Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income Before Income Tax, Domestic and Foreign [Table Text Block]

The components of International Paper’s earnings from continuing operations before income taxes and equity earnings by taxing jurisdiction were as follows:



In millions	2017		2016		2015
Earnings (loss)
U.S.	$	297	$	411	$	1,013
Non-U.S.	551		384		119
Earnings (loss) from continuing operations before income taxes and equity earnings	$	848	$	795	$	1,132

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision (benefit) for income taxes from continuing operations (excluding noncontrolling interests) by taxing jurisdiction was as follows:



In millions	2017			2016			2015
Current tax provision (benefit)
U.S. federal	$	(73	)	$	(7	)	$	35
U.S. state and local	(23		)	(12		)	3
Non-U.S.	112			76			111
	$	16		$	57		$	149
Deferred tax provision (benefit)
U.S. federal	$	(1,150	)	$	134		$	306
U.S. state and local	9			27			32
Non-U.S.	40			(25		)	(70		)
	$	(1,101	)	$	136		$	268
Income tax provision (benefit)	$	(1,085	)	$	193		$	417

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of income tax expense using the statutory U.S. income tax rate compared with the actual income tax provision follows:



In millions	2017			2016			2015
Earnings (loss) from continuing operations before income taxes and equity earnings	$	848		$	795		$	1,132
Statutory U.S. income tax rate	35		%	35		%	35		%
Tax expense (benefit) using statutory U.S. income tax rate	297			278			396
State and local income taxes	(7		)	8			20
Tax rate and permanent differences on non-U.S. earnings	(36		)	(26		)	(44		)
Net U.S. tax on non-U.S. dividends	44			21			12
Tax expense (benefit) on manufacturing activities	23			(10		)	(12		)
Non-deductible business expenses	7			9			8
Non-deductible impairments	—			—			109
Sale of non-strategic assets	—			12			(61		)
Tax audits	—			(14		)	—
U.S. federal tax rate change	(1,451		)	—			—
Foreign tax credits	(96		)	(11		)	—
Subsidiary liquidation	—			(63		)	—
Deemed repatriation, net of foreign tax credits	231			—			—
General business and other tax credits	(86		)	(15		)	(15		)
Other, net	(11		)	4			4
Income tax provision (benefit)	$	(1,085	)	$	193		$	417
Effective income tax rate	(128		)%	24		%	37		%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of significant temporary differences, representing deferred income tax assets and liabilities at December 31, 2017 and 2016, were as follows:



In millions	2017			2016
Deferred income tax assets:
Postretirement benefit accruals	$	102		$	165
Pension obligations	516			1,344
Alternative minimum and other tax credits	416			270
Net operating and capital loss carryforwards	665			662
Compensation reserves	174			257
Other	139			251
Gross deferred income tax assets	2,012			2,949
Less: valuation allowance (a)	(429		)	(403		)
Net deferred income tax asset	$	1,583		$	2,546
Deferred income tax liabilities:
Intangibles	$	(139	)	$	(231	)
Plants, properties and equipment	(2,000		)	(2,828		)
Forestlands, related installment sales, and investment in subsidiary	(1,454		)	(2,260		)
Gross deferred income tax liabilities	$	(3,593	)	$	(5,319	)
Net deferred income tax liability	$	(2,010	)	$	(2,773	)

Schedule of Unrecognized Tax Benefits Rollforward [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2017, 2016 and 2015 is as follows:



In millions	2017			2016			2015
Balance at January 1	$	(98	)	$	(150	)	$	(158	)
(Additions) reductions based on tax positions related to current year	(54		)	(4		)	(6		)
Additions for tax positions of prior years	(40		)	(3		)	(6		)
Reductions for tax positions of prior years	4			33			7
Settlements	6			19			2
Expiration of statutes of limitations	1			5			4
Currency translation adjustment	(7		)	2			7
Balance at December 31	$	(188	)	$	(98	)	$	(150	)

Summary of Operating Loss and Tax Credit Carryforwards [Table Text Block]

The following details the scheduled expiration dates of the Company’s net operating loss and income tax credit carryforwards:



In millions	2018 Through 2027		2028 Through 2037		Indefinite		Total
U.S. federal and non-U.S. NOLs	$	65	$	2	$	432	$	499
State taxing jurisdiction NOLs	147		68		—		215
U.S. federal, non- U.S. and state tax credit carryforwards	199		18		269		486
U.S. federal and state capital loss carryforwards	2		—		—		2
Total	$	413	$	88	$	701	$	1,202