VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Tables)

3 Months Ended

Mar. 31, 2016

Activity Between Company And Entities [Table Text Block]

Activity between the Company and the 2015 Financing Entities (the Entities prior to the purchase of the Class A interest discussed above) was as follows:



	Three Months Ended March 31,
In millions	2016		2015
Revenue (a)	$	24	$	9
Expense (a)	32		18
Cash receipts (b)	29		10
Cash payments (c)	34		36

(a)

For the three months ended March 31, 2016, the revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations. For the three months ended March 31, 2015, the net expense related to the Company’s interest in the Entities is included in the accompanying consolidated statement of operations, as International Paper has and intends to effect its legal right to offset as discussed above.


(b)	For the three months ended March 31, 2016, cash receipts are interest received on the Financial assets of special purpose entities. For the three months ended March 31, 2015, the cash receipts are equity distributions from the Entities to International Paper prior to the formation of the 2015 Financing Entities.


(c)	For the three months ended March 31, 2016, the payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. For the three months ended March 31, 2015, the cash payments are interest payments on the associated debt obligations of the Entities discussed above.

2007 Financing Entities [Member]

Activity Between Company And Entities [Table Text Block]

Activity between the Company and the 2007 financing entities was as follows:



	Three Months Ended March 31,
In millions	2016		2015
Revenue (a)	$	8	$	6
Expense (b)	7		6
Cash receipts (c)	2		2
Cash payments (d)	6		4


(a)	The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million for each of the three months ended March 31, 2016 and 2015, respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of special purpose entities.


(b)	The expense is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $2 million for each of the three months ended March 31, 2016 and 2015, respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Nonrecourse financial liabilities of special purpose entities.


(c)	The cash receipts are interest received on the Financial assets of special purpose entities.


(d)	The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities.