INDUSTRY SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

BUSINESS SEGMENT INFORMATION

International Paper’s business 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 business segment. The Company recorded equity earnings (losses), net of taxes, of $46 million and $154 million for the three months and nine months ended September 30, 2016, respectively, and $(9) million and $97 million for the three months and nine months ended September 30, 2015, respectively, for Ilim. At September 30, 2016 and December 31, 2015, the Company's investment in Ilim was $267 million and $172 million, respectively, which was $169 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 $40 million and $124 million for the three months and nine months ended September 30, 2016, respectively, and $41 million and $132 million for the three months and nine months ended September 30, 2015, respectively.

Sales by business segment for the three months and nine months ended September 30, 2016 and 2015 were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2016			2015			2016			2015
Industrial Packaging	$	3,582		$	3,642		$	10,631		$	10,889
Printing Papers	1,266			1,258			3,721			3,735
Consumer Packaging	494			809			1,490			2,384
Corporate and Intersegment Sales	(76		)	(18		)	(144		)	(86		)
Net Sales	$	5,266		$	5,691		$	15,698		$	16,922

Operating profit by business segment for the three months and nine months ended September 30, 2016 and 2015 were as follows:

	Three Months Ended September 30,							Nine Months Ended September 30,
In millions	2016			2015				2016			2015
Industrial Packaging	$	424	(a)	$	553			$	1,279	(a)	$	1,549
Printing Papers	128		(b)	179				309		(b)	389
Consumer Packaging	61			(153		)	(d)	150		(c)	(60		)	(d)
Business Segment Operating Profit	613			579				1,738			1,878
Earnings (loss) from continuing operations before income taxes and equity earnings	$	373		$	329			$	676		$	1,001
Interest expense, net	132			141				384			422
Noncontrolling interests/equity earnings adjustment (f)	1			6				1			10
Corporate items, net	11			10				58			27
Restructuring and other charges	54			17				46			220
Non-operating pension expense	42			76				573		(e)	198
Adjusted Operating Profit	$	613		$	579			$	1,738		$	1,878
Equity earnings (loss), net of taxes – Ilim	$	46		$	(9	)		$	154		$	97

(a) Includes charges of $5 million and $70 million for the three months and nine months ended September 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 charges of $7 million and $12 million for the three months and nine months ended September 30, 2016 for costs associated with the announced agreement to purchase the Weyerhaeuser Pulp business.

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

(d) Includes a charge of $186 million for the three months and nine months ended September 30, 2015 for asset write-offs associated with the sale of 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 related to the sale of the Carolina Coated Bristols brand and costs associated with the Riegelwood mill conversion to 100% pulp production, and charges of $1 million and $2 million for the three months and nine months ended September 30, 2015 for costs associated with the Coated Paperboard sheet plant closures.

(e) Includes a charge of $439 million for the nine months ended September 30, 2016 for a settlement accounting charge associated with term-vested lump sum payments.

(f) Operating profits for business 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.