Sales by industry segment for the three months and nine months ended September 30, 2012 and 2011 were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2012			2011			2012			2011
Industrial Packaging	$	3,335		$	2,660		$	9,900		$	7,920
Printing Papers	1,580			1,550			4,650			4,665
Consumer Packaging	765			955			2,355			2,805
Distribution	1,535			1,710			4,510			5,005
Corporate and Intersegment Sales	(189		)	(243		)	(657		)	(728		)
Net Sales	$	7,026		$	6,632		$	20,758		$	19,667

Operating profit by industry segment for the three months and nine months ended September 30, 2012 and 2011 were as follows:



	Three Months Ended September 30,								Nine Months Ended September 30,
In millions	2012				2011				2012				2011
Industrial Packaging	$	255		(1)	$	293		(5)	$	730		(1)	$	841		(5)
Printing Papers	202			(2)	239			(6)	452			(2)	683			(6)
Consumer Packaging	67			(3)	30			(7)	227			(3)	97			(7)
Distribution	15			(4)	9			(8)	18			(4)	18			(8)
Operating Profit	539				571				1,427				1,639
Interest expense, net	(163		)		(130		)		(503		)		(403		)
Noncontrolling interests/equity earnings adjustment (9)	—				(1		)		8				6
Corporate items, net	(41		)		(34		)		(155		)		(114		)
Restructuring and other charges	(15		)		(25		)		(40		)		(86		)
Earnings (loss) from continuing operations before income taxes and equity earnings	$	320			$	381			$	737			$	1,042
Equity earnings (loss), net of taxes – Ilim	$	33			$	1			$	48			$	109

(1)

Includes charges of $58 million and $136 million for the three months and nine months ended September 30, 2012, respectively, for integration costs associated with the Temple-Inland acquisition, charges of $19 million and $28 million for the three months and nine months ended September 30, 2012, respectively, for costs associated with the divestiture of three containerboard mills, charges of $16 million for the three months and nine months ended September 30, 2012 for costs associated with the restructuring of our Packaging business in Europe, a charge of $62 million for the nine months ended September 30, 2012 to adjust the value of the long-lived assets of the Hueneme mill in Oxnard, California to their fair value, a charge of $20 million for the nine months ended September 30, 2012 related to the write-up of the Temple-Inland inventory to fair value, and gains of $6 million and $5 million for the three months and nine months ended September 30, 2012, respectively, for other items.


(2)	Includes a gain of $1 million and a net $0 million for the three months and the nine months ended September 30, 2012, respectively, related to the acquisition of a majority interest in Andhra Pradesh Paper Mills Limited.


(3)	Includes a net gain of $1 million for the nine months ended September 30, 2012 for adjustments related to the sale of the Shorewood business.


(4)	Includes charges of $9 million and $42 million for the three months and nine months ended September 30, 2012, respectively, associated with the restructuring of the Company’s xpedx operations.

(5)

Includes charges of $8 million for three months and nine months ended September 30, 2011 for costs associated with the signing of an agreement to acquire Temple-Inland, a gain of $7 million for the nine months ended September 30, 2011 for a bargain purchase price adjustment on an acquisition by our joint venture in Turkey and costs of $2 million for the nine months ended September 30, 2011 for additional closure costs for the Etienne mill in France.


(6)	Includes gains of $1 million and $22 million for the three months and nine months ended September 30, 2011, respectively, related to the repurposing of the Franklin, Virginia mill to produce fluff pulp and a charge of $8 million for the nine months ended September 30, 2011 for asset impairment costs associated with the Inverurie mill.

(7)

Includes a charge of $82 million for the three months and nine months ended September 30, 2011 to reduce the carrying value of the Shorewood business to market value, a charge of $129 million for the nine months ended September 30, 2011 for a fixed asset impairment of the North American Shorewood business, an $8 million gain for the three months and nine months ended September 30, 2011 for noncontrolling interest related to the fixed asset impairment at Shorewood Mexico, and a gain of $1 million for the three months ended September 30, 2011 and charges of $2 million for the nine months ended September 30, 2011 related to the reorganization of the Company’s Shorewood operations.


(8)	Includes charges of $18 million and $35 million for the three months and nine months ended September 30, 2011, respectively, associated with the restructuring of the Company’s xpedx operations.


(9)	Operating profits for industry segments include each segment’s percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings.