INDUSTRY SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

International Paper’s business segments, Industrial Packaging, Global Cellulose Fibers and Printing Papers, 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 holds a 50% interest in Ilim Holding S.A. and a 20.5% interest in Graphic Packaging International LLC, which are separate reportable industry segments. See Note 11 for details of the Company's ownership in each of these investments.

Business segment operating profits are used by International Paper's management to measure the earnings performance of its businesses. Management believes that this measure allows a better understanding of trends in costs, operating efficiencies, prices and volumes. Business segment operating profits are defined as earnings (loss) from continuing operations before income taxes and equity earnings, but including the impact of equity earnings and noncontrolling interests, excluding corporate items, corporate special items and non-operating pension expense.

Sales by business segment for the three months and nine months ended September 30, 2018 and 2017 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2018		2017		2018		2017
Industrial Packaging	$	4,034	$	3,822	$	11,883	$	11,184
Global Cellulose Fibers	714		654		2,083		1,830
Printing Papers	1,102		1,039		3,215		3,051
Corporate and Intersegment Sales	51		2		174		(33		)
Net Sales	$	5,901	$	5,517	$	17,355	$	16,032

Operating profit by business segment for the three months and nine months ended September 30, 2018 and 2017 were as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
In millions	2018			2017		2018			2017
Industrial Packaging	$	472		$	490	$	1,446		$	938
Global Cellulose Fibers	83			49		160			(14		)
Printing Papers	183			135		341			321
Business Segment Operating Profits	738			674		1,947			1,245
Earnings (loss) from continuing operations before income taxes and equity earnings	553			457		$	1,399		$	651
Interest expense, net	133			152		401			431
Noncontrolling interests/equity earnings adjustment	(2		)	—		(7		)	(1		)
Corporate items, net	20			32		59			73
Corporate special items, net	9			—		30			(7		)
Non-operating pension expense	25			33		65			98
Business Segment Operating Profits	$	738		$	674	$	1,947		$	1,245