INDUSTRY SEGMENT INFORMATION (Note)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [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.

The Company also has a 50% equity interest in Ilim in Russia that is a separate reportable industry segment. The Company recorded equity earnings (losses), net of taxes, of $(9) million and $97 million for the three months and nine months ended September 30, 2015, respectively, and $(70) million and $(58) million for the three months and nine months ended September 30, 2014, respectively, for Ilim. At September 30, 2015 and December 31, 2014, the Company's investment in Ilim was $194 million and $170 million, respectively, which was $160 million and $158 million, respectively, more than the Company's proportionate share of the joint venture's underlying net assets. The differences primarily relate to purchase price fair value adjustments and currency translation adjustments. The Company is party to a joint marketing agreement with Ilim, under which the Company purchases, markets and sells paper produced by Ilim. Purchases under this agreement were $41 million and $132 million for the three months and nine months ended September 30, 2015, respectively, and $44 million and $156 million for the three months and nine months ended September 30, 2014, respectively.

Sales by industry segment for the three months and nine months ended September 30, 2015 and 2014 were as follows:

	Three Months Ended September 30						Nine Months Ended September 30,
In millions	2015			2014			2015			2014
Industrial Packaging	$	3,642		$	3,754		$	10,889		$	11,247
Printing Papers	1,258			1,453			3,735			4,280
Consumer Packaging	809			876			2,384			2,548
Corporate and Intersegment Sales	(18		)	(32		)	(86		)	(401		)
Net Sales	$	5,691		$	6,051		$	16,922		$	17,674

Operating profit by industry segment for the three months and nine months ended September 30, 2015 and 2014 were as follows:

	Three Months Ended September 30								Nine Months Ended September 30,
In millions	2015				2014				2015				2014
Industrial Packaging	$	553			$	527		(b)	$	1,549			$	1,517		(b)
Printing Papers	179				177			(c)	389				(164		)	(c)
Consumer Packaging	(153		)	(a)	77			(d)	(60		)	(a)	127			(d)
Operating Profit	579				781				1,878				1,480
Interest expense, net	(141		)		(152		)	(e)	(422		)		(459		)	(e)
Noncontrolling interests/equity earnings adjustment (f)	(6		)		(2		)		(10		)		—
Corporate items, net	(10		)		(3		)		(27		)		(16		)
Restructuring and other charges	(17		)		(18		)		(220		)		(281		)
Non-operating pension expense	(76		)		(54		)		(198		)		(159		)
Earnings (loss) from continuing operations before income taxes and equity earnings	$	329			$	552			$	1,001			$	565
Equity earnings (loss), net of taxes – Ilim	$	(9	)		$	(70	)		$	97			$	(58	)

(a) Includes a charge of $186 million for the three months and nine months ended September 30 ,2015 for asset write-offs associated with the announced definitive agreement to sell our 55% equity share in the IP-Sun JV, a net expense of $7 million and a net gain of $7 million for the three months and nine months ended September 30, 2015, respectively, related to the sale of the Carolina Coated Bristols brand and the Riegelwood mill conversion to 100% pulp production, and a charge of $1 million and $2 million for the three months and nine months ended September 30, 2015, respectively, for costs associated with the Coated Paperboard sheet plant closures.

(b) Includes charges of $1 million and $15 million for the three months and nine months ended September 30, 2014, respectively, 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 associated with the restructuring of our EMEA packaging business, and charges of $1 million and $3 million for the three months and nine months ended September 30, 2014, respectively, for other items.

(c) Includes charges of $3 million and $547 million for the three months and nine months ended September 30, 2014, respectively, for costs associated with the shutdown of our Courtland 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.

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

(e) 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.

(f) 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.