2013: During 2013, total restructuring and other charges of $210 million before taxes ($131 million after taxes) were recorded. These charges included:
|
| | | | | | | | |
In millions | | Before-Tax
Charges |
| | After-Tax
Charges |
|
Early debt extinguishment costs (see Note 13) | | $ | 25 |
| | $ | 16 |
|
xpedx restructuring (a) | | 32 |
| | 19 |
|
xpedx transaction costs | | 22 |
| | 14 |
|
Courtland mill shutdown (b) | | 118 |
| | 72 |
|
Box plant closures | | (13 | ) | | (8 | ) |
Augusta paper machine shutdown (c) | | 45 |
| | 28 |
|
Insurance reimbursements | | (30 | ) | | (19 | ) |
Other (d) | | 11 |
| | 9 |
|
Total | | $ | 210 |
| | $ | 131 |
|
(a) Includes $17 million of severance charges.
(b) Includes $73 million of accelerated depreciation and other non-cash charges, $42 million of severance charges and $3 million of other charges which are recorded in the Printing Papers segment. During 2013, the Company accelerated depreciation for certain Courtland assets, and diligently evaluated certain other assets for possible alternative uses by one of our other businesses. The net book value of these assets at December 31, 2013 was approximately $470 million. During 2014, we have continued our evaluation and expect to conclude as to any uses for these assets during the first quarter of 2014.
(c) Includes $39 million of accelerated depreciation charges, $2 million of severance charges and $4 million of other charges which are recorded in the Consumer Packaging segment.
(d) Includes $2 million of severance charges.
Included in the $210 million of organization restructuring and other charges is $63 million of severance charges.
The following table presents a rollforward of the severance and other costs for approximately 1,686 employees included in the 2013 restructuring charges.
|
| | | | |
In millions | | Severance and Other |
|
Additions and adjustments | | $ | 63 |
|
Cash charges in 2013 | | (21 | ) |
Balance, December 31, 2013 | | $ | 42 |
|
As of December 31, 2013, 624 employees had left the Company under these programs.
2012: During 2012, total restructuring and other charges of $109 million before taxes ($74 million after taxes) were recorded. These charges included:
|
| | | | | | | | |
In millions | | Before-Tax Charges |
| | After-Tax Charges |
|
Early debt extinguishment costs (see Note 13) | | $ | 48 |
| | $ | 30 |
|
xpedx restructuring (a) | | 44 |
| | 28 |
|
EMEA packaging restructuring (b) | | 17 |
| | 12 |
|
Other | | — |
| | 4 |
|
Total | | $ | 109 |
| | $ | 74 |
|
(a) Includes $14 million of severance charges.
(b) Includes $17 million of severance charges.
Included in the $109 million of organizational restructuring and other charges is $31 million of severance charges.
The following table presents a rollforward of the severance and other costs for approximately 811 employees included in the 2012 restructuring charges:
|
| | | | |
In millions | | Severance and Other |
|
Additions and adjustments | | $ | 31 |
|
Cash charges in 2012 | | (15 | ) |
Cash charges in 2013 | | (6 | ) |
Balance, December 31, 2013 | | $ | 10 |
|
As of December 31, 2013, 680 employees had left the Company under these programs.
2011: During 2011, total restructuring and other charges of $102 million before taxes ($66 million after taxes) were recorded. These charges included:
|
| | | | | | | | |
In millions | | Before-Tax Charges |
| | After-Tax Charges |
|
xpedx restructuring (a) | | $ | 49 |
| | $ | 34 |
|
Early debt extinguishment costs (see Note 13) | | 32 |
| | 19 |
|
Temple-Inland merger agreement | | 20 |
| | 12 |
|
APPM acquisition | | 18 |
| | 12 |
|
Franklin, Virginia mill – closure costs (b) | | (24 | ) | | (15 | ) |
Other | | 7 |
| | 4 |
|
Total | | $ | 102 |
| | $ | 66 |
|
| |
(a) | Includes $19 million of severance charges. |
| |
(b) | Includes a $21 million credit related to the reversal of an environmental reserve. |
Included in the $102 million of organizational restructuring and other charges is $25 million of severance charges.
The following table presents a rollforward of the severance and other costs for approximately 629 employees included in the 2011 restructuring charges. As of December 31, 2013, all of these employees had left the Company under these programs.
|
| | | | |
In millions | | Severance and Other |
|
Additions and adjustments | | $ | 25 |
|
Cash charges in 2011 | | (16 | ) |
Cash charges in 2012 | | (8 | ) |
Cash charges in 2013 | | (1 | ) |
Balance, December 31, 2013 | | $ | — |
|
ALTERNATIVE FUEL MIXTURE TAX CREDIT
On July 19, 2011 the Company filed an amended 2009 tax return claiming alternative fuel mixture tax credits as non-taxable income. The amended position has been accepted by the Internal Revenue Service (IRS) in the closing of the IRS tax audit for the years 2006 - 2009. As a result, during 2013, the Company recognized an income tax benefit of $753 million related to the non-taxability of the alternative fuel mixture tax credits.
During 2009, the Company produced 64 million gallons of black liquor that were not eligible for the alternative fuel mixture credit. The Company claimed these gallons for the cellulosic bio-fuel credit by amending the Company’s 2009 tax return. The impact of this amendment was included in the Company’s 2010 fourth quarter Income tax provision (benefit), resulting in a $40 million net credit to tax expense. Temple-Inland, Inc. also recognized an income tax benefit of $83 million in 2010 related to cellulosic bio-fuel credits.
