INDUSTRY SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2016

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 $46 million and $108 million for the three months and six months ended June 30, 2016, respectively, and $67 million and $106 million for the three months and six months ended June 30, 2015, respectively, for Ilim. At June 30, 2016 and December 31, 2015, the Company's investment in Ilim was $218 million and $172 million, respectively, which was $167 million and $161 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 $45 million and $84 million for the three months and six months ended June 30, 2016, respectively, and $48 million and $91 million for the three months and six months ended June 30, 2015, respectively.

Sales by industry segment for the three months and six months ended June 30, 2016 and 2015 were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2016			2015			2016			2015
Industrial Packaging	$	3,597		$	3,694		$	7,049		$	7,247
Printing Papers	1,271			1,249			2,455			2,477
Consumer Packaging	501			797			996			1,575
Corporate and Intersegment Sales	(47		)	(26		)	(68		)	(68		)
Net Sales	$	5,322		$	5,714		$	10,432		$	11,231

Operating profit by industry segment for the three months and six months ended June 30, 2016 and 2015 were as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
In millions	2016				2015				2016				2015
Industrial Packaging	$	459		(a)	$	528			$	855		(a)	$	996
Printing Papers	96			(b)	101				181			(b)	210
Consumer Packaging	73				47			(d)	89			(c)	93			(d)
Operating Profit	628				676				1,125				1,299
Interest expense, net	(129		)		(144		)		(252		)		(281		)
Noncontrolling interests/equity earnings adjustment (e)	—				(5		)		—				(4		)
Corporate items, net	(26		)		(8		)		(47		)		(17		)
Restructuring and other charges	—				(203		)		8				(203		)
Non-operating pension expense	(487		)	(f)	(50		)		(531		)	(f)	(122		)
Earnings (loss) from continuing operations before income taxes and equity earnings	$	(14	)		$	266			$	303			$	672
Equity earnings (loss), net of taxes – Ilim	$	46			$	67			$	108			$	106

(a) Includes charges of $28 million for the three months ended June 30, 2016 and $65 million for the six months ended June 30, 2016 for the impairment of the assets of our Asia corrugated packaging business in Asia and costs associated with the sale of the business.

(b) Includes a charge of $5 million for the three months and six months ended June 30, 2016 for costs associated with the announced agreement to purchase the Weyerhaeuser Pulp business.

(c) Includes a charge of $9 million for the six months ended June 30, 2016 for costs associated with the Riegelwood mill conversion to 100% pulp production.

(d) Includes a net gain of $14 million for the three months and six months ended June 30, 2015 related to the sale of the Carolina Coated Bristols brand, and costs associated with the Riegelwood mill conversion to 100% pulp production, and a charge of $1 million for the three months and six months ended June 30, 2015 for costs associated with the Coated Paperboard sheet plant closures.

(e) 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.

(f) Includes a charge of $439 million for the three months and six months ended June 30, 2016 for a settlement accounting charge associated with term-vested lump sum payments.