INDUSTRY SEGMENT INFORMATION (Note)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Industry Segment Information [Note Text Block]

INDUSTRY SEGMENT INFORMATION

International Paper’s industry segments, Industrial Packaging, Printing Papers, and Consumer Packaging 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. Following the spinoff of xpedx which historically represented the Company's Distribution reportable segment, the assets of the xpedx business totaling $1.2 billion as of December 31, 2013 were adjusted off the balance sheet.

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 nine months ended September 30, 2014 and 2013 were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2014			2013			2014			2013
Industrial Packaging	$	3,754		$	3,755		$	11,247		$	11,095
Printing Papers	1,453			1,555			4,280			4,635
Consumer Packaging	876			885			2,548			2,570
Corporate and Intersegment Sales	(32		)	(220		)	(401		)	(665		)
Net Sales	$	6,051		$	5,975		$	17,674		$	17,635

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

	Three Months Ended September 30,								Nine Months Ended September 30,
In millions	2014				2013				2014				2013
Industrial Packaging	$	527		(a)	$	499		(d)	$	1,517		(a)	$	1,328		(d)
Printing Papers	177			(b)	93			(e)	(164		)	(b)	318			(e)
Consumer Packaging	77			(c)	73			(f)	127			(c)	131			(f)
Operating Profit	781				665				1,480				1,777
Interest expense, net	(152		)	(g)	(146		)		(459		)	(g)	(478		)	(h)
Noncontrolling interests/equity earnings adjustment (i)	(2		)		(3		)		—				1
Corporate items, net	(3		)		(20		)		(16		)		(57		)
Restructuring and other charges	(18		)		(15		)		(281		)		(9		)
Non-operating pension expense	(54		)		(78		)		(159		)		(245		)
Earnings (loss) from continuing operations before income taxes and equity earnings	$	552			$	403			$	565			$	989
Equity earnings (loss), net of taxes – Ilim	$	(70	)		$	11			$	(58	)		$	(34	)

(a) Includes charges of $1 million for the three months ended September 30, 2014 and $15 million for the nine months ended September 30, 2014 for integration costs associated with the acquisition of Temple-Inland, a net gain of $5 million for the nine months ended September 30, 2014 associated with our Brazil Packaging business, charges of $35 million for the three months and nine months ended September 30, 2014 for costs associated with a multi-employer pension plan withdrawal liability, charges of $5 million for the three months and nine months ended September 30, 2014 for costs related to the restructuring of our EMEA packaging business, and charges of $1 million for the three months ended September 30, 2014 and net charges of $3 million for the nine months ended September 30, 2014 for other items.

(b) Includes charges of $3 million for the three months ended September 30, 2014 and $547 million for the nine months ended September 30, 2014 for costs associated with the shutdown of our Courtland, Alabama mill, a gain of $20 million (including $2 million of interest income) for the three months and nine months ended September 30, 2014 for the resolution of a legal contingency for India, and charges of $32 million (including $8 million of interest expense) for the three months and nine months ended September 30, 2014 for costs associated with a foreign tax amnesty program.

(c) Includes a charge of $2 million for the three months ended September 30, 2014 and $4 million for the nine months ended September 30, 2014 for costs associated with the Coated Paperboard sheet plant closures.

(d) Includes charges of $24 million for the three months ended September 30, 2013 and $50 million for the nine months ended September 30, 2013 for integration costs associated with the acquisition of Temple-Inland, a gain of $14 million for the nine months ended September 30, 2013 for a bargain purchase adjustment on the first quarter 2013 acquisition of a majority share of our operations in Turkey, a gain of $9 million for the three months and nine months ended September 30, 2013 related to the sale of the box plant facility in Bellevue, Washington, and charges of $3 million for the three months ended September 30, 2013 and $8 million for the nine months ended September 30, 2013 for other items.

(e) Includes charges of $51 million for the three months and nine months ended September 30, 2013 for costs associated with the announced shutdown of our Courtland, Alabama mill.

(f) Includes charges of $45 million for the nine months ended September 30, 2013 for costs associated with the permanent shutdown of a paper machine at our Augusta, Georgia mill.

(g) Excludes net interest expense of $6 million that is included in the Printing Papers segment operating profit for the three months and nine months ended September 30, 2014.

(h) Includes a gain of $6 million for interest related to the settlement of an IRS tax audit for the nine months ended September 30, 2013.

(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.