GOODWILL AND OTHER INTANGIBLES

6 Months Ended

Jun. 30, 2013

Goodwill

The following table presents changes in goodwill balances as allocated to each business segment for the six-month period ended June 30, 2013:



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)	(14		)		(44		)		2			—		(56		)
Additions/reductions	190			(c)	(12		)	(d)	—			—		178
Balance as of June 30, 2013
Goodwill	3,341				2,340				1,785			400		7,866
Accumulated impairment losses (a)	—				(1,765		)		(1,664		)	—		(3,429		)
Total	$	3,341			$	575			$	121		$	400	$	4,437


(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)	Represents Orsa IP, the newly formed joint venture in Brazil.


(d)	Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil.

Other Intangibles

Identifiable intangible assets comprised the following:



	June 30, 2013				December 31, 2012
In millions	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships and lists	$	737	$	125	$	644	$	112
Non-compete agreements	79		38		83		30
Tradenames, patents and trademarks	161		16		144		16
Land and water rights	69		6		87		6
Fuel and power agreements	18		14		17		12
Software	29		28		22		19
Other	105		16		83		19
Total	$	1,198	$	243	$	1,080	$	214

The Company recognized the following amounts as amortization expense related to intangible assets:



	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2013		2012		2013		2012
Amortization expense related to intangible assets	$	19	$	7	$	36	$	15

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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