filings.toolsInternational Paper (IP) 10-K risk factor changes: FY2020 vs FY2019
The 2020-12-31 10-K against the 2019-12-31 one, compared heading by heading and sentence by sentence.
All filing items2,018 rewritten1,133 added810 removed981 unchanged
Summary
counted, not written
- Item 1A headings could not be compared: the parser did not find an Item 1A in both filings.
- Sentence by sentence, 1,133 added, 810 removed, 2,018 rewritten and 981 unchanged across 2 items that differ.
Sentences by item
2 items, with every count and a link to each item that changed
| Item | Added | Removed | Rewritten | Unchanged |
|---|---|---|---|---|
| Cover and table of contents | 195 | 85 | 248 | 200 |
| Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | 938 | 725 | 1,770 | 781 |
Underlined words on a shaded ground are new in FY2020; struck-through words were in FY2019. Sentences that are wholly new or wholly gone are labelled rather than marked.
Cover and table of contents
248 rewritten, 195 added, 85 removed, 200 unchanged
[removed: FORM 10-K][added: FORM 10-K]
| ☒ | | [added: | | | |] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | [added: | |]
| | | [added: | | | |] For the fiscal year ended | [added: | |]
| ☐ | | [added: | | | |] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | [added: | |]
| | | [added: | | | |] For the transition period from [removed: to] [added: - to -] | [added: | |]
| New York | | [added: | | | |] 13-0872805 | [added: | |]
| (State or other jurisdiction of incorporation or organization) | | [added: | | | |] (I.R.S. Employer Identification No.) | [added: | |]
| 6400 Poplar Avenue | | | | [added: | | | | | | | |]
| Memphis, | | [added: | | | |] Tennessee | | [added: | | | |]
| (Address of principal executive offices) | | | | [added: | | | | | | | |]
| 38197 | | | | [added: | | | | | | | |]
| (Zip Code) | | | | [added: | | | | | | | |]
| Registrant's telephone number, including area code: | | [added: | | | |] 901 | [added: | |] 419-9000 | [added: | |]
| Title of each class | [added: | |] Trading symbol(s) | [added: | |] Name of each exchange on which registered | [added: | |]
| Common Shares | [added: | |] IP | [added: | |] New York Stock Exchange | [added: | |]
| Large accelerated filer | | [added: | | | |] Accelerated filer | | [added: | | | |] Non-accelerated filer | | [added: | | | |] Smaller reporting company | | [added: | | | |] Emerging growth company | [added: | |]
If [added: 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.
The aggregate market value of the Company’s outstanding common stock held by non-affiliates of the registrant, computed by reference to the closing price as reported on the New York Stock Exchange, as of the last business day of the registrant’s most recently completed second fiscal quarter (June 30, [removed: 2019)] [added: 2020)] was approximately [removed: $17,018,195,033.][added: $13,786,056,781.]
The number of shares outstanding of the Company’s common stock as of February [removed: 14, 2020] [added: 12, 2021] was [removed: 392,124,684.][added: 393,117,117.]
Portions of the registrant’s proxy statement filed within 120 days of the close of the registrant’s fiscal year in connection with registrant’s [removed: 2020] [added: 2021] annual meeting of shareholders are incorporated by reference into Part III of this Form 10-K.
FOR THE YEAR [removed: ENDED DECEMBER] [added: ENDED DECEMBER] 31, [removed: 2019][added: 2020]
| ITEM 1. | [removed: [BUSINESS.](#s363FDD7AB1034CF3D2F3D3B6ED5A87B3)] | [removed: [1](#s363FDD7AB1034CF3D2F3D3B6ED5A87B3)] | [added: [BUSINESS.](#i79d97f5822654782b500204d35db2303_16) | | | [1](#i79d97f5822654782b500204d35db2303_16) | | |]
| | [added: | |] [Competition and [removed: Costs](#s590744A4209E5645C6A1D3B6EDAEE3D3)] [added: Costs](#i79d97f5822654782b500204d35db2303_22)] | [removed: [1](#s590744A4209E5645C6A1D3B6EDAEE3D3)] | [added: | [3](#i79d97f5822654782b500204d35db2303_22) | | |]
| | [added: | |] [Marketing and [removed: Distribution](#s8DBF66C096364C29D793D3B6EDD03781)] [added: Distribution](#i79d97f5822654782b500204d35db2303_25)] | [removed: [1](#s8DBF66C096364C29D793D3B6EDD03781)] | [added: | [4](#i79d97f5822654782b500204d35db2303_25) | | |]
| | [added: | |] [Description of Principal [removed: Products](#s2AAE74BDFE975FEC0BFFD3B6EE02E724)] [added: Products](#i79d97f5822654782b500204d35db2303_28)] | [removed: [1](#s2AAE74BDFE975FEC0BFFD3B6EE02E724)] | [added: | [4](#i79d97f5822654782b500204d35db2303_28) | | |]
| | [added: | |] [Sales Volumes by [removed: Product](#s7AA8A2E8352AB884BA29D3B6E784AB1E)] [added: Product](#i79d97f5822654782b500204d35db2303_31)] | [removed: [2](#sFF3435C99116A4B1AB44D3B6EE5D4D5C)] | [added: | [4](#i79d97f5822654782b500204d35db2303_31) | | |]
| | [added: | |] [Environmental [removed: Protection](#sEE8C88D0E33136284F9AD3B6EE76887E)] [added: Protection](#i79d97f5822654782b500204d35db2303_37)] | [removed: [2](#sEE8C88D0E33136284F9AD3B6EE76887E)] | [added: | [4](#i79d97f5822654782b500204d35db2303_37) | | |]
| | [added: | |] [Climate [removed: Change](#s44537F11BFF9D9EB8C45D3B6EEAA28F4)] [added: Change](#i79d97f5822654782b500204d35db2303_40)] | [removed: [3](#s44537F11BFF9D9EB8C45D3B6EEAA28F4)] | [added: | [5](#i79d97f5822654782b500204d35db2303_40) | | |]
[removed: | | [Employees](#sCAC269C48E0E35C3185AD3B6EED1896F) | [4](#sCAC269C48E0E35C3185AD3B6EED1896F) |][added: EMPLOYEES]
| | [added: | |] [Information About Our Executive [removed: Officers](#s09A4089E140F437DFC77D3B6EEFCB4BB)] [added: Officers](#i79d97f5822654782b500204d35db2303_46)] | [removed: [4](#s09A4089E140F437DFC77D3B6EEFCB4BB)] | [added: | [6](#i79d97f5822654782b500204d35db2303_46) | | |]
| | [added: | |] [Raw [removed: Materials](#s270778A1C4EED85FED06D3B6EF1DA7A4)] [added: Materials](#i79d97f5822654782b500204d35db2303_49)] | [removed: [6](#s270778A1C4EED85FED06D3B6EF1DA7A4)] | [added: | [7](#i79d97f5822654782b500204d35db2303_49) | | |]
| | [added: | |] [Forward-looking [removed: Statements](#s94710ECDA4D3EA94986BD3B6EF4E185E)] [added: Statements](#i79d97f5822654782b500204d35db2303_52)] | [removed: [6](#s94710ECDA4D3EA94986BD3B6EF4E185E)] | [added: | [7](#i79d97f5822654782b500204d35db2303_52) | | |]
| ITEM 1A. | [removed: [RISK FACTORS.](#s526A68FF6CE583033544D3B6EF70002E)] | [removed: [6](#s526A68FF6CE583033544D3B6EF70002E)] | [added: [RISK FACTORS.](#i79d97f5822654782b500204d35db2303_55) | | | [8](#i79d97f5822654782b500204d35db2303_55) | | |]
| ITEM 1B. | [removed: [UNRESOLVED] [added: | | [UNRESOLVED] STAFF [removed: COMMENTS.](#sEA0E5B5CF3B7292DD7E0D3B6EFA278D8)] [added: COMMENTS.](#i79d97f5822654782b500204d35db2303_58)] | [removed: [12](#sEA0E5B5CF3B7292DD7E0D3B6EFA278D8)] | [added: | [16](#i79d97f5822654782b500204d35db2303_58) | | |]
| ITEM 2. | [removed: [PROPERTIES.](#sA6466EAC429084B0C6B0D3B6EFC3FEBA)] | [removed: [12](#sA6466EAC429084B0C6B0D3B6EFC3FEBA)] | [added: [PROPERTIES.](#i79d97f5822654782b500204d35db2303_61) | | | [16](#i79d97f5822654782b500204d35db2303_61) | | |]
| | [added: | |] [Mills and [removed: Plants](#s604A206100293EC246DFD3B6F01610B7)] [added: Plants](#i79d97f5822654782b500204d35db2303_67)] | [removed: [12](#s604A206100293EC246DFD3B6F01610B7)] | [added: | [16](#i79d97f5822654782b500204d35db2303_67) | | |]
| | [added: | |] [Capital Investments and [removed: Dispositions](#s3E4D37836CF72664D596D3B6F06E3B8D)] [added: Dispositions](#i79d97f5822654782b500204d35db2303_70)] | [removed: [12](#s3E4D37836CF72664D596D3B6F06E3B8D)] | [added: | [17](#i79d97f5822654782b500204d35db2303_70) | | |]
| ITEM 3. | [removed: [LEGAL PROCEEDINGS.](#s1C1C3ECEB40E46ABC560D3B6F0716499)] | [removed: [12](#s1C1C3ECEB40E46ABC560D3B6F0716499)] | [added: [LEGAL PROCEEDINGS.](#i79d97f5822654782b500204d35db2303_73) | | | [17](#i79d97f5822654782b500204d35db2303_73) | | |]
| ITEM 4. | [removed: [MINE] [added: | | [MINE] SAFETY [removed: DISCLOSURES.](#s0A8C550961FB38D5CF5DD3B6F09C16A7)] [added: DISCLOSURES.](#i79d97f5822654782b500204d35db2303_76)] | [removed: [12](#s0A8C550961FB38D5CF5DD3B6F09C16A7)] | [added: | [17](#i79d97f5822654782b500204d35db2303_76) | | |]
| PART II. | | [removed: [13](#s9348C76EDFEFB24EAB8FD3B6F0BC6ACA)] | [added: | | | [18](#i79d97f5822654782b500204d35db2303_79) | | |]
[Tab](#i79d97f5822654782b500204d35db2303_10)[le of Contents](#i79d97f5822654782b500204d35db2303_10)
| | | | | | | 12/31/2020 | | |
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| ☒ | | | | | | ☐ | | | | | | ☐ | | | | | | ☐ | | | | | | ☐ | | |
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
[Tab](#i79d97f5822654782b500204d35db2303_10)[le of Contents](#i79d97f5822654782b500204d35db2303_10)
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| PART I. | | | | | | [1](#i79d97f5822654782b500204d35db2303_13) | | |
| | | | | | | | | |
| | | | [General](#i79d97f5822654782b500204d35db2303_19) | | | [1](#i79d97f5822654782b500204d35db2303_16) | | |
| | | | [Human Capital](#i79d97f5822654782b500204d35db2303_2775) | | | [1](#i79d97f5822654782b500204d35db2303_2775) | | |
| | | | [Forestlands](#i79d97f5822654782b500204d35db2303_64) | | | [16](#i79d97f5822654782b500204d35db2303_64) | | |
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| ITEM 6. | | | ELIMINATED | | | | | |
| | | | [Market Risk](#i79d97f5822654782b500204d35db2303_121) | | | [38](#i79d97f5822654782b500204d35db2303_121) | | |
FOR THE YEAR ENDED DECEMBER 31, 2020
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| | | | [SIGNATURES](#i79d97f5822654782b500204d35db2303_298) | | | [97](#i79d97f5822654782b500204d35db2303_298) | | |
| APPENDIX I | | | [2020 LISTING OF FACILITIES](#i79d97f5822654782b500204d35db2303_301) | | | [A-1](#i79d97f5822654782b500204d35db2303_301) | | |
| APPENDIX II | | | [2020 CAPACITY INFORMATION](#i79d97f5822654782b500204d35db2303_304) | | | [A-4](#i79d97f5822654782b500204d35db2303_304) | | |
[Tab](#i79d97f5822654782b500204d35db2303_10)[le of Contents](#i79d97f5822654782b500204d35db2303_10)
[PART I.](#i79d97f5822654782b500204d35db2303_13)
BUSINESS](#i79d97f5822654782b500204d35db2303_16)
[GENERAL](#i79d97f5822654782b500204d35db2303_19)
On December 3, 2020, we announced a plan to pursue a spin-off of our Printing Papers segment into a standalone publicly-traded company ("SpinCo").
See discussion on page 27 of [Item 7.
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| | | 12/31/2019 |
| | | or |
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| ☒ | | ☐ | | ☐ | | ☐ | | ☐ |
| PART I. | | [1](#s6304B6016B375920A94AD3B6ED299969) |
| | [General](#s7198D5A3821E3D83FD16D3B6ED7BA872) | [1](#s7198D5A3821E3D83FD16D3B6ED7BA872) |
| | [Research and Development](#sFF3435C99116A4B1AB44D3B6EE5D4D5C) | [2](#sFF3435C99116A4B1AB44D3B6EE5D4D5C) |
| | [Forestlands](#sEB0F42E5877F077C6E22D3B6EFF61C0C) | [12](#sEB0F42E5877F077C6E22D3B6EFF61C0C) |
| ITEM 6. | [SELECTED FINANCIAL DATA.](#s43582ABA2B33ED0F6D02D3B6D6C2EA32) | [15](#s43582ABA2B33ED0F6D02D3B6D6C2EA32) |
| | [Market Risk](#s151E79B13E1427A02798D3B6F38A8AD6) | [36](#sE6BC607A34BE745C72BCD3B6F3B46572) |
| | [SIGNATURES](#s2158526B207E6C5163BFD3B701B71919) | [94](#s2158526B207E6C5163BFD3B701B71919) |
| APPENDIX I | [2019 LISTING OF FACILITIES](#s001DFF8ECC5664A5C3E2D3B701DD0011) | [A-1](#s001DFF8ECC5664A5C3E2D3B701DD0011) |
| APPENDIX II | [2019 CAPACITY INFORMATION](#sA11FED767D4C26E42EE8D3B6DA80B6CF) | [A-4](#sA11FED767D4C26E42EE8D3B6DA80B6CF) |
[PART I.](#s6304B6016B375920A94AD3B6ED299969)
BUSINESS](#s363FDD7AB1034CF3D2F3D3B6ED5A87B3)
[GENERAL](#s7198D5A3821E3D83FD16D3B6ED7BA872)
Capital spending in 2019 was approximately $1.3 billion and is expected to be approximately $1.0 billion in 2020.
[MARKETING AND DISTRIBUTION](#s8DBF66C096364C29D793D3B6EDD03781)
[DESCRIPTION OF PRINCIPAL PRODUCTS](#s2AAE74BDFE975FEC0BFFD3B6EE02E724)
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| *(c)* | *Excludes newsprint sales volumes at the Madrid, Spain mill through Q3 2017.* |
[RESEARCH AND DEVELOPMENT](#sFF3435C99116A4B1AB44D3B6EE5D4D5C)
The Company operates its primary research and development center in Loveland, Ohio, as well as several other product development facilities, including a technology center in Federal Way, Washington.
We direct research and development activities to short-term, long-term and technical assistance needs of customers and operating divisions, and to process, equipment and product innovations.
Activities include product development within the operating divisions; studies on innovation and improvement of pulping, bleaching, chemical recovery, paper making, converting and coating processes; packaging design and materials development; mechanical packaging systems, environmentally sensitive printing inks and reduction of environmental discharges; re-use of raw materials in manufacturing processes; recycling of consumer and packaging paper products; energy conservation; applications of computer controls to manufacturing operations; innovations and improvement of products; and development of various new products.
Our development efforts specifically
address product safety, as well as the minimization of solid waste.
The cost to the Company of its research and development operations was $29 million in 2019, $30 million in 2018 and $28 million in 2017.
We own numerous patents, copyrights, trademarks, trade secrets and other intellectual property rights relating to our products and to the processes for their production.
We also license intellectual property rights to and from others where advantageous or necessary.
Many of the manufacturing processes are among our trade secrets.
Some of our products are covered by U.S. and non-U.S. patents and are sold under well known trademarks.
We derive a competitive advantage by protecting our trade secrets, patents, trademarks and other intellectual property rights, and by using them as required to support our businesses.
Our continuing objectives include:
An excerpt. Shown here: 40 of 248 rewritten, 40 of 195 added and 40 of 85 removed. The counts are complete. For every sentence, read Cover and table of contents in the FY2020 filing and the FY2019 filing.
Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
1,770 rewritten, 938 added, 725 removed, 781 unchanged
As of February [removed: 14, 2020,] [added: 12, 2021,] there were approximately [removed: 9,663] [added: 9,379] record holders of common stock of the Company.
Our ability to pay dividends is, and in the [added: future may continue to be, limited by the terms of our debt documents.]
| Period | [added: | |] Total Number of Shares Purchased (a) | | [added: |] Average Price Paid per Share | | | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Programs | | [added: |] Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in billions) | | |
| [removed: Total | 5,562 |] [added: Total] | | | | | | [added: $] | [added: 57] | |
The following graph compares a $100 investment in Company stock on December 31, [removed: 2014] [added: 2015] with a $100 investment in our [removed: Return on Invested Capital (ROIC)] Peer Group and the S&P [removed: 500] also made at market close on December 31, [removed: 2014.][added: 2015.]
The graph portrays total return, [removed: 2014–2019,] [added: 2015-2020,] assuming reinvestment of dividends.
[removed: ][added: ]
[removed: The] [added: 1)The] companies included in the [removed: ROIC] Peer Group are Domtar Inc., [removed: Fibria Celulose S.A.,] Graphic Packaging Holding Company, Klabin S.A., Metsa Board Corporation, Mondi Group, Packaging Corporation of America, Smurfit Kappa Group, Stora Enso Group, [removed: and] UPM-Kymmene [removed: Corp. WestRock was added to the Peer group beginning in 2016 after the merger of MeadWestvaco] [added: Corp.,] and [removed: Rock-Tenn.][added: WestRock Company.]
[removed: | *Note 2.* | *Returns] [added: 2)Returns] are calculated in [removed: $USD.* |][added: $USD]
[removed: [ITEM 6.][added: [ITEM 7.]
| [removed: *Dollar amounts in] [added: *In] millions, except per share amounts and stock prices* | [removed: 2019] | | [added: 1st Quarter] | | [removed: 2018] | | | | [removed: 2017] [added: 2nd Quarter] | | | | [removed: 2016] | | [added: 3rd Quarter] | | [removed: 2015] | | | | [added: 4th Quarter | | | | | | Year | | | | | |]
[removed: | RESULTS] [added: [RESULTS] OF [removed: OPERATIONS | | | | | | | | | | | | | | | | | | | | |][added: OPERATIONS](#i79d97f5822654782b500204d35db2303_94)]
| [removed: Net sales | $ | 22,376 | | | $ | 23,306 |] [added: NET SALES] | | [removed: $] | [removed: 21,743] [added: $] | [added: 20,580] | | $ | [removed: 19,495 |] [added: 22,376] | | $ | [removed: 20,675 |] [added: 23,306] | |
| [removed: Earnings] [added: Earnings] (loss) from continuing operations before income taxes and equity [removed: earnings | 1,604 | | | (b) | 1,781 | | | (e) | 848] [added: earnings] | | | [removed: (h)] [added: $] | [removed: 795] [added: 650] | | [added: $] | [removed: (k)] [added: 1,604] | [removed: 1,132] | [added: $] | [added: 1,781] | [removed: (n)] |
| Equity earnings (loss), net of taxes | [removed: 250] | | [removed: | | 336 | | | | 177 | | |] [added: 77] | [removed: 198] | | [added: 250] | | [removed: 117] | [added: 336] | | |
| Discontinued operations, net of taxes | [removed: —] | | [removed: | | 345 | | | (f) | 34 | | | (i)] [added: —] | [removed: 102] | | [added: —] | [removed: (l)] | [removed: 85] | [added: 345] | | [removed: (o)] |
| [removed: Net earnings (loss) | 1,220 | | | (b-c) | 2,017 | | | (e-g) | 2,144] [added: NET EARNINGS (LOSS)] | | | [removed: (h-j)] [added: 482] | [removed: 902] | | [added: 1,220] | [removed: (k-m)] | [removed: 917] | [added: 2,017] | | [removed: (n-p)] |
| Noncontrolling interests, net of taxes | [removed: (5] | | [removed: ) | (d) | 5 | | | | — | | | | (2 | | )] [added: —] | | [removed: (21] | [added: (5)] | [removed: )] | |
| [removed: Net earnings (loss) attributable to International Paper Company | 1,225 | | | (b-d) | 2,012 | | | (e-g) | 2,144] [added: NET EARNINGS (LOSS) ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY] | | | [removed: (h-j)] [added: $] | [removed: 904] [added: 482] | | [added: $] | [removed: (k-m)] [added: 1,225] | [removed: 938] | [added: $] | [added: 2,012] | [removed: (n-p)] |
| Plants, [removed: properties] [added: Properties] and [removed: equipment,] [added: Equipment,] net | [removed: 13,004] | | [removed: | | 13,067 | | | | 13,265 | | | | 13,003 | |] [added: 12,217] | | [removed: 11,000] | [added: 13,004] | | |
| [added: Long-Term] Financial [removed: assets] [added: Assets] of [removed: variable interest entities | 7,088 | | | | 7,070 | | | | 7,051 | | |] [added: Variable Interest Entities (Note 15)] | [removed: 7,033] | | [added: 2,257] | | [removed: 7,014] | [added: 7,088] | | |
| Notes payable and current maturities of long-term debt | [removed: 168] | | [removed: | | 639 | | | | 311 | | | | 239 | |] [added: $] | [added: 29] | [removed: 426] | [added: $] | [added: 168] | |
| Current nonrecourse financial liabilities of variable interest entities [removed: | 4,220 | | | | — | | | | — | | |] [added: (Note 15)] | [removed: —] | | [added: 4,220] | | [removed: —] | [added: 4,220] | | |
| [removed: Long-term debt | 9,597 | | | | 10,015 | | | | 10,846 | | |] [added: Long-Term Debt] | [removed: 11,075] | | [added: 8,064] | | [removed: 8,844] | [added: 9,597] | | |
| [removed: Long-term nonrecourse financial liabilities] [added: Long-Term Nonrecourse Financial Liabilities] of [removed: variable interest entities | 2,085 | | | | 6,298 | | | | 6,291 | | |] [added: Variable Interest Entities (Note 15)] | [removed: 6,284] | | [added: 2,092] | | [removed: 6,277] | [added: 2,085] | | |
| BASIC EARNINGS [added: (LOSS)] PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS | | | | | | | | | | | | [removed: | | | | | | | | |]
| Earnings (loss) from continuing operations | [removed: $] | [removed: 3.10] | [removed: | | $ | 4.07 | | | $ | 5.11] [added: $] | [added: 1.23] | | $ | [removed: 1.95 |] [added: 3.10] | | $ | [removed: 2.05 |] [added: 4.07] | |
| Net earnings (loss) | [removed: 3.10] | | [removed: | | 4.91 | | | | 5.19 | | |] [added: $] | [removed: 2.20] [added: 1.23] | | [added: $] | [added: 3.10] | [removed: 2.25] | [added: $] | [added: 4.91] | |
| DILUTED EARNINGS [added: (LOSS)] PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS | | | | | | | | | | | | [removed: | | | | | | | | |]
| Earnings (loss) from continuing operations | [removed: $] | [removed: 3.07] | [removed: | | $ | 4.02 | | | $ | 5.05] [added: $] | [added: 1.22] | | $ | [removed: 1.93 |] [added: 3.07] | | $ | [removed: 2.03 |] [added: 4.02] | |
| Net earnings (loss) | [removed: 3.07] | | [removed: | | 4.85 | | | | 5.13 | | |] [added: $] | [removed: 2.18] [added: 1.22] | | [added: $] | [added: 3.07] | [removed: 2.23] | [added: $] | [added: 4.85] | |
| [removed: COMMON STOCK PRICES] | | | [removed: | | | | | | | | | | | |] [added: Common Stock] | | | | | |
[removed: *Current ratio—*][added: | Current | | | | | | | | | | | |]
[removed: *current assets divided by current liabilities.*][added: | Current Assets | | | | | | | | |]
[removed: *long-term debt plus notes payable and current maturities of long-term debt divided by long-term debt, notes] [added: | Finance | | | Notes] payable and current maturities of long-term debt [removed: and total shareholders’ equity.*][added: | | | 13 | | | 12 | | |]
[removed: *net earnings attributable] [added: | Net Earnings (Loss) Attributable] to International Paper [removed: Company divided by average shareholders’ equity (computed monthly).*][added: Company | | | $ | 482 | | $ | 1,225 | |]
[removed: 2019:][added: | | | | 2020 | | | 2019 | | |]
[removed: | *(b)* | *Includes] [added: *(a)Includes] the following [added: pre-tax] charges (gains):* [removed: |]
| India [added: Papers] impairment | | [removed: $] | [removed: 159] [added: —] | | | [removed: $] [added: 159] | [removed: 157] | |
| India divestiture transaction costs | | [removed: 3] | | | | [removed: 2] [added: —] | | | [added: | | | — | | | | | | — | | | | | | 3 | | |]
| | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| October 1, 2020 - October 31, 2020 | | | 244 | | | $ | 40.54 | | — | | | $ | 1.73 | |
| November 1, 2020 - November 30, 2020 | | | 1,393 | | | 43.75 | | | — | | | 1.73 | | |
| December 1, 2020 - December 31, 2020 | | | — | | | — | | | — | | | 1.73 | | |
*(a)1,637 shares were acquired from employees from share withholdings to pay income taxes under the Company’s restricted stock programs.
During 2020, 389,100 shares were purchased under our share repurchase program, which was approved on September 30, 2013, and increased twice on July 8, 2014 and October 9, 2018.
Through this program, which does not have an expiration date, we are authorized to purchase, in open market transactions (including block trades), privately negotiated transactions or otherwise, up to $5 billion shares of our common stock.
As of December 31, 2020, approximately $1.73 billion aggregate amount of shares of our common stock remain authorized for purchase under this program.*
[Tab](#i79d97f5822654782b500204d35db2303_10)[le of Contents](#i79d97f5822654782b500204d35db2303_10)
[Tab](#i79d97f5822654782b500204d35db2303_10)[le of Contents](#i79d97f5822654782b500204d35db2303_10)
International Paper navigated the impacts of the Covid-19 pandemic in 2020 to deliver solid earnings and outstanding cash generation.
Our 2020 performance demonstrates the strength and resilience of our employees, our diverse customer base and our world class manufacturing and supply chain capabilities.
We ran our manufacturing system well and leveraged the flexibility of our mill and converting systems to overcome significant challenges due to the pandemic, while managing costs extremely well across our three businesses, with no material operational disruptions due to the pandemic.
We generated full-year cash from operations of $3.1 billion and free cash flow of $2.3 billion.
Given the significant economic uncertainty, we took prudent and early actions to reinforce cash generation and enhance our financial strength.
In 2020, we returned $820
million to shareowners and reduced debt by $1.7 billion.
We also invested in our North American and EMEA corrugated packaging businesses to enhance our capabilities and grow earnings.
Finally, in the fourth quarter, we announced plans to spin-off our Printing Papers business into a stand-alone, publicly traded company, which we expect to complete in the third quarter 2021.
Compared to 2019, the Company’s 2020 results reflect strong execution and effective cost management to mitigate the impact of market disruptions associated with the pandemic.
Price and mix were negatively affected by the full-year impact of 2019 price index movements in our North America Packaging business, as well as lower average pricing in our Global Cellulose Fibers and Printing Papers businesses.
Volume was also an earnings headwind due to the unprecedented decline in demand for Printing Papers related to the pandemic.
These price and volume headwinds were partly offset by strong volume growth in our North American Packaging business, outstanding cost management and lower maintenance outage expenses.
During 2020, we made choices around planned maintenance and other spending priorities in response to market disruptions resulting from the pandemic.
Operating costs were higher in 2020, primarily due to higher costs in the latter part of the year, as we flexed our system to meet strong packaging demand.
Overall, input costs were favorable in 2020, driven by lower wood, energy and distribution costs although we did see an increase in recovered fiber, energy and distribution in the fourth quarter.
Volume is expected to be flat sequentially with continued strong box demand in North America.
Operations and costs are expected to improve sequentially, resulting from the non-repeat of isolated reliability issues and other unfavorable one-time items in the fourth quarter 2020.
Maintenance outage expense is expected to be higher along with increased input costs, mainly due to higher recovered fiber and distribution costs.
Volume is expected to be stable and operations and costs are expected to improve on the non-repeat of unfavorable fourth quarter items.
[Tab](#i79d97f5822654782b500204d35db2303_10)[le of Contents](#i79d97f5822654782b500204d35db2303_10)
higher wood and energy costs.
In our Printing Papers business, price and mix is expected to be stable and volume is expected to decrease, mostly due to lower seasonal demand in Brazil and Russia.
As we enter 2021, we are mindful that we are still in the midst of a global pandemic and there is still uncertainty.
Accordingly, we remain committed to our COVID-19 principles to focus on what we need to do as a company to remain strong and resilient for all our stakeholders – to keep our employees and contractors safe, to take care of our customers and to maintain our financial strength.
Looking to 2021, we anticipate continued strong demand for corrugated packaging and pulp and are poised to grow earnings.
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.
Since that time, most of our manufacturing and converting facilities have remained open and operational during the pandemic.
The health and safety of our employees and contractors is our most important responsibility as we manage through the COVID-19 pandemic.
future may continue to be, limited by the terms of our debt documents.
| | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| October 1, 2019 - October 31, 2019 | — | | $ | — | | — | | $ | 1.75 | |
| November 1, 2019 - November 30, 2019 | 205 | | 43.68 | | | — | | 1.75 | | |
| December 1, 2019 - December 31, 2019 | 5,357 | | 46.34 | | | — | | 1.75 | | |
| | |
| --- | --- |
| *(a)* | *5,562 shares were acquired from employees from share withholdings to pay income taxes under the Company’s restricted stock programs. During 2019, 10,828,416 shares were purchased under our share repurchase program, which was approved by our Board of Directors and announced on July 8, 2014 and October 9, 2018. Through this program, which does not have an expiration date, we were authorized to purchase, in open market transactions (including block trades), privately negotiated transactions or otherwise, up to $3.5 billion aggregate amount of shares of our common stock. As of February 14, 2020, approximately $1.75 billion aggregate amount of shares of our common stock remained authorized for purchase under this program.* |
*Note 1.
Fibria Celulose S.A. was excluded at the end of 2018 due to being acquired by Suzano.*
SELECTED FINANCIAL DATA](#s43582ABA2B33ED0F6D02D3B6D6C2EA32)
FIVE-YEAR FINANCIAL SUMMARY (a)
| | | | | | | | | | | | | | | | | | | | | |
| Costs and expenses, excluding interest | 20,281 | | | | 20,989 | | | | 20,323 | | | | 18,180 | | | | 18,988 | | | |
| FINANCIAL POSITION | | | | | | | | | | | | | | | | | | | | |
| Current assets less current liabilities | $ | (2,007 | ) | | $ | 2,302 | | | $ | 3,175 | | | $ | 2,601 | | | $ | 2,244 | | |
| Forestlands | 391 | | | | 402 | | | | 448 | | | | 456 | | | | 366 | | | |
| Total assets | 33,471 | | | | 33,576 | | | | 33,903 | | | | 33,093 | | | | 30,271 | | | |
| Total shareholders’ equity | 7,713 | | | | 7,362 | | | | 6,522 | | | | 4,341 | | | | 3,884 | | | |
| Discontinued operations | — | | | | 0.84 | | | | 0.08 | | | | 0.25 | | | | 0.20 | | | |
| Discontinued operations | — | | | | 0.83 | | | | 0.08 | | | | 0.25 | | | | 0.20 | | | |
| Cash dividends | 2.013 | | | | 1.925 | | | | 1.863 | | | | 1.783 | | | | 1.640 | | | |
| High | $ | 48.24 | | | $ | 66.94 | | | $ | 58.96 | | | $ | 54.68 | | | $ | 57.90 | | |
| Low | 36.45 | | | | 37.55 | | | | 49.60 | | | | 32.50 | | | | 36.76 | | | |
| Year-end | 46.05 | | | | 40.36 | | | | 57.94 | | | | 53.06 | | | | 37.70 | | | |
| FINANCIAL RATIOS | | | | | | | | | | | | | | | | | | | | |
| Current ratio | 0.8 | | | | 1.5 | | | | 1.6 | | | | 1.6 | | | | 1.6 | | | |
| Total debt to capital ratio | 0.56 | | | | 0.59 | | | | 0.63 | | | | 0.72 | | | | 0.70 | | | |
| Return on shareholders’ equity | 16.2 | | % | | 28.4 | | % | | 43.9 | | % | | 22.1 | | % | | 20.0 | | % | |
| CAPITAL EXPENDITURES | $ | 1,276 | | | $ | 1,572 | | | $ | 1,391 | | | $ | 1,348 | | | $ | 1,487 | | |
| NUMBER OF EMPLOYEES | 51,000 | | | | 53,000 | | | | 56,000 | | | | 55,000 | | | | 56,000 | | | |
FINANCIAL GLOSSARY
*Total debt to capital ratio—*
*Return on shareholders’ equity—*
FOOTNOTES TO FIVE-YEAR FINANCIAL SUMMARY
| *(a)* | *All prior periods presented have been restated to reflect the North American Consumer Packaging business and the xpedx business as discontinued operations (excluding cash flow related items) and prior period amounts have been adjusted to conform with current year presentation, if applicable.* |
| | | 2019 | | | | | | |
| *In millions* | | Before Tax | | | | After Tax | | |
| Total | | $ | 454 | | | $ | 393 | |
An excerpt. Shown here: 40 of 1,770 rewritten, 40 of 938 added and 40 of 725 removed. The counts are complete. For every sentence, read Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES in the FY2020 filing and the FY2019 filing.