INDUSTRY SEGMENT INFORMATION (Note)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Industry Segment Information [Note Text Block]

INDUSTRY SEGMENT INFORMATION

International Paper’s industry segments, Industrial Packaging, Printing Papers, Consumer Packaging and Distribution, are consistent with the internal structure used to manage these businesses. All segments are differentiated on a common product, common customer basis consistent with the business segmentation generally used in the Forest Products industry.

The Company also has a 50% equity interest in Ilim in Russia that is a separate reportable industry segment.

Sales by industry segment for the three months and six months ended June 30, 2014 and 2013 were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2014			2013			2014			2013
Industrial Packaging	$	3,800		$	3,780		$	7,493		$	7,340
Printing Papers	1,421			1,540			2,827			3,080
Consumer Packaging	843			855			1,672			1,685
Distribution	1,326			1,405			2,628			2,790
Corporate and Intersegment Sales	(177		)	(245		)	(393		)	(470		)
Net Sales	$	7,213		$	7,335		$	14,227		$	14,425

Operating profit by industry segment for the three months and six months ended June 30, 2014 and 2013 were as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
In millions	2014				2013				2014				2013
Industrial Packaging	$	537		(a)	$	474		(e)	$	990		(a)	$	829		(e)
Printing Papers	69			(b)	76				(341		)	(b)	225
Consumer Packaging	33			(c)	51			(f)	50			(c)	58			(f)
Distribution	12			(d)	—			(g)	17			(d)	(5		)	(g)
Operating Profit	651				601				716				1,107
Interest expense, net	(165		)		(168		)	(h)	(307		)		(332		)	(h)
Noncontrolling interests/equity earnings adjustment (i)	3				4				3				4
Corporate items, net	—				—				(9		)		(22		)
Restructuring and other charges	(280		)		9				(297		)		3
Non-operating pension expense	(61		)		(83		)		(105		)		(167		)
Earnings (loss) from continuing operations before income taxes and equity earnings	$	148			$	363			$	1			$	593
Equity earnings (loss), net of taxes – Ilim	$	43			$	(34	)		$	12			$	(45	)

(a) Includes charges of $2 million for the three months ended June 30, 2014 and $14 million for the six months ended June 30, 2014 for integration costs associated with the acquisition of Temple-Inland, a gain of $7 million for the three months ended June 30, 2014 and a net gain of $5 million for the six months ended June 30, 2014 associated with our Brazil Packaging business, and charges of $2 million for the three months ended June 30, 2014 and net charges of $2 million for the six months ended June 30, 2014 for other items.

(b) Includes charges of $49 million for the three months ended June 30, 2014 and $544 million for the six months ended June 30, 2014 for costs associated with the shutdown of our Courtland, Alabama mill.

(c) Includes a charge of $1 million for the three months ended June 30, 2014 and $2 million for the six months ended June 30, 2014 for costs associated with the Ontario sheet plant closure.

(d) Includes a gain of $1 million for the three months ended June 30, 2014 and a net charge of $1 million for the six months ended June 30, 2014 for costs associated with the restructuring of our xpedx operations.

(e) Includes charges of $14 million for the three months ended June 30, 2013 and $26 million for the six months ended June 30, 2013 for integration costs associated with the acquisition of Temple-Inland, a gain of $13 million for the three months ended June 30, 2013 and $14 million for the six months ended June 30, 2013 for a bargain purchase adjustment on the first quarter 2013 acquisition of a majority share of our operations in Turkey, and charges of $2 million for the three months ended June 30, 2013 and $5 million for the six months ended June 30, 2013 for other items.

(f) Includes charges of $1 million for the three months ended June 30, 2013 and $45 million for the six months ended June 30, 2013 for costs associated with the permanent shutdown of a paper machine at our Augusta mill.

(g) Includes charges of $17 million for the three months ended June 30, 2013 and $24 million for the six months ended June 30, 2013 for costs associated with the restructuring of the Company's xpedx operations.

(h) Includes a gain of $6 million for interest related to the settlement of an IRS tax audit.

(i) 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.