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BASIS OF PRESENTATION
 9 Months Ended
Sep. 30, 2012
BASIS OF PRESENTATION
BASIS OF PRESENTATION
The accompanying unaudited consolidated 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 nine months of the year may not necessarily be indicative of full year results. It is suggested that these consolidated 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, 2011 and the Company’s Current Report on Form 8-K dated May 7, 2012 to retrospectively adjust portions of the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 to reflect the elimination of the one-quarter lag basis on which the Company had previously reported its share of the operating results of the 50/50 joint venture that the Company and Ilim Holding S.A. have operated since October 2007 (collectively the “2011 10-K”), both of which have previously been filed with the Securities and Exchange Commission.
International Paper accounts for its investment in Ilim Holding S.A. (Ilim), a separate reportable industry segment, using the equity method of accounting. Prior to 2012, due to the complex organizational structure of Ilim’s operations, and the extended time required to prepare consolidated financial information in accordance with accounting principles generally accepted in the United States, the Company reported its share of Ilim’s operating results on a one-quarter lag basis. In 2012, the Company determined that the elimination of the one-quarter lag was preferable because the same period-end reporting date improves overall financial reporting as the impact of current events, economic conditions and global trends are consistently reflected in the financial statements. Beginning January 1, 2012, the Company has applied this change in accounting principle retrospectively to all prior financial periods presented.
The elimination of the one-quarter reporting lag for Ilim had the following impact:
Consolidated Statement of Operations 
In millions
Three Months Ended September 30, 2011
 
Nine Months Ended September 30, 2011
Equity earnings (loss)
$
(50
)
 
$
(43
)
Earnings (loss) from continuing operations
(50
)
 
(43
)
Net earnings (loss) attributable to International Paper Company
(50
)
 
(43
)
Basic earnings (loss) per share from continuing operations
(0.12
)
 
(0.10
)
Basic net earnings (loss) per share
(0.12
)
 
(0.10
)
Diluted earnings (loss) per share from continuing operations
(0.11
)
 
(0.10
)
Diluted net earnings (loss) per share
(0.11
)
 
(0.10
)

Consolidated Balance Sheet 
In millions
December 31, 2011
Investments
$
25

Retained earnings
25