Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income Before Income Tax, Domestic and Foreign [Table Text Block]

The components of International Paper’s earnings from continuing operations before income taxes and equity earnings by taxing jurisdiction were as follows:

In millions	2013		2012		2011
Earnings (loss)
U.S.	$	394	$	478	$	874
Non-U.S.	455		546		584
Earnings (loss) from continuing operations before income taxes and equity earnings	$	849	$	1,024	$	1,458

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision (benefit) for income taxes (excluding noncontrolling interests) by taxing jurisdiction was as follows:

In millions	2013			2012			2011
Current tax provision (benefit)
U.S. federal	$	(697	)	$	14		$	(78	)
U.S. state and local	(95		)	11			(19		)
Non-U.S.	123			102			91
	$	(669	)	$	127		$	(6	)
Deferred tax provision (benefit)
U.S. federal	$	186		$	226		$	207
U.S. state and local	(21		)	6			46
Non-U.S.	(19		)	(28		)	64
	$	146		$	204		$	317
Income tax provision	$	(523	)	$	331		$	311

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of income tax expense using the statutory U.S. income tax rate compared with the actual income tax provision follows:

In millions	2013			2012			2011
Earnings (loss) from continuing operations before income taxes and equity earnings	$	849		$	1,024		$	1,458
Statutory U.S. income tax rate	35		%	35		%	35		%
Tax expense (benefit) using statutory U.S. income tax rate	297			358			510
State and local income taxes	(4		)	11			16
Tax rate and permanent differences on non-U.S. earnings	(90		)	(116		)	(34		)
Net U.S. tax on non-U.S. dividends	(15		)	48			23
Tax benefit on manufacturing activities	(27		)	(15		)	(8		)
Non-deductible business expenses	4			7			6
Non-deductible goodwill	147			34			—
Tax Audits	(770		)	—			—
Sales of non-strategic businesses	—			—			(195		)
Retirement plan dividends	(5		)	(5		)	(5		)
Tax basis adjustments	(33		)	—			—
Tax credits	(23		)	—			(7		)
Medicare subsidy	—			5			—
Other, net	(4		)	4			5
Income tax provision	$	(523	)	$	331		$	311
Effective income tax rate	(62		)%	32		%	21		%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of significant temporary differences, representing deferred income tax assets and liabilities at December 31, 2013 and 2012, were as follows:

In millions	2013			2012
Deferred income tax assets:
Postretirement benefit accruals	$	193		$	229
Pension obligations	725			1,620
Alternative minimum and other tax credits	515			752
Net operating loss carryforwards	610			579
Compensation reserves	281			242
Other	284			406
Gross deferred income tax assets	2,608			3,828
Less: valuation allowance	(413		)	(400		)
Net deferred income tax asset	$	2,195		$	3,428
Deferred income tax liabilities:
Intangibles	$	(304	)	$	(378	)
Plants, properties and equipment	(2,919		)	(3,126		)
Forestlands and related installment sales	(2,307		)	(2,511		)
Gross deferred income tax liabilities	$	(5,530	)	$	(6,015	)
Net deferred income tax liability	$	(3,335	)	$	(2,587	)

Schedule of Unrecognized Tax Benefits Rollforward [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 is as follows:

In millions	2013			2012			2011
Balance at January 1	$	(972	)	$	(857	)	$	(199	)
(Additions) reductions based on tax positions related to current year	(22		)	12			(2		)
Additions for tax positions of prior years	(29		)	(140		)	(719		)
Reductions for tax positions of prior years	824			6			29
Settlements	26			2			2
Expiration of statutes of limitations	11			7			25
Currency translation adjustment	1			(2		)	7
Balance at December 31	$	(161	)	$	(972	)	$	(857	)

Schedule of Components of Net Provisions Related to Special Items [Table Text Block]

Included in the Company’s 2013, 2012 and 2011 income tax provision (benefit) are $(924) million, $(85) million and $(266) million, respectively, related to special items. The components of the net provisions related to special items were as follows:

In millions	2013			2012			2011
Special items	$	(151	)	$	(104	)	$	(293	)
Tax-related adjustments:
Internal restructurings	(4		)	14			24
India deal costs	—			—			9
IP UK valuation allowance release	—			—			(13		)
Settlement of tax audits and legislative changes	(770		)	—			5
Medicare D deferred income tax write-off	—			5			—
Other tax adjustments	1			—			2
Income tax provision (benefit) related to special items	$	(924	)	$	(85	)	$	(266	)

Summary of Operating Loss and Tax Credit Carryforwards [Table Text Block]

The following details the scheduled expiration dates of the Company’s net operating loss and income tax credit carryforwards:

In millions	2014 Through 2023		2024 Through 2033		Indefinite		Total
U.S. federal and non-U.S. NOLs	$	21	$	3	$	400	$	424
State taxing jurisdiction NOLs	152		120		—		272
U.S. federal, non- U.S. and state tax credit carryforwards	117		31		454		602
State capital loss carryforwards	23		—		—		23
Total	$	313	$	154	$	854	$	1,321