
8-K 2018-03-06 Regulation FD, Other Events, Exhibits
8-K 2018-02-01 Earnings, Exhibits
8-K 2017-12-31 Officers

IP 10Q Quarterly Report

EX-10.1 ip-20200331xexhibit101.htm
EX-31.1 ip-20200331xexhibit311.htm
EX-31.2 ip-20200333xexhibit312.htm
EX-32 ip-20200331xexhibit32c.htm

International Paper Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
35282114702012201420172020
Assets, Equity
10.08.06.03.91.9-0.12012201420172020
Rev, G Profit, Net Income
1.30.5-0.3-1.0-1.8-2.62012201420172020
Ops, Inv, Fin

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2020
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From              to             
 _________________________________________
Commission File Number 001-03157
INTERNATIONAL PAPER COMPANY
(Exact name of registrant as specified in its charter)
 
New York
13-0872805
(State or other jurisdiction of
(I.R.S. Employer
incorporation of organization)
Identification No.)
 
 
 
 
6400 Poplar Avenue
Memphis,
TN
38197
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (901419-7000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Shares
IP
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒   No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or and emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange
Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  
The number of shares outstanding of the registrant’s common stock, par value $1.00 per share, as of April 24, 2020 was 393,041,293.



INDEX
 
 
 
PAGE NO.
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Statement of Operations - Three Months Ended March 31, 2020 and 2019
 
 
 
 
Condensed Consolidated Statement of Comprehensive Income - Three Months Ended March 31, 2020 and 2019
 
 
 
 
Condensed Consolidated Balance Sheet - March 31, 2020 and December 31, 2019
 
 
 
 
Condensed Consolidated Statement of Cash Flows - Three Months Ended March 31, 2020 and 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



PART I. FINANCIAL INFORMATION
 
ITEM 1.
INTERNATIONAL PAPER COMPANY
Condensed Consolidated Statement of Operations
(Unaudited)
(In millions, except per share amounts) 
 
Three Months Ended
March 31,
 
2020
 
2019
Net Sales
$
5,352

 
$
5,643

Costs and Expenses
 
 
 
Cost of products sold
3,746

 
3,929

Selling and administrative expenses
418

 
413

Depreciation, amortization and cost of timber harvested
323

 
315

Distribution expenses
407

 
389

Taxes other than payroll and income taxes
44

 
43

Restructuring and other charges, net
8

 

Net (gains) losses on sales and impairments of businesses
344

 
(7
)
Net (gains) losses on sales of equity method investments
(33
)
 

Interest expense, net
117

 
133

Non-operating pension expense (income)
(6
)
 
10

Earnings (Loss) Before Income Taxes and Equity Earnings
(16
)
 
418

Income tax provision (benefit)
94

 
106

Equity earnings (loss), net of taxes
(31
)
 
114

Net Earnings (Loss)
(141
)
 
426

Less: Net earnings (loss) attributable to noncontrolling interests

 
2

Net Earnings (Loss) Attributable to International Paper Company
$
(141
)
 
$
424

Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
 
 
 
Net earnings (loss)
$
(0.36
)
 
$
1.06

Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
 
 
 
Net earnings (loss)
$
(0.36
)
 
$
1.05

Average Shares of Common Stock Outstanding – assuming dilution
392.6

 
403.2

The accompanying notes are an integral part of these condensed financial statements.

1


INTERNATIONAL PAPER COMPANY
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
(In millions)
 
 
Three Months Ended
March 31,
 
2020
 
2019
Net Earnings (Loss)
$
(141
)
 
$
426

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
Amortization of pension and post-retirement prior service costs and net loss:
 
 
 
U.S. plans
46

 
41

Change in cumulative foreign currency translation adjustment
(544
)
 
12

Net gains/losses on cash flow hedging derivatives:
 
 
 
Net gains (losses) arising during the period
(30
)
 

Reclassification adjustment for (gains) losses included in net earnings (loss)
11

 
1

Total Other Comprehensive Income (Loss), Net of Tax
(517
)
 
54

Comprehensive Income (Loss)
(658
)
 
480

Net (earnings) loss attributable to noncontrolling interests

 
(2
)
Other comprehensive (income) loss attributable to noncontrolling interests
1

 

Comprehensive Income (Loss) Attributable to International Paper Company
$
(657
)
 
$
478

The accompanying notes are an integral part of these condensed financial statements.

2


INTERNATIONAL PAPER COMPANY
Condensed Consolidated Balance Sheet
(In millions)
 
March 31,
2020
 
December 31,
2019
 
(unaudited)
 
 
Assets
 
 
 
Current Assets
 
 
 
Cash and temporary investments
$
1,239

 
$
511

Accounts and notes receivable, net
3,226

 
3,280

Contract assets
423

 
393

Inventories
2,002

 
2,208

Assets held for sale
112

 

Other current assets
213

 
247

Total Current Assets
7,215

 
6,639

Plants, Properties and Equipment, net
12,691

 
13,004

Forestlands
308

 
391

Investments
1,370

 
1,721

Financial Assets of Variable Interest Entities (Note 16)
7,093

 
7,088

Goodwill
3,304

 
3,347

Right of Use Assets
422

 
434

Deferred Charges and Other Assets
812

 
847

Total Assets
$
33,215

 
$
33,471

Liabilities and Equity
 
 
 
Current Liabilities
 
 
 
Notes payable and current maturities of long-term debt
$
664

 
$
168

Current nonrecourse financial liabilities of variable interest entities (Note 16)
4,220

 
4,220

Accounts payable
2,379

 
2,423

Accrued payroll and benefits
355

 
466

Liabilities held for sale
364

 

Other current liabilities
1,360

 
1,369

Total Current Liabilities
9,342

 
8,646

Long-Term Debt
9,561

 
9,597

Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities (Note 16)
2,087

 
2,085

Deferred Income Taxes
2,662

 
2,633

Pension Benefit Obligation
1,521

 
1,578

Postretirement and Postemployment Benefit Obligation
252

 
270

Long-Term Lease Obligations
293

 
304

Other Liabilities
636

 
640

Equity
 
 
 
Common stock, $1 par value, 2020 – 448.9 shares and 2019 – 448.9 shares
449

 
449

Paid-in capital
6,252

 
6,297

Retained earnings
8,062

 
8,408

Accumulated other comprehensive loss
(5,255
)
 
(4,739
)
 
9,508

 
10,415

Less: Common stock held in treasury, at cost, 2020 – 56.1 shares and 2019 – 56.8 shares
2,651

 
2,702

Total International Paper Shareholders’ Equity
6,857

 
7,713

Noncontrolling interests
4

 
5

Total Equity
6,861

 
7,718

Total Liabilities and Equity
$
33,215

 
$
33,471

The accompanying notes are an integral part of these condensed financial statements.

3


INTERNATIONAL PAPER COMPANY
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(In millions)
 
Three Months Ended
March 31,
 
2020
 
2019
Operating Activities
 
 
 
Net earnings (loss)
$
(141
)
 
$
426

Depreciation, amortization and cost of timber harvested
323

 
315

Deferred income tax provision (benefit), net
35

 
22

Restructuring and other charges, net
8

 

Net (gains) losses on sales and impairments of businesses
344

 
(7
)
Net (gains) losses on sales of equity method investments
(33
)
 

Equity method dividends received
5

 
6

Equity (earnings) losses, net
31

 
(114
)
Periodic pension expense, net
11

 
26

Other, net
166

 
46

Changes in current assets and liabilities
 
 
 
Accounts and notes receivable
(107
)
 
26

Contract assets
(33
)
 
(15
)
Inventories
60

 
(22
)
Accounts payable and accrued liabilities
(31
)
 
34

Interest payable
(12
)
 
(25
)
Other
23

 
15

Cash Provided By (Used For) Operations
649

 
733

Investment Activities
 
 
 
Invested in capital projects, net of insurance recoveries
(286
)
 
(293
)
Acquisitions, net of cash acquired

 
(17
)
Proceeds from sales of businesses, net of cash divested

 
17

Proceeds from sales of equity method investments
250

 

Proceeds from sale of fixed assets
1

 
3

Other

 
(4
)
Cash Provided By (Used For) Investment Activities
(35
)
 
(294
)
Financing Activities
 
 
 
Repurchases of common stock and payments of restricted stock tax withholding
(41
)
 
(229
)
Issuance of debt
560

 
208

Reduction of debt
(136
)
 
(142
)
Change in book overdrafts
(9
)
 
(25
)
Dividends paid
(202
)
 
(201
)
Other
(7
)
 

Cash Provided By (Used For) Financing Activities
165

 
(389
)
Cash Included in Assets Held for Sale
(9
)
 

Effect of Exchange Rate Changes on Cash
(42
)
 
2

Change in Cash and Temporary Investments
728

 
52

Cash and Temporary Investments
 
 
 
Beginning of period
511

 
589

End of period
$
1,239

 
$
641


The accompanying notes are an integral part of these condensed financial statements.

4


INTERNATIONAL PAPER COMPANY
Condensed Notes to Consolidated Financial Statements
(Unaudited)

The accompanying unaudited condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of International Paper Company’s (International Paper’s, the Company’s or our) financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first three months of the year may not necessarily be indicative of full year results. It is suggested that these condensed financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which have previously been filed with the Securities and Exchange Commission.

On March 11, 2020 the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide.  Governments of countries in which we operate have generally considered forest products and the supply chain on which we depend to be “essential industries” that should remain operational during this pandemic. Accordingly, our manufacturing and converting facilities remain open; however, we have seen a significant negative impact on demand for our printing papers products and demand for our pulp, containerboard and corrugated box products is expected to be unfavorably impacted if the negative economic conditions associated with COVID-19 persist or continue to deteriorate.

There continue to be significant uncertainties associated with the COVID-19 pandemic, including with respect to the severity of the disease, the duration of the outbreak, actions that may be taken by governmental authorities and private businesses to attempt to contain the COVID-19 outbreak or to mitigate its impact; the extent and duration of social distancing and the adoption of stay-at-home orders; and the ongoing impact of COVID-19 on economic activity and consumer confidence. As a result, we are unable to fully quantify the impact that the COVID-19 pandemic will have on our financial results during 2020, but developments related to COVID-19 are significantly adversely affecting our business, and could have a material adverse effect on our financial condition, results of operations and cash flows, particularly if negative global economic conditions persist for a significant period of time or continue to deteriorate.


Recently Adopted Accounting Pronouncements

Financial Instruments - Credit Losses

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This guidance replaces the current incurred loss impairment method with a method that reflects expected credit losses. The Company adopted this guidance using the modified retrospective approach on January 1, 2020. As a result of using this approach, the Company recognized a cumulative effect adjustment of $2 million to the opening balance of retained earnings representing the adjustment to our opening allowance for doubtful accounts required to state our trade receivables and contract assets net of their expected credit losses, net of deferred taxes.

Recently Issued Accounting Pronouncements Not Yet Adopted

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This guidance provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the provisions of this guidance.

Income Taxes

In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This guidance removes certain exceptions from recognizing deferred taxes for investments, performing intraperiod

5


allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance is effective for annual reporting periods beginning after December 15, 2020, and interim periods within those years. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. The Company is currently evaluating the provisions of this guidance.


Generally, the Company recognizes revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods. For customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time which, generally, is as the goods are produced.

Disaggregated Revenue

A geographic disaggregation of revenues across our company segmentation in the following tables provides information to assist in evaluating the nature, timing and uncertainty of revenue and cash flows and how they may be impacted by economic factors.
 
 
Three Months Ended March 31, 2020
In millions
 
Industrial Packaging
 
Global Cellulose Fibers
 
Printing Papers
 
Corporate and Inter-segment Sales
 
Total
Primary Geographical Markets (a)
 
 
 
 
 
 
 
 
 
 
United States
 
$
3,130

 
$
494

 
$
444

 
$
58

 
$
4,126

EMEA
 
440

 
56

 
302

 
(2
)
 
796

Pacific Rim and Asia
 
12

 
18

 
8

 
3

 
41

Americas, other than U.S.
 
237

 

 
154

 
(2
)
 
389

Total
 
$
3,819

 
$
568

 
$
908

 
$
57

 
$
5,352

 
 
 
 
 
 
 
 
 
 
 
Operating Segments
 
 
 
 
 
 
 
 
 
 
North American Industrial Packaging
 
$
3,355

 
$

 
$

 
$

 
$
3,355

EMEA Industrial Packaging
 
350

 

 

 

 
350

Brazilian Industrial Packaging
 
54

 

 

 

 
54

European Coated Paperboard
 
92

 

 

 

 
92

Global Cellulose Fibers
 

 
568

 

 

 
568

North American Printing Papers
 

 

 
446

 

 
446

Brazilian Papers
 

 

 
176

 

 
176

European Papers
 

 

 
287

 

 
287

Indian Papers
 

 

 

 

 

Intra-segment Eliminations
 
(32
)
 

 
(1
)
 

 
(33
)
Corporate & Inter-segment Sales
 


 

 

 
57

 
57

Total
 
$
3,819

 
$
568

 
$
908

 
$
57

 
$
5,352



(a) Net sales are attributed to countries based on the location of the seller.


6


 
 
Three Months Ended March 31, 2019
In millions
 
Industrial Packaging
 
Global Cellulose Fibers
 
Printing Papers
 
Corporate and Inter-segment Sales
 
Total
Primary Geographical Markets (a)
 
 
 
 
 
 
 
 
 
 
United States
 
$
3,146

 
$
570

 
$
488

 
$
60

 
$
4,264

EMEA
 
428

 
81

 
330

 
(2
)
 
837

Pacific Rim and Asia
 
18

 
38

 
59

 
4

 
119

Americas, other than U.S.
 
240

 

 
188

 
(5
)
 
423

Total
 
$
3,832

 
$
689

 
$
1,065

 
$
57

 
$
5,643

 
 
 
 
 
 
 
 
 
 
 
Operating Segments
 
 
 
 
 
 
 
 
 
 
North American Industrial Packaging
 
$
3,376

 
$

 
$

 
$

 
$
3,376

EMEA Industrial Packaging
 
339

 

 

 

 
339

Brazilian Industrial Packaging
 
57

 

 

 

 
57

European Coated Paperboard
 
91

 

 

 

 
91

Global Cellulose Fibers
 

 
689

 

 

 
689

North American Printing Papers
 

 

 
496

 

 
496

Brazilian Papers
 

 

 
215

 

 
215

European Papers
 

 

 
309

 

 
309

Indian Papers
 

 

 
53

 

 
53

Intra-segment Eliminations
 
(31
)
 

 
(8
)
 

 
(39
)
Corporate & Inter-segment Sales
 

 

 

 
57

 
57

Total
 
$
3,832

 
$
689

 
$
1,065

 
$
57

 
$
5,643


(a) Net sales are attributed to countries based on the location of the seller.

Revenue Contract Balances

A contract asset is created when the Company recognizes revenue on its customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes to the customer.

A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months. Contract liabilities of $44 million and $56 million are included in Other current liabilities in the accompanying condensed consolidated balance sheet as of March 31, 2020 and December 31, 2019, respectively.

The difference between the opening and closing balances of the Company's contract assets and contract liabilities primarily results from the difference between the price and quantity at comparable points in time for goods for which we have an unconditional right to payment or receive pre-payment from the customer, respectively.

7



A summary of the changes in equity for the three months ended March 31, 2020 and 2019 is provided below:
 
Three Months Ended March 31, 2020
In millions, except per share amounts
Common Stock Issued
 
Paid-in Capital
 
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
 
Common Stock Held In Treasury, At Cost
 
Total
International
Paper
Shareholders’
Equity
 
Noncontrolling
Interests
 
Total
Equity
 
Balance, January 1
$
449

 
$
6,297

 
$
8,408

$
(4,739
)
 
$
2,702

 
$
7,713

 
$
5

 
$
7,718

 
Adoption of ASU 2016-13 measurement of credit losses on financial instruments

 

 
(2
)

 

 
(2
)
 

 
(2
)
 
Issuance of stock for various plans, net

 
(51
)
 


 
(92
)
 
41

 

 
41

 
Repurchase of stock

 

 


 
41

 
(41
)
 

 
(41
)
 
Common stock dividends
($0.5125 per share)

 

 
(203
)

 

 
(203
)
 

 
(203
)
 
Transactions of equity method investees

 
6

 


 

 
6

 

 
6

 
Comprehensive income (loss)

 

 
(141
)
(516
)
 

 
(657
)
 
(1
)
 
(658
)
 
Ending Balance, March 31
$
449

 
$
6,252

 
$
8,062

$
(5,255
)
 
$
2,651

 
$
6,857

 
$
4

 
$
6,861

 


 
Three Months Ended March 31, 2019
In millions, except per share amounts
Common Stock Issued
 
Paid-in Capital
 
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
 
Common Stock Held In Treasury, At Cost
 
Total
International
Paper
Shareholders’
Equity
 
Noncontrolling
Interests
 
Total
Equity
 
Balance, January 1
$
449

 
$
6,280

 
$
7,465

$
(4,500
)
 
$
2,332

 
$
7,362

 
$
21

 
$
7,383

 
Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform

 

 
529

(529
)
 

 

 

 

 
Issuance of stock for various plans, net

 
(118
)
 


 
(163
)
 
45

 

 
45

 
Repurchase of stock

 

 


 
229

 
(229
)
 

 
(229
)
 
Common stock dividends ($0.5000 per share)

 

 
(207
)

 

 
(207
)
 

 
(207
)
 
Transactions of equity method investees

 
(3
)
 


 

 
(3
)
 

 
(3
)
 
Comprehensive income (loss)

 

 
424

54

 

 
478

 
2

 
480

 
Ending Balance, March 31
$
449

 
$
6,159

 
$
8,211

$
(4,975
)
 
$
2,398

 
$
7,446

 
$
23

 
$
7,469

 

    

















8



The following table presents changes in accumulated other comprehensive income (AOCI) for the three months ended March 31, 2020 and 2019:
 
 
Three Months Ended
March 31,
In millions
 
2020
 
2019
Defined Benefit Pension and Postretirement Adjustments
 
 
 
 
Balance at beginning of period
 
$
(2,277
)
 
$
(1,916
)
Reclassification of stranded tax effects
 

 
(527
)
Amounts reclassified from accumulated other comprehensive income
 
46

 
41

Balance at end of period
 
(2,231
)
 
(2,402
)
Change in Cumulative Foreign Currency Translation Adjustments
 
 
 
 
Balance at beginning of period
 
(2,465
)
 
(2,581
)
Other comprehensive income (loss) before reclassifications
 
(544
)
 
8

Amounts reclassified from accumulated other comprehensive income
 

 
4

Other comprehensive income (loss) attributable to noncontrolling interest
 
1

 

Balance at end of period
 
(3,008
)
 
(2,569
)
Net Gains and Losses on Cash Flow Hedging Derivatives
 
 
 
 
Balance at beginning of period
 
3

 
(3
)
Other comprehensive income (loss) before reclassifications
 
(30
)
 

Reclassification of stranded tax effects
 

 
(2
)
Amounts reclassified from accumulated other comprehensive income
 
11

 
1

Balance at end of period
 
(16
)
 
(4
)
Total Accumulated Other Comprehensive Income (Loss) at End of Period
 
$
(5,255
)
 
$
(4,975
)



9


The following table presents details of the reclassifications out of AOCI for the three months ended March 31, 2020 and 2019:
In millions:
 
Amounts Reclassified from Accumulated Other Comprehensive Income
Location of Amount Reclassified from AOCI
 
Three Months Ended
March 31,
 
 
 
2020
 
2019
 
 
Defined benefit pension and postretirement items: