10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2019

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From              to             

 _________________________________________

Commission File Number 001-03157

INTERNATIONAL PAPER COMPANY

(Exact name of registrant as specified in its charter)

New York			13-0872805
(State or other jurisdiction of			(I.R.S. Employer
incorporation of organization)			Identification No.)
6400 Poplar Avenue	Memphis,	TN	38197
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (901) 419-7000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares	IP	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (paragraph 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒   No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. 

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange

Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ☐

The number of shares outstanding of the registrant’s common stock, par value $1.00 per share, as of October 25, 2019 was 392,116,473.

INDEX

		PAGE NO.
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Statement of Operations - Three Months and Nine Months Ended September 30, 2019 and 2018	1
	Condensed Consolidated Statement of Comprehensive Income - Three Months and Nine Months Ended September 30, 2019 and 2018	2
	Condensed Consolidated Balance Sheet - September 30, 2019 and December 31, 2018	3
	Condensed Consolidated Statement of Cash Flows - Nine Months Ended September 30, 2019 and 2018	4
	Condensed Notes to Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	47
Item 4.	Controls and Procedures	47
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 6.	Exhibits	49
Signatures		50

ITEM 1. FINANCIAL STATEMENTS

INTERNATIONAL PAPER COMPANY

(Unaudited)

(In millions, except per share amounts) 

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Net Sales	$	5,568		$	5,901	$	16,878		$	17,355
Costs and Expenses
Cost of products sold	3,772			3,887		11,602			11,757
Selling and administrative expenses	387			405		1,202			1,277
Depreciation, amortization and cost of timber harvested	327			335		963			990
Distribution expenses	395			397		1,168			1,166
Taxes other than payroll and income taxes	42			44		128			130
Restructuring and other charges, net	21			—		21			48
Net (gains) losses on sales and impairments of businesses	8			122		153			122
Antitrust fines	32			—		32			—
Interest expense, net	123			133		378			401
Non-operating pension expense	9			25		27			65
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings	452			553		1,204			1,399
Income tax provision (benefit)	137			83		371			302
Equity earnings (loss), net of taxes	27			92		221			257
Earnings (Loss) From Continuing Operations	342			562		1,054			1,354
Discontinued operations, net of taxes	—			—		—			345
Net Earnings (Loss)	342			562		1,054			1,699
Less: Net earnings (loss) attributable to noncontrolling interests	(2		)	—		(6		)	3
Net Earnings (Loss) Attributable to International Paper Company	$	344		$	562	$	1,060		$	1,696
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
Earnings (loss) from continuing operations	$	0.88		$	1.38	$	2.67		$	3.28
Discontinued operations, net of taxes	—			—		—			0.84
Net earnings (loss)	$	0.88		$	1.38	$	2.67		$	4.12
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
Earnings (loss) from continuing operations	$	0.87		$	1.37	$	2.65		$	3.25
Discontinued operations, net of taxes	—			—		—			0.83
Net earnings (loss)	$	0.87		$	1.37	$	2.65		$	4.08
Average Shares of Common Stock Outstanding – assuming dilution	395.4			411.4		399.6			416.3

The accompanying notes are an integral part of these condensed financial statements.

1

INTERNATIONAL PAPER COMPANY

(Unaudited)

(In millions)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net Earnings (Loss)	$	342		$	562		$	1,054		$	1,699
Other Comprehensive Income (Loss), Net of Tax:
Amortization of pension and post-retirement prior service costs and net loss:
U.S. plans	41			76			122			227
Change in cumulative foreign currency translation adjustment	(179		)	(87		)	(106		)	(467		)
Net gains/losses on cash flow hedging derivatives:
Net gains (losses) arising during the period	(10		)	1			(6		)	(20		)
Reclassification adjustment for (gains) losses included in net earnings (loss)	4			2			5			2
Total Other Comprehensive Income (Loss), Net of Tax	(144		)	(8		)	15			(258		)
Comprehensive Income (Loss)	198			554			1,069			1,441
Net (earnings) loss attributable to noncontrolling interests	2			—			6			(3		)
Other comprehensive (income) loss attributable to noncontrolling interests	—			2			—			4
Comprehensive Income (Loss) Attributable to International Paper Company	$	200		$	556		$	1,075		$	1,442

The accompanying notes are an integral part of these condensed financial statements.

2

INTERNATIONAL PAPER COMPANY

(In millions)

	September 30, 2019			December 31, 2018
	(unaudited)
Assets
Current Assets
Cash and temporary investments	$	697		$	589
Accounts and notes receivable, net	3,305			3,521
Contract assets	388			395
Inventories	2,194			2,241
Assets held for sale	278			—
Other current assets	189			250
Total Current Assets	7,051			6,996
Plants, Properties and Equipment, net	12,845			13,067
Forestlands	378			402
Investments	1,651			1,648
Financial Assets of Variable Interest Entities (Note 16)	7,084			7,070
Goodwill	3,412			3,374
Right of Use Assets	425			—
Deferred Charges and Other Assets	1,002			1,019
Total Assets	$	33,848		$	33,576
Liabilities and Equity
Current Liabilities
Notes payable and current maturities of long-term debt	$	402		$	639
Accounts payable	2,349			2,413
Accrued payroll and benefits	442			535
Liabilities held for sale	248			—
Other current liabilities	1,288			1,107
Total Current Liabilities	4,729			4,694
Long-Term Debt	9,957			10,015
Nonrecourse Financial Liabilities of Variable Interest Entities (Note 16)	6,303			6,298
Deferred Income Taxes	2,643			2,600
Pension Benefit Obligation	1,653			1,762
Postretirement and Postemployment Benefit Obligation	248			264
Long-Term Lease Obligations	292			—
Other Liabilities	567			560
Equity
Common stock, $1 par value, 2019 – 448.9 shares and 2018 – 448.9 shares	449			449
Paid-in capital	6,261			6,280
Retained earnings	8,447			7,465
Accumulated other comprehensive loss	(5,014		)	(4,500		)
	10,143			9,694
Less: Common stock held in treasury, at cost, 2019 – 56.8 shares and 2018 – 48.3 shares	2,702			2,332
Total International Paper Shareholders’ Equity	7,441			7,362
Noncontrolling interests	15			21
Total Equity	7,456			7,383
Total Liabilities and Equity	$	33,848		$	33,576

The accompanying notes are an integral part of these condensed financial statements.

3

INTERNATIONAL PAPER COMPANY

(Unaudited)

(In millions)

	Nine Months Ended September 30,
	2019			2018
Operating Activities
Net earnings (loss)	$	1,054		$	1,699
Depreciation, amortization and cost of timber harvested	963			990
Deferred income tax provision (benefit), net	68			163
Restructuring and other charges, net	21			48
Net gain on transfer of North American Consumer Packaging business	—			(488		)
Net (gains) losses on sales and impairments of businesses	153			122
Antitrust fines	32			—
Equity method dividends received	260			130
Equity (earnings) losses, net	(221		)	(257		)
Periodic pension expense, net	70			172
Other, net	106			75
Changes in current assets and liabilities
Accounts and notes receivable	168			(441		)
Contract assets	6			(20		)
Inventories	(9		)	(120		)
Accounts payable and accrued liabilities	(11		)	301
Interest payable	(31		)	(33		)
Other	53			64
Cash Provided By (Used For) Operations	2,682			2,405
Investment Activities
Invested in capital projects	(913		)	(1,286		)
Acquisitions, net of cash acquired	(99		)	—
Net settlement on transfer of North American Consumer Packaging business	—			(40		)
Proceeds from divestitures, net of cash divested	17			—
Proceeds from sale of fixed assets	15			12
Other	(14		)	4
Cash Provided By (Used For) Investment Activities	(994		)	(1,310		)
Financing Activities
Repurchases of common stock and payments of restricted stock tax withholding	(535		)	(532		)
Issuance of debt	381			349
Reduction of debt	(772		)	(242		)
Change in book overdrafts	(29		)	(33		)
Dividends paid	(595		)	(588		)
Other	3			—
Cash Provided By (Used For) Financing Activities	(1,547		)	(1,046		)
Cash Included in Assets Held for Sale	(19		)	—
Effect of Exchange Rate Changes on Cash	(14		)	(41		)
Change in Cash and Temporary Investments	108			8
Cash and Temporary Investments
Beginning of period	589			1,018
End of period	$	697		$	1,026

The accompanying notes are an integral part of these condensed financial statements.

4

INTERNATIONAL PAPER COMPANY

(Unaudited)

The accompanying unaudited condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of International Paper Company’s (International Paper’s, the Company’s or our) financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first nine months of the year may not necessarily be indicative of full year results. It is suggested that these condensed financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which have previously been filed with the Securities and Exchange Commission.

Recently Adopted Accounting Pronouncements

Leases

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The Company adopted the provisions of this guidance effective January 1, 2019, using the modified retrospective optional transition method. Therefore, the standard was applied beginning January 1, 2019 and prior periods were not restated. The adoption of the standard did not result in a cumulative-effect adjustment to the opening balance of Retained earnings. The Company elected the package of practical expedients and implemented internal controls and system functionality to enable the preparation of financial information upon adoption.

The adoption of the new standard resulted in the recognition of a right of use asset and short-term and long-term liabilities recorded on the Company's consolidated balance sheet related to operating leases. Accounting for finance leases remained substantially unchanged. In addition, the adoption of the standard did not have a material impact on the Company's results of operations or cash flows.

Comprehensive Income

In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This guidance gives entities the option to reclassify stranded tax effects caused by the newly-enacted U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. As a result, the Company adopted this guidance effective January 1, 2019, and recorded a net increase to opening Retained earnings and a decrease to opening Accumulated other comprehensive income of $529 million, due to the cumulative impact of adopting the new guidance.

Recently Issued Accounting Pronouncements Not Yet Adopted

Intangibles

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." This guidance eliminates the requirement to calculate the implied fair value of goodwill under Step 2 of today's goodwill impairment test to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. This guidance should be applied prospectively and is effective for annual reporting periods beginning after December 15, 2019, for any impairment test performed in 2020. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company plans to early adopt this guidance in the fourth quarter of 2019 in conjunction with our annual evaluation for possible goodwill impairment which is performed in addition to interim evaluations when management believes that it is more likely than not, that events or circumstances have occurred that would result in the impairment of a reporting unit's goodwill.

Financial Instruments - Credit Losses

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This guidance replaces the current incurred loss impairment method with a method that reflects expected credit losses. This guidance is effective for annual reporting periods beginning after December 15, 2019,

5

including interim periods within those fiscal years. Early adoption is permitted. This guidance should be applied using the modified-retrospective approach. In May 2019, the FASB issued ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief." The amendments in this Update provide entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. The amendments also decrease costs for some financial statement preparers while providing financial statement users with decision-useful information. For entities that have not yet adopted the amendments in Update 2016-13, the effective date and transition methodology for the amendments in this Update are the same as in Update 2016-13. The Company is currently evaluating the provisions of this guidance and plans to adopt this guidance and the related amendments on its effective date of January 1, 2020, by recognizing any cumulative effect of initially applying the new standard as an adjustment to the opening balance of Retained earnings.

Pension Plan Disclosures

In July 2018, the FASB issued ASU 2018-09, "Codification Improvements," which included amendments to Subtopic 962-325. This disclosure guidance pertains to the presentation of certain types of investments and is effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the provisions of this guidance and its potential impact on our 2019 annual Form 10-K disclosures and presentation related to pension plan assets.

Generally, the Company recognizes revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods. For customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time which, generally, is as the goods are produced.

Disaggregated Revenue

A geographic disaggregation of revenues across our company segmentation in the following tables provides information to assist in evaluating the nature, timing and uncertainty of revenue and cash flows and how they may be impacted by economic factors.

	Three Months Ended September 30, 2019
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate and Inter-segment Sales			Total
Primary Geographical Markets (a)
United States	$	3,180		$	535	$	486		$	56		$	4,257
EMEA	415			62		315			(1		)	791
Pacific Rim and Asia	20			27		47			3			97
Americas, other than U.S.	205			—		223			(5		)	423
Total	$	3,820		$	624	$	1,071		$	53		$	5,568
Operating Segments
North American Industrial Packaging	$	3,368		$	—	$	—		$	—		$	3,368
EMEA Industrial Packaging	324			—		—			—			324
Brazilian Industrial Packaging	61			—		—			—			61
European Coated Paperboard	92			—		—			—			92
Global Cellulose Fibers	—			624		—			—			624
North American Printing Papers	—			—		492			—			492
Brazilian Papers	—			—		247			—			247
European Papers	—			—		299			—			299
Indian Papers	—			—		38			—			38
Intra-segment Eliminations	(25		)	—		(5		)	—			(30		)
Corporate & Inter-segment Sales				—		—			53			53
Total	$	3,820		$	624	$	1,071		$	53		$	5,568

6

(a) Net sales are attributed to countries based on the location of the seller.

	Nine Months Ended September 30, 2019
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate and Inter-segment Sales			Total
Primary Geographical Markets (a)
United States	$	9,531		$	1,656	$	1,448		$	174		$	12,809
EMEA	1,263			207		986			(8		)	2,448
Pacific Rim and Asia	50			111		167			9			337
Americas, other than U.S.	672			—		623			(11		)	1,284
Total	$	11,516		$	1,974	$	3,224		$	164		$	16,878
Operating Segments
North American Industrial Packaging	$	10,158		$	—	$	—		$	—		$	10,158
EMEA Industrial Packaging	994			—		—			—			994
Brazilian Industrial Packaging	176			—		—			—			176
European Coated Paperboard	275			—		—			—			275
Global Cellulose Fibers	—			1,974		—			—			1,974
North American Printing Papers	—			—		1,474			—			1,474
Brazilian Papers	—			—		702			—			702
European Papers	—			—		929			—			929
Indian Papers	—			—		144			—			144
Intra-segment Eliminations	(87		)	—		(25		)	—			(112		)
Corporate & Inter-segment Sales				—		—			164			164
Total	$	11,516		$	1,974	$	3,224		$	164		$	16,878

(a) Net sales are attributed to countries based on the location of the seller.

7

	Three Months Ended September 30, 2018
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate & Intersegment			Total
Primary Geographical Markets (a)
United States	$	3,394		$	602	$	482		$	52		$	4,530
EMEA	396			77		328			(4		)	797
Pacific Rim and Asia	40			35		62			6			143
Americas, other than U.S.	204			—		230			(3		)	431
Total	$	4,034		$	714	$	1,102		$	51		$	5,901
Operating Segments
North American Industrial Packaging	$	3,653		$	—	$	—		$	—		$	3,653
EMEA Industrial Packaging	311			—		—			—			311
Brazilian Industrial Packaging	57			—		—			—			57
European Coated Paperboard	87			—		—			—			87
Global Cellulose Fibers	—			714		—			—			714
North American Printing Papers	—			—		492			—			492
Brazilian Papers	—			—		255			—			255
European Papers	—			—		311			—			311
Indian Papers	—			—		47			—			47
Intra-segment Eliminations	(74		)	—		(3		)	—			(77		)
Corporate & Inter-segment Sales	—			—		—			51			51
Total	$	4,034		$	714	$	1,102		$	51		$	5,901

(a) Net sales are attributed to countries based on the location of the seller.

8

	Nine Months Ended September 30, 2018
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate & Intersegment			Total
Primary Geographical Markets (a)
United States	$	9,832		$	1,720	$	1,399		$	163		$	13,114
EMEA	1,275			222		988			(13		)	2,472
Pacific Rim and Asia	110			140		185			35			470
Americas, other than U.S.	666			1		643			(11		)	1,299
Total	$	11,883		$	2,083	$	3,215		$	174		$	17,355
Operating Segments
North American Industrial Packaging	$	10,604		$	—	$	—		$	—		$	10,604
EMEA Industrial Packaging	1,017			—		—			—			1,017
Brazilian Industrial Packaging	175			—		—			—			175
European Coated Paperboard	265			—		—			—			265
Global Cellulose Fibers	—			2,083		—			—			2,083
North American Printing Papers	—			—		1,443			—			1,443
Brazilian Papers	—			—		706			—			706
European Papers	—			—		932			—			932
Indian Papers	—			—		150			—			150
Intra-segment Eliminations	(178		)	—		(16		)	—			(194		)
Corporate & Inter-segment Sales	—			—		—			174			174
Total	$	11,883		$	2,083	$	3,215		$	174		$	17,355

(a) Net sales are attributed to countries based on the location of the seller.

Revenue Contract Balances

The opening and closing balances of the Company's contract assets and current contract liabilities are as follows:

In millions	Contract Assets (Short-Term)			Contract Liabilities (Short-Term)
Beginning Balance - January 1, 2019	$	395		$	56
Ending Balance -September 30, 2019	388			28
Increase / (Decrease)	$	(7	)	$	(28	)

A contract asset is created when the Company recognizes revenue on its customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes to the customer.

A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months.

The difference between the opening and closing balances of the Company's contract assets and contract liabilities primarily results from the difference between the price and quantity at comparable points in time for goods for which we have an unconditional right to payment or receive pre-payment from the customer, respectively.

9

A summary of the changes in equity for the three months and nine months ended September 30, 2019 and 2018 is provided below:

	Three Months Ended September 30, 2019
In millions, except per share amounts	Common Stock Issued		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, July 1	$	449	$	6,229	$	8,302		$	(4,870	)	$	2,628		$	7,482		$	17		$	7,499
Issuance of stock for various plans, net	—		32		—			—			(1		)	33			—			33
Repurchase of stock	—		—		—			—			75			(75		)	—			(75		)
Common stock dividends ($0.5000 per share)	—		—		(199		)	—			—			(199		)	—			(199		)
Transactions of equity method investees	—		—		—			—			—			—			—			—
Comprehensive income (loss)	—		—		344			(144		)	—			200			(2		)	198
Ending Balance, September 30	$	449	$	6,261	$	8,447		$	(5,014	)	$	2,702		$	7,441		$	15		$	7,456

	Nine Months Ended September 30, 2019
In millions, except per share amounts	Common Stock Issued		Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, January 1	$	449	$	6,280		$	7,465		$	(4,500	)	$	2,332		$	7,362		$	21		$	7,383
Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform	—		—			529			(529		)	—			—			—			—
Issuance of stock for various plans, net	—		(52		)	—			—			(165		)	113			—			113
Repurchase of stock	—		—			—			—			535			(535		)	—			(535		)
Common stock dividends ($1.5000 per share)	—		—			(607		)	—			—			(607		)	—			(607		)
Transactions of equity method investees	—		33			—			—			—			33			—			33
Comprehensive income (loss)	—		—			1,060			15			—			1,075			(6		)	1,069
Ending Balance, September 30	$	449	$	6,261		$	8,447		$	(5,014	)	$	2,702		$	7,441		$	15		$	7,456

	Three Months Ended September 30, 2018
In millions, except per share amounts	Common Stock Issued		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, July 1	$	449	$	6,219	$	6,988		$	(4,881	)	$	1,931		$	6,844		$	20		$	6,864
Issuance of stock for various plans, net	—		36		—			—			(1		)	37			—			37
Repurchase of stock	—		—		—			—			201			(201		)	—			(201		)
Common stock dividends ($0.4750 per share)	—		—		(197		)	—			—			(197		)	—			(197		)
Transactions of equity method investees	—		1		—			—			—			1			—			1
Comprehensive income (loss)	—		—		562			(6		)	—			556			(2		)	554
Ending Balance, September 30	$	449	$	6,256	$	7,353		$	(4,887	)	$	2,131		$	7,040		$	18		$	7,058

10

	Nine Months Ended September 30, 2018
In millions, except per share amounts	Common Stock Issued		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, January 1	$	449	$	6,206	$	6,180		$	(4,633	)	$	1,680		$	6,522		$	19		$	6,541
Adoption of ASC 606 revenue from contracts with customers	—		—		73			—			—			73			—			73
Issuance of stock for various plans, net	—		31		—			—			(81		)	112			—			112
Repurchase of stock	—		—		—			—			532			(532		)	—			(532		)
Common stock dividends ($1.4250 per share)	—		—		(596		)	—			—			(596		)	—			(596		)
Transactions of equity method investees	—		19		—			—			—			19			—			19
Comprehensive income (loss)	—		—		1,696			(254		)	—			1,442			(1		)	1,441
Ending Balance, September 30	$	449	$	6,256	$	7,353		$	(4,887	)	$	2,131		$	7,040		$	18		$	7,058

The following table presents changes in accumulated other comprehensive income (AOCI) for the three months and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019			2018
Defined Benefit Pension and Postretirement Adjustments
Balance at beginning of period	$	(2,362	)	$	(2,376	)	$	(1,916	)	$	(2,527	)
Reclassification of stranded tax effects	—			—			(527		)	—
Amounts reclassified from accumulated other comprehensive income	41			76			122			227
Balance at end of period	(2,321		)	(2,300		)	(2,321		)	(2,300		)
Change in Cumulative Foreign Currency Translation Adjustments
Balance at beginning of period	(2,508		)	(2,489		)	(2,581		)	(2,111		)
Other comprehensive income (loss) before reclassifications	(179		)	(87		)	(110		)	(469		)
Amounts reclassified from accumulated other comprehensive income	—			—			4			2
Other comprehensive income (loss) attributable to noncontrolling interest	—			2			—			4
Balance at end of period	(2,687		)	(2,574		)	(2,687		)	(2,574		)
Net Gains and Losses on Cash Flow Hedging Derivatives
Balance at beginning of period	—			(16		)	(3		)	5
Other comprehensive income (loss) before reclassifications	(10		)	1			(6		)	(20		)
Reclassification of stranded tax effects	—			—			(2		)	—
Amounts reclassified from accumulated other comprehensive income	4			2			5			2
Balance at end of period	(6		)	(13		)	(6		)	(13		)
Total Accumulated Other Comprehensive Income (Loss) at End of Period	$	(5,014	)	$	(4,887	)	$	(5,014	)	$	(4,887	)

11

The following table presents details of the reclassifications out of AOCI for the three months and nine months ended September 30, 2019 and 2018:

In millions:	Amounts Reclassified from Accumulated Other Comprehensive Income													Location of Amount Reclassified from AOCI
	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Defined benefit pension and postretirement items:
Prior-service costs	$	(4	)	$	(4	)	$	(10	)	$	(11	)	(a)	Non-operating pension expense
Actuarial gains (losses)	(50		)	(97		)	(152		)	(291		)	(a)	Non-operating pension expense
Total pre-tax amount	(54		)	(101		)	(162		)	(302		)
Tax (expense) benefit	13			25			40			75
Net of tax	(41		)	(76		)	(122		)	(227		)
Reclassification of stranded tax effects	—			—			527			—				Retained Earnings
Total, net of tax	(41		)	(76		)	405			(227		)
Change in cumulative foreign currency translation adjustments:
Business acquisitions/divestitures	—			—			(4		)	(2		)	(b)	Cost of products sold
Tax (expense) benefit	—			—			—			—
Net of tax	—			—			(4		)	(2		)
Net gains and losses on cash flow hedging derivatives:
Foreign exchange contracts	(6		)	(3		)	(7		)	(3		)	(c)	Cost of products sold
Total pre-tax amount	(6		)	(3		)	(7		)	(3		)
Tax (expense)/benefit	2			1			2			1
Net of tax	(4		)	(2		)	(5		)	(2		)
Reclassification of stranded tax effects	—			—			2			—				Retained Earnings
Total, net of tax	(4		)	(2		)	(3		)	(2		)
Total reclassifications for the period	$	(45	)	$	(78	)	$	398		$	(231	)

(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details).

(b) Amounts for the three months and nine months ended September 30, 2018 were reclassified to Discontinued operations, net of taxes.

(c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 18 for additional details).

Basic earnings per share is computed by dividing earnings by the weighted average number of common shares outstanding. Diluted earnings per share is computed assuming that all potentially dilutive securities were converted into common shares. There are no adjustments required to be made to net income for purposes of computing basic and diluted earnings per share. A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing operations, and diluted earnings (loss) per share from continuing operations is as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions, except per share amounts	2019		2018		2019		2018
Earnings (loss) from continuing operations attributable to International Paper Company common shareholders	$	344	$	562	$	1,060	$	1,351
Weighted average common shares outstanding	392.6		407.4		396.3		411.4
Effect of dilutive securities
Restricted performance share plan	2.8		4.0		3.3		4.9
Weighted average common shares outstanding – assuming dilution	395.4		411.4		399.6		416.3
Basic earnings (loss) per share from continuing operations	$	0.88	$	1.38	$	2.67	$	3.28
Diluted earnings (loss) per share from continuing operations	$	0.87	$	1.37	$	2.65	$	3.25

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2019: During the three months ended September 30, 2019, the Company recorded an $11 million pre-tax charge in Corporate, a $6 million pre-tax charge in the Printing Papers segment, and a $4 million pre-tax charge in the Global Cellulose Fibers segment for severance related to an overhead cost reduction initiative. The majority of the severance is expected to be paid over the next twelve months.

There were no restructuring and other charges recorded during the three months and six months ended June 30, 2019.

2018: There were no restructuring and other charges recorded during the three months ended September 30, 2018.

During the three months ended June 30, 2018, the Company recorded a $26 million pre-tax charge, in the Industrial Packaging segment, related to approximately $12 million of severance, $6 million in accelerated depreciation, $2 million in accelerated amortization, and $6 million in other charges in conjunction with the optimization of our EMEA Packaging business.

During the three months ended March 31, 2018, the Company recorded a $22 million pre-tax charge, in the Industrial Packaging segment, primarily related to severance charges in conjunction with the optimization of our EMEA Packaging business.

On June 28, 2019, the Company closed on the previously announced acquisition of two packaging businesses located in Portugal (Ovar) and France (Torigni and Cabourg) from DS Smith Packaging. The total purchase consideration, inclusive of working capital adjustments, was approximately €72 million (approximately $82 million at June 30, 2019 exchange rates), subject to post-closing adjustments.

The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of June 28, 2019:

In millions
Cash and temporary investments	$	1
Accounts and notes receivable	23
Inventory	8
Plants, properties and equipment	28
Goodwill	48
Right of use assets	2
Total assets acquired	110
Accounts payable and accrued liabilities	20
Other current liabilities	1
Long-term debt	2
Postretirement and postemployment benefit obligation	3
Long-term lease obligations	2
Total liabilities assumed	28
Net assets acquired	$	82

Since the date of acquisition, Net sales of $25 million and Earnings (loss) from continuing operations before income taxes and equity earnings of $2 million from the acquired business have been included in the Company's consolidated statement of operations for the three months ended September 30, 2019.

The purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding assets acquired and liabilities assumed, and revisions of provisional estimates of fair values, including, but not limited to, the completion of independent appraisals and valuations related to inventory, property, plant and equipment and acquired intangible assets. Adjustments to provisional amounts will be finalized as new information becomes available, but within the adjustment period of up to one year from the acquisition date.

13

Pro forma information has not been included as it is impracticable to obtain the information due to the lack of availability of historical U.S. GAAP financial data. The results of the operations of these businesses do not have a material effect on the Company's consolidated results of operations.

The Company has accounted for the above acquisition under ASC 805, "Business Combinations" and the results of operations have been included in International Paper's financial statements beginning with the date of acquisition.

Discontinued Operations

On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which included its North American Coated Paperboard and Foodservice businesses, to Graphic Packaging International Partners, LLC (GPIP), a subsidiary of Graphic Packaging Holding Company, in exchange for a 20.5% ownership interest in GPIP. GPIP subsequently transferred the North American Consumer Packaging business to Graphic Packaging International, LLC (GPI), a wholly owned subsidiary of GPIP. International Paper is accounting for its ownership interest in the combined business under the equity method. The Company determined the fair value of its investment in the combined business and recorded a pre-tax gain of $516 million ($385 million after taxes) on the transfer in the first quarter of 2018, subject to final working capital settlement. During the second quarter of 2018, the Company recorded a pre-tax charge of $28 million ($21 million after taxes) to adjust the previously recorded gain on the transfer. 

The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued operations, net of tax, related to the transfer of the North American Consumer Packaging business for all periods presented in the consolidated statement of operations:

	Three Months Ended September 30,		Nine Months Ended September 30,
In millions	2018		2018
Net Sales	$	—	$	—
Costs and Expenses
Selling and administrative expenses	—		25
(Gain) loss on transfer of business	—		(488		)
Earnings (Loss) Before Income Taxes and Equity Earnings	—		463
Income tax provision (benefit)	—		118
Discontinued Operations, Net of Taxes	$	—	$	345

Total cash used for operations related to the North American Consumer Packaging business of $25 million for the nine months ended September 30, 2018, is included in Cash Provided By (Used For) Operations in the consolidated statement of cash flows. Total cash used for investing activities related to the North American Consumer Packaging business of $40 million for the nine months ended September 30, 2018, is included in Cash Provided By (Used For) Investing Activities in the consolidated statement of cash flows.

Other Divestitures

On May 29, 2019, the Company announced that it had entered into an agreement with West Coast Paper Mills Limited (WCPM) to sell its controlling interest in International Paper APPM Limited (APPM), an India-based paper business, for ₨275 (Indian Rupees) per share. International Paper then owned approximately 30 million shares, or 75% of the outstanding shares of APPM.

In conjunction with the announced agreement in the second quarter of 2019, a determination was made that the current book value of the APPM disposal group exceeded its estimated fair value of $119 million which was based on the agreed upon transaction price. As a result, a preliminary pre-tax charge of $152 million ($150 million after taxes) was recorded during the second quarter of 2019. During the third quarter of 2019, the Company recorded an additional charge of $8 million (before and after taxes), which included $2 million related to the change in cumulative foreign currency translation loss and a $6 million loss related to the change in the book value of the long-lived assets of APPM compared to the estimated fair value of the disposal group. These charges are included in the Net (gains) losses on sales and impairments of businesses line item in the accompanying consolidated statement of operations and is included in the results for the Printing Papers segment. A year-to-

14

date loss of $9 million (before and after taxes) has been allocated to the noncontrolling interest related to the impairment of the long-lived assets of APPM.

The transaction closed on October 30, 2019 and the Company retained a passive investment of 20% in APPM. During the fourth quarter of 2019, a final immaterial adjustment to the impairment charge to reflect the difference between the proceeds received from the transaction and the closing book value of the long-lived assets will be recorded. In addition, the Company will record our retained investment at fair value.

At September 30, 2019, all assets and liabilities related to APPM are classified as current assets held for sale and current liabilities held for sale in the accompanying consolidated balance sheet. The following summarizes the major classes of assets and liabilities of APPM reconciled to total Assets held for sale and total Liabilities held for sale in the accompanying consolidated balance sheet:

In millions	September 30, 2019
Cash and temporary investments	$	19
Accounts and notes receivable	16
Inventories	23
Other current assets	19
Plants, properties and equipment	195
Deferred charges and other assets	6
Total Assets Held for Sale	$	278
Accounts payable and accrued liabilities	$	18
Other current liabilities	22
Deferred income taxes	47
Other liabilities	1
Net impairment reserve	160
Total Liabilities Held for Sale	$	248

Temporary Investments 

Temporary investments with an original maturity of three months or less are treated as cash equivalents and are stated at cost. Temporary investments totaled $484 million and $402 million at September 30, 2019 and December 31, 2018, respectively.

Accounts and Notes Receivable

In millions	September 30, 2019		December 31, 2018
Accounts and notes receivable, net:
Trade	$	3,055	$	3,249
Other	250		272
Total	$	3,305	$	3,521

The allowance for doubtful accounts was $77 million and $81 million at September 30, 2019 and December 31, 2018, respectively.

Inventories 

In millions	September 30, 2019		December 31, 2018
Raw materials	$	270	$	260
Finished pulp, paper and packaging	1,140		1,241
Operating supplies	637		641
Other	147		99
Total	$	2,194	$	2,241

15

Plants, Properties and Equipment  

Accumulated depreciation was $20.4 billion and $20.5 billion at September 30, 2019 and December 31, 2018, respectively. Depreciation expense was $305 million and $315 million for the three months ended September 30, 2019 and 2018, respectively, and $902 million and $930 million for the nine months ended September 30, 2019 and 2018, respectively.

Non-cash additions to plants, property and equipment included within accounts payable were $104 million and $135 million at September 30, 2019 and December 31, 2018, respectively.

Interest

Interest payments made during the nine months ended September 30, 2019 and 2018 were $591 million and $606 million, respectively.

Amounts related to interest were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Interest expense	$	177	$	184	$	538	$	547
Interest income	54		51		160		146
Capitalized interest costs	7		9		21		26

Asset Retirement Obligations

The Company had recorded liabilities of $95 million and $86 million related to asset retirement obligations at September 30, 2019 and December 31, 2018, respectively.

International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have remaining lease terms of one year to 97 years. Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases.

Right of use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Effective January 1, 2019, operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company's leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles, and leases within supply agreements primarily relate to usage, repairs, and maintenance. As the implicit rate is not readily determinable for most of the Company's leases, the Company applies a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities.

16

Components of Lease Expense

In millions	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease costs	$	39	$	115
Variable lease costs	16		53
Short-term lease costs	9		27
Finance lease cost
Amortization of lease assets	3		8
Interest on lease liabilities	1		3
Total lease cost, net	$	68	$	206

Supplemental Balance Sheet Information Related to Leases

In millions	Classification	September 30, 2019
Assets
Operating lease assets	Right-of-use assets	$	425
Finance lease assets	Plants, properties and equipment, net (a)	105
Total leased assets		$	530
Liabilities
Current
Operating	Other current liabilities	$	136
Finance	Notes payable and current maturities of long-term debt	13
Noncurrent
Operating	Long-term lease obligations	292
Finance	Long-term debt	91
Total lease liabilities		$	532

(a) Finance leases are recorded net of accumulated amortization of $37 million.

Lease Term and Discount Rate

In millions	September 30, 2019
Weighted average remaining lease term (years)
Operating leases	9.8 years
Finance leases	11.3 years
Weighted average discount rate
Operating leases	3.24	%
Finance leases	4.74	%

Supplemental Cash Flow Information Related to Leases

In millions	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	110
Operating cash flows related to financing leases	3
Financing cash flows related to finance leases	7

17

Maturity of Lease Liabilities

	September 30, 2019
In millions	Operating Leases		Financing Leases		Total
2019 (remainder of year)	$	39	$	4	$	43
2020	138		17		155
2021	97		15		112
2022	64		13		77
2023	35		11		46
2024	18		10		28
Thereafter	95		65		160
Total lease payments	486		135		621
Less: Interest (a)	58		31		89
Present value of lease liabilities	$	428	$	104	$	532

(a) Calculated using the interest rate for each lease.

At December 31, 2018, total future minimum commitments under existing non-cancelable operating leases were as follows:

In millions	2019		2020		2021		2022		2023		Thereafter
Lease obligations	$	160	$	125	$	77	$	49	$	28	$	118

The Company accounts for the following investments in affiliated companies under the equity method of accounting.

Graphic Packaging International Partners, LLC

On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which included its North American Coated Paperboard and Foodservice businesses, to a subsidiary of Graphic Packaging International Partners, LLC (GPIP), a subsidiary of Graphic Packaging Holding Company, in exchange for a 20.5% ownership interest in GPIP. GPIP subsequently transferred the North American Consumer Packaging business to Graphic Packaging International, LLC (GPI), a wholly-owned subsidiary of GPIP that holds the assets of the combined business. As of September 30, 2019, the Company's ownership interest in GPIP was 21.6%. The Company recorded equity earnings of $10 million and $19 million for the three months ended September 30, 2019 and 2018, respectively, and $37 million and $36 million for the nine months ended September 30, 2019 and 2018, respectively. The Company received cash dividends from GPIP of $20 million and $12 million during the first nine months of 2019 and 2018, respectively. The Company's investment in GPIP was $1.1 billion at both September 30, 2019 and December 31, 2018, which was $534 million and $562 million, respectively, more than the Company's proportionate share of the entity's underlying net assets. The difference primarily relates to the basis difference between the fair value of our investment and the underlying net assets, and is generally amortized in equity earnings over a period consistent with the underlying long-lived assets. The Company is party to various agreements with GPI under which it sells fiber and other products to GPI. Sales under these agreements were $69 million and $62 million for the three months ended September 30, 2019 and 2018, respectively, and $212 million and $180 million for the nine months ended September 30, 2019 and 2018, respectively.

Summarized financial information for GPIP is presented in the following tables:

Balance Sheet

In millions	September 30, 2019		December 31, 2018
Current assets	$	1,765	$	1,757
Noncurrent assets	5,419		5,292
Current liabilities	1,067		1,148
Noncurrent liabilities	3,325		3,156

18

Income Statement

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Net sales	$	1,581	$	1,530	$	4,640	$	4,515
Gross profit	266		256		820		714
Income from continuing operations	83		135		283		278
Net income	83		135		283		278

Ilim S.A.

The Company has a 50% equity interest in Ilim S.A. (Ilim), which has subsidiaries whose primary operations are in Russia. The Company recorded equity earnings, net of taxes, of $18 million and $74 million for the three months ended September 30, 2019 and 2018, respectively, and $186 million and $223 million for the nine months ended September 30, 2019 and 2018, respectively. The Company received cash dividends from the joint venture of $239 million and $118 million during the first nine months of 2019 and 2018, respectively. At September 30, 2019 and December 31, 2018, the Company's investment in Ilim was $477 million and $478 million, respectively, which was $146 million and $145 million, respectively, more than the Company's proportionate share of the joint venture's underlying net assets. The differences primarily relate to currency translation adjustments and the basis difference between the fair value of our investment at acquisition and the underlying net assets. The Company is party to a joint marketing agreement with JSC Ilim Group, a subsidiary of Ilim, under which the Company purchases, markets and sells paper produced by JSC Ilim Group. Purchases under this agreement were $51 million and $50 million for the three months ended September 30, 2019 and 2018, respectively, and $162 million and $159 million for the nine months ended September 30, 2019 and 2018, respectively.

Summarized financial information for Ilim is presented in the following tables:

Balance Sheet

In millions	September 30, 2019		December 31, 2018
Current assets	$	749	$	981
Noncurrent assets	2,392		1,710
Current liabilities	947		545
Noncurrent liabilities	1,509		1,470
Noncontrolling interests	22		11

Income Statement

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Net sales	$	479	$	655	$	1,692	$	2,030
Gross profit	196		376		836		1,152
Income from continuing operations	41		149		388		454
Net income	40		143		375		438

19

Goodwill

The following table presents changes in goodwill balances as allocated to each business segment for the nine-months ended September 30, 2019: 

In millions	Industrial Packaging				Global Cellulose Fibers		Printing Papers				Total
Balance as of January 1, 2019
Goodwill	$	3,379			$	52	$	2,116			$	5,547
Accumulated impairment losses	(296		)		—		(1,877		)		(2,173		)
	3,083				52		239				3,374
Currency translation and other (a)	(2		)		—		(14		)		(16		)
Goodwill additions/reductions	54			(b)	—		(112		)	(c)	(58		)
Accumulated impairment loss additions / reductions	—				—		112			(c)	112
Balance as of September 30, 2019
Goodwill	3,431				52		1,990				5,473
Accumulated impairment losses	(296		)		—		(1,765		)		(2,061		)
Total	$	3,135			$	52	$	225			$	3,412

(a) Represents the effects of foreign currency translations.

(b) Reflects the provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA.

(c) Reflects the reclassification of India goodwill and accumulated impairment losses to held for sale.

Other Intangibles

Identifiable intangible assets comprised the following: 

	September 30, 2019						December 31, 2018
In millions	Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets		Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets
Customer relationships and lists	$	541	$	266	$	275	$	542	$	247	$	295
Non-compete agreements	26		26		—		67		67		—
Tradenames, patents and trademarks, and developed technology	173		101		72		174		90		84
Land and water rights	8		2		6		8		2		6
Software	26		25		1		26		25		1
Other	25		18		7		30		23		7
Total	$	799	$	438	$	361	$	847	$	454	$	393

The Company recognized the following amounts as amortization expense related to intangible assets: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Amortization expense related to intangible assets	$	15	$	15	$	40	$	44

International Paper made income tax payments, net of refunds, of $245 million and $195 million for the nine months ended September 30, 2019 and 2018, respectively.

The Company currently estimates, that as a result of ongoing discussions, pending tax settlements and expirations of statutes of limitations, the amount of unrecognized tax benefits could be reduced by approximately $10 million during the next 12 months.

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International Paper uses the flow-through method to account for investment tax credits earned on eligible open loop-biomass facilities and Combined Heat and Power system expenditures. Under this method, the investment tax credits are recognized as a reduction to income tax expense in the year they are earned rather than a reduction in the asset basis. The Company recorded a tax benefit of $8 million and $6 million for the nine months ended September 30, 2019 and 2018, respectively.

The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by International Paper do Brasil Ltda., a wholly-owned subsidiary of the Company. The Company received assessments for the tax years 2007-2015 totaling approximately $146 million in tax, and $379 million in interest and penalties as of September 30, 2019 (adjusted for variation in currency exchange rates). After a previous favorable ruling challenging the basis for these assessments, we received an unfavorable decision in October 2018 from the Brazilian Administrative Council of Tax Appeals. The Company has appealed this judgment to the Brazilian federal courts; however, this tax litigation matter may take many years to resolve. The Company believes that it has appropriately evaluated the transaction underlying these assessments, and has concluded based on Brazilian tax law, that its position would be sustained. The Company intends to vigorously defend its position against the current assessments and any similar assessments that may be issued for tax years subsequent to 2015.

Environmental

International Paper has been named as a potentially responsible party (PRP) in environmental remediation actions under various federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Many of these proceedings involve the cleanup of hazardous substances at large commercial landfills that received waste from many different sources. While joint and several liability is authorized under CERCLA and equivalent state laws, as a practical matter, liability for CERCLA cleanups is typically allocated among the many PRPs. There are other remediation costs typically associated with the cleanup of hazardous substances at the Company’s current, closed or formerly-owned facilities, and recorded as liabilities in the balance sheet.

Remediation costs are recorded in the consolidated financial statements when they become probable and reasonably estimable. International Paper has estimated the probable liability associated with these matters to be approximately $145 million ($155 million undiscounted) in the aggregate as of September 30, 2019. Other than as described below, completion of required remedial actions is not expected to have a material effect on our consolidated financial statements.

Cass Lake: One of the matters included above arises out of a closed wood-treating facility located in Cass Lake, Minnesota. In June 2011, the United States Environmental Protection Agency (EPA) selected and published a proposed soil remedy at the site with an estimated cost of $46 million. The overall remediation reserve for the site is currently $47 million to address the selection of an alternative for the soil remediation component of the overall site remedy, which includes the ongoing groundwater remedy. In October 2011, the EPA released a public statement indicating that the final soil remedy decision would be delayed. In June 2019, the EPA issued a revised proposed plan concerning clean-up standards at a portion of the site, the estimated cost of which is included within the reserve referenced above. In October 2012, the Natural Resource Trustees for this site provided notice to International Paper and other PRPs of their intent to perform a Natural Resource Damage Assessment. It is premature to predict the outcome of the assessment or to estimate a loss or range of loss, if any, which may be incurred.

Kalamazoo River: The Company is a PRP with respect to the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund Site in Michigan. The EPA asserts that the site is contaminated by polychlorinated biphenyls (PCBs) primarily as a result of discharges from various paper mills located along the Kalamazoo River, including a paper mill (the Allied Paper Mill) formerly owned by St. Regis Paper Company (St. Regis). The Company is a successor in interest to St. Regis.

• Operable Unit 5, Area 1: In March 2016, the Company and other PRPs received a special notice letter from the EPA (i) inviting participation in implementing a remedy for a portion of the site known as Operable Unit 5, Area 1, and (ii) demanding reimbursement of EPA past costs totaling $37 million, including $19 million in past costs previously demanded by the EPA. The Company responded to the special notice letter. In December 2016, the EPA issued a unilateral administrative order to the Company and other PRPs to perform the remedy. The Company responded to the unilateral administrative order, agreeing to comply with the order subject to its sufficient cause defenses.

• Operable Unit 5, Area 2: In September 2017, the EPA issued a Record of Decision selecting the final remedy for a portion of the site known as Operable Unit 5, Area 2, but has not yet issued a special notice letter for implementing the remedy.

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• Operable Unit 5, Area 3: In April 2016, the EPA issued a separate unilateral administrative order to the Company and certain other PRPs for a time-critical removal action (TCRA) of PCB-contaminated banks and sediments from a portion of the site known as Operable Unit 5, Area 3. The Company responded to the unilateral administrative order and agreed along with two other parties to comply with the order subject to its sufficient cause defenses.The removal work has been completed.

• Operable Unit 1: In October 2016, the Company and another PRP received a special notice letter from the EPA inviting participation in the remedial design component of the landfill remedy for the Allied Paper Mill, which is also known as Operable Unit 1. The Record of Decision establishing the final landfill remedy for the Allied Paper Mill was issued by the EPA in September 2016. The Company responded to the Allied Paper Mill special notice letter in December 2016. In February 2017, the EPA informed the Company that it would make other arrangements for the performance of the remedial design.

The Company’s CERCLA liability has not been finally determined with respect to these or any other portions of the site, and except as noted above, the Company has declined to perform any work or reimburse the EPA at this time. As noted below, the Company is involved in allocation/apportionment litigation with regard to the site. Accordingly, it is premature to predict the outcome or estimate our maximum reasonably possible loss with respect to this site. We have an immaterial recorded liability for future remediation costs at the site that are probable and reasonably estimable, and it remains reasonably possible that additional losses could be material.

The Company was named as a defendant by Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC in a contribution and cost recovery action for alleged pollution at the site. The suit seeks contribution under CERCLA for costs purportedly expended by plaintiffs ($79 million as of the filing of the complaint) and for future remediation costs. The suit alleges that a mill, during the time it was allegedly owned and operated by St. Regis, discharged PCB contaminated solids and paper residuals resulting from paper de-inking and recycling. NCR Corporation and Weyerhaeuser Company are also named as defendants in the suit. In mid-2011, the suit was transferred from the District Court for the Eastern District of Wisconsin to the District Court for the Western District of Michigan.

The trial of the initial liability phase took place in February 2013. Weyerhaeuser conceded prior to trial that it was a liable party with respect to the site. In September 2013, an opinion and order was issued in the suit. The order concluded that the Company (as the successor to St. Regis) was not an “operator,” but was an “owner,” of the mill at issue during a portion of the relevant period and is therefore liable under CERCLA. The order also determined that NCR is a liable party as an "arranger for disposal" of PCBs in waste paper that was de-inked and recycled by mills along the Kalamazoo River. The order did not address the Company's responsibility, if any, for past or future costs. The parties’ responsibility, including that of the Company, was the subject of a second trial, which was concluded in late 2015. In June 2018, the Court issued its Final Judgment and Order, which fixed the past cost amount at approximately $50 million (plus interest to be determined) and allocated to the Company a 15% share of responsibility for those past costs. The Court did not address responsibility for future costs in its decision. In July 2018, the Company and each of the other parties filed notices appealing the Final Judgment and prior orders incorporated into that Judgment.

Harris County: International Paper and McGinnis Industrial Maintenance Corporation (MIMC), a subsidiary of Waste Management, Inc. (WMI), are PRPs at the San Jacinto River Waste Pits Superfund Site in Harris County, Texas. The PRPs have been actively participating in the activities at the site and share the costs of these activities. In September 2016, the EPA issued a proposed remedial action plan (PRAP) for the site, which identified the preferred remedy as the removal of the contaminated material currently protected by an armored cap. In addition, the EPA selected a preferred remedy for the separate southern impoundment that requires offsite disposal. In January 2017, the PRPs submitted comments on the PRAP.

On October 11, 2017, the EPA issued a Record of Decision (ROD) selecting the final remedy for the site: removal and relocation of the waste material from both the northern and southern impoundments. The EPA did not specify the methods or practices needed to perform this work. While the EPA’s selected remedy was accompanied by a cost estimate of approximately $115 million, we do not believe that estimate provides a reasonable basis for accrual under GAAP because the estimate was based on a technological method for performing the work that we believe is not feasible. Subsequent to the issuance of the ROD, there have been numerous meetings between the EPA and the PRPs, and the Company continues to work with the EPA and MIMC/WMI to develop the remedial design.

To this end, in April 2018, the PRPs entered into an Administrative Order on Consent (AOC) with the EPA, agreeing to work together to develop the remedial design over the subsequent 29 months. The AOC does not include any agreement to perform waste removal or other construction activity at the site. Rather, it involves adaptive management techniques and a pre-design

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investigation, the objectives of which include filling data gaps (including but not limited to post-Hurricane Harvey technical data generated prior to the ROD and not incorporated into the selected remedy), refining areas and volumes of materials to be addressed, determining if an excavation remedy is able to be implemented in a manner protective of human health and the environment, and investigating potential impacts of remediation activities to infrastructure in the vicinity. On October 14, 2019, the PRPs received a special notice letter from the EPA (i) inviting participation in implementing the remedy described in the ROD, and (ii) demanding reimbursement of EPA past costs totaling $8 million.  The PRPs are preparing their response to the special notice letter.

The Company has identified a number of concerns and uncertainties regarding the remedy described in the ROD and regarding the EPA’s estimates for the costs and time required to implement the selected remedy. The Company has determined, however, that even if the ROD cannot be implemented, a sheet pile "engineered barrier" can be constructed, which would enhance the existing remedy and could also be used should the ROD be determined to be feasible and implementable. In the third quarter of 2018, we increased our recorded liability accordingly to reflect the estimated cost of constructing this barrier. Because of ongoing questions regarding cost effectiveness, technical feasibility, timing and other technical data, however, it is uncertain how the ROD will be implemented. Consequently, while additional losses are probable as a result of the selected remedy, we are currently unable to determine any further adjustment to our immaterial recorded liability. It remains reasonably possible that additional losses could be material as the remedial design process with the EPA continues over the coming quarters.

International Paper and MIMC/WMI are also defending an additional lawsuit related to the site brought by approximately 600 individuals who allege property damage and personal injury. This case is still in the discovery phase, and it is premature to predict the outcome or to estimate our maximum reasonably possible loss. However, we do not believe that any material loss is probable.

Antitrust

Containerboard: In January 2011, International Paper was named as a defendant in a lawsuit filed in state court in Cocke County, Tennessee alleging that International Paper violated Tennessee law by conspiring to limit the supply and fix the prices of containerboard from mid-2005 to the present. Plaintiffs in the state court action seek certification of a class of Tennessee indirect purchasers of containerboard products, damages and costs, including attorneys' fees. No class certification materials have been filed to date in the Tennessee action. The Company disputes the allegations made in the Tennessee lawsuit and is vigorously defending it. At this time, however, because the action is in a preliminary stage, we are unable to predict an outcome or estimate a range of reasonably possible loss.

Italy: In March 2017, the Italian Competition Authority (ICA) commenced an investigation into the Italian packaging industry to determine whether producers of corrugated sheets and boxes violated the applicable European competition law. In April 2019, the ICA concluded its investigation and issued initial findings alleging that over 30 producers, including our Italian packaging subsidiary (IP Italy), improperly coordinated the production and sale of corrugated sheets and boxes. On August 6, 2019, the ICA issued its decision and assessed IP Italy a fine of €29 million (approximately $32 million at current exchange rates) which was recorded in the third quarter of 2019. This charge is included in the Antitrust fines line item in the accompanying consolidated statement of operations. However, we are vigorously appealing this decision of the ICA to the Italian courts and have numerous and strong bases for our appeal.

Contract

Signature: In August 2014, a lawsuit captioned Signature Industrial Services LLC et al. v. International Paper Company was filed in state court in Texas. The Signature lawsuit arises out of approximately $1 million in disputed invoices related to the installation of new equipment at the Company's Orange, Texas mill. In addition to the invoices in dispute, Signature and its president allege consequential damages arising from the Company's nonpayment of those invoices. The lawsuit was tried before a jury in Beaumont, Texas, in May 2017. On June 1, 2017, the jury returned a verdict awarding approximately $125 million in damages to the plaintiffs. The Court issued a judgment on December 14, 2017, awarding the plaintiffs a total of approximately $137 million in actual and consequential damages, fees, costs and pre-judgment interest, and awarding post-judgment interest. The Company has appealed this judgment. The Company has presented in its briefing numerous and strong bases for appeal, and we believe we will prevail on appeal. Because the appellate proceedings are ongoing, we are unable to estimate a range of reasonably possible loss, but we expect the amount of any loss to be immaterial.

General

The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, personal injury, labor and employment, contracts, sales of property, intellectual property, tax, antitrust and other

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matters, some of which allege substantial monetary damages. While any proceeding or litigation has the element of uncertainty, the Company believes that the outcome of any of these other lawsuits or claims that are pending or threatened or all of them combined (other than those that cannot be assessed due to their preliminary nature) will not have a material effect on its consolidated financial statements. See Note 14 for details regarding a tax matter.

Variable Interest Entities

As of September 30, 2019, the fair value of the Timber Notes and Extension Loans is $4.84 billion and $4.27 billion, respectively, for the 2015 Financing Entities. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 16 in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.

Activity between the Company and the 2015 Financing Entities was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Revenue (a)	$	24	$	24	$	71	$	71
Expense (a)	32		32		96		96
Cash receipts (b)	48		48		95		95
Cash payments (c)	64		64		128		128

(a) The revenue and expense are included in Interest expense, net in the accompanying statement of operations.

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

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

As of September 30, 2019, the fair value of the Timber Notes and Extension Loans is $2.28 billion and $2.11 billion, respectively, for the 2007 Financing Entities. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 16 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Activity between the Company and the 2007 Financing Entities was as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Revenue (a)	$	19	$	19	$	61	$	52
Expense (b)	19		18		60		48
Cash receipts (c)	16		15		48		34
Cash payments (d)	17		16		53		40

(a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for three and nine months ended September 30, 2019 and 2018, respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities.

(b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three and nine months ended September 30, 2019 and 2018, respectively, of accretion expense for the amortization of the basis difference 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.

In June 2019, International Paper issued $200 million of 3.55% senior unsecured notes with a maturity date in 2029. The proceeds from this offering, together with a combination of available cash and other borrowings, were used for general corporate purposes, including repayment of outstanding commercial paper borrowings and other existing indebtedness.

In June 2018, the borrowing capacity of International Paper's commercial paper program was increased from $750 million to $1.0 billion. Under the terms of the program, individual maturities on borrowings may vary, but not exceed one year from the

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date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. As of September 30, 2019, the Company had $245 million of borrowings outstanding under the program at a weighted average interest rate of 2.29%.

At September 30, 2019, the fair value of International Paper’s $10.4 billion of debt was approximately $11.4 billion. The fair value of the Company’s long-term debt is estimated based on the quoted market prices for the same or similar issues. International Paper’s long-term debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 16 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

In October 2019, International Paper issued $127 million of industrial development bonds with interest rates ranging from 1.90% to 2.10% and maturity dates in 2024. The proceeds from this offering will be used to repay other existing industrial development bonds.

As a multinational company International Paper is exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices.

The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows:

In millions	September 30, 2019		December 31, 2018
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	570	$	407
Derivatives in Fair Value Hedging Relationships:
Interest rate contracts	700		700
Derivatives in Net Investment Hedging Relationships:
Interest rate contracts	475		—
Derivatives Not Designated as Hedging Instruments:
Electricity contract	19		8
Foreign exchange contracts	11		19

The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: 

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
	Three Months Ended September 30,					Nine Months Ended September 30,
In millions	2019			2018		2019			2018
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	(10	)	$	1	$	(6	)	$	(18	)
Interest rate contracts	—			—		—			(2		)
Total	$	(10	)	$	1	$	(6	)	$	(20	)
Derivatives in Net Investment Hedging Relationships:
Interest rate contracts	$	18		$	—	$	15		$	—
Total	$	18		$	—	$	15		$	—

During the next 12 months, the amount of the September 30, 2019 AOCI balance, after tax, that is expected to be reclassified to earnings is a loss of $3 million.

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The amounts of gains and losses recognized in the statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows:

	Gain (Loss) Reclassified from AOCI (Effective Portion)												Location of Gain (Loss) Reclassified from AOCI (Effective Portion)
	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019			2018
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	(4	)	$	(2	)	$	(5	)	$	(2	)	Cost of products sold
Total	$	(4	)	$	(2	)	$	(5	)	$	(2	)

	Gain (Loss) Recognized										Location of Gain (Loss) In  Statement of Operations
	Three Months Ended September 30,					Nine Months Ended September 30,
In millions	2019			2018		2019			2018
Derivatives in Fair Value Hedging Relationships:
Interest rate contracts	$	11		$	—	$	42		$	—	Interest expense, net
Debt	(11		)	—		(42		)	—		Interest expense, net
Total	—			—		—			—
Derivatives Not Designated as Hedging Instruments:
Electricity contract	$	(5	)	$	2	$	—		$	1	Cost of products sold
Foreign exchange contracts	(1		)	3		(2		)	4		Cost of products sold
Total	$	(6	)	$	5	$	(2	)	$	5

Fair Value Measurements

The Company has not changed its valuation techniques for measuring the fair value of any financial assets or liabilities during the year. Transfers between levels, if any, are recognized at the end of the reporting period.

The following table provides a summary of the impact of our derivative instruments in the balance sheet:

Fair Value Measurements

Level 2 – Significant Other Observable Inputs

 

	Assets						Liabilities
In millions	September 30, 2019			December 31, 2018			September 30, 2019			December 31, 2018
Derivatives designated as hedging instruments
Foreign exchange contracts – cash flow	$	5		$	3		$	13		$	10
Interest rate contracts - net investment	20			—			—			—
Interest rate contracts - fair value	59			16			—			—
Total derivatives designated as hedging instruments	84			19			13			10
Derivatives not designated as hedging instruments
Electricity contract	—			—			5			4
Foreign exchange contracts	—			—			2			1
Total derivatives not designated as hedging instruments	—			—			7			5
Total derivatives	$	84	(a)	$	19	(b)	$	20	(c)	$	15	(d)

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(a) Includes $8 million recorded in Other current assets and $76 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

(b) Includes $2 million recorded in Other current assets and $17 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

(c) Includes $15 million recorded in Other accrued liabilities and $5 million recorded in Other liabilities in the accompanying consolidated balance sheet.

(d) Included in Other current liabilities in the accompanying consolidated balance sheet.

The above contracts are subject to enforceable master netting arrangements that provide rights of offset with each counterparty when amounts are payable on the same date in the same currency or in the case of certain specified defaults. Management has made an accounting policy election to not offset the fair value of recognized derivative assets and derivative liabilities in the balance sheet. The amounts owed to the counterparties and owed to the Company are considered immaterial with respect to each counterparty and in the aggregate with all counterparties.

International Paper sponsors and maintains the Retirement Plan of International Paper Company (the Pension Plan), a tax-qualified defined benefit pension plan that provides retirement benefits to substantially all U.S. salaried employees and hourly employees (receiving salaried benefits) hired prior to July 1, 2004, and substantially all other U.S. hourly and union employees who work at a participating business unit regardless of hire date. These employees generally are eligible to participate in the Pension Plan upon attaining 21 years of age and completing one year of eligibility service. U.S. salaried employees and hourly employees (receiving salaried benefits) hired after June 30, 2004, are not eligible for the Pension Plan, but receive a company contribution to their Retirement Savings Account under the International Paper Company Salaried Savings Plan; however, salaried employees hired by Temple Inland prior to March 1, 2007 or Weyerhaeuser Company's Cellulose Fibers division prior to December 1, 2011 also participate in the Pension Plan.

The Pension Plan provides defined pension benefits based on years of credited service and either final average earnings (salaried employees and hourly employees receiving salaried benefits), hourly job rates or specified benefit rates (hourly and union employees).

Effective January 1, 2019, the Company froze participation, including credited service and compensation, for salaried employees under the Pension Plan, the Pension Restoration Plan and the SERP plan. This change does not affect benefits accrued through December 31, 2018. For service after December 31, 2018, employees affected by the freeze receive a company contribution to their individual Retirement Savings Account.

Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: 

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019			2018
Service cost	$	17		$	40		$	51		$	119
Interest cost	110			118			330			356
Expected return on plan assets	(158		)	(200		)	(473		)	(600		)
Actuarial loss	50			95			150			285
Amortization of prior service cost	4			4			12			12
Net periodic pension expense	$	23		$	57		$	70		$	172

The components of net periodic pension expense other than the Service cost component are included in Non-operating pension expense in the Consolidated Statement of Operations.

The Company’s funding policy for our pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that the Company may determine to be appropriate considering the funded status of the plan, tax deductibility, the cash flows generated by the Company, and other factors. The Company made no voluntary cash contributions to the qualified pension plan in the first nine months of 2019 or 2018. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $21 million for the nine months ended September 30, 2019.

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International Paper has an Incentive Compensation Plan (ICP) which is administered by the Management Development and Compensation Committee of the Board of Directors (the Committee). The ICP authorizes the grants of restricted stock, restricted or deferred stock units, performance awards payable in cash or stock upon the attainment of specified performance goals, dividend equivalents, stock options, stock appreciation rights, other stock-based awards and cash-based awards at the discretion of the Committee. As of September 30, 2019, 9.8 million shares were available for grant under the ICP.

Stock-based compensation expense and related income tax benefits were as follows: 

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019		2018
Total stock-based compensation expense (selling and administrative)	$	31		$	35		$	94	$	102
Income tax benefits related to stock-based compensation	(2		)	(6		)	31		16

At September 30, 2019, $124 million, net of estimated forfeitures, of compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future service had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 1.8 years.

Performance Share Plan

During the first nine months of 2019, the Company granted 2.4 million performance units at an average grant date fair value of $43.49.

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.

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 interest expense, net, corporate expenses, net, corporate special items, net and non-operating pension expense.

Sales by business segment for the three months and nine months ended September 30, 2019 and 2018 were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Industrial Packaging	$	3,820	$	4,034	$	11,516	$	11,883
Global Cellulose Fibers	624		714		1,974		2,083
Printing Papers	1,071		1,102		3,224		3,215
Corporate and Intersegment Sales	53		51		164		174
Net Sales	$	5,568	$	5,901	$	16,878	$	17,355

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Operating profit by business segment for the three months and nine months ended September 30, 2019 and 2018 were as follows: 

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019		2018
Industrial Packaging	$	510		$	472		$	1,421	$	1,446
Global Cellulose Fibers	(3		)	83			27		160
Printing Papers	148			183			258		341
Business Segment Operating Profits	$	655		$	738		$	1,706	$	1,947
Earnings (loss) from continuing operations before income taxes and equity earnings	$	452		$	553		$	1,204	$	1,399
Interest expense, net	123			133			378		401
Noncontrolling interests/equity earnings adjustment	2			(2		)	4		(7		)
Corporate expenses, net	21			20			45		59
Corporate special items, net	48			9			48		30
Non-operating pension expense	9			25			27		65
Business Segment Operating Profits	$	655		$	738		$	1,706	$	1,947

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EXECUTIVE SUMMARY

Net earnings (loss) attributable to International Paper common shareholders were $344 million ($0.87 per diluted share) in the third quarter of 2019, compared with $292 million ($0.73 per diluted share) in the second quarter of 2019 and $562 million ($1.37 per diluted share) in the third quarter of 2018. Adjusted Operating Earnings is a non-GAAP measure and is defined as net earnings from continuing operations (a GAAP measure) excluding special items and non-operating pension expense. International Paper generated Adjusted Operating Earnings Attributable to International Paper Common Shareholders of $431 million ($1.09 per diluted share) in the third quarter of 2019, compared with $460 million ($1.15 per diluted share) in the second quarter of 2019 and $641 million ($1.56 per diluted share) in the third quarter of 2018.

International Paper delivered another quarter of solid earnings and strong cash generation in a challenging global environment. These results demonstrate the strength and resilience of our cash generation and the flexibility to perform well in the face of challenging conditions. Demand in the third quarter of 2019 was mixed with seasonal improvement in the North American packaging business, largely in line with our expectations, but with lower export containerboard and pulp shipments driven by pressure from challenging supply and demand conditions. Operational performance was strong and we optimized our system and managed costs well across our three businesses, taking advantage of our system flexibility. Our continued strong cash generation has enabled us to return $1.1 billion to shareholders during the first three quarters of 2019 through dividends and share repurchases and reduce debt by $400 million.

Comparing performance with the second quarter of 2019, prices were lower in the third quarter mainly due to the impact of prior index movements in North America Packaging and Global Cellulose Fibers, as well as the flow through of lower prices for export containerboard. Volume was seasonally higher in our North American packaging business, along with improved export containerboard volume, while relatively flat across the rest of the businesses. Operations and cost performance was favorable following the heavy maintenance activity in the 2019 second quarter. Input costs were favorable versus the prior quarter, with lower wood and recovered fiber costs across our businesses. Our Ilim joint venture delivered solid operational performance, but its earnings were impacted by sequentially lower export pulp prices and higher planned maintenance outage expenses, which also drove lower volume in the quarter.

Looking ahead to the fourth quarter of 2019, overall across our businesses we expect lower price and mix, improved seasonal volume and export shipments, lower input costs and significantly lower maintenance outage costs due to completing most of that work in the prior quarters. In Industrial Packaging, we expect lower price and mix tied to the impact of prior price index movements and price flow-through on exports along with the negative mix impact from export volume recovery. Volume is expected to improve on improved demand in North America and continued export volume recovery. Operations and costs are expected to be unfavorably impacted by the non-repeat of favorable items in the third quarter of 2019. Maintenance outage expense will be lower while input costs should be stable. In Global Cellulose Fibers, we expect lower price and mix driven by the impact of prior index movements. Volume is expected to be stable as higher fluff volume is offset by lower softwood volume. Operations and costs are expected to be higher driven by higher seasonal energy consumption, while input costs are expected to remain stable. In Printing Papers, we expect lower price and mix primarily related to our North America and Latin America businesses as well as unfavorable geographic mix. This should be offset by improved volume on seasonally stronger demand in North America and Brazil. Operations and costs are expected to negatively impact earnings due to higher seasonal energy consumption and the non-repeat of favorable items in the third quarter of 2019. Finally, in our Ilim joint venture, we expect higher sales volumes, lower input costs and lower maintenance outage expenses to be offset by continued price and mix pressure.

Adjusted Operating Earnings and Adjusted Operating Earnings Per Share are non-GAAP measures and are defined as net earnings from continuing operations (a GAAP measure) excluding special items and non-operating pension expense. Net earnings (loss) and Diluted earnings (loss) per share attributable to common shareholders are the most directly comparable GAAP measures. The Company calculates Adjusted Operating Earnings by excluding the after-tax effect of non-operating pension expense, items considered by management to be unusual, and discontinued operations from the earnings reported under GAAP. Adjusted Operating Earnings Per Share is calculated by dividing Adjusted Operating Earnings by diluted average shares of common stock outstanding. Management uses this measure to focus on on-going operations, and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present consolidated operating results. The Company believes that using this information, along with the most directly comparable GAAP measure, provides for a more complete analysis of the results of operations.

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The following are reconciliations of Earnings (loss) attributable to shareholders to Adjusted Operating Earnings (Loss) attributable to shareholders.

	Three Months Ended September 30,						Three Months Ended June 30,
In millions	2019			2018			2019
Net Earnings (Loss) Attributable to International Paper Company	$	344		$	562		$	292
Less - Discontinued operations (gain) loss	—			—			—
Earnings (Loss) from Continuing Operations	344			562			292
Add Back - Non-operating pension expense (income)	9			25			8
Add Back - Net special items expense (income)	94			142			158
Income tax effect - Non-operating pension and special items expense	(16		)	(88		)	2
Adjusted Operating Earnings (Loss) Attributable to International Paper Company	$	431		$	641		$	460

	Three Months Ended September 30,						Three Months Ended June 30,
In millions	2019			2018			2019
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders	$	0.87		$	1.37		$	0.73
Less - Discontinued operations (gain) loss per share	—			—			—
Diluted Earnings (Loss) Per Share from Continuing Operations	0.87			1.37			0.73
Add Back - Non-operating pension expense (income) per share	0.02			0.06			0.02
Add Back - Net special items expense (income) per share	0.24			0.34			0.40
Income tax effect per share - Non-operating pension and special items expense	(0.04		)	(0.21		)	—
Adjusted Operating Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders	$	1.09		$	1.56		$	1.15

Cash provided by operations totaled $2.7 billion and $2.4 billion for the first nine months of 2019 and 2018, respectively. The Company generated free cash flow of approximately $1.8 billion and $1.1 billion in the first nine months of 2019 and 2018, respectively. Free cash flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provided by operations. Management believes that free cash flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. By adjusting for certain items that are not indicative of the Company's ongoing performance, free cash flow also enables investors to perform meaningful comparisons between past and present periods.

The following is a reconciliation of cash provided by operations to free cash flow: 

	Nine Months Ended September 30,
In millions	2019			2018
Cash provided by operations	$	2,682		$	2,405
Adjustments:
Cash invested in capital projects	(913		)	(1,286		)
Free Cash Flow	$	1,769		$	1,119

For the third quarter of 2019, International Paper Company reported net sales of $5.6 billion, compared with $5.7 billion in the second quarter of 2019 and $5.9 billion in the third quarter of 2018.

Net earnings attributable to International Paper totaled $344 million, or $0.87 per diluted share, in the third quarter of 2019. This compared with $292 million, or $0.73 per diluted share, in the second quarter of 2019 and $562 million, or $1.37 per diluted share, in the third quarter of 2018.

Earnings from continuing operations attributable to International Paper Company were $344 million in the third quarter of 2019, $292 million in the second quarter of 2019 and $562 million in the third quarter of 2018.

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Compared with the second quarter of 2019, earnings benefited from higher sales volumes ($9 million), lower operating costs ($10 million), lower raw material and freight costs ($23 million) and lower mill maintenance outage costs ($127 million). These benefits were offset by lower average sales prices and an unfavorable mix ($115 million), higher corporate and other items ($14 million), higher net interest expense ($1 million), higher tax expense ($15 million) and higher non-operating pension expense ($1 million). Equity earnings, net of taxes, relating to International Paper’s investments in Ilim S.A., Graphic Packaging International Partners, LLC, and other investments were $53 million lower than in the second quarter of 2019. Net special items in the third quarter of 2019 were a loss of $80 million compared with a loss of $162 million in the second quarter of 2019.

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Compared with the third quarter of 2018, the third quarter of 2019 reflects lower raw material and freight costs ($40 million), lower mill maintenance outage costs ($8 million), lower net interest expense ($8 million) and lower non-operating pension expense ($12 million). These benefits were offset by lower average sales prices and an unfavorable mix ($130 million), lower sales volumes ($31 million), higher operating costs ($17 million), higher corporate and other costs ($2 million) and higher tax expense ($21 million). Equity earnings, net of taxes, relating to International Paper’s investments in Ilim S.A., Graphic Packaging International Partners, LLC, and other investments were $65 million lower in the third quarter of 2019 than in the third quarter of 2018. Net special items in the third quarter of 2019 were a loss of $80 million compared with a loss of $60 million in the third quarter of 2018.

Business Segment Operating Profits are used by International Paper's management to measure the earnings performance of its businesses. Management uses this measure to focus on on-going operations, and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present operating results. International Paper believes that using this information, along with net earnings, provides a more complete analysis of the results of operations by quarter. 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, and excluding interest expense, net, corporate expenses, net, corporate special items, net and non-operating pension expense.

International Paper operates in three segments: Industrial Packaging, Global Cellulose Fibers and Printing Papers.

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The following table presents a reconciliation of net earnings (loss) from continuing operations attributable to International Paper Company to its Total Business Segment Operating Profit: 

	Three Months Ended
	September 30,						June 30,
In millions	2019			2018			2019
Net Earnings (Loss) From Continuing Operations Attributable to International Paper Company	$	344		$	562		$	292
Add back (deduct):
Income tax provision (benefit)	137			83			128
Equity (earnings) loss, net of taxes	(27		)	(92		)	(80		)
Noncontrolling interests, net of taxes	(2		)	—			(6		)
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings	452			553			334
Interest expense, net	123			133			122
Noncontrolling interests / equity earnings included in operations	2			(2		)	5
Corporate expenses, net	21			20			3
Corporate special items (income) expense	48			9			—
Non-operating pension expense	9			25			8
Adjusted Operating Profit	$	655		$	738		$	472
Business Segment Operating Profit:
Industrial Packaging	$	510		$	472		$	507
Global Cellulose Fibers	(3		)	83			(2		)
Printing Papers	148			183			(33		)
Total Business Segment Operating Profit	$	655		$	738		$	472

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Business Segment Operating Profit

Total business segment operating profits were $655 million in the third quarter of 2019, $472 million in the second quarter of 2019 and $738 million in the third quarter of 2018.

Compared with the second quarter of 2019, operating profits benefited from higher sales volumes ($12 million), lower operating costs ($14 million), lower raw material and freight costs ($31 million) and lower mill outage costs ($169 million). These benefits were offset by lower average sales prices and an unfavorable mix ($154 million). Special items were a loss of $46 million in the third quarter of 2019 compared with a loss of $157 million in the second quarter of 2019.

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Compared with the third quarter of 2018, operating profits in the current quarter benefited from lower raw material and freight costs ($52 million) and lower mill outage costs ($11 million). These benefits were offset by lower average sales prices and an unfavorable mix ($170 million), lower sales volumes ($41 million) and higher operating costs ($22 million). Special items were a loss of $46 million in the third quarter of 2019 compared with a loss of $133 million in the third quarter of 2018.

Economic downtime results from the amount of production required to meet our customer demand. Planned maintenance downtime is taken periodically throughout the year. The following table details North American planned maintenance and economic-related downtime:

in thousands of tons	Three Months Ended September 30, 2019	Three Months Ended September 30, 2018	Three Months Ended June 30, 2019
Economic-related downtime	287	—	339
Maintenance downtime	125	197	303

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Sales Volumes by Product (a)

Sales volumes of major products for the three months and nine months ended September 30, 2019 and 2018 were as follows: 

	Three Months Ended September 30,		Nine Months Ended September 30,
In thousands of short tons (except as noted)	2019	2018	2019	2018
Industrial Packaging
Corrugated Packaging (b)	2,651	2,666	7,810	7,969
Containerboard	736	853	2,140	2,436
Recycling	556	566	1,790	1,700
Saturated Kraft	47	51	140	149
Gypsum/Release Kraft	49	56	149	176
Bleached Kraft	5	8	17	24
EMEA Packaging (b)	375	329	1,124	1,113
Brazilian Packaging (b)	96	92	272	263
European Coated Paperboard	106	98	312	284
Industrial Packaging	4,621	4,719	13,754	14,114
Global Cellulose Fibers (in thousands of metric tons) (c)	878	886	2,606	2,665
Printing Papers
U.S. Uncoated Papers	451	461	1,340	1,415
European and Russian Uncoated Papers	352	363	1,073	1,066
Brazilian Uncoated Papers	301	293	828	818
Indian Uncoated Papers	49	62	183	195
Printing Papers	1,153	1,179	3,424	3,494

(a) Sales volumes include third party and inter-segment sales and exclude sales of equity investees.

(b) Volumes for corrugated box sales reflect consumed tons sold (CTS). Board sales for these businesses reflect invoiced tons.

(c) Includes North American, European and Brazilian volumes and internal sales to mills.

Discontinued Operations

See discussion in Note 9 - Divestitures and Impairments in the Condensed Notes to the Consolidated Financial Statements.

Income Taxes

An income tax provision of $137 million was recorded for the third quarter of 2019 and the reported effective income tax rate was 30%. Excluding a benefit of $14 million related to the tax effects of special items and a benefit of $2 million related to the tax effects of non-operating pension expense, the effective income tax rate was 27% for the quarter.

An income tax provision of $128 million was recorded for the second quarter of 2019 and the reported effective income tax rate was 38%. Excluding an expense of $4 million related to the tax effects of special items and a benefit of $2 million related to the tax effects of non-operating pension expense, the effective income tax rate was 25% for the quarter.

An income tax provision of $83 million was recorded for the third quarter of 2018 and the reported effective income tax rate was 15%. Excluding a benefit of $82 million related to the tax effects of special items and a benefit of $6 million related to the tax effects of non-operating pension expense, the effective income tax rate was 24% for the quarter.

Interest Expense

Net interest expense was $123 million in the third quarter of 2019, compared with $122 million which includes interest expense of $1 million related to the settlement of foreign tax audits in the second quarter of 2019 and $133 million in the third quarter of 2018.

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Effects of Special Items and Non-Operating Pension Expense

Details of special items and non-operating pension expense (income) for the three months ended are as follows:

	Three Months Ended
	September 30,										June 30,
	2019						2018				2019
In millions	Before Tax			After Tax			Before Tax		After Tax		Before Tax		After Tax
Business Segments
India impairment	$	6		$	6		$	—	$	—	$	145	$	143
Brazil Packaging impairment	—			—			122		81		—		—
Italian antitrust fine	32			32			—		—		—		—
Overhead cost reduction initiative	10			8			—		—		—		—
Multi-employer pension plan exit liability	(7		)	(6		)	—		—		—		—
Gain on sale of previously closed Oregon mill site	(9		)	(7		)	—		—		—		—
Abandoned property removal	13			10			6		4		11		8
Riverdale mill conversion	1			1			5		4		1		1
Business Segments Total	46			44			133		89		157		152
Corporate
Litigation reserves	22			17			—		—		—		—
Environmental remediation reserve adjustment	15			11			9		7		—		—
Overhead cost reduction initiative	11			8			—		—		—		—
Interest expense related to settlement of foreign tax audits	—			—			—		—		1		1
Corporate Total	48			36			9		7		1		1
Total special items	94			80			142		96		158		153
Non-operating pension expense	9			7			25		19		8		6
Total special items and non-operating pension expense	$	103		$	87		$	167	$	115	$	166	$	159

Special items include the following tax expenses (benefits):

	Three Months Ended
	September 30,					June 30,
In millions	2019		2018			2019
Luxembourg tax law rate change	$	—	$	—		$	9
Tax benefits from Tax Cuts and Jobs Act	—		(36		)	—
State income tax legislative changes	—		—			(3		)
Settlement of foreign tax audits	—		—			3
Total	$	—	$	(36	)	$	9

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Details of special items and non-operating pension expense for the nine months ended are as follows:

	Nine Months Ended
	September 30,
	2019						2018
In millions	Before Tax			After Tax			Before Tax		After Tax
Business Segments
India impairment	$	151		$	149		$	—	$	—
Brazil Packaging impairment	—			—			122		81
Italian antitrust fine	32			32			—		—
Overhead cost reduction initiative	10			8			—		—
Multi-employer pension plan exit liability	9			6			—		—
Gain on sale of previously closed Oregon mill site	(9		)	(7		)	—		—
Gain on sale of EMEA Packaging box plant	(7		)	(6		)	—		—
EMEA Packaging optimization	—			—			48		35
Abandoned property removal	35			26			24		18
Riverdale mill conversion	3			3			5		4
Business Segments Total	224			211			199		138
Corporate
Litigation reserves	22			17			—		—
Environmental remediation reserve adjustment	15			11			9		7
Overhead cost reduction initiative	11			8			—		—
Smurfit-Kappa acquisition proposal costs	—			—			12		9
Interest expense related to settlement of foreign tax audits	1			1			—		—
Legal settlement	—			—			9		7
Corporate Total	49			37			30		23
Total special items	273			248			229		161
Non-operating pension expense	27			21			65		49
Total special items and non-operating pension expense	$	300		$	269		$	294	$	210

Special items include the following tax expenses (benefits):

	Nine Months Ended
	September 30,
In millions	2019			2018
Luxembourg tax law rate change	$	9		$	—
Tax benefits from Tax Cuts and Jobs Act	—			(36		)
State income tax legislative changes	(3		)	9
Settlement of foreign tax audits	3			—
Total	$	9		$	(27	)

The following tables present net sales and operating profit (loss) which is the Company's measure of segment profitability. The tables include a detail of special items in each year, where applicable, in order to show operating profit before special items. The Company calculates Operating Profit Before Special Items (non-GAAP) by excluding the pre-tax effect of items considered by management to be unusual from the earnings reported under U.S. generally accepted accounting principles (GAAP). Management uses this measure to focus on on-going operations, and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present operating results. International Paper believes that using this information, along with net earnings, provides for a more complete analysis of the results of operations by quarter. Net earnings attributable to International Paper is the most directly comparable GAAP measure. See Note 21 - Business Segment

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Information in the Condensed Notes to the Consolidated Financial Statements for the GAAP reconciliation of segment operating profit.

Industrial Packaging 

Total Industrial Packaging	2019								2018
In millions	3nd Quarter			2nd Quarter		Nine Months			3rd Quarter		2nd Quarter		Nine Months
Sales	$	3,820		$	3,864	$	11,516		$	4,034	$	4,022	$	11,883
Operating Profit	$	510		$	507	$	1,421		$	472	$	537	$	1,446
Italian antitrust fine	32			—		32			—		—		—
Gain on sale of previously closed Oregon mill site	(9		)	—		(9		)	—		—		—
Multi-employer pension plan exit liability	(7		)	—		9			—		—		—
Gain on sale of EMEA Packaging box plant	—			—		(7		)	—		—		—
Brazil Packaging impairment	—			—		—			122		—		122
EMEA Packaging optimization	—			—		—			—		26		48
Abandoned property removal	9			8		25			4		6		15
Operating Profit Before Special Items	$	535		$	515	$	1,471		$	598	$	569	$	1,631

Industrial Packaging net sales for the third quarter of 2019 were 1% lower than in the second quarter of 2019 and 5% lower than in the third quarter of 2018. Operating profit before special items was 4% higher in the third quarter of 2019 than in the second quarter of 2019 and 11% lower than in the third quarter of 2018.

North American Industrial Packaging	2019								2018
In millions	3nd Quarter			2nd Quarter		Nine Months			3rd Quarter		2nd Quarter		Nine Months
Sales (a)	$	3,368		$	3,414	$	10,158		$	3,653	$	3,582	$	10,604
Operating Profit	$	532		$	507	$	1,434		$	618	$	574	$	1,651
Gain on sale of previously closed Oregon mill site	(9		)	—		(9		)	—		—		—
Multi-employer pension plan exit liability	(7		)	—		9			—		—		—
Abandoned property removal	9			8		25			4		6		15
Operating Profit Before Special Items	$	525		$	515	$	1,459		$	622	$	580	$	1,666

(a) Includes intra-segment sales of $25 million and $74 million for the three months ended September 30, 2019 and 2018, respectively; $31 million and $46 million for the three months ended June 30, 2019 and 2018, respectively; and $87 million and $178 million for the nine months ended September 30, 2019 and 2018, respectively.

North American Industrial Packaging sales volumes in the third quarter of 2019 increased compared to the second quarter of 2019, reflecting seasonally higher shipments for boxes and higher export containerboard volumes as customer inventory levels began to return to normal. Total maintenance and economic downtime was 249,000 tons lower in the third quarter of 2019. Average sales margins were lower, driven by lower average sales prices for boxes and export containerboard. Operating costs were seasonally higher for our box plants and our mills continued to perform well. Planned maintenance downtime costs were $73 million lower in the third quarter of 2019 compared with the second quarter of 2019. Input costs were favorable, primarily for recycled fiber and wood, partially offset by higher distribution costs.

Compared with the third quarter of 2018, sales volumes were lower in the third quarter of 2019 for export containerboard and boxes. Total maintenance and economic downtime was 120,000 tons higher in the third quarter of 2019. Box prices were lower as were export containerboard prices resulting from weaker global demand. Manufacturing costs were stable, driven by strong operational performance at our mills offset by inflation. Planned maintenance downtime costs were $18 million lower in the third quarter of 2019 compared with the third quarter of 2018. Input costs were significantly lower, driven by recycled fiber.

Entering the fourth quarter of 2019, sales volumes for boxes are expected to be seasonally higher. Export containerboard shipments are also expected to increase, as demand continues to improve. Average sales margins for boxes and export containerboard are expected to be lower, reflecting the impact of prior price index movement, mix and export pressure. Operating costs are expected to be higher. Planned maintenance downtime costs should be $44 million lower in the fourth quarter of 2019 than in the third quarter of 2019. Input costs are projected to be slightly favorable, with lower wood costs mostly offset by higher recycled fiber and energy costs.

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EMEA Industrial Packaging	2019									2018
In millions	3nd Quarter			2nd Quarter			Nine Months			3rd Quarter			2nd Quarter			Nine Months
Sales	$	324		$	331		$	994		$	311		$	344		$	1,017
Operating Profit	$	(33	)	$	(7	)	$	(48	)	$	(37	)	$	(43	)	$	(114	)
Italian antitrust fine	32			—			32			—			—			—
Gain on sale of EMEA Packaging box plant	—			—			(7		)	—			—			—
EMEA Packaging optimization	—			—			—			—			26			48
Operating Profit Before Special Items	$	(1	)	$	(7	)	$	(23	)	$	(37	)	$	(17	)	$	(66	)

EMEA Industrial Packaging sales volumes for boxes in the third quarter of 2019 were lower than in the second quarter of 2019, primarily driven by lower seasonal box demand in Morocco and the economic conditions in Turkey. Average sales margins improved in all regions driven by lower containerboard prices and stable box prices. Operating costs improved, reflecting the continued improved performance at the Madrid mill. There were no planned maintenance downtime costs in either the third quarter of 2019 or the second quarter of 2019. Input costs were stable. Earnings benefited from favorable foreign currency impacts in Turkey.

Compared with the third quarter of 2018, sales volumes in the third quarter of 2019 were lower, primarily due to the recession in Turkey. Average sales margins for boxes improved, reflecting sales price increases during 2018 and lower containerboard costs. Operating costs significantly improved from the ramp-up of the Madrid mill. Earnings also benefited from the box plant acquisitions completed in the first half of 2019. There were no planned maintenance downtime costs in the third quarter of 2018. Input costs were stable. Earnings were positively affected by favorable foreign currency impacts, primarily in Turkey.

Looking ahead to the fourth quarter of 2019, sales volumes for boxes are expected to be seasonally higher in Morocco and Turkey, and stable in the Eurozone. Average sales margins should improve in Morocco and Turkey, partially offset by lower average sales margins in the Eurozone. Operating and input costs should be stable. There are no planned maintenance downtime costs in the fourth quarter of 2019.

Brazilian Industrial Packaging	2019									2018
In millions	3nd Quarter			2nd Quarter			Nine Months			3rd Quarter			2nd Quarter			Nine Months
Sales	$	61		$	58		$	176		$	57		$	56		$	175
Operating Profit	$	(6	)	$	(1	)	$	(12	)	$	(127	)	$	(11	)	$	(146	)
Brazil Packaging impairment	—			—			—			122			—			122
Operating Profit Before Special Items	$	(6	)	$	(1	)	$	(12	)	$	(5	)	$	(11	)	$	(24	)

Brazilian Industrial Packaging sales volumes in the third quarter of 2019 compared with the second quarter of 2019 were higher for boxes and lower for containerboard. Average sales margins reflected higher sales prices for boxes and a favorable product mix, partially offset by lower containerboard prices. Planned maintenance downtime costs were $2 million higher in the third quarter of 2019 compared with the second quarter of 2019. Input costs were higher for rollstock, recycled fiber, chemicals and energy.

Compared with the third quarter of 2018, sales volumes in the third quarter of 2019 were higher for both boxes and containerboard. Average sales prices increased for boxes and containerboard. Operating costs were flat. Input costs increased, primarily for recycled fiber and energy. Planned maintenance downtime costs were $2 million higher in the third quarter of 2019 than in the third quarter of 2018.

Looking ahead to the fourth quarter of 2019, sales volumes for boxes and containerboard are expected to be seasonally lower. Average sales margins are expected to be higher, reflecting a favorable mix. Planned maintenance downtime costs should be $2 million lower in the fourth quarter of 2019 than in the third quarter of 2019. Input costs are projected to be lower for recycled fiber.

European Coated Paperboard	2019						2018
In millions	3nd Quarter		2nd Quarter		Nine Months		3rd Quarter		2nd Quarter		Nine Months
Sales	$	92	$	92	$	275	$	87	$	86	$	265
Operating Profit	$	17	$	8	$	47	$	18	$	17	$	55

European Coated Paperboard sales volumes in the third quarter of 2019 compared with the second quarter of 2019 were flat in both Europe and Russia. Average sales margins improved in Europe driven by a favorable mix. In Russia, average sales margins were slightly lower. Operating costs were higher in both Europe and Russia. Operating costs in Europe were negatively impacted by recovery boiler issues in Kwidzyn. Planned maintenance downtime costs were $8 million lower in the third quarter

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of 2019 compared with the second quarter of 2019. Input costs were favorable in Europe primarily for purchased pulp and energy. In Russia, input costs were stable. Earnings benefited from favorable foreign currency impacts, primarily in Russia.

Compared with the third quarter of 2018, sales volumes increased in Europe but were slightly lower in Russia. Average sales margins were flat in Europe but improved in Russia, reflecting a favorable mix. Operating costs were higher in Europe, reflecting the recovery boiler issues in Kwidzyn. In Russia, operating costs were lower. There were no planned maintenance downtime costs in either the third quarter of 2019 or the third quarter of 2018. Input costs were lower in Europe for purchased pulp and energy, slightly offset by higher wood costs. In Russia, input costs were higher for chemicals and energy, offset by lower wood costs. Earnings were negatively affected by unfavorable foreign currency impacts in both Europe and Russia.

Entering the fourth quarter of 2019, sales volumes are expected to be higher in Russia but lower in Europe. Average sales margins are expected to increase in both regions. Operating costs are expected to be lower in Europe, as the third quarter was negatively impacted by the recovery boiler issues in Kwidzyn. In Russia, operating costs are expected to be higher. There are no planned maintenance downtime outages in the fourth quarter of 2019. Input costs are expected to be lower in Europe, primarily for purchased pulp and wood, and stable in Russia.

Global Cellulose Fibers

Total Global Cellulose Fibers	2019								2018
In millions	3nd Quarter			2nd Quarter			Nine Months		3rd Quarter		2nd Quarter		Nine Months
Sales	$	624		$	661		$	1,974	$	714	$	692	$	2,083
Operating Profit	$	(3	)	$	(2	)	$	27	$	83	$	66	$	160
Overhead cost reduction initiative	4			—			4		—		—		—
Abandoned property removal	3			2			8		2		3		9
Operating Profit Before Special Items	$	4		$	—		$	39	$	85	$	69	$	169

Global Cellulose Fibers net sales were 6% lower in the third quarter of 2019 than in the second quarter of 2019 and 13% lower than in the third quarter of 2018. Operating profit before special items in the third quarter of 2019 was slightly higher than the second quarter of 2019 and 95% lower than in the third quarter of 2018.

Sales volumes in the third quarter of 2019 compared with the second quarter of 2019 were higher for fluff pulp, partially offset by lower market pulp volumes. Total maintenance and economic downtime was 11,000 tons higher in the third quarter of 2019. Average sales margins decreased, reflecting lower average pulp prices driven by unfavorable supply/demand conditions associated with historically high industry inventory levels, trade and tariff uncertainty and regional economic conditions. Operating costs were favorable as our mills improved reliability and reduced spending to overcome the impact of Hurricane Dorian. Planned maintenance downtime costs in the third quarter of 2019 were $51 million lower than in the second quarter of 2019. Earnings benefited $5 million in the third quarter of 2019 and $10 million in the second quarter of 2019 from insurance proceeds related to Hurricane Florence. Input costs were favorable, primarily for wood, energy and chemicals. Sales volumes were higher in Russia, but lower in Europe. Average sales prices were lower in both regions. Planned maintenance downtime costs in the third quarter of 2019 were $4 million lower than in the second quarter of 2019 in Europe and Russia. Operating costs were unfavorable in Europe and flat in Russia. Input costs were stable in both Europe and Russia.

Compared with the third quarter of 2018, sales volumes in the third quarter of 2019 were slightly higher. Total maintenance and economic downtime was 56,000 tons higher in the third quarter of 2019. Average sales prices were lower for both fluff and market pulp. Operating costs were favorable. Planned maintenance downtime costs in the third quarter of 2019 were $10 million lower than in the third quarter of 2018. Input costs were slightly favorable. Sales volumes increased, primarily in Russia. Average sales margins were lower, reflecting lower average sales prices. Operating costs were unfavorable in Europe and favorable in Russia. There were no planned maintenance downtime costs in either the third quarter of 2019 or the third quarter of 2018 in Europe and Russia. Input costs were flat in both Europe and Russia. Earnings benefited from favorable foreign currency impacts in Europe, slight offset by unfavorable impacts in Russia.

Entering the fourth quarter of 2019, sales volumes are expected to be flat. Average sales margins are expected to be lower, reflecting the continuing effects of historically high industry inventory levels, slower growth in developing markets, tariff uncertainty, regional economic conditions and expected increases in operating costs. Planned maintenance downtime costs in the fourth quarter of 2019 should be $8 million lower than in the third quarter of 2019. Input costs are expected to be slightly higher. In Europe and Russia, sales volumes are expected to be stable in Europe and lower in Russia. Average sales margins are expected to be lower in both regions. Operating costs are expected to be stable in Europe and higher in Russia. Planned maintenance downtime costs in the fourth quarter of 2019 should be $7 million higher than in the third quarter of 2019 in Europe and Russia.

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Printing Papers 

Total Printing Papers	2019							2018
In millions	3nd Quarter		2nd Quarter			Nine Months		3rd Quarter		2nd Quarter		Nine Months
Sales	$	1,071	$	1,088		$	3,224	$	1,102	$	1,060	$	3,215
Operating Profit	$	148	$	(33	)	$	258	$	183	$	94	$	341
India impairment	6		145			151		—		—		—
Abandoned property removal	1		1			2		—		—		—
Overhead cost reduction initiative	6		—			6		—		—		—
Riverdale mill conversion	1		1			3		5		—		5
Operating Profit Before Special Items	$	162	$	114		$	420	$	188	$	94	$	346

Printing Papers net sales for the third quarter of 2019 were 2% lower than in the second quarter of 2019 and 3% lower than in the third quarter of 2018. Operating profit before special items in the third quarter of 2019 was 42% higher than in the second quarter of 2019 and 14% lower than in the third quarter of 2018.

North American Papers	2019						2018
In millions	3nd Quarter		2nd Quarter		Nine Months		3rd Quarter		2nd Quarter		Nine Months
Sales	$	492	$	486	$	1,474	$	492	$	493	$	1,443
Operating Profit	$	69	$	39	$	164	$	59	$	25	$	85
Abandoned property removal	1		1		2		—		—		—
Overhead cost reduction initiative	5		—		5		—		—		—
Riverdale mill conversion	1		1		3		5		—		5
Operating Profit Before Special Items	$	76	$	41	$	174	$	64	$	25	$	90

North American Papers sales volumes in the third quarter of 2019 were higher than in the second quarter of 2019 for uncoated freesheet paper, primarily driven by increased export volume. Total maintenance and economic downtime was 8,000 tons higher in the third quarter of 2019. Average sales margins were unfavorable, reflecting an unfavorable geographic mix. Operating costs were lower. Planned maintenance downtime costs were $19 million lower in the third quarter of 2019, compared with the second quarter of 2019. Input costs were lower, primarily for wood.

Compared with the third quarter of 2018, sales volumes in the third quarter of 2019 were lower for uncoated freesheet paper, primarily driven by weaker demand for commercial printing paper. Total maintenance and economic downtime was 39,000 tons higher in the third quarter of 2019. Average sales prices were higher, reflecting the impact of price increases in 2018. Operating costs were favorable. Planned maintenance downtime costs were $11 million higher than in the third quarter of 2018. Input costs increased, primarily for wood.

Entering the fourth quarter of 2019, sales volumes are expected to be higher, driven by increased export volumes, partially offset by lower cutsize volumes. Average sales margins are expected to be lower. Operating costs are expected to be higher. Planned maintenance downtime costs should be $7 million lower in the fourth quarter. Input costs are expected to be favorable, primarily for wood.

European Papers	2019						2018
In millions	3nd Quarter		2nd Quarter		Nine Months		3rd Quarter		2nd Quarter		Nine Months
Sales	$	299	$	321	$	929	$	311	$	302	$	932
Operating Profit	$	40	$	29	$	116	$	46	$	15	$	82
Overhead cost reduction initiative	1		—		1		—		—		—
Operating Profit Before Special Items	$	41	$	29	$	117	$	46	$	15	$	82

European Papers sales volumes for uncoated freesheet paper in the third quarter of 2019 compared with the second quarter of 2019 were lower in Europe, but higher in Russia. In Europe, the recovery boiler issues at Kwidzyn negatively impacted volumes. Average sales margins for uncoated freesheet paper decreased in Europe and Russia, reflecting lower average sales prices resulting from weaker demand and an unfavorable mix. Operating costs were higher in Europe, reflecting the impact of the recovery boiler issues at Kwidzyn. Operating costs were flat in Russia. Planned maintenance downtime costs were $20 million lower in the third quarter of 2019 compared to the second quarter of 2019. Input costs were stable in both regions. Earnings benefited from favorable foreign currency impacts in Europe.

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Sales volumes for uncoated freesheet paper in the third quarter of 2019, compared with the third quarter of 2018, were lower in Europe, partially due to the impact of the recovery boiler issues at Kwidzyn. In Russia, sales volumes were higher. Average sales margins for uncoated freesheet paper increased in both regions, reflecting price increases implemented in late 2018 and in 2019, net of an unfavorable mix. Operating costs were higher in Europe and slightly lower in Russia. There were no planned maintenance downtime costs in either the third quarter of 2019 or the third quarter of 2018. In Europe, input costs were higher for wood and chemicals, partially offset by lower energy costs. In Russia, input costs also increased, primarily for chemicals and energy, partially offset by lower wood costs. Earnings were negatively affected by unfavorable foreign currency impacts in both Europe and Russia.

Looking forward to the fourth quarter of 2019, sales volumes for uncoated freesheet paper are expected to be higher in both Europe and Russia. In Europe, average sales margins are expected to be lower. In Russia, average sales margins will be negatively impacted by an unfavorable mix. Operating costs should be higher in both Europe and Russia. Planned maintenance downtime costs should be $8 million higher in the fourth quarter. Input costs are expected to be stable in Europe and Russia.

Brazilian Papers	2019						2018
In millions	3nd Quarter		2nd Quarter		Nine Months		3rd Quarter		2nd Quarter		Nine Months
Sales (a)	$	247	$	240	$	702	$	255	$	222	$	706
Operating Profit	$	44	$	37	$	114	$	75	$	49	$	164

(a) Includes intra-segment sales of $5 million and $3 million for the three months ended September 30, 2019 and 2018, respectively; $12 million and $8 million for the three months ended June 30, 2019 and 2018, respectively; and $25 million and $16 million for the nine months ended September 30, 2019 and 2018, respectively.

Brazilian Papers sales volumes in the third quarter of 2019, compared with the second quarter of 2019, were seasonally higher for domestic shipments of uncoated freesheet, partially offset by lower export volumes. Export average sales prices were lower for both Latin American and other export locations, reflecting higher supply availability in Latin America and softer demand conditions, while domestic average sales prices were stable. Operating costs were favorable. Planned maintenance outage downtime costs were $3 million higher in the third quarter of 2019, compared with the second quarter of 2019. Input costs were flat.

Compared with the third quarter of 2018, sales volumes for uncoated freesheet paper in the third quarter of 2019 were slightly higher for export, but lower for the domestic shipments, reflecting challenging demand conditions impacted by a government textbook program delay. Lower export sales prices and an unfavorable geographic and product mix were slightly offset by higher average domestic prices. Operating costs were unfavorable. Planned maintenance outage expenses were $3 million higher in the third quarter of 2019. Input costs were higher, primarily for wood and energy.

Entering the fourth quarter of 2019, sales volumes for uncoated freesheet paper are expected to be seasonally stronger domestically, partially offset by lower export volumes. Average sales margins are expected to be stable domestically, while export sales margins are expected to be lower. Operating costs should be slightly favorable. Planned maintenance outage expenses are expected to be $1 million lower in the fourth quarter. Input costs are expected to be favorable.

Indian Papers	2019									2018
In millions	3nd Quarter			2nd Quarter			Nine Months			3rd Quarter		2nd Quarter		Nine Months
Sales	$	38		$	53		$	144		$	47	$	51	$	150
Operating Profit	$	(5	)	$	(138	)	$	(136	)	$	3	$	5	$	10
India Impairment	6			145			151			—		—		—
Operating Profit Before Special Items	$	1		$	7		$	15		$	3	$	5	$	10

On May 29, 2019, International Paper announced it had entered into an agreement to sell its controlling interest in its Indian Papers business. The transaction closed on October 30, 2019.

Equity Earnings, Net of Taxes – Ilim

International Paper accounts for its 50% equity interest in Ilim S.A. (Ilim) using the equity method of accounting. Ilim is a separate reportable industry segment whose primary operations are in Russia. The Company recorded equity earnings, net of taxes, of $18 million in the third quarter of 2019, compared with $67 million in the second quarter of 2019 and $74 million in the third quarter of 2018. In the third quarter of 2019, the after-tax foreign exchange impact primarily on the remeasurement of U.S. dollar-denominated net debt was a loss of $4 million, compared with a gain of $7 million in the second quarter of 2019.

Compared with the second quarter of 2019, sales volumes in the third quarter of 2019 were 9% lower, primarily for sales of hardwood pulp and containerboard in China, and softwood pulp in Russian and other export locations. Average sales price

44

realizations were lower for softwood pulp, hardwood pulp and containerboard in China, Russia and other export locations. Input costs for wood and fuel, were relatively flat. Outage and repair costs were $10 million higher than in the second quarter of 2019 due to the planned maintenance mill outages at the Bratsk and Ust-Ilimsk mills.

Compared with the third quarter of 2018, sales volumes in the third quarter of 2019 decreased overall by 7%, primarily due to sales of containerboard in China and Russia and softwood pulp and hardwood pulp in Russian and other export locations. Average sales prices for softwood pulp, hardwood pulp and containerboard in China and other export locations and containerboard in Russia were lower. Input costs, primarily for wood and chemicals, were higher. Distribution costs were also higher. An after-tax foreign exchange loss of $23 million primarily on the remeasurement of U.S. dollar denominated net debt was recorded in the third quarter of 2018.

Looking forward to the fourth quarter of 2019, sales volumes are expected to be higher following the start-up of the newly upgraded containerboard machine at the Bratsk mill and the recently modernized pulp line at the Ust-Ilimsk mill. Average sales margins are projected to decrease compared with the third quarter of 2019, primarily due to hardwood pulp in China. Input costs are expected to decrease. Mill maintenance outage costs will be lower as there are no outages scheduled in the fourth quarter of 2019.

Equity Earnings – GPIP

International Paper recorded equity earnings of $10 million in the third quarter of 2019, compared with $14 million in the second quarter of 2019 and $19 million in the third quarter of 2018. As of September 30, 2019, the Company's ownership interest in GPIP was 21.6%.

Cash provided by operations totaled $2.7 billion for the first nine months of 2019, compared with $2.4 billion for the comparable 2018 nine-month period. Cash provided by working capital components totaled $176 million for the first nine months of 2019, compared to cash used by working capital components of $249 million for the comparable 2018 nine-month period.

Investments in capital projects totaled $913 million in the first nine months of 2019, compared to $1.3 billion in the first nine months of 2018. Full-year 2019 capital spending is currently expected to be approximately $1.3 billion, or about 99% of depreciation and amortization, including approximately $400 million of strategic investments.

Financing activities for the first nine months of 2019 included a $391 million net decrease in debt versus a $107 million net increase in debt during the comparable 2018 nine-month period.

Amounts related to early debt extinguishment during the three and nine months ended September 30, 2019 and 2018 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019			2018
Early debt reductions (a)	$	77	$	75	$	245		$	79
Pre-tax early debt extinguishment (gain) loss, net	2		1		(1		)	1

(a) Reductions related to notes with interest rates ranging from 3.00% to 4.40% with original maturities from 2027 to 2047 and from 3.00% to 7.00% with original maturities from 2022 to 2032 for the three months ended September 30, 2019 and 2018, respectively, and from 3.00% to 9.50% with original maturities from 2024 to 2048 and from 3.00% to 7.00% with original maturities from 2022 to 2032 for the nine months ended September 30, 2019 and 2018, respectively.

At September 30, 2019, contractual obligations for future payments of debt maturities (including finance lease liabilities disclosed in Note 11 - Leases) by calendar year were as follows: $298 million in 2019; $97 million in 2020; $448 million in 2021; $490 million in 2022; $354 million in 2023; and $8.7 billion thereafter.

Maintaining an investment-grade credit rating is an important element of International Paper’s financing strategy. At September 30, 2019, the Company held long-term credit ratings of BBB (stable outlook) and Baa2 (stable outlook) by S&P and Moody’s, respectively. In addition, the Company held short-term credit ratings of A2 and P2 by S&P and Moody's, respectively, for borrowings under the Company's commercial paper program.

At September 30, 2019, International Paper’s credit agreements totaled $2.1 billion, which management believes are adequate to cover expected operating cash flow variability during the current economic cycle. The credit agreements generally provide for interest rates at a floating rate index plus a pre-determined margin dependent upon International Paper’s credit rating. The liquidity facilities include a $1.5 billion contractually committed bank credit agreement that expires in December 2021 and has a facility fee of 0.15% per annum payable quarterly. The liquidity facilities also include up to $600 million of uncommitted financings based on eligible receivable balances under a receivables securitization program that expires in December 2019. At

45

September 30, 2019, there were no outstanding borrowings under the credit facility nor under the receivables securitization program.

In June 2018, the borrowing capacity of the commercial paper program was increased from $750 million to $1.0 billion. Under the terms of the program, individual maturities on borrowings may vary, but not exceed one year from the date of issue. Interest bearing notes may be issued either as fixed notes or floating rate notes. As of September 30, 2019, the Company had $245 million of borrowings outstanding under this program at a weighted average interest rate of 2.29%.

During the first nine months of 2019, International Paper used 3.4 million shares of treasury stock for various incentive plans. International Paper also acquired 11.9 million shares of treasury stock, including restricted stock tax withholdings. Repurchases of common stock and payments of restricted stock withholding taxes totaled $535 million, including $486 million related to shares repurchased under the Company's repurchase program. On October 9, 2018, the Company announced an authorization to repurchase $2 billion of the Company's common stock to supplement remaining amounts under prior share repurchase authorizations, bringing total share repurchase authorizations since 2013 to $5.0 billion. The Company will continue to repurchase such shares in open market repurchase transactions. Under the $5.0 billion share repurchase program, the Company has repurchased 68.9 million shares at an average price of $47.23, for a total of approximately $3.3 billion, as of September 30, 2019.

During the first nine months of 2018, International Paper used approximately 1.7 million shares of treasury stock for various incentive plans. International Paper also acquired 9.6 million shares of treasury stock, including restricted stock tax withholding. Repurchases of common stock and payments of restricted stock withholding taxes totaled $532 million. Cash dividend payments related to common stock totaled $595 million and $588 million for the first nine months of 2019 and 2018, respectively. Dividends were $1.50 per share and $1.42 per share for the first nine months in 2019 and 2018, respectively.

International Paper expects to be able to meet projected capital expenditures, service existing debt and meet working capital and dividend requirements during the remainder of 2019 with current cash balances and cash from operations, supplemented as required by its existing credit facilities. The Company will continue to rely on debt and capital markets for the majority of any necessary long-term funding not provided by operating cash flows. Funding decisions will be guided by our capital structure planning objectives. The primary goals of the Company’s capital structure planning are to maximize financial flexibility and preserve liquidity while reducing interest expense. The majority of International Paper’s debt is accessed through global public capital markets where we have a wide base of investors.

Ilim S.A. Shareholders’ Agreement

In October 2007, in connection with the formation of the Ilim S.A. joint venture (Ilim), International Paper entered into a shareholders' agreement that includes provisions relating to the reconciliation of disputes among the partners. This agreement provides that at any time, either the Company or its partners may commence procedures specified under the deadlock agreement. If these or any other deadlock procedures under the shareholders' agreement are commenced, although it is not obligated to do so, the Company may in certain situations choose to purchase its partners' 50% interest in Ilim. Any such transaction would be subject to review and approval by Russian and other relevant anti-trust authorities. Based on the provisions of the agreement, the Company estimates that the current purchase price for its partners' 50% interest would be approximately $1.9 billion, which could be satisfied by payment of cash or International Paper common stock, or some combination of the two, at the Company's option. The purchase by the Company of its partners’ 50% interest in Ilim would result in the consolidation of Ilim's financial position and results of operations in all subsequent periods. The parties have informed each other that they have no current intention to commence procedures specified under the deadlock provisions of the shareholders' agreement.

CRITICAL ACCOUNTING POLICIES AND SIGNIFICANT ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires International Paper to establish accounting policies and to make estimates that affect both the amounts and timing of the recording of assets, liabilities, revenues and expenses. Some of these estimates require judgments about matters that are inherently uncertain.

Accounting policies whose application may have a significant effect on the reported results of operations and financial position of International Paper, and that can require judgments by management that affect their application, include accounting for contingencies, impairment or disposal of long-lived assets, goodwill and other intangible assets, pensions and income taxes.

The Company has included in its 2018 Form 10-K a discussion of these critical accounting policies, which are important to the portrayal of the Company’s financial condition and results of operations and require management’s judgments. The Company has not made any changes in these critical accounting policies during the first nine months of 2019.

46

FORWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10-Q that are not historical in nature may be considered “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are often identified by the words, “will,” “may,” “should,” “continue,” “anticipate,” “believe,” “expect,” “plan,” “appear,” “project,” “estimate,” “intend,” and words of a similar nature. These statements are not guarantees of future performance and reflect management’s current views with respect to future events, which are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ include but are not limited to: (i) the level of our indebtedness and changes in interest rates; (ii) industry conditions, including but not limited to changes in the cost or availability of raw materials, energy and transportation costs, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products; (iii) global economic conditions and political changes, including but not limited to trade protection measures, the impairment of financial institutions, changes in currency exchange rates, credit ratings issued by recognized credit rating organizations, the amount of our future pension funding obligation, changes in tax laws and pension and health care costs; (iv) unanticipated expenditures related to the cost of compliance with existing and new environmental and other governmental regulations and to actual or potential litigation; (v) whether we experience a material disruption at one of our manufacturing facilities; (vi) risks inherent in conducting business through joint ventures; (vii) our ability to achieve the benefits we expect from strategic acquisitions, divestitures, restructurings and capital investments, and (viii) other factors you can find in our press releases and filings with the Securities and Exchange Commission, including the risk factors identified in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information relating to quantitative and qualitative disclosures about market risk is shown on page 35 of International Paper’s 2018 Form 10-K, which information is incorporated herein by reference. There have been no material changes in the Company’s exposure to market risk since December 31, 2018.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures:

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended (Exchange Act), is recorded, processed, summarized and reported (and accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure) within the time periods specified in the Securities and Exchange Commission’s rules and forms. As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15 and 15d-15 of the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2019 (the end of the period covered by this report).

Changes in Internal Control over Financial Reporting:

There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 1. LEGAL PROCEEDINGS

A discussion of material developments in the Company’s litigation matters occurring in the period covered by this report is found in Note 15 of the Condensed Notes to the Consolidated Financial Statements in this Form 10-Q.

ITEM 1A. RISK FACTORS

There have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (Part I, Item 1A).

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS.

Period	Total Number of Shares Purchased (a)	Average Price Paid per Share	Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in billions)
July 1, 2019 - July 31, 2019	1,329,575	$43.04	1,329,064	$1.76
August 1, 2019 - August 31, 2019	436,700	38.93	436,700	1.75
September 1, 2019 - September 30, 2019	917	40.57	—	1.75
Total	1,767,192

(a) 1,429 shares were acquired from employees or board members as a result of share withholdings to pay income taxes under the Company's restricted stock programs. The remainder were purchased under a share repurchase program that was approved and increased twice by our Board of Directors and announced on September 10, 2013, July 8, 2014 and October 9, 2018. Through this program, which does not have an expiration date, we were authorized to purchase, in open market transactions (including block trades), privately negotiated transactions or otherwise, up to $5 billion of shares of our common stock. As of September 30, 2019, approximately $1.75 billion aggregate amount of shares of our common stock remained authorized for purchase under this program.

48

10.1	Amendment No. 9 to the International Paper Company Unfunded Supplemental Retirement Plan for Senior Managers, effective November 1, 2019.
31.1	Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	XBRL Taxonomy Extension Definition Linkbase.
101.LAB	XBRL Taxonomy Extension Label Linkbase.
101.PRE	XBRL Extension Presentation Linkbase.

49

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	INTERNATIONAL PAPER COMPANY                         (Registrant)
November 1, 2019	By	/s/ Tim S. Nicholls
		Tim S. Nicholls
		Senior Vice President and Chief Financial Officer
November 1, 2019	By	/s/ Vincent P. Bonnot
		Vincent P. Bonnot
		Vice President – Finance and Controller

50

EX-10.1

Exhibit 10.1

AMENDMENT NO. 9

INTERNATIONAL PAPER COMPANY

UNFUNDED SUPPLEMENTAL RETIREMENT PLAN
FOR SENIOR MANAGERS

WHEREAS, effective as of January 1, 2008, the International Paper Company Unfunded Supplemental Retirement Plan for Senior Managers (the "Plan") was amended and restated in its entirety;

WHEREAS, pursuant to Section 9 of the Plan, the Company reserves the right to amend, modify, or terminate the Plan at any time by action of the Board;

WHEREAS, the Charter of the Management Development and Compensation Committee of the Board (the "Committee"), as amended and restated as of December 11, 2012, provides that the Committee shall review and approve changes in Company retirement and benefit plans for senior management;

WHEREAS, the Company desires to amend the Plan to modify the provisions of the Plan concerning the discount rate used in calculating the lump sum payment under Section 6(A) of the Plan when the Company and an Eligible Employee mutually agree on a change in the Eligible Employee's previously announced anticipated Retirement Date; and

WHEREAS, the Committee has approved this amendment and has authorized the undersigned Plan Administrator to execute the amendment on its behalf;

NOW, THEREFORE, the Plan is amended effective as of November 1, 2019, as follows:

1. By replacing "(i)" and "(ii)" in the last sentence of paragraph (ii) of Section 6. (B) with "(a)" and "(b)", respectively;

2. By replacing "(i)" and "(ii)" in the last sentence of paragraph (iii) of Section 6. (B) with "(a)" and "(b)", respectively; and

3. By adding a new paragraph (iv) to Section 6. (B) of the Plan, as follows:

(iv)    Notwithstanding the provisions of the foregoing paragraph (ii) of this Section 6. (B), in the event that an Eligible Employee and the Company mutually agree on a change in the previously announced anticipated Retirement Date of the Eligible Employee to an earlier or later date, in determining the lump sum payment of the

1

Eligible Employee's Supplemental Benefit, the discount rate shall be the lower of (a) the discount rate elected by the Eligible Employee under the provisions of paragraph (ii) of this Section 6. B; or (b) the Plan discount rate for the month of December preceding the Eligible Employee's Normal Payment Date. In the case of any Eligible Employee other than the Chief Executive Officer of the Company ("CEO"), the CEO shall have the authority to act for the Company in agreeing to a change in the Eligible Employee's anticipated Retirement Date. In the event that the CEO has proposed a change in his or her anticipated Retirement Date, approval of the Company of such proposed change may be granted only by the Committee.

4. In all respects not amended, the Plan is hereby ratified and confirmed.

IN WITNESS WHEREOF, this Amendment to the Plan is executed this 15th

day of October , 2019.

INTERNATIONAL PAPER COMPANY

By: /s/ THOMAS J. PLATH

Name: Thomas J. Plath

Title^. Senior Vice President, Human Resources and Global Citizenship, and Plan Administrator of the International Paper Company Unfunded Supplemental Retirement Plan For Senior Managers

2

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Mark S. Sutton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of International Paper Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 1, 2019

/s/ Mark S. Sutton

Mark S. Sutton

Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Tim S. Nicholls, certify that:

1. I have reviewed this quarterly report on Form 10-Q of International Paper Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 1, 2019

/s/ Tim S. Nicholls

Tim S. Nicholls

Senior Vice President and Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The certification set forth below is being submitted in connection with the Quarterly Report of International Paper Company (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2019 for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code. Mark S. Sutton, Chief Executive Officer of the Company, and Tim S. Nicholls, Chief Financial Officer of the Company, each certify that, to the best of his or her knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Mark S. Sutton

Mark S. Sutton

Chairman of the Board and Chief Executive Officer

November 1, 2019

/s/ Tim S. Nicholls

Tim S. Nicholls

Senior Vice President and Chief Financial Officer

November 1, 2019

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EQUITY METHOD INVESTMENTS Summarized Financial Information of Equity Method Investees (Details) - Reportable Subsegments - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Graphic Packaging LLC [Member]
Schedule of Equity Method Investments [Line Items]
Current assets	$ 1,765		$ 1,765		$ 1,757
Noncurrent assets	5,419		5,419		5,292
Current liabilities	1,067		1,067		1,148
Noncurrent liabilities	3,325		3,325		3,156
Net sales	1,581	$ 1,530	4,640	$ 4,515
Gross profit	266	256	820	714
Income from continuing operations	83	135	283	278
Net income	83	135	283	278
Ilim Holding
Schedule of Equity Method Investments [Line Items]
Current assets	749		749		981
Noncurrent assets	2,392		2,392		1,710
Current liabilities	947		947		545
Noncurrent liabilities	1,509		1,509		1,470
Noncontrolling interests	22		22		$ 11
Net sales	479	655	1,692	2,030
Gross profit	196	376	836	1,152
Income from continuing operations	41	149	388	454
Net income	$ 40	$ 143	$ 375	$ 438

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LEASES Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Operating lease costs	$ 39	$ 115
Variable lease costs	16	53
Short-term lease costs	9	27
Amortization of lease assets	3	8
Interest on lease liabilities	1	3
Total lease cost, net	$ 68	$ 206

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INDUSTRY SEGMENT INFORMATION Sales by Industry Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Net sales	$ 5,568	$ 5,901	$ 16,878	$ 17,355
Industrial Packaging
Segment Reporting Information [Line Items]
Net sales	3,820	4,034	11,516	11,883
Global Cellulose Fibers
Segment Reporting Information [Line Items]
Net sales	624	714	1,974	2,083
Printing Papers
Segment Reporting Information [Line Items]
Net sales	1,071	1,102	3,224	3,215
Corporate and Intersegment Sales
Segment Reporting Information [Line Items]
Net sales	$ 53	$ 51	$ 164	$ 174

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LEASES Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating lease, payments		$ 110
Finance lease, interest expense	$ 1	3
Finance lease, principal payments		$ 7

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REVENUE RECOGNITION Contract Assets and Liabilities (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Contract with Customer, Asset, Net, Current	$ 388	$ 395
Contract with Customer, Liability, Current	28	$ 56
Contract with customer, asset, increase (decrease)	(7)
Contract with customer, liability increase (decrease)	$ (28)

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STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits [Table Text Block]

Stock-based compensation expense and related income tax benefits were as follows: 

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019		2018
Total stock-based compensation expense (selling and administrative)	$	31		$	35		$	94	$	102
Income tax benefits related to stock-based compensation	(2		)	(6		)	31		16

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DEBT Footnote

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Debt [Note Text Block]

In June 2019, International Paper issued $200 million of 3.55% senior unsecured notes with a maturity date in 2029. The proceeds from this offering, together with a combination of available cash and other borrowings, were used for general corporate purposes, including repayment of outstanding commercial paper borrowings and other existing indebtedness.

In June 2018, the borrowing capacity of International Paper's commercial paper program was increased from $750 million to $1.0 billion. Under the terms of the program, individual maturities on borrowings may vary, but not exceed one year from the

date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. As of September 30, 2019, the Company had $245 million of borrowings outstanding under the program at a weighted average interest rate of 2.29%.

At September 30, 2019, the fair value of International Paper’s $10.4 billion of debt was approximately $11.4 billion. The fair value of the Company’s long-term debt is estimated based on the quoted market prices for the same or similar issues. International Paper’s long-term debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 16 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

In October 2019, International Paper issued $127 million of industrial development bonds with interest rates ranging from 1.90% to 2.10% and maturity dates in 2024. The proceeds from this offering will be used to repay other existing industrial development bonds.

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INDUSTRY SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2019

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.

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 interest expense, net, corporate expenses, net, corporate special items, net and non-operating pension expense.

Sales by business segment for the three months and nine months ended September 30, 2019 and 2018 were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Industrial Packaging	$	3,820	$	4,034	$	11,516	$	11,883
Global Cellulose Fibers	624		714		1,974		2,083
Printing Papers	1,071		1,102		3,224		3,215
Corporate and Intersegment Sales	53		51		164		174
Net Sales	$	5,568	$	5,901	$	16,878	$	17,355

Operating profit by business segment for the three months and nine months ended September 30, 2019 and 2018 were as follows: 

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019		2018
Industrial Packaging	$	510		$	472		$	1,421	$	1,446
Global Cellulose Fibers	(3		)	83			27		160
Printing Papers	148			183			258		341
Business Segment Operating Profits	$	655		$	738		$	1,706	$	1,947
Earnings (loss) from continuing operations before income taxes and equity earnings	$	452		$	553		$	1,204	$	1,399
Interest expense, net	123			133			378		401
Noncontrolling interests/equity earnings adjustment	2			(2		)	4		(7		)
Corporate expenses, net	21			20			45		59
Corporate special items, net	48			9			48		30
Non-operating pension expense	9			25			27		65
Business Segment Operating Profits	$	655		$	738		$	1,706	$	1,947

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LEASES (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Lease, Cost [Table Text Block]

Components of Lease Expense

In millions	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease costs	$	39	$	115
Variable lease costs	16		53
Short-term lease costs	9		27
Finance lease cost
Amortization of lease assets	3		8
Interest on lease liabilities	1		3
Total lease cost, net	$	68	$	206

Schedule of Supplemental Balance Sheet Information Related to Leases [Table Text Block]

Supplemental Balance Sheet Information Related to Leases

In millions	Classification	September 30, 2019
Assets
Operating lease assets	Right-of-use assets	$	425
Finance lease assets	Plants, properties and equipment, net (a)	105
Total leased assets		$	530
Liabilities
Current
Operating	Other current liabilities	$	136
Finance	Notes payable and current maturities of long-term debt	13
Noncurrent
Operating	Long-term lease obligations	292
Finance	Long-term debt	91
Total lease liabilities		$	532

(a)

Finance leases are recorded net of accumulated amortization of $37 million.

Schedule of Lease Terms and Discount Rates Related to Leases [Table Text Block]

Lease Term and Discount Rate

In millions	September 30, 2019
Weighted average remaining lease term (years)
Operating leases	9.8 years
Finance leases	11.3 years
Weighted average discount rate
Operating leases	3.24	%
Finance leases	4.74	%

Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block]

Supplemental Cash Flow Information Related to Leases

In millions	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	110
Operating cash flows related to financing leases	3
Financing cash flows related to finance leases	7

Schedule of Maturities of Operating and Finance Leases Liabilities [Table Text Block]

Maturity of Lease Liabilities

	September 30, 2019
In millions	Operating Leases		Financing Leases		Total
2019 (remainder of year)	$	39	$	4	$	43
2020	138		17		155
2021	97		15		112
2022	64		13		77
2023	35		11		46
2024	18		10		28
Thereafter	95		65		160
Total lease payments	486		135		621
Less: Interest (a)	58		31		89
Present value of lease liabilities	$	428	$	104	$	532

(a)

Calculated using the interest rate for each lease.

Contractual Obligation, Fiscal Year Maturity [Table Text Block]

At December 31, 2018, total future minimum commitments under existing non-cancelable operating leases were as follows:

In millions	2019		2020		2021		2022		2023		Thereafter
Lease obligations	$	160	$	125	$	77	$	49	$	28	$	118

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EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing operations, and diluted earnings (loss) per share from continuing operations is as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions, except per share amounts	2019		2018		2019		2018
Earnings (loss) from continuing operations attributable to International Paper Company common shareholders	$	344	$	562	$	1,060	$	1,351
Weighted average common shares outstanding	392.6		407.4		396.3		411.4
Effect of dilutive securities
Restricted performance share plan	2.8		4.0		3.3		4.9
Weighted average common shares outstanding – assuming dilution	395.4		411.4		399.6		416.3
Basic earnings (loss) per share from continuing operations	$	0.88	$	1.38	$	2.67	$	3.28
Diluted earnings (loss) per share from continuing operations	$	0.87	$	1.37	$	2.65	$	3.25

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Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net Earnings (Loss)	$ 342	$ 562	$ 1,054	$ 1,699
Other Comprehensive Income (Loss), Net of Tax:
Change in cumulative foreign currency translation adjustment	(179)	(87)	(106)	(467)
Net gains/losses on cash flow hedging derivatives:
Net gains (losses) arising during the period	(10)	1	(6)	(20)
Reclassification adjustment for (gains) losses included in net earnings (loss)	4	2	5	2
Total Other Comprehensive Income (Loss), Net of Tax	(144)	(8)	15	(258)
Comprehensive Income (Loss)	198	554	1,069	1,441
Net (earnings) loss attributable to noncontrolling interests	2	0	6	(3)
Other comprehensive (income) loss attributable to noncontrolling interests	0	2	0	4
Comprehensive Income (Loss) Attributable to International Paper Company	200	556	1,075	1,442
U.S. plans
Other Comprehensive Income (Loss), Net of Tax:
Amortization of pension and post-retirement prior service costs and net loss:	$ 41	$ 76	$ 122	$ 227

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BASIS OF PRESENTATION Footnote	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation [Note Text Block]	The accompanying unaudited condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of International Paper Company’s (International Paper’s, the Company’s or our) financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first nine months of the year may not necessarily be indicative of full year results. It is suggested that these condensed financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which have previously been filed with the Securities and Exchange Commission.

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GOODWILL AND OTHER INTANGIBLES Footnote

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles [Note Text Block]

Goodwill

The following table presents changes in goodwill balances as allocated to each business segment for the nine-months ended September 30, 2019: 

In millions	Industrial Packaging				Global Cellulose Fibers		Printing Papers				Total
Balance as of January 1, 2019
Goodwill	$	3,379			$	52	$	2,116			$	5,547
Accumulated impairment losses	(296		)		—		(1,877		)		(2,173		)
	3,083				52		239				3,374
Currency translation and other (a)	(2		)		—		(14		)		(16		)
Goodwill additions/reductions	54			(b)	—		(112		)	(c)	(58		)
Accumulated impairment loss additions / reductions	—				—		112			(c)	112
Balance as of September 30, 2019
Goodwill	3,431				52		1,990				5,473
Accumulated impairment losses	(296		)		—		(1,765		)		(2,061		)
Total	$	3,135			$	52	$	225			$	3,412

(a) Represents the effects of foreign currency translations.

(b) Reflects the provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA.

(c) Reflects the reclassification of India goodwill and accumulated impairment losses to held for sale.

Other Intangibles

Identifiable intangible assets comprised the following: 

	September 30, 2019						December 31, 2018
In millions	Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets		Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets
Customer relationships and lists	$	541	$	266	$	275	$	542	$	247	$	295
Non-compete agreements	26		26		—		67		67		—
Tradenames, patents and trademarks, and developed technology	173		101		72		174		90		84
Land and water rights	8		2		6		8		2		6
Software	26		25		1		26		25		1
Other	25		18		7		30		23		7
Total	$	799	$	438	$	361	$	847	$	454	$	393

The Company recognized the following amounts as amortization expense related to intangible assets: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Amortization expense related to intangible assets	$	15	$	15	$	40	$	44

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OTHER COMPREHENSIVE INCOME Footnote

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Other Comprehensive Income [Note Text Block]

The following table presents changes in accumulated other comprehensive income (AOCI) for the three months and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019			2018
Defined Benefit Pension and Postretirement Adjustments
Balance at beginning of period	$	(2,362	)	$	(2,376	)	$	(1,916	)	$	(2,527	)
Reclassification of stranded tax effects	—			—			(527		)	—
Amounts reclassified from accumulated other comprehensive income	41			76			122			227
Balance at end of period	(2,321		)	(2,300		)	(2,321		)	(2,300		)
Change in Cumulative Foreign Currency Translation Adjustments
Balance at beginning of period	(2,508		)	(2,489		)	(2,581		)	(2,111		)
Other comprehensive income (loss) before reclassifications	(179		)	(87		)	(110		)	(469		)
Amounts reclassified from accumulated other comprehensive income	—			—			4			2
Other comprehensive income (loss) attributable to noncontrolling interest	—			2			—			4
Balance at end of period	(2,687		)	(2,574		)	(2,687		)	(2,574		)
Net Gains and Losses on Cash Flow Hedging Derivatives
Balance at beginning of period	—			(16		)	(3		)	5
Other comprehensive income (loss) before reclassifications	(10		)	1			(6		)	(20		)
Reclassification of stranded tax effects	—			—			(2		)	—
Amounts reclassified from accumulated other comprehensive income	4			2			5			2
Balance at end of period	(6		)	(13		)	(6		)	(13		)
Total Accumulated Other Comprehensive Income (Loss) at End of Period	$	(5,014	)	$	(4,887	)	$	(5,014	)	$	(4,887	)

The following table presents details of the reclassifications out of AOCI for the three months and nine months ended September 30, 2019 and 2018:

In millions:	Amounts Reclassified from Accumulated Other Comprehensive Income													Location of Amount Reclassified from AOCI
	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Defined benefit pension and postretirement items:
Prior-service costs	$	(4	)	$	(4	)	$	(10	)	$	(11	)	(a)	Non-operating pension expense
Actuarial gains (losses)	(50		)	(97		)	(152		)	(291		)	(a)	Non-operating pension expense
Total pre-tax amount	(54		)	(101		)	(162		)	(302		)
Tax (expense) benefit	13			25			40			75
Net of tax	(41		)	(76		)	(122		)	(227		)
Reclassification of stranded tax effects	—			—			527			—				Retained Earnings
Total, net of tax	(41		)	(76		)	405			(227		)
Change in cumulative foreign currency translation adjustments:
Business acquisitions/divestitures	—			—			(4		)	(2		)	(b)	Cost of products sold
Tax (expense) benefit	—			—			—			—
Net of tax	—			—			(4		)	(2		)
Net gains and losses on cash flow hedging derivatives:
Foreign exchange contracts	(6		)	(3		)	(7		)	(3		)	(c)	Cost of products sold
Total pre-tax amount	(6		)	(3		)	(7		)	(3		)
Tax (expense)/benefit	2			1			2			1
Net of tax	(4		)	(2		)	(5		)	(2		)
Reclassification of stranded tax effects	—			—			2			—				Retained Earnings
Total, net of tax	(4		)	(2		)	(3		)	(2		)
Total reclassifications for the period	$	(45	)	$	(78	)	$	398		$	(231	)

(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details).

(b) Amounts for the three months and nine months ended September 30, 2018 were reclassified to Discontinued operations, net of taxes.

(c)

This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 18 for additional details).

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DIVESTITURES Footnote

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Note Text Block]

Discontinued Operations

On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which included its North American Coated Paperboard and Foodservice businesses, to Graphic Packaging International Partners, LLC (GPIP), a subsidiary of Graphic Packaging Holding Company, in exchange for a 20.5% ownership interest in GPIP. GPIP subsequently transferred the North American Consumer Packaging business to Graphic Packaging International, LLC (GPI), a wholly owned subsidiary of GPIP. International Paper is accounting for its ownership interest in the combined business under the equity method. The Company determined the fair value of its investment in the combined business and recorded a pre-tax gain of $516 million ($385 million after taxes) on the transfer in the first quarter of 2018, subject to final working capital settlement. During the second quarter of 2018, the Company recorded a pre-tax charge of $28 million ($21 million after taxes) to adjust the previously recorded gain on the transfer. 

The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued operations, net of tax, related to the transfer of the North American Consumer Packaging business for all periods presented in the consolidated statement of operations:

	Three Months Ended September 30,		Nine Months Ended September 30,
In millions	2018		2018
Net Sales	$	—	$	—
Costs and Expenses
Selling and administrative expenses	—		25
(Gain) loss on transfer of business	—		(488		)
Earnings (Loss) Before Income Taxes and Equity Earnings	—		463
Income tax provision (benefit)	—		118
Discontinued Operations, Net of Taxes	$	—	$	345

Total cash used for operations related to the North American Consumer Packaging business of $25 million for the nine months ended September 30, 2018, is included in Cash Provided By (Used For) Operations in the consolidated statement of cash flows. Total cash used for investing activities related to the North American Consumer Packaging business of $40 million for the nine months ended September 30, 2018, is included in Cash Provided By (Used For) Investing Activities in the consolidated statement of cash flows.

Other Divestitures

On May 29, 2019, the Company announced that it had entered into an agreement with West Coast Paper Mills Limited (WCPM) to sell its controlling interest in International Paper APPM Limited (APPM), an India-based paper business, for ₨275 (Indian Rupees) per share. International Paper then owned approximately 30 million shares, or 75% of the outstanding shares of APPM.

In conjunction with the announced agreement in the second quarter of 2019, a determination was made that the current book value of the APPM disposal group exceeded its estimated fair value of $119 million which was based on the agreed upon transaction price. As a result, a preliminary pre-tax charge of $152 million ($150 million after taxes) was recorded during the second quarter of 2019. During the third quarter of 2019, the Company recorded an additional charge of $8 million (before and after taxes), which included $2 million related to the change in cumulative foreign currency translation loss and a $6 million loss related to the change in the book value of the long-lived assets of APPM compared to the estimated fair value of the disposal group. These charges are included in the Net (gains) losses on sales and impairments of businesses line item in the accompanying consolidated statement of operations and is included in the results for the Printing Papers segment. A year-to-

date loss of $9 million (before and after taxes) has been allocated to the noncontrolling interest related to the impairment of the long-lived assets of APPM.

The transaction closed on October 30, 2019 and the Company retained a passive investment of 20% in APPM. During the fourth quarter of 2019, a final immaterial adjustment to the impairment charge to reflect the difference between the proceeds received from the transaction and the closing book value of the long-lived assets will be recorded. In addition, the Company will record our retained investment at fair value.

At September 30, 2019, all assets and liabilities related to APPM are classified as current assets held for sale and current liabilities held for sale in the accompanying consolidated balance sheet. The following summarizes the major classes of assets and liabilities of APPM reconciled to total Assets held for sale and total Liabilities held for sale in the accompanying consolidated balance sheet:

In millions	September 30, 2019
Cash and temporary investments	$	19
Accounts and notes receivable	16
Inventories	23
Other current assets	19
Plants, properties and equipment	195
Deferred charges and other assets	6
Total Assets Held for Sale	$	278
Accounts payable and accrued liabilities	$	18
Other current liabilities	22
Deferred income taxes	47
Other liabilities	1
Net impairment reserve	160
Total Liabilities Held for Sale	$	248

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INCOME TAXES Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income tax payments, net of refunds	$ 245	$ 195
Decrease in Unrecognized Tax Benefits is Reasonably Possible	10
Investment tax credit	8	$ 6
Secretariat of the Federal Revenue Bureau of Brazil [Member]
Income tax examination, estimate of possible loss	146
Income tax examination, penalties and interest expense	$ 379

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DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet (Details) - USD ($) $ in Millions		Sep. 30, 2019		Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Derivative Assets		$ 84		$ 19
Derivative Liabilities		20		15
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative Assets		84	[1]	19	[2]
Derivative Liabilities		13	[3]	10	[4]
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative Assets		0		0
Derivative Liabilities	[4]	7		5
Foreign Exchange Contract | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative Assets		0		0
Derivative Liabilities		2		1
Energy Related Derivative | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative Assets		0		0
Derivative Liabilities		5		4
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative Assets		5		3
Derivative Liabilities		13		10
Net Investment Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative Assets		20		0
Derivative Liabilities		0		0
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative Assets		59		16
Derivative Liabilities		$ 0		$ 0

[1] Includes $8 million recorded in Other current assets and $76 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

[2] Includes $2 million recorded in Other current assets and $17 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

[3] (c) Includes $15 million recorded in Other accrued liabilities and $5 million recorded in Other liabilities in the accompanying consolidated balance sheet.

[4] Included in Other current liabilities in the accompanying consolidated balance sheet.

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DEBT Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Dec. 31, 2019	Jun. 30, 2019	Sep. 30, 2019	Mar. 31, 2019
Debt Instrument [Line Items]
Proceeds from issuance of debt		$ 200
Debt instrument, interest rate, stated percentage		3.55%
Debt instrument, maturity date		Jun. 15, 2029
Debt and capital lease obligations			$ 10,400
Debt fair value			11,400
Commercial Paper
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 1,000		$ 750
Line of credit, current			$ 245
Debt, weighted average interest rate			2.29%
Subsequent Event [Member]
Debt Instrument [Line Items]
Proceeds from issuance of debt	$ 127
Debt instrument, maturity date	Jan. 01, 2024
Subsequent Event [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	1.90%
Subsequent Event [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	2.10%

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EQUITY METHOD INVESTMENTS Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Mar. 31, 2018
Schedule of Equity Method Investments [Line Items]
Equity earnings (loss), net of taxes	$ 27	$ 92	$ 221	$ 257
Document Period End Date			Sep. 30, 2019
Equity method dividends received			$ 260	130
Reportable Subsegments | Graphic Packaging LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of equity interest	21.60%		21.60%			20.50%
Equity earnings (loss), net of taxes	$ 10	19	$ 37	36
Equity method dividends received			20	12
Equity method investments	1,100		1,100		$ 1,100
Equity method investment, difference between carrying amount and underlying equity	534		534		562
Revenue from related parties	$ 69	62	$ 212	180
Reportable Subsegments | Ilim Holding
Schedule of Equity Method Investments [Line Items]
Percentage of equity interest	50.00%		50.00%
Equity earnings (loss), net of taxes	$ 18	74	$ 186	223
Equity method dividends received			239	118
Equity method investments	477		477		478
Equity method investment, difference between carrying amount and underlying equity	146		146		$ 145
Related party transaction, purchases from related party	$ 51	$ 50	$ 162	$ 159

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RETIREMENT PLANS Narrative (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Age to participate in the pension plan		21
Years of eligibility to participate in pension plan		1
Domestic Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plan contributions	$ 0	$ 0
Non Qualified
Defined Benefit Plan Disclosure [Line Items]
Benefits paid		$ 21

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VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Activity Between Company and Entities Footnotes (Details) - 2007 Financing Entities - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Variable Interest Entity [Line Items]
Accretion income for amortization of purchase accounting adjustment, financial assets	$ 5	$ 5	$ 14	$ 14
Accretion expense for amortization of purchase accounting adjustment, financial liabiities	$ 2	$ 2	$ 5	$ 5

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ACQUISITIONS (Details) - DS Smith Packaging [Member] $ in Millions	Sep. 30, 2019 USD ($)
Business Acquisition [Line Items]
Cash and temporary investments	$ 1
Accounts and notes receivable	23
Inventory	8
Plants, properties and equipment	28
Goodwill	48
Right of use assets	2
Total assets acquired	110
Accounts payable and accrued liabilities	20
Other current liabilities	1
Long-term debt	2
Postretirement and postemployment benefit obligation	3
Long-term lease obligations	2
Total liabilities assumed	28
Net assets acquired	$ 82

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SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Accounts and Notes Receivable (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and Financing Receivable, after Allowance for Credit Loss, Current	$ 3,305	$ 3,521
Trade
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and Financing Receivable, after Allowance for Credit Loss, Current	3,055	3,249
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and Financing Receivable, after Allowance for Credit Loss, Current	$ 250	$ 272

XML

EQUITY METHOD INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Graphic Packaging LLC [Member]

Schedule of Equity Method Investments [Line Items]

Equity Method Investments [Table Text Block]

Summarized financial information for GPIP is presented in the following tables:

Balance Sheet

In millions	September 30, 2019		December 31, 2018
Current assets	$	1,765	$	1,757
Noncurrent assets	5,419		5,292
Current liabilities	1,067		1,148
Noncurrent liabilities	3,325		3,156

Income Statement

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Net sales	$	1,581	$	1,530	$	4,640	$	4,515
Gross profit	266		256		820		714
Income from continuing operations	83		135		283		278
Net income	83		135		283		278

Ilim Holding

Schedule of Equity Method Investments [Line Items]

Equity Method Investments [Table Text Block]

Summarized financial information for Ilim is presented in the following tables:

Balance Sheet

In millions	September 30, 2019		December 31, 2018
Current assets	$	749	$	981
Noncurrent assets	2,392		1,710
Current liabilities	947		545
Noncurrent liabilities	1,509		1,470
Noncontrolling interests	22		11

Income Statement

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Net sales	$	479	$	655	$	1,692	$	2,030
Gross profit	196		376		836		1,152
Income from continuing operations	41		149		388		454
Net income	40		143		375		438

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ACQUISITIONS (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of June 28, 2019:

In millions
Cash and temporary investments	$	1
Accounts and notes receivable	23
Inventory	8
Plants, properties and equipment	28
Goodwill	48
Right of use assets	2
Total assets acquired	110
Accounts payable and accrued liabilities	20
Other current liabilities	1
Long-term debt	2
Postretirement and postemployment benefit obligation	3
Long-term lease obligations	2
Total liabilities assumed	28
Net assets acquired	$	82

The following summarizes the major classes of assets and liabilities of APPM reconciled to total Assets held for sale and total Liabilities held for sale in the accompanying consolidated balance sheet:

In millions	September 30, 2019
Cash and temporary investments	$	19
Accounts and notes receivable	16
Inventories	23
Other current assets	19
Plants, properties and equipment	195
Deferred charges and other assets	6
Total Assets Held for Sale	$	278
Accounts payable and accrued liabilities	$	18
Other current liabilities	22
Deferred income taxes	47
Other liabilities	1
Net impairment reserve	160
Total Liabilities Held for Sale	$	248

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EQUITY Footnote

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Equity [Note Text Block]

A summary of the changes in equity for the three months and nine months ended September 30, 2019 and 2018 is provided below:

	Three Months Ended September 30, 2019
In millions, except per share amounts	Common Stock Issued		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, July 1	$	449	$	6,229	$	8,302		$	(4,870	)	$	2,628		$	7,482		$	17		$	7,499
Issuance of stock for various plans, net	—		32		—			—			(1		)	33			—			33
Repurchase of stock	—		—		—			—			75			(75		)	—			(75		)
Common stock dividends ($0.5000 per share)	—		—		(199		)	—			—			(199		)	—			(199		)
Transactions of equity method investees	—		—		—			—			—			—			—			—
Comprehensive income (loss)	—		—		344			(144		)	—			200			(2		)	198
Ending Balance, September 30	$	449	$	6,261	$	8,447		$	(5,014	)	$	2,702		$	7,441		$	15		$	7,456

	Nine Months Ended September 30, 2019
In millions, except per share amounts	Common Stock Issued		Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, January 1	$	449	$	6,280		$	7,465		$	(4,500	)	$	2,332		$	7,362		$	21		$	7,383
Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform	—		—			529			(529		)	—			—			—			—
Issuance of stock for various plans, net	—		(52		)	—			—			(165		)	113			—			113
Repurchase of stock	—		—			—			—			535			(535		)	—			(535		)
Common stock dividends ($1.5000 per share)	—		—			(607		)	—			—			(607		)	—			(607		)
Transactions of equity method investees	—		33			—			—			—			33			—			33
Comprehensive income (loss)	—		—			1,060			15			—			1,075			(6		)	1,069
Ending Balance, September 30	$	449	$	6,261		$	8,447		$	(5,014	)	$	2,702		$	7,441		$	15		$	7,456

	Three Months Ended September 30, 2018
In millions, except per share amounts	Common Stock Issued		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, July 1	$	449	$	6,219	$	6,988		$	(4,881	)	$	1,931		$	6,844		$	20		$	6,864
Issuance of stock for various plans, net	—		36		—			—			(1		)	37			—			37
Repurchase of stock	—		—		—			—			201			(201		)	—			(201		)
Common stock dividends ($0.4750 per share)	—		—		(197		)	—			—			(197		)	—			(197		)
Transactions of equity method investees	—		1		—			—			—			1			—			1
Comprehensive income (loss)	—		—		562			(6		)	—			556			(2		)	554
Ending Balance, September 30	$	449	$	6,256	$	7,353		$	(4,887	)	$	2,131		$	7,040		$	18		$	7,058

	Nine Months Ended September 30, 2018
In millions, except per share amounts	Common Stock Issued		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, January 1	$	449	$	6,206	$	6,180		$	(4,633	)	$	1,680		$	6,522		$	19		$	6,541
Adoption of ASC 606 revenue from contracts with customers	—		—		73			—			—			73			—			73
Issuance of stock for various plans, net	—		31		—			—			(81		)	112			—			112
Repurchase of stock	—		—		—			—			532			(532		)	—			(532		)
Common stock dividends ($1.4250 per share)	—		—		(596		)	—			—			(596		)	—			(596		)
Transactions of equity method investees	—		19		—			—			—			19			—			19
Comprehensive income (loss)	—		—		1,696			(254		)	—			1,442			(1		)	1,441
Ending Balance, September 30	$	449	$	6,256	$	7,353		$	(4,887	)	$	2,131		$	7,040		$	18		$	7,058

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ACQUISITIONS (Notes)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

On June 28, 2019, the Company closed on the previously announced acquisition of two packaging businesses located in Portugal (Ovar) and France (Torigni and Cabourg) from DS Smith Packaging. The total purchase consideration, inclusive of working capital adjustments, was approximately €72 million (approximately $82 million at June 30, 2019 exchange rates), subject to post-closing adjustments.

The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of June 28, 2019:

In millions
Cash and temporary investments	$	1
Accounts and notes receivable	23
Inventory	8
Plants, properties and equipment	28
Goodwill	48
Right of use assets	2
Total assets acquired	110
Accounts payable and accrued liabilities	20
Other current liabilities	1
Long-term debt	2
Postretirement and postemployment benefit obligation	3
Long-term lease obligations	2
Total liabilities assumed	28
Net assets acquired	$	82

Since the date of acquisition, Net sales of $25 million and Earnings (loss) from continuing operations before income taxes and equity earnings of $2 million from the acquired business have been included in the Company's consolidated statement of operations for the three months ended September 30, 2019.

The purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding assets acquired and liabilities assumed, and revisions of provisional estimates of fair values, including, but not limited to, the completion of independent appraisals and valuations related to inventory, property, plant and equipment and acquired intangible assets. Adjustments to provisional amounts will be finalized as new information becomes available, but within the adjustment period of up to one year from the acquisition date.

Pro forma information has not been included as it is impracticable to obtain the information due to the lack of availability of historical U.S. GAAP financial data. The results of the operations of these businesses do not have a material effect on the Company's consolidated results of operations.

The Company has accounted for the above acquisition under ASC 805, "Business Combinations" and the results of operations have been included in International Paper's financial statements beginning with the date of acquisition.

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Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net Sales	$ 5,568	$ 5,901	$ 16,878	$ 17,355
Costs and Expenses
Cost of products sold	3,772	3,887	11,602	11,757
Selling and administrative expenses	387	405	1,202	1,277
Depreciation, amortization and cost of timber harvested	327	335	963	990
Distribution expenses	395	397	1,168	1,166
Taxes other than payroll and income taxes	42	44	128	130
Restructuring and other charges, net	21	0	21	48
Net (gains) losses on sales and impairments of businesses	8	122	153	122
Litigation fines and settlements - antitrust	32	0	32	0
Interest expense, net	123	133	378	401
Non-operating pension expense	9	25	27	65
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings	452	553	1,204	1,399
Income tax provision (benefit)	137	83	371	302
Equity earnings (loss), net of taxes	27	92	221	257
Earnings (Loss) From Continuing Operations	342	562	1,054	1,354
Discontinued operations, net of taxes	0	0	0	345
Net Earnings (Loss)	342	562	1,054	1,699
Less: Net earnings (loss) attributable to noncontrolling interests	(2)	0	(6)	3
Net Earnings (Loss) Attributable to International Paper Company	$ 344	$ 562	$ 1,060	$ 1,696
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
Earnings (loss) from continuing operations	$ 0.88	$ 1.38	$ 2.67	$ 3.28
Discontinued operations, net of taxes	0	0	0	0.84
Net earnings (loss)	0.88	1.38	2.67	4.12
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
Earnings (loss) from continuing operations	0.87	1.37	2.65	3.25
Discontinued operations, net of taxes	0	0	0	0.83
Net earnings (loss)	$ 0.87	$ 1.37	$ 2.65	$ 4.08
Average Shares of Common Stock Outstanding – assuming dilution	395.4	411.4	399.6	416.3

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EQUITY METHOD INVESTMENTS Footnote

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

The Company accounts for the following investments in affiliated companies under the equity method of accounting.

Graphic Packaging International Partners, LLC

On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which included its North American Coated Paperboard and Foodservice businesses, to a subsidiary of Graphic Packaging International Partners, LLC (GPIP), a subsidiary of Graphic Packaging Holding Company, in exchange for a 20.5% ownership interest in GPIP. GPIP subsequently transferred the North American Consumer Packaging business to Graphic Packaging International, LLC (GPI), a wholly-owned subsidiary of GPIP that holds the assets of the combined business. As of September 30, 2019, the Company's ownership interest in GPIP was 21.6%. The Company recorded equity earnings of $10 million and $19 million for the three months ended September 30, 2019 and 2018, respectively, and $37 million and $36 million for the nine months ended September 30, 2019 and 2018, respectively. The Company received cash dividends from GPIP of $20 million and $12 million during the first nine months of 2019 and 2018, respectively. The Company's investment in GPIP was $1.1 billion at both September 30, 2019 and December 31, 2018, which was $534 million and $562 million, respectively, more than the Company's proportionate share of the entity's underlying net assets. The difference primarily relates to the basis difference between the fair value of our investment and the underlying net assets, and is generally amortized in equity earnings over a period consistent with the underlying long-lived assets. The Company is party to various agreements with GPI under which it sells fiber and other products to GPI. Sales under these agreements were $69 million and $62 million for the three months ended September 30, 2019 and 2018, respectively, and $212 million and $180 million for the nine months ended September 30, 2019 and 2018, respectively.

Summarized financial information for GPIP is presented in the following tables:

Balance Sheet

In millions	September 30, 2019		December 31, 2018
Current assets	$	1,765	$	1,757
Noncurrent assets	5,419		5,292
Current liabilities	1,067		1,148
Noncurrent liabilities	3,325		3,156

Income Statement

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Net sales	$	1,581	$	1,530	$	4,640	$	4,515
Gross profit	266		256		820		714
Income from continuing operations	83		135		283		278
Net income	83		135		283		278

Ilim S.A.

The Company has a 50% equity interest in Ilim S.A. (Ilim), which has subsidiaries whose primary operations are in Russia. The Company recorded equity earnings, net of taxes, of $18 million and $74 million for the three months ended September 30, 2019 and 2018, respectively, and $186 million and $223 million for the nine months ended September 30, 2019 and 2018, respectively. The Company received cash dividends from the joint venture of $239 million and $118 million during the first nine months of 2019 and 2018, respectively. At September 30, 2019 and December 31, 2018, the Company's investment in Ilim was $477 million and $478 million, respectively, which was $146 million and $145 million, respectively, more than the Company's proportionate share of the joint venture's underlying net assets. The differences primarily relate to currency translation adjustments and the basis difference between the fair value of our investment at acquisition and the underlying net assets. The Company is party to a joint marketing agreement with JSC Ilim Group, a subsidiary of Ilim, under which the Company purchases, markets and sells paper produced by JSC Ilim Group. Purchases under this agreement were $51 million and $50 million for the three months ended September 30, 2019 and 2018, respectively, and $162 million and $159 million for the nine months ended September 30, 2019 and 2018, respectively.

Summarized financial information for Ilim is presented in the following tables:

Balance Sheet

In millions	September 30, 2019		December 31, 2018
Current assets	$	749	$	981
Noncurrent assets	2,392		1,710
Current liabilities	947		545
Noncurrent liabilities	1,509		1,470
Noncontrolling interests	22		11

Income Statement

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Net sales	$	479	$	655	$	1,692	$	2,030
Gross profit	196		376		836		1,152
Income from continuing operations	41		149		388		454
Net income	40		143		375		438

XML

Consolidated Statement of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating Activities
Net earnings (loss)	$ 1,054	$ 1,699
Depreciation, amortization and cost of timber harvested	963	990
Deferred income tax provision (benefit), net	68	163
Restructuring and other charges, net	21	48
Net gain on transfer of North American Consumer Packaging business	0	(488)
Net (gains) losses on sales and impairments of businesses	153	122
Litigation fines and settlements - antitrust	32	0
Equity method dividends received	260	130
Equity (earnings) losses, net	(221)	(257)
Periodic pension expense, net	70	172
Other, net	106	75
Changes in current assets and liabilities
Accounts and notes receivable	168	(441)
Contract assets	6	(20)
Inventories	(9)	(120)
Accounts payable and accrued liabilities	(11)	301
Interest payable	(31)	(33)
Other	53	64
Cash Provided By (Used For) Operations	2,682	2,405
Investment Activities
Invested in capital projects	(913)	(1,286)
Acquisitions, net of cash acquired	(99)	0
Net settlement on transfer of North American Consumer Packaging business	0	(40)
Proceeds from divestitures, net of cash divested	17	0
Proceeds from sale of fixed assets	15	12
Other	(14)	4
Cash Provided By (Used For) Investment Activities	(994)	(1,310)
Financing Activities
Repurchases of common stock and payments of restricted stock tax withholding	(535)	(532)
Issuance of debt	381	349
Reduction of debt	(772)	(242)
Change in book overdrafts	(29)	(33)
Dividends paid	(595)	(588)
Other	3	0
Cash Provided By (Used For) Financing Activities	(1,547)	(1,046)
Cash Included in Assets Held for Sale	(19)	0
Effect of Exchange Rate Changes on Cash	(14)	(41)
Change in Cash and Temporary Investments	108	8
Cash and Temporary Investments
Beginning of period	589	1,018
End of period	$ 697	$ 1,026

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STOCK-BASED COMPENSATION Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Income tax benefits related to stock-based compensation	$ (2)	$ (6)	$ 31	$ 16
Selling, General and Administrative Expenses [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense (selling and administrative)	$ 31	$ 35	$ 94	$ 102

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VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Narrative (Details) $ in Millions	Sep. 30, 2019 USD ($)
2015 Financing Entities
Variable Interest Entity [Line Items]
Notes receivable, fair value disclosure	$ 4,840
Long-term debt, fair value	4,270
2007 Financing Entities
Variable Interest Entity [Line Items]
Notes receivable, fair value disclosure	2,280
Long-term debt, fair value	$ 2,110

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COMMITMENTS AND CONTINGENCIES Environmental Remediation Obligations (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2011
Loss Contingencies [Line Items]
Accrual for environmental loss contingencies	$ 145
Accrual for environmental loss contingencies, gross	155
Cass Lake, Minnesota
Loss Contingencies [Line Items]
Accrual for environmental loss contingencies	$ 47	$ 46

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DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet Other (Details) - USD ($) $ in Millions		Sep. 30, 2019		Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Derivative Assets		$ 84		$ 19
Derivative Liabilities		20		15
Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	[1]	8		2
Deferred charges and other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	[1]	76		17
Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities		15
Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities		5
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative Assets		84	[1]	19	[2]
Derivative Liabilities		13	[3]	10	[4]
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative Assets		0		0
Derivative Liabilities	[4]	$ 7		$ 5

[1] Includes $8 million recorded in Other current assets and $76 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

[2] Includes $2 million recorded in Other current assets and $17 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

[3] (c) Includes $15 million recorded in Other accrued liabilities and $5 million recorded in Other liabilities in the accompanying consolidated balance sheet.

[4] Included in Other current liabilities in the accompanying consolidated balance sheet.

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DERIVATIVES AND HEDGING ACTIVITIES Schedule of Notional Amounts of Financial Instruments (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Foreign Exchange Contract | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative, Notional Amount	$ 11,000,000	$ 19,000,000
Energy Related Derivative | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative, Notional Amount	19,000,000	8,000,000
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument
Derivative [Line Items]
Derivative, Notional Amount	570,000,000	407,000,000
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument
Derivative [Line Items]
Derivative, Notional Amount	700,000,000	700,000,000
Net Investment Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument
Derivative [Line Items]
Derivative, Notional Amount	$ 475,000,000	$ 0

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GOODWILL AND OTHER INTANGIBLES Changes in Goodwill Balances (Details) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2019	Dec. 31, 2018
Goodwill [Line Items]
Beginning balance		$ 5,547
Accumulated impairment losses		(2,173)
Total		3,412	$ 3,374
Currency translation and other (a)	[1]	(16)
Goodwill additions/reductions		(58)
Accumulated impairment loss additions / reductions		112
Accumulated impairment losses		(2,061)
Ending balance		5,473
Industrial Packaging
Goodwill [Line Items]
Beginning balance		3,379
Accumulated impairment losses		(296)
Total		3,135	3,083
Currency translation and other (a)	[1]	(2)
Goodwill additions/reductions	[2]	54
Accumulated impairment loss additions / reductions		0
Accumulated impairment losses		(296)
Ending balance		3,431
Global Cellulose Fibers
Goodwill [Line Items]
Beginning balance		52
Accumulated impairment losses		0
Total		52	52
Currency translation and other (a)	[1]	0
Goodwill additions/reductions		0
Accumulated impairment loss additions / reductions		0
Accumulated impairment losses		0
Ending balance		52
Printing Papers
Goodwill [Line Items]
Beginning balance		2,116
Accumulated impairment losses		(1,877)
Total		225	$ 239
Currency translation and other (a)	[1]	(14)
Goodwill additions/reductions	[3]	(112)
Accumulated impairment loss additions / reductions	[3]	112
Accumulated impairment losses		(1,765)
Ending balance		$ 1,990

[1] Represents the effects of foreign currency translations

[2] Reflects the provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA.

[3] Reflects the reclassification of India goodwill and accumulated impairment losses to held for sale.

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RESTRUCTURING AND OTHER CHARGES Narrative (Details) - USD ($) $ in Millions	3 Months Ended					6 Months Ended	9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges, net	$ 21	$ 0	$ 0			$ 0	$ 21	$ 48
Corporate and Other [Member]
Restructuring Cost and Reserve [Line Items]
Severance costs	11
Printing Papers
Restructuring Cost and Reserve [Line Items]
Severance costs	6
Global Cellulose Fibers [Member]
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 4
EMEA Industrial Packaging [Member]
Restructuring Cost and Reserve [Line Items]
Severance costs				$ 12
Restructuring and other charges, net				26	$ 22
Restructuring and related cost, accelerated depreciation				6
Restructuring and other related charges, accelerated amortization and other noncash costs				2
Other restructuring costs				$ 6

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DIVESTITURES Narrative (Details) shares in Millions, $ in Millions	3 Months Ended					9 Months Ended
	Dec. 31, 2019	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 ₨ / shares shares
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net settlement on transfer of North American Consumer Packaging business						$ 0	$ (40)
Net (gains) losses on sales and impairments of businesses		$ 8		$ 122		$ 153	122
North American Consumer Packaging [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest after Disposal					20.50%
Gain (loss) on disposition of business					$ 516
Gain (loss) on disposition of business, net of taxes					$ 385
Discontinued operation, amount of adjustment to prior period gain (Loss) on disposal, before income tax				28
Discontinued operation, amount of adjustment to prior period gain (loss) on disposal, net of tax				$ 21
Cash provided by (used in) operating activities, discontinued operations							(25)
Net settlement on transfer of North American Consumer Packaging business							$ (40)
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | APPM [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale of stock, price per share | ₨ / shares								₨ 275
Investment owned, balance, shares | shares								30
Sale of stock, percentage of ownership before transaction						75.00%
Assets held-for-sale, long lived, fair value disclosure			$ 119
Net (gains) losses on sales and impairments of businesses			152
Net (gains) losses on sale of assets and impairment charge, net of tax		8	$ 150
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax		2
Impairment of Long-Lived Assets to be Disposed of		6
Gain (loss) on sale of assets and impairment charge allocated to minority interest						$ 9
Gain (loss) on sale of assets and impairment charge allocated to minority interest, net of tax		$ 9
Subsequent Event [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | APPM [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions	20.00%

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SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Disclosure Text Block Supplement [Abstract]
Temporary investments	$ 484		$ 484		$ 402
Allowance for doubtful accounts	77		77		81
Accumulated depreciation	20,400		20,400		20,500
Depreciation expense	305	$ 315	902	$ 930
Capital expenditures incurred but not yet paid			104		135
Interest payments			591	$ 606
Asset retirement obligation	$ 95		$ 95		$ 86

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STOCK-BASED COMPENSATION Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures | $	$ 124
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures, weighted-average period (in years)	1 year 9 months 18 days
Granted, nonvested shares / units	2.4
Granted, nonvested, weighted average grant date fair value | $ / shares	$ 43.49
Stock Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under ICP	9.8

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LEASES Schedule of Lease Terms and Discount Rates Related to Leases (Details)	Sep. 30, 2019
Leases [Abstract]
Operating lease, weighted average remaining lease term	9 years 9 months 18 days
Finance lease, weighted average remaining lease term	11 years 3 months 18 days
Operating lease, weighted average discount rate, percent	3.24%
Finance lease, weighted average discount rate, percent	4.74%

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LEASES Narrative (Details)	9 Months Ended
	Sep. 30, 2019
Minimum [Member]
Lessee, operating and financing leases, remaining lease term	1 year
Maximum [Member]
Lessee, operating and financing leases, remaining lease term	97 years

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EQUITY Table (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Beginning Balance	$ 7,499,000,000	$ 6,864,000,000	$ 7,383,000,000	$ 6,541,000,000
Stockholders' Equity Attributable to Parent	7,441,000,000		7,441,000,000			$ 7,362,000,000
Adoption of ASC 606 revenue from contracts with customers		73,000,000		73,000,000
Issuance of stock for various plans, net	33,000,000	37,000,000	113,000,000	112,000,000
Repurchase of stock	(75,000,000)	(201,000,000)	(535,000,000)	(532,000,000)
Common stock dividends	(199,000,000)	(197,000,000)	(607,000,000)	(596,000,000)
Transactions of equity method investees	0	1,000,000	33,000,000	19,000,000
Comprehensive income (loss)	198,000,000	554,000,000	1,069,000,000	1,441,000,000
Stockholders' equity attributable to noncontrolling interest	15,000,000		15,000,000			21,000,000
Ending Balance	7,456,000,000	7,058,000,000	7,456,000,000	7,058,000,000
Common Stock Issued
Stockholders' Equity Attributable to Parent	449,000,000	449,000,000	449,000,000	449,000,000	$ 449,000,000	449,000,000	$ 449,000,000	$ 449,000,000
Paid-in Capital
Stockholders' Equity Attributable to Parent	6,261,000,000	6,256,000,000	6,261,000,000	6,256,000,000	6,229,000,000	6,280,000,000	6,219,000,000	6,206,000,000
Issuance of stock for various plans, net	32,000,000	36,000,000	(52,000,000)	31,000,000
Transactions of equity method investees	0	1,000,000	33,000,000	19,000,000
Retained Earnings
Stockholders' Equity Attributable to Parent	8,447,000,000	7,353,000,000	8,447,000,000	7,353,000,000	8,302,000,000	7,465,000,000	6,988,000,000	6,180,000,000
Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform			529,000,000
Adoption of ASC 606 revenue from contracts with customers		73,000,000		73,000,000
Common stock dividends	(199,000,000)	(197,000,000)	(607,000,000)	(596,000,000)
Comprehensive income (loss)	344,000,000	562,000,000	1,060,000,000	1,696,000,000
Accumulated Other Comprehensive Income (Loss)
Stockholders' Equity Attributable to Parent	(5,014,000,000)	(4,887,000,000)	(5,014,000,000)	(4,887,000,000)	(4,870,000,000)	(4,500,000,000)	(4,881,000,000)	(4,633,000,000)
Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform			(529,000,000)
Comprehensive income (loss)	(144,000,000)	(6,000,000)	15,000,000	(254,000,000)
Treasury Stock
Stockholders' Equity Attributable to Parent	2,702,000,000	2,131,000,000	2,702,000,000	2,131,000,000	2,628,000,000	2,332,000,000	1,931,000,000	1,680,000,000
Issuance of stock for various plans, net	(1,000,000)	(1,000,000)	(165,000,000)	(81,000,000)
Repurchase of stock	75,000,000	201,000,000	535,000,000	532,000,000
Total International Paper Shareholders’ Equity
Stockholders' Equity Attributable to Parent	7,441,000,000	7,040,000,000	7,441,000,000	7,040,000,000	7,482,000,000	7,362,000,000	6,844,000,000	6,522,000,000
Adoption of ASC 606 revenue from contracts with customers		73,000,000		73,000,000
Issuance of stock for various plans, net	33,000,000	37,000,000	113,000,000	112,000,000
Repurchase of stock	(75,000,000)	(201,000,000)	(535,000,000)	(532,000,000)
Common stock dividends	(199,000,000)	(197,000,000)	(607,000,000)	(596,000,000)
Transactions of equity method investees	0	1,000,000	33,000,000	19,000,000
Comprehensive income (loss)	200,000,000	556,000,000	1,075,000,000	1,442,000,000
Noncontrolling Interests
Comprehensive income (loss), portion attributable to noncontrolling interest	(2,000,000)	(2,000,000)	(6,000,000)	(1,000,000)
Stockholders' equity attributable to noncontrolling interest	$ 15,000,000	$ 18,000,000	$ 15,000,000	$ 18,000,000	$ 17,000,000	$ 21,000,000	$ 20,000,000	$ 19,000,000

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INDUSTRY SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment [Table Text Block]

Sales by business segment for the three months and nine months ended September 30, 2019 and 2018 were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Industrial Packaging	$	3,820	$	4,034	$	11,516	$	11,883
Global Cellulose Fibers	624		714		1,974		2,083
Printing Papers	1,071		1,102		3,224		3,215
Corporate and Intersegment Sales	53		51		164		174
Net Sales	$	5,568	$	5,901	$	16,878	$	17,355

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

Operating profit by business segment for the three months and nine months ended September 30, 2019 and 2018 were as follows: 

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019		2018
Industrial Packaging	$	510		$	472		$	1,421	$	1,446
Global Cellulose Fibers	(3		)	83			27		160
Printing Papers	148			183			258		341
Business Segment Operating Profits	$	655		$	738		$	1,706	$	1,947
Earnings (loss) from continuing operations before income taxes and equity earnings	$	452		$	553		$	1,204	$	1,399
Interest expense, net	123			133			378		401
Noncontrolling interests/equity earnings adjustment	2			(2		)	4		(7		)
Corporate expenses, net	21			20			45		59
Corporate special items, net	48			9			48		30
Non-operating pension expense	9			25			27		65
Business Segment Operating Profits	$	655		$	738		$	1,706	$	1,947

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VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Footnote

9 Months Ended

Sep. 30, 2019

Variable Interest Entities And Preferred Securities Of Subsidiaries [Abstract]

Variable Interest Entities and Preferred Securities of Subsidiaries [Note Text Block]

Variable Interest Entities

As of September 30, 2019, the fair value of the Timber Notes and Extension Loans is $4.84 billion and $4.27 billion, respectively, for the 2015 Financing Entities. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 16 in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.

Activity between the Company and the 2015 Financing Entities was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Revenue (a)	$	24	$	24	$	71	$	71
Expense (a)	32		32		96		96
Cash receipts (b)	48		48		95		95
Cash payments (c)	64		64		128		128

(a) The revenue and expense are included in Interest expense, net in the accompanying statement of operations.

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

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

As of September 30, 2019, the fair value of the Timber Notes and Extension Loans is $2.28 billion and $2.11 billion, respectively, for the 2007 Financing Entities. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 16 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Activity between the Company and the 2007 Financing Entities was as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Revenue (a)	$	19	$	19	$	61	$	52
Expense (b)	19		18		60		48
Cash receipts (c)	16		15		48		34
Cash payments (d)	17		16		53		40

(a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for three and nine months ended September 30, 2019 and 2018, respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities.

(b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three and nine months ended September 30, 2019 and 2018, respectively, of accretion expense for the amortization of the basis difference 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.

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STOCK-BASED COMPENSATION Footnote

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Stock-based Compensation [Note Text Block]

International Paper has an Incentive Compensation Plan (ICP) which is administered by the Management Development and Compensation Committee of the Board of Directors (the Committee). The ICP authorizes the grants of restricted stock, restricted or deferred stock units, performance awards payable in cash or stock upon the attainment of specified performance goals, dividend equivalents, stock options, stock appreciation rights, other stock-based awards and cash-based awards at the discretion of the Committee. As of September 30, 2019, 9.8 million shares were available for grant under the ICP.

Stock-based compensation expense and related income tax benefits were as follows: 

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019		2018
Total stock-based compensation expense (selling and administrative)	$	31		$	35		$	94	$	102
Income tax benefits related to stock-based compensation	(2		)	(6		)	31		16

At September 30, 2019, $124 million, net of estimated forfeitures, of compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future service had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 1.8 years.

Performance Share Plan

During the first nine months of 2019, the Company granted 2.4 million performance units at an average grant date fair value of $43.49.

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EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS Footnote

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share [Note Text Block]

Basic earnings per share is computed by dividing earnings by the weighted average number of common shares outstanding. Diluted earnings per share is computed assuming that all potentially dilutive securities were converted into common shares. There are no adjustments required to be made to net income for purposes of computing basic and diluted earnings per share. A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing operations, and diluted earnings (loss) per share from continuing operations is as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions, except per share amounts	2019		2018		2019		2018
Earnings (loss) from continuing operations attributable to International Paper Company common shareholders	$	344	$	562	$	1,060	$	1,351
Weighted average common shares outstanding	392.6		407.4		396.3		411.4
Effect of dilutive securities
Restricted performance share plan	2.8		4.0		3.3		4.9
Weighted average common shares outstanding – assuming dilution	395.4		411.4		399.6		416.3
Basic earnings (loss) per share from continuing operations	$	0.88	$	1.38	$	2.67	$	3.28
Diluted earnings (loss) per share from continuing operations	$	0.87	$	1.37	$	2.65	$	3.25

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RECENT ACCOUNTING DEVELOPMENTS Footnote

9 Months Ended

Sep. 30, 2019

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Developments [Note Text Block]

Recently Adopted Accounting Pronouncements

Leases

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The Company adopted the provisions of this guidance effective January 1, 2019, using the modified retrospective optional transition method. Therefore, the standard was applied beginning January 1, 2019 and prior periods were not restated. The adoption of the standard did not result in a cumulative-effect adjustment to the opening balance of Retained earnings. The Company elected the package of practical expedients and implemented internal controls and system functionality to enable the preparation of financial information upon adoption.

The adoption of the new standard resulted in the recognition of a right of use asset and short-term and long-term liabilities recorded on the Company's consolidated balance sheet related to operating leases. Accounting for finance leases remained substantially unchanged. In addition, the adoption of the standard did not have a material impact on the Company's results of operations or cash flows.

Comprehensive Income

In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This guidance gives entities the option to reclassify stranded tax effects caused by the newly-enacted U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. As a result, the Company adopted this guidance effective January 1, 2019, and recorded a net increase to opening Retained earnings and a decrease to opening Accumulated other comprehensive income of $529 million, due to the cumulative impact of adopting the new guidance.

Recently Issued Accounting Pronouncements Not Yet Adopted

Intangibles

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." This guidance eliminates the requirement to calculate the implied fair value of goodwill under Step 2 of today's goodwill impairment test to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. This guidance should be applied prospectively and is effective for annual reporting periods beginning after December 15, 2019, for any impairment test performed in 2020. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company plans to early adopt this guidance in the fourth quarter of 2019 in conjunction with our annual evaluation for possible goodwill impairment which is performed in addition to interim evaluations when management believes that it is more likely than not, that events or circumstances have occurred that would result in the impairment of a reporting unit's goodwill.

Financial Instruments - Credit Losses

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This guidance replaces the current incurred loss impairment method with a method that reflects expected credit losses. This guidance is effective for annual reporting periods beginning after December 15, 2019,

including interim periods within those fiscal years. Early adoption is permitted. This guidance should be applied using the modified-retrospective approach. In May 2019, the FASB issued ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief." The amendments in this Update provide entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. The amendments also decrease costs for some financial statement preparers while providing financial statement users with decision-useful information. For entities that have not yet adopted the amendments in Update 2016-13, the effective date and transition methodology for the amendments in this Update are the same as in Update 2016-13. The Company is currently evaluating the provisions of this guidance and plans to adopt this guidance and the related amendments on its effective date of January 1, 2020, by recognizing any cumulative effect of initially applying the new standard as an adjustment to the opening balance of Retained earnings.

Pension Plan Disclosures

In July 2018, the FASB issued ASU 2018-09, "Codification Improvements," which included amendments to Subtopic 962-325. This disclosure guidance pertains to the presentation of certain types of investments and is effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the provisions of this guidance and its potential impact on our 2019 annual Form 10-K disclosures and presentation related to pension plan assets.

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SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Footnote

9 Months Ended

Sep. 30, 2019

Disclosure Text Block Supplement [Abstract]

Supplemental Financial Statement Information [Note Text Block]

Temporary Investments 

Temporary investments with an original maturity of three months or less are treated as cash equivalents and are stated at cost. Temporary investments totaled $484 million and $402 million at September 30, 2019 and December 31, 2018, respectively.

Accounts and Notes Receivable

In millions	September 30, 2019		December 31, 2018
Accounts and notes receivable, net:
Trade	$	3,055	$	3,249
Other	250		272
Total	$	3,305	$	3,521

The allowance for doubtful accounts was $77 million and $81 million at September 30, 2019 and December 31, 2018, respectively.

Inventories 

In millions	September 30, 2019		December 31, 2018
Raw materials	$	270	$	260
Finished pulp, paper and packaging	1,140		1,241
Operating supplies	637		641
Other	147		99
Total	$	2,194	$	2,241

Plants, Properties and Equipment  

Accumulated depreciation was $20.4 billion and $20.5 billion at September 30, 2019 and December 31, 2018, respectively. Depreciation expense was $305 million and $315 million for the three months ended September 30, 2019 and 2018, respectively, and $902 million and $930 million for the nine months ended September 30, 2019 and 2018, respectively.

Non-cash additions to plants, property and equipment included within accounts payable were $104 million and $135 million at September 30, 2019 and December 31, 2018, respectively.

Interest

Interest payments made during the nine months ended September 30, 2019 and 2018 were $591 million and $606 million, respectively.

Amounts related to interest were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Interest expense	$	177	$	184	$	538	$	547
Interest income	54		51		160		146
Capitalized interest costs	7		9		21		26

Asset Retirement Obligations

The Company had recorded liabilities of $95 million and $86 million related to asset retirement obligations at September 30, 2019 and December 31, 2018, respectively.

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Consolidated Balance Sheet - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current Assets
Cash and temporary investments	$ 697	$ 589
Accounts and notes receivable, net	3,305	3,521
Contract assets	388	395
Inventories	2,194	2,241
Assets held for sale	278	0
Other current assets	189	250
Total Current Assets	7,051	6,996
Plants, Properties and Equipment, net	12,845	13,067
Forestlands	378	402
Investments	1,651	1,648
Financial Assets of Variable Interest Entities (Note 16)	7,084	7,070
Goodwill	3,412	3,374
Right of Use Assets	425	0
Deferred Charges and Other Assets	1,002	1,019
Total Assets	33,848	33,576
Current Liabilities
Notes payable and current maturities of long-term debt	402	639
Accounts payable	2,349	2,413
Accrued payroll and benefits	442	535
Liabilities held for sale	248	0
Other current liabilities	1,288	1,107
Total Current Liabilities	4,729	4,694
Long-Term Debt	9,957	10,015
Nonrecourse Financial Liabilities of Variable Interest Entities (Note 16)	6,303	6,298
Deferred Income Taxes	2,643	2,600
Pension Benefit Obligation	1,653	1,762
Postretirement and Postemployment Benefit Obligation	248	264
Long-Term Lease Obligations	292	0
Other Liabilities	567	560
Equity
Common stock, $1 par value, 2019 – 448.9 shares and 2018 – 448.9 shares	449	449
Paid-in capital	6,261	6,280
Retained earnings	8,447	7,465
Accumulated other comprehensive loss	(5,014)	(4,500)
Shareholders' Equity before Treasury Stock, Total	10,143	9,694
Less: Common stock held in treasury, at cost, 2019 – 56.8 shares and 2018 – 48.3 shares	2,702	2,332
Total International Paper Shareholders’ Equity	7,441	7,362
Noncontrolling interests	15	21
Total Equity	7,456	7,383
Total Liabilities and Equity	$ 33,848	$ 33,576

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SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

Disclosure Text Block Supplement [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Accounts and Notes Receivable

In millions	September 30, 2019		December 31, 2018
Accounts and notes receivable, net:
Trade	$	3,055	$	3,249
Other	250		272
Total	$	3,305	$	3,521

Inventories [Table Text Block]

Inventories 

In millions	September 30, 2019		December 31, 2018
Raw materials	$	270	$	260
Finished pulp, paper and packaging	1,140		1,241
Operating supplies	637		641
Other	147		99
Total	$	2,194	$	2,241

Interest Income and Interest Expense Disclosure [Table Text Block]

Amounts related to interest were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Interest expense	$	177	$	184	$	538	$	547
Interest income	54		51		160		146
Capitalized interest costs	7		9		21		26

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OTHER COMPREHENSIVE INCOME (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table presents changes in accumulated other comprehensive income (AOCI) for the three months and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019			2018
Defined Benefit Pension and Postretirement Adjustments
Balance at beginning of period	$	(2,362	)	$	(2,376	)	$	(1,916	)	$	(2,527	)
Reclassification of stranded tax effects	—			—			(527		)	—
Amounts reclassified from accumulated other comprehensive income	41			76			122			227
Balance at end of period	(2,321		)	(2,300		)	(2,321		)	(2,300		)
Change in Cumulative Foreign Currency Translation Adjustments
Balance at beginning of period	(2,508		)	(2,489		)	(2,581		)	(2,111		)
Other comprehensive income (loss) before reclassifications	(179		)	(87		)	(110		)	(469		)
Amounts reclassified from accumulated other comprehensive income	—			—			4			2
Other comprehensive income (loss) attributable to noncontrolling interest	—			2			—			4
Balance at end of period	(2,687		)	(2,574		)	(2,687		)	(2,574		)
Net Gains and Losses on Cash Flow Hedging Derivatives
Balance at beginning of period	—			(16		)	(3		)	5
Other comprehensive income (loss) before reclassifications	(10		)	1			(6		)	(20		)
Reclassification of stranded tax effects	—			—			(2		)	—
Amounts reclassified from accumulated other comprehensive income	4			2			5			2
Balance at end of period	(6		)	(13		)	(6		)	(13		)
Total Accumulated Other Comprehensive Income (Loss) at End of Period	$	(5,014	)	$	(4,887	)	$	(5,014	)	$	(4,887	)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The following table presents details of the reclassifications out of AOCI for the three months and nine months ended September 30, 2019 and 2018:

In millions:	Amounts Reclassified from Accumulated Other Comprehensive Income													Location of Amount Reclassified from AOCI
	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Defined benefit pension and postretirement items:
Prior-service costs	$	(4	)	$	(4	)	$	(10	)	$	(11	)	(a)	Non-operating pension expense
Actuarial gains (losses)	(50		)	(97		)	(152		)	(291		)	(a)	Non-operating pension expense
Total pre-tax amount	(54		)	(101		)	(162		)	(302		)
Tax (expense) benefit	13			25			40			75
Net of tax	(41		)	(76		)	(122		)	(227		)
Reclassification of stranded tax effects	—			—			527			—				Retained Earnings
Total, net of tax	(41		)	(76		)	405			(227		)
Change in cumulative foreign currency translation adjustments:
Business acquisitions/divestitures	—			—			(4		)	(2		)	(b)	Cost of products sold
Tax (expense) benefit	—			—			—			—
Net of tax	—			—			(4		)	(2		)
Net gains and losses on cash flow hedging derivatives:
Foreign exchange contracts	(6		)	(3		)	(7		)	(3		)	(c)	Cost of products sold
Total pre-tax amount	(6		)	(3		)	(7		)	(3		)
Tax (expense)/benefit	2			1			2			1
Net of tax	(4		)	(2		)	(5		)	(2		)
Reclassification of stranded tax effects	—			—			2			—				Retained Earnings
Total, net of tax	(4		)	(2		)	(3		)	(2		)
Total reclassifications for the period	$	(45	)	$	(78	)	$	398		$	(231	)

(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details).

(b) Amounts for the three months and nine months ended September 30, 2018 were reclassified to Discontinued operations, net of taxes.

(c)

This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 18 for additional details).

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VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Tables)

9 Months Ended

Sep. 30, 2019

2015 Financing Entities

Activity Between Company And Entities [Table Text Block]

Activity between the Company and the 2015 Financing Entities was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Revenue (a)	$	24	$	24	$	71	$	71
Expense (a)	32		32		96		96
Cash receipts (b)	48		48		95		95
Cash payments (c)	64		64		128		128

(a) The revenue and expense are included in Interest expense, net in the accompanying statement of operations.

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

(c)

The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities.

2007 Financing Entities

Activity Between Company And Entities [Table Text Block]

Activity between the Company and the 2007 Financing Entities was as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Revenue (a)	$	19	$	19	$	61	$	52
Expense (b)	19		18		60		48
Cash receipts (c)	16		15		48		34
Cash payments (d)	17		16		53		40

(a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for three and nine months ended September 30, 2019 and 2018, respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities.

(b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three and nine months ended September 30, 2019 and 2018, respectively, of accretion expense for the amortization of the basis difference 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.

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SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Inventories by Major Category (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Inventory [Line Items]
Raw materials	$ 270	$ 260
Finished pulp, paper and packaging	1,140	1,241
Operating supplies	637	641
Other	147	99
Total	$ 2,194	$ 2,241

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OTHER COMPREHENSIVE INCOME Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax (expense)/benefit		$ (137)	$ (83)	$ (371)	$ (302)
Earnings (Loss) From Continuing Operations		(342)	(562)	(1,054)	(1,354)
Total reclassifications for the period		(45)	(78)	398	(231)
Prior-service costs
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from accumulated other comprehensive income, current period, before tax	[1]	(4)	(4)	(10)	(11)
Actuarial gains (losses)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from accumulated other comprehensive income, current period, before tax	[1]	(50)	(97)	(152)	(291)
Accumulated defined benefit plans adjustment including portion attributable to noncontrolling interest
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from accumulated other comprehensive income, current period, before tax		(54)	(101)	(162)	(302)
Tax (expense)/benefit		13	25	40	75
Earnings (Loss) From Continuing Operations		(41)	(76)	(122)	(227)
Income (Loss) from Continuing Operations, Total, Net of Tax		(41)	(76)	405	(227)
Reclassification of stranded tax effects
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax cut and jobs act reclassification from AOCI to retained earnings pension and postretirement benefit plans, before tax		0	0	527	0
Total reclassifications for the period		(41)	(76)	(122)	(227)
Accumulated foreign currency adjustment including portion attributable to noncontrolling interest
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from accumulated other comprehensive income, current period, before tax	[2]	0	0	(4)	(2)
Tax (expense)/benefit		0	0	0	0
Earnings (Loss) From Continuing Operations		0	0	(4)	(2)
Accumulated net gain (loss) from cash flow hedges including portion attributable to noncontrolling interest
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from accumulated other comprehensive income, current period, before tax		(6)	(3)	(7)	(3)
Tax (expense)/benefit		2	1	2	1
Accumulated net gain (loss) from cash flow hedges including portion attributable to noncontrolling interest | Foreign Exchange Contract
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from accumulated other comprehensive income, current period, before tax	[3]	(6)	(3)	(7)	(3)
Net gains and loses on cash flow hedging derivatives
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Earnings (Loss) From Continuing Operations		(4)	(2)	(5)	(2)
Tax cut and jobs act reclassification from AOCI to retained earnings pension and postretirement benefit plans, before tax		0	0	2	0
Income (Loss) from Continuing Operations, Total, Net of Tax		(4)	(2)	(3)	(2)
Total reclassifications for the period		$ (4)	$ (2)	$ (5)	$ (2)

[1] These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details).

[2] Amounts for the three months and nine months ended September 30, 2018 were reclassified to Discontinued operations, net of taxes.

[3] This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 18 for additional details).

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ACQUISITIONS Narrative (Details) - 3 months ended Sep. 30, 2019 € in Millions, $ in Millions	USD ($)	EUR (€)
Business Acquisition [Line Items]
Business combination, pro forma information, revenue of acquiree since acquisition date, actual	$ 25
Business combination, pro forma information, earnings or loss of scquiree since scquisition fate, sctual	2
DS Smith Packaging [Member]
Business Acquisition [Line Items]
Business combination, provisional information, initial accounting incomplete, adjustment, consideration transferred	$ 82	€ 72

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VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Activity Between Company and Entities (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
2015 Financing Entities
Variable Interest Entity [Line Items]
Revenue	[1]	$ 24	$ 24	$ 71	$ 71
Expense	[1]	32	32	96	96
Cash receipts	[2]	48	48	95	95
Cash payments	[3]	64	64	128	128
2007 Financing Entities
Variable Interest Entity [Line Items]
Revenue	[4]	19	19	61	52
Expense	[5]	19	18	60	48
Cash receipts	[6]	16	15	48	34
Cash payments	[7]	$ 17	$ 16	$ 53	$ 40

[1] The revenue and expense are included in Interest expense, net in the accompanying statement of operations.

[2] The cash receipts are interest received on the Financial assets of special purpose entities.

[3] The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities.

[4] The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for three and nine months ended September 30, 2019 and 2018, respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities.

[5] The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three and nine months ended September 30, 2019 and 2018, respectively, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities.

[6] The cash receipts are interest received on the Financial assets of special purpose entities.

[7] The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities.

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RETIREMENT PLANS Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans (Details) - U.S. plans - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 17	$ 40	$ 51	$ 119
Interest cost	110	118	330	356
Expected return on plan assets	(158)	(200)	(473)	(600)
Actuarial loss	50	95	150	285
Amortization of prior service cost	4	4	12	12
Net periodic pension expense	$ 23	$ 57	$ 70	$ 172

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DERIVATIVES AND HEDGING ACTIVITIES Gains and Losses Recognized in Consolidated Statement of Operations on Qualifying and Non-Qualifying Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Designated as Hedging Instrument | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ 0	$ 0	$ 0	$ 0
Designated as Hedging Instrument | Interest Expense [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	11	0	42	0
Designated as Hedging Instrument | Interest Expense [Member] | Debt [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(11)	0	(42)	0
Designated as Hedging Instrument | Cost of Products Sold | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(4)	(2)	(5)	(2)
Designated as Hedging Instrument | Cost of Products Sold | Cash Flow Hedging | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(4)	(2)	(5)	(2)
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(6)	5	(2)	5
Not Designated as Hedging Instrument | Cost of Products Sold | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(1)	3	(2)	4
Not Designated as Hedging Instrument | Cost of Products Sold | Energy Related Derivative
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ (5)	$ 2	$ 0	$ 1

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GOODWILL AND OTHER INTANGIBLES Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 15	$ 15	$ 40	$ 44

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REVENUE RECOGNITION Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 5,568	$ 5,901	$ 16,878	$ 17,355
North American Industrial Packaging
Disaggregation of Revenue [Line Items]
Net sales	3,368	3,653	10,158	10,604
EMEA Industrial Packaging
Disaggregation of Revenue [Line Items]
Net sales	324	311	994	1,017
Brazilian Industrial Packaging
Disaggregation of Revenue [Line Items]
Net sales	61	57	176	175
European Coated Paperboard
Disaggregation of Revenue [Line Items]
Net sales	92	87	275	265
Global Cellulose Fibers
Disaggregation of Revenue [Line Items]
Net sales	624	714	1,974	2,083
North American Printing Papers
Disaggregation of Revenue [Line Items]
Net sales	492	492	1,474	1,443
Brazilian Papers
Disaggregation of Revenue [Line Items]
Net sales	247	255	702	706
European Papers
Disaggregation of Revenue [Line Items]
Net sales	299	311	929	932
Indian Papers
Disaggregation of Revenue [Line Items]
Net sales	38	47	144	150
United States
Disaggregation of Revenue [Line Items]
Net sales	4,257	4,530	12,809	13,114
EMEA
Disaggregation of Revenue [Line Items]
Net sales	791	797	2,448	2,472
Pacific Rim and Asia
Disaggregation of Revenue [Line Items]
Net sales	97	143	337	470
Americas, other than U.S.
Disaggregation of Revenue [Line Items]
Net sales	423	431	1,284	1,299
Industrial Packaging
Disaggregation of Revenue [Line Items]
Net sales	3,820	4,034	11,516	11,883
Industrial Packaging | North American Industrial Packaging
Disaggregation of Revenue [Line Items]
Net sales	3,368	3,653	10,158	10,604
Industrial Packaging | EMEA Industrial Packaging
Disaggregation of Revenue [Line Items]
Net sales	324	311	994	1,017
Industrial Packaging | Brazilian Industrial Packaging
Disaggregation of Revenue [Line Items]
Net sales	61	57	176	175
Industrial Packaging | European Coated Paperboard
Disaggregation of Revenue [Line Items]
Net sales	92	87	275	265
Industrial Packaging | United States
Disaggregation of Revenue [Line Items]
Net sales	3,180	3,394	9,531	9,832
Industrial Packaging | EMEA
Disaggregation of Revenue [Line Items]
Net sales	415	396	1,263	1,275
Industrial Packaging | Pacific Rim and Asia
Disaggregation of Revenue [Line Items]
Net sales	20	40	50	110
Industrial Packaging | Americas, other than U.S.
Disaggregation of Revenue [Line Items]
Net sales	205	204	672	666
Global Cellulose Fibers
Disaggregation of Revenue [Line Items]
Net sales	624	714	1,974	2,083
Global Cellulose Fibers | Global Cellulose Fibers
Disaggregation of Revenue [Line Items]
Net sales	624	714	1,974	2,083
Global Cellulose Fibers | United States
Disaggregation of Revenue [Line Items]
Net sales	535	602	1,656	1,720
Global Cellulose Fibers | EMEA
Disaggregation of Revenue [Line Items]
Net sales	62	77	207	222
Global Cellulose Fibers | Pacific Rim and Asia
Disaggregation of Revenue [Line Items]
Net sales	27	35	111	140
Global Cellulose Fibers | Americas, other than U.S.
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	1
Printing Papers
Disaggregation of Revenue [Line Items]
Net sales	1,071	1,102	3,224	3,215
Printing Papers | North American Printing Papers
Disaggregation of Revenue [Line Items]
Net sales	492	492	1,474	1,443
Printing Papers | Brazilian Papers
Disaggregation of Revenue [Line Items]
Net sales	247	255	702	706
Printing Papers | European Papers
Disaggregation of Revenue [Line Items]
Net sales	299	311	929	932
Printing Papers | Indian Papers
Disaggregation of Revenue [Line Items]
Net sales	38	47	144	150
Printing Papers | United States
Disaggregation of Revenue [Line Items]
Net sales	486	482	1,448	1,399
Printing Papers | EMEA
Disaggregation of Revenue [Line Items]
Net sales	315	328	986	988
Printing Papers | Pacific Rim and Asia
Disaggregation of Revenue [Line Items]
Net sales	47	62	167	185
Printing Papers | Americas, other than U.S.
Disaggregation of Revenue [Line Items]
Net sales	223	230	623	643
Operating Segments [Member] | Industrial Packaging
Disaggregation of Revenue [Line Items]
Net sales	3,820	4,034	11,516	11,883
Operating Segments [Member] | Global Cellulose Fibers
Disaggregation of Revenue [Line Items]
Net sales	624	714	1,974	2,083
Operating Segments [Member] | Printing Papers
Disaggregation of Revenue [Line Items]
Net sales	1,071	1,102	3,224	3,215
Intersegment Eliminations [Member]
Disaggregation of Revenue [Line Items]
Net sales	53	51	164	174
Intersegment Eliminations [Member] | United States
Disaggregation of Revenue [Line Items]
Net sales	56	52	174	163
Intersegment Eliminations [Member] | EMEA
Disaggregation of Revenue [Line Items]
Net sales	(1)	(4)	(8)	(13)
Intersegment Eliminations [Member] | Pacific Rim and Asia
Disaggregation of Revenue [Line Items]
Net sales	3	6	9	35
Intersegment Eliminations [Member] | Americas, other than U.S.
Disaggregation of Revenue [Line Items]
Net sales	(5)	(3)	(11)	(11)
Geography Eliminations [Member] | Industrial Packaging
Disaggregation of Revenue [Line Items]
Net sales	3,820	4,034	11,516	11,883
Geography Eliminations [Member] | Global Cellulose Fibers
Disaggregation of Revenue [Line Items]
Net sales	624	714	1,974	2,083
Geography Eliminations [Member] | Printing Papers
Disaggregation of Revenue [Line Items]
Net sales	1,071	1,102	3,224	3,215
Subsegments Consolidation Items [Domain]
Disaggregation of Revenue [Line Items]
Net sales	(30)	(77)	(112)	(194)
Subsegments Consolidation Items [Domain] | Industrial Packaging
Disaggregation of Revenue [Line Items]
Net sales	(25)	(74)	(87)	(178)
Subsegments Consolidation Items [Domain] | Printing Papers
Disaggregation of Revenue [Line Items]
Net sales	$ (5)	$ (3)	$ (25)	$ (16)

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RETIREMENT PLANS (Tables)

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans [Table Text Block]

Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: 

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019			2018
Service cost	$	17		$	40		$	51		$	119
Interest cost	110			118			330			356
Expected return on plan assets	(158		)	(200		)	(473		)	(600		)
Actuarial loss	50			95			150			285
Amortization of prior service cost	4			4			12			12
Net periodic pension expense	$	23		$	57		$	70		$	172

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OTHER COMPREHENSIVE INCOME Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			$ (4,500)
Amounts reclassified from accumulated other comprehensive income	$ 45	$ 78	(398)	$ 231
Other comprehensive income (loss) attributable to noncontrolling interest	0	(2)	0	(4)
Ending Balance	(5,014)	(4,887)	(5,014)	(4,887)
Defined Benefit Pension and Postretirement Items (a)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(2,362)	(2,376)	(1,916)	(2,527)
Reclassification of stranded tax effects - Defined benefit pension and postretirement adjustments	0	0	(527)	0
Amounts reclassified from accumulated other comprehensive income	41	76	122	227
Ending Balance	(2,321)	(2,300)	(2,321)	(2,300)
Change in Cumulative Foreign Currency Translation Adjustments (a)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(2,508)	(2,489)	(2,581)	(2,111)
Other comprehensive income (loss) before reclassifications	(179)	(87)	(110)	(469)
Amounts reclassified from accumulated other comprehensive income	0	0	4	2
Other comprehensive income (loss) attributable to noncontrolling interest	0	2	0	4
Ending Balance	(2,687)	(2,574)	(2,687)	(2,574)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	0	(16)	(3)	5
Reclassification of stranded tax effects - Defined benefit pension and postretirement adjustments	0	0	(2)	0
Other comprehensive income (loss) before reclassifications	(10)	1	(6)	(20)
Amounts reclassified from accumulated other comprehensive income	4	2	5	2
Ending Balance	$ (6)	$ (13)	$ (6)	$ (13)

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LEASES Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions		Sep. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Operating lease, right-of-use asset		$ 425	$ 0
Finance lease, right-of-use asset	[1]	105
Leased assets, total		530
Operating lease, liability, current		136
Finance lease, liability, current		13
Operating lease, liability, noncurrent		292	$ 0
Finance lease, liability, noncurrent		91
Lease liability, total		$ 532

[1] Finance leases are recorded net of accumulated amortization of $37 million.

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INDUSTRY SEGMENT INFORMATION Operating Profit by Industry Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating profit	$ 655	$ 738	$ 1,706	$ 1,947
Earnings (loss) from continuing operations before income taxes and equity earnings	452	553	1,204	1,399
Interest expense, net	(123)	(133)	(378)	(401)
Noncontrolling interests/equity earnings adjustment	2	(2)	4	(7)
Corporate expenses, net	21	20	45	59
Corporate special items, net	48	9	48	30
Non-operating pension expense	9	25	27	65
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Interest expense, net	123	133	378	401
Industrial Packaging
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating profit	510	472	1,421	1,446
Global Cellulose Fibers
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating profit	(3)	83	27	160
Printing Papers
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating profit	$ 148	$ 183	$ 258	$ 341

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LEASES Schedule of Maturities of Operating and Finance Lease Liabilities (Details) $ in Millions	Sep. 30, 2019 USD ($)
Leases [Abstract]
Lessee, operating lease, liability, payments, due remainder of year	$ 39
Finance lease, liability, payments, due remainder of year	4
Lease liability, payments, due remainder of year	43
Lessee, operating lease, liability, payments, due next twelve months	138
Finance lease, liability, payments, due next twelve months	17
Lease liability, payments, due next twelve months	155
Lessee, operating lease, liability, payments, due year two	97
Finance lease, liability, payments, due year two	15
Lease liability, payments, due year two	112
Lessee, operating lease, liability, payments, due year three	64
Finance lease, liability, payments, due year three	13
Lease liability, payments due, year three	77
Lessee, operating lease, liability, payments, due year four	35
Finance lease, liability, payments, due year four	11
Lease liability, payments, due year four	46
Lessee, operating lease, liability, payments, due year five	18
Finance lease, liability, payments, due year five	10
Lease liability, payments, due year five	28
Lessee, operating lease, liability, payments, due after year six	95
Finance lease, liability, payments, due after year six	65
Lease liability payments, due after year six	160
Lessee, operating lease, liability, payments, due	486
Finance lease, liability, payments, due	135
Lease liability, payments, total	621
Lessee, operating lease, liability, undiscounted excess amount	58	[1]
Finance lease, liability, undiscounted excess amount	31	[1]
Lease liability, undiscounted excess amount	89	[1]
Operating lease, liability	428
Finance lease, liability	104
Lease liability, total	$ 532

[1] Calculated using the interest rate for each lease.

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LEASES (Policies)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Lessee, Leases [Policy Text Block]

International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have remaining lease terms of one year to 97 years. Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases.

Right of use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Effective January 1, 2019, operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company's leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles, and leases within supply agreements primarily relate to usage, repairs, and maintenance. As the implicit rate is not readily determinable for most of the Company's leases, the Company applies a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities.

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INCOME TAXES Footnote

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes [Note Text Block]

International Paper made income tax payments, net of refunds, of $245 million and $195 million for the nine months ended September 30, 2019 and 2018, respectively.

The Company currently estimates, that as a result of ongoing discussions, pending tax settlements and expirations of statutes of limitations, the amount of unrecognized tax benefits could be reduced by approximately $10 million during the next 12 months.

International Paper uses the flow-through method to account for investment tax credits earned on eligible open loop-biomass facilities and Combined Heat and Power system expenditures. Under this method, the investment tax credits are recognized as a reduction to income tax expense in the year they are earned rather than a reduction in the asset basis. The Company recorded a tax benefit of $8 million and $6 million for the nine months ended September 30, 2019 and 2018, respectively.

The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by International Paper do Brasil Ltda., a wholly-owned subsidiary of the Company. The Company received assessments for the tax years 2007-2015 totaling approximately $146 million in tax, and $379 million in interest and penalties as of September 30, 2019 (adjusted for variation in currency exchange rates). After a previous favorable ruling challenging the basis for these assessments, we received an unfavorable decision in October 2018 from the Brazilian Administrative Council of Tax Appeals. The Company has appealed this judgment to the Brazilian federal courts; however, this tax litigation matter may take many years to resolve. The Company believes that it has appropriately evaluated the transaction underlying these assessments, and has concluded based on Brazilian tax law, that its position would be sustained. The Company intends to vigorously defend its position against the current assessments and any similar assessments that may be issued for tax years subsequent to 2015.

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DERIVATIVES AND HEDGING ACTIVITIES Footnote

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities [Note Text Block]

As a multinational company International Paper is exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices.

The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows:

In millions	September 30, 2019		December 31, 2018
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	570	$	407
Derivatives in Fair Value Hedging Relationships:
Interest rate contracts	700		700
Derivatives in Net Investment Hedging Relationships:
Interest rate contracts	475		—
Derivatives Not Designated as Hedging Instruments:
Electricity contract	19		8
Foreign exchange contracts	11		19

The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: 

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
	Three Months Ended September 30,					Nine Months Ended September 30,
In millions	2019			2018		2019			2018
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	(10	)	$	1	$	(6	)	$	(18	)
Interest rate contracts	—			—		—			(2		)
Total	$	(10	)	$	1	$	(6	)	$	(20	)
Derivatives in Net Investment Hedging Relationships:
Interest rate contracts	$	18		$	—	$	15		$	—
Total	$	18		$	—	$	15		$	—

During the next 12 months, the amount of the September 30, 2019 AOCI balance, after tax, that is expected to be reclassified to earnings is a loss of $3 million.

The amounts of gains and losses recognized in the statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows:

	Gain (Loss) Reclassified from AOCI (Effective Portion)												Location of Gain (Loss) Reclassified from AOCI (Effective Portion)
	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019			2018
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	(4	)	$	(2	)	$	(5	)	$	(2	)	Cost of products sold
Total	$	(4	)	$	(2	)	$	(5	)	$	(2	)

	Gain (Loss) Recognized										Location of Gain (Loss) In  Statement of Operations
	Three Months Ended September 30,					Nine Months Ended September 30,
In millions	2019			2018		2019			2018
Derivatives in Fair Value Hedging Relationships:
Interest rate contracts	$	11		$	—	$	42		$	—	Interest expense, net
Debt	(11		)	—		(42		)	—		Interest expense, net
Total	—			—		—			—
Derivatives Not Designated as Hedging Instruments:
Electricity contract	$	(5	)	$	2	$	—		$	1	Cost of products sold
Foreign exchange contracts	(1		)	3		(2		)	4		Cost of products sold
Total	$	(6	)	$	5	$	(2	)	$	5

Fair Value Measurements

The Company has not changed its valuation techniques for measuring the fair value of any financial assets or liabilities during the year. Transfers between levels, if any, are recognized at the end of the reporting period.

The following table provides a summary of the impact of our derivative instruments in the balance sheet:

Fair Value Measurements

Level 2 – Significant Other Observable Inputs

 

	Assets						Liabilities
In millions	September 30, 2019			December 31, 2018			September 30, 2019			December 31, 2018
Derivatives designated as hedging instruments
Foreign exchange contracts – cash flow	$	5		$	3		$	13		$	10
Interest rate contracts - net investment	20			—			—			—
Interest rate contracts - fair value	59			16			—			—
Total derivatives designated as hedging instruments	84			19			13			10
Derivatives not designated as hedging instruments
Electricity contract	—			—			5			4
Foreign exchange contracts	—			—			2			1
Total derivatives not designated as hedging instruments	—			—			7			5
Total derivatives	$	84	(a)	$	19	(b)	$	20	(c)	$	15	(d)

(a) Includes $8 million recorded in Other current assets and $76 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

(b) Includes $2 million recorded in Other current assets and $17 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

(c) Includes $15 million recorded in Other accrued liabilities and $5 million recorded in Other liabilities in the accompanying consolidated balance sheet.

(d) Included in Other current liabilities in the accompanying consolidated balance sheet.

The above contracts are subject to enforceable master netting arrangements that provide rights of offset with each counterparty when amounts are payable on the same date in the same currency or in the case of certain specified defaults. Management has made an accounting policy election to not offset the fair value of recognized derivative assets and derivative liabilities in the balance sheet. The amounts owed to the counterparties and owed to the Company are considered immaterial with respect to each counterparty and in the aggregate with all counterparties.

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EQUITY Phantom (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Common stock dividends, per share	$ 0.5000	$ 0.4750	$ 1.5000	$ 1.4250
Total International Paper Shareholders’ Equity
Common stock dividends, per share	0.5000	0.4750	1.5000	1.4250
Noncontrolling Interests
Common stock dividends, per share	$ 0.5000	$ 0.4750	$ 1.5000	$ 1.4250

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RECENT ACCOUNTING DEVELOPMENTS Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Accounting Changes and Error Corrections [Abstract]
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Net of Tax	$ (529)

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DERIVATIVES AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Financial Instruments [Table Text Block]

The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows:

In millions	September 30, 2019		December 31, 2018
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	570	$	407
Derivatives in Fair Value Hedging Relationships:
Interest rate contracts	700		700
Derivatives in Net Investment Hedging Relationships:
Interest rate contracts	475		—
Derivatives Not Designated as Hedging Instruments:
Electricity contract	19		8
Foreign exchange contracts	11		19

Gains Or Losses Recognized In Accumulated Other Comprehensive Income (AOCI), Net Of Tax, Related To Derivative Instruments [Table Text Block]

The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: 

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
	Three Months Ended September 30,					Nine Months Ended September 30,
In millions	2019			2018		2019			2018
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	(10	)	$	1	$	(6	)	$	(18	)
Interest rate contracts	—			—		—			(2		)
Total	$	(10	)	$	1	$	(6	)	$	(20	)
Derivatives in Net Investment Hedging Relationships:
Interest rate contracts	$	18		$	—	$	15		$	—
Total	$	18		$	—	$	15		$	—

Gains And Losses Recognized In Consolidated Statement Of Operations On Qualifying And Non-Qualifying Financial Instruments [Table Text Block]

The amounts of gains and losses recognized in the statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows:

	Gain (Loss) Reclassified from AOCI (Effective Portion)												Location of Gain (Loss) Reclassified from AOCI (Effective Portion)
	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019			2018
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	(4	)	$	(2	)	$	(5	)	$	(2	)	Cost of products sold
Total	$	(4	)	$	(2	)	$	(5	)	$	(2	)

	Gain (Loss) Recognized										Location of Gain (Loss) In  Statement of Operations
	Three Months Ended September 30,					Nine Months Ended September 30,
In millions	2019			2018		2019			2018
Derivatives in Fair Value Hedging Relationships:
Interest rate contracts	$	11		$	—	$	42		$	—	Interest expense, net
Debt	(11		)	—		(42		)	—		Interest expense, net
Total	—			—		—			—
Derivatives Not Designated as Hedging Instruments:
Electricity contract	$	(5	)	$	2	$	—		$	1	Cost of products sold
Foreign exchange contracts	(1		)	3		(2		)	4		Cost of products sold
Total	$	(6	)	$	5	$	(2	)	$	5

Impact Of Derivative Instruments In Consolidated Balance Sheet [Table Text Block]

The following table provides a summary of the impact of our derivative instruments in the balance sheet:

Fair Value Measurements

Level 2 – Significant Other Observable Inputs

 

	Assets						Liabilities
In millions	September 30, 2019			December 31, 2018			September 30, 2019			December 31, 2018
Derivatives designated as hedging instruments
Foreign exchange contracts – cash flow	$	5		$	3		$	13		$	10
Interest rate contracts - net investment	20			—			—			—
Interest rate contracts - fair value	59			16			—			—
Total derivatives designated as hedging instruments	84			19			13			10
Derivatives not designated as hedging instruments
Electricity contract	—			—			5			4
Foreign exchange contracts	—			—			2			1
Total derivatives not designated as hedging instruments	—			—			7			5
Total derivatives	$	84	(a)	$	19	(b)	$	20	(c)	$	15	(d)

(a) Includes $8 million recorded in Other current assets and $76 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

(b) Includes $2 million recorded in Other current assets and $17 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

(c) Includes $15 million recorded in Other accrued liabilities and $5 million recorded in Other liabilities in the accompanying consolidated balance sheet.

(d) Included in Other current liabilities in the accompanying consolidated balance sheet.

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LEASES Schedule of Supplemental Balance Sheet Information Footnotes (Details) $ in Millions	Sep. 30, 2019 USD ($)
Leases [Abstract]
Finance lease, right-of-use asset, accumulated amortization	$ 37

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LEASES Contractual Obligation, Fiscal Year Maturities Schedule (Details) $ in Millions	Dec. 31, 2018 USD ($)
Leases [Abstract]
Operating leases, future minimum payments due, next twelve months	$ 160
Operating leases, future minimum payments, due in two years	125
Operating leases, future minimum payments, due in three years	77
Operating leases, future minimum payments, due in four years	49
Operating leases, future minimum payments, due in five years	28
Operating leases, future minimum payments, due thereafter	$ 118

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COMMITMENTS AND CONTINGENCIES Footnote

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies [Note Text Block]

Environmental

International Paper has been named as a potentially responsible party (PRP) in environmental remediation actions under various federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Many of these proceedings involve the cleanup of hazardous substances at large commercial landfills that received waste from many different sources. While joint and several liability is authorized under CERCLA and equivalent state laws, as a practical matter, liability for CERCLA cleanups is typically allocated among the many PRPs. There are other remediation costs typically associated with the cleanup of hazardous substances at the Company’s current, closed or formerly-owned facilities, and recorded as liabilities in the balance sheet.

Remediation costs are recorded in the consolidated financial statements when they become probable and reasonably estimable. International Paper has estimated the probable liability associated with these matters to be approximately $145 million ($155 million undiscounted) in the aggregate as of September 30, 2019. Other than as described below, completion of required remedial actions is not expected to have a material effect on our consolidated financial statements.

Cass Lake: One of the matters included above arises out of a closed wood-treating facility located in Cass Lake, Minnesota. In June 2011, the United States Environmental Protection Agency (EPA) selected and published a proposed soil remedy at the site with an estimated cost of $46 million. The overall remediation reserve for the site is currently $47 million to address the selection of an alternative for the soil remediation component of the overall site remedy, which includes the ongoing groundwater remedy. In October 2011, the EPA released a public statement indicating that the final soil remedy decision would be delayed. In June 2019, the EPA issued a revised proposed plan concerning clean-up standards at a portion of the site, the estimated cost of which is included within the reserve referenced above. In October 2012, the Natural Resource Trustees for this site provided notice to International Paper and other PRPs of their intent to perform a Natural Resource Damage Assessment. It is premature to predict the outcome of the assessment or to estimate a loss or range of loss, if any, which may be incurred.

Kalamazoo River: The Company is a PRP with respect to the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund Site in Michigan. The EPA asserts that the site is contaminated by polychlorinated biphenyls (PCBs) primarily as a result of discharges from various paper mills located along the Kalamazoo River, including a paper mill (the Allied Paper Mill) formerly owned by St. Regis Paper Company (St. Regis). The Company is a successor in interest to St. Regis.

• Operable Unit 5, Area 1: In March 2016, the Company and other PRPs received a special notice letter from the EPA (i) inviting participation in implementing a remedy for a portion of the site known as Operable Unit 5, Area 1, and (ii) demanding reimbursement of EPA past costs totaling $37 million, including $19 million in past costs previously demanded by the EPA. The Company responded to the special notice letter. In December 2016, the EPA issued a unilateral administrative order to the Company and other PRPs to perform the remedy. The Company responded to the unilateral administrative order, agreeing to comply with the order subject to its sufficient cause defenses.

• Operable Unit 5, Area 2: In September 2017, the EPA issued a Record of Decision selecting the final remedy for a portion of the site known as Operable Unit 5, Area 2, but has not yet issued a special notice letter for implementing the remedy.

• Operable Unit 5, Area 3: In April 2016, the EPA issued a separate unilateral administrative order to the Company and certain other PRPs for a time-critical removal action (TCRA) of PCB-contaminated banks and sediments from a portion of the site known as Operable Unit 5, Area 3. The Company responded to the unilateral administrative order and agreed along with two other parties to comply with the order subject to its sufficient cause defenses.The removal work has been completed.

• Operable Unit 1: In October 2016, the Company and another PRP received a special notice letter from the EPA inviting participation in the remedial design component of the landfill remedy for the Allied Paper Mill, which is also known as Operable Unit 1. The Record of Decision establishing the final landfill remedy for the Allied Paper Mill was issued by the EPA in September 2016. The Company responded to the Allied Paper Mill special notice letter in December 2016. In February 2017, the EPA informed the Company that it would make other arrangements for the performance of the remedial design.

The Company’s CERCLA liability has not been finally determined with respect to these or any other portions of the site, and except as noted above, the Company has declined to perform any work or reimburse the EPA at this time. As noted below, the Company is involved in allocation/apportionment litigation with regard to the site. Accordingly, it is premature to predict the outcome or estimate our maximum reasonably possible loss with respect to this site. We have an immaterial recorded liability for future remediation costs at the site that are probable and reasonably estimable, and it remains reasonably possible that additional losses could be material.

The Company was named as a defendant by Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC in a contribution and cost recovery action for alleged pollution at the site. The suit seeks contribution under CERCLA for costs purportedly expended by plaintiffs ($79 million as of the filing of the complaint) and for future remediation costs. The suit alleges that a mill, during the time it was allegedly owned and operated by St. Regis, discharged PCB contaminated solids and paper residuals resulting from paper de-inking and recycling. NCR Corporation and Weyerhaeuser Company are also named as defendants in the suit. In mid-2011, the suit was transferred from the District Court for the Eastern District of Wisconsin to the District Court for the Western District of Michigan.

The trial of the initial liability phase took place in February 2013. Weyerhaeuser conceded prior to trial that it was a liable party with respect to the site. In September 2013, an opinion and order was issued in the suit. The order concluded that the Company (as the successor to St. Regis) was not an “operator,” but was an “owner,” of the mill at issue during a portion of the relevant period and is therefore liable under CERCLA. The order also determined that NCR is a liable party as an "arranger for disposal" of PCBs in waste paper that was de-inked and recycled by mills along the Kalamazoo River. The order did not address the Company's responsibility, if any, for past or future costs. The parties’ responsibility, including that of the Company, was the subject of a second trial, which was concluded in late 2015. In June 2018, the Court issued its Final Judgment and Order, which fixed the past cost amount at approximately $50 million (plus interest to be determined) and allocated to the Company a 15% share of responsibility for those past costs. The Court did not address responsibility for future costs in its decision. In July 2018, the Company and each of the other parties filed notices appealing the Final Judgment and prior orders incorporated into that Judgment.

Harris County: International Paper and McGinnis Industrial Maintenance Corporation (MIMC), a subsidiary of Waste Management, Inc. (WMI), are PRPs at the San Jacinto River Waste Pits Superfund Site in Harris County, Texas. The PRPs have been actively participating in the activities at the site and share the costs of these activities. In September 2016, the EPA issued a proposed remedial action plan (PRAP) for the site, which identified the preferred remedy as the removal of the contaminated material currently protected by an armored cap. In addition, the EPA selected a preferred remedy for the separate southern impoundment that requires offsite disposal. In January 2017, the PRPs submitted comments on the PRAP.

On October 11, 2017, the EPA issued a Record of Decision (ROD) selecting the final remedy for the site: removal and relocation of the waste material from both the northern and southern impoundments. The EPA did not specify the methods or practices needed to perform this work. While the EPA’s selected remedy was accompanied by a cost estimate of approximately $115 million, we do not believe that estimate provides a reasonable basis for accrual under GAAP because the estimate was based on a technological method for performing the work that we believe is not feasible. Subsequent to the issuance of the ROD, there have been numerous meetings between the EPA and the PRPs, and the Company continues to work with the EPA and MIMC/WMI to develop the remedial design.

To this end, in April 2018, the PRPs entered into an Administrative Order on Consent (AOC) with the EPA, agreeing to work together to develop the remedial design over the subsequent 29 months. The AOC does not include any agreement to perform waste removal or other construction activity at the site. Rather, it involves adaptive management techniques and a pre-design

investigation, the objectives of which include filling data gaps (including but not limited to post-Hurricane Harvey technical data generated prior to the ROD and not incorporated into the selected remedy), refining areas and volumes of materials to be addressed, determining if an excavation remedy is able to be implemented in a manner protective of human health and the environment, and investigating potential impacts of remediation activities to infrastructure in the vicinity. On October 14, 2019, the PRPs received a special notice letter from the EPA (i) inviting participation in implementing the remedy described in the ROD, and (ii) demanding reimbursement of EPA past costs totaling $8 million.  The PRPs are preparing their response to the special notice letter.

The Company has identified a number of concerns and uncertainties regarding the remedy described in the ROD and regarding the EPA’s estimates for the costs and time required to implement the selected remedy. The Company has determined, however, that even if the ROD cannot be implemented, a sheet pile "engineered barrier" can be constructed, which would enhance the existing remedy and could also be used should the ROD be determined to be feasible and implementable. In the third quarter of 2018, we increased our recorded liability accordingly to reflect the estimated cost of constructing this barrier. Because of ongoing questions regarding cost effectiveness, technical feasibility, timing and other technical data, however, it is uncertain how the ROD will be implemented. Consequently, while additional losses are probable as a result of the selected remedy, we are currently unable to determine any further adjustment to our immaterial recorded liability. It remains reasonably possible that additional losses could be material as the remedial design process with the EPA continues over the coming quarters.

International Paper and MIMC/WMI are also defending an additional lawsuit related to the site brought by approximately 600 individuals who allege property damage and personal injury. This case is still in the discovery phase, and it is premature to predict the outcome or to estimate our maximum reasonably possible loss. However, we do not believe that any material loss is probable.

Antitrust

Containerboard: In January 2011, International Paper was named as a defendant in a lawsuit filed in state court in Cocke County, Tennessee alleging that International Paper violated Tennessee law by conspiring to limit the supply and fix the prices of containerboard from mid-2005 to the present. Plaintiffs in the state court action seek certification of a class of Tennessee indirect purchasers of containerboard products, damages and costs, including attorneys' fees. No class certification materials have been filed to date in the Tennessee action. The Company disputes the allegations made in the Tennessee lawsuit and is vigorously defending it. At this time, however, because the action is in a preliminary stage, we are unable to predict an outcome or estimate a range of reasonably possible loss.

Italy: In March 2017, the Italian Competition Authority (ICA) commenced an investigation into the Italian packaging industry to determine whether producers of corrugated sheets and boxes violated the applicable European competition law. In April 2019, the ICA concluded its investigation and issued initial findings alleging that over 30 producers, including our Italian packaging subsidiary (IP Italy), improperly coordinated the production and sale of corrugated sheets and boxes. On August 6, 2019, the ICA issued its decision and assessed IP Italy a fine of €29 million (approximately $32 million at current exchange rates) which was recorded in the third quarter of 2019. This charge is included in the Antitrust fines line item in the accompanying consolidated statement of operations. However, we are vigorously appealing this decision of the ICA to the Italian courts and have numerous and strong bases for our appeal.

Contract

Signature: In August 2014, a lawsuit captioned Signature Industrial Services LLC et al. v. International Paper Company was filed in state court in Texas. The Signature lawsuit arises out of approximately $1 million in disputed invoices related to the installation of new equipment at the Company's Orange, Texas mill. In addition to the invoices in dispute, Signature and its president allege consequential damages arising from the Company's nonpayment of those invoices. The lawsuit was tried before a jury in Beaumont, Texas, in May 2017. On June 1, 2017, the jury returned a verdict awarding approximately $125 million in damages to the plaintiffs. The Court issued a judgment on December 14, 2017, awarding the plaintiffs a total of approximately $137 million in actual and consequential damages, fees, costs and pre-judgment interest, and awarding post-judgment interest. The Company has appealed this judgment. The Company has presented in its briefing numerous and strong bases for appeal, and we believe we will prevail on appeal. Because the appellate proceedings are ongoing, we are unable to estimate a range of reasonably possible loss, but we expect the amount of any loss to be immaterial.

General

The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, personal injury, labor and employment, contracts, sales of property, intellectual property, tax, antitrust and other

matters, some of which allege substantial monetary damages. While any proceeding or litigation has the element of uncertainty, the Company believes that the outcome of any of these other lawsuits or claims that are pending or threatened or all of them combined (other than those that cannot be assessed due to their preliminary nature) will not have a material effect on its consolidated financial statements. See Note 14 for details regarding a tax matter.

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RETIREMENT PLANS Footnote

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

Retirement Plans [Note Text Block]

International Paper sponsors and maintains the Retirement Plan of International Paper Company (the Pension Plan), a tax-qualified defined benefit pension plan that provides retirement benefits to substantially all U.S. salaried employees and hourly employees (receiving salaried benefits) hired prior to July 1, 2004, and substantially all other U.S. hourly and union employees who work at a participating business unit regardless of hire date. These employees generally are eligible to participate in the Pension Plan upon attaining 21 years of age and completing one year of eligibility service. U.S. salaried employees and hourly employees (receiving salaried benefits) hired after June 30, 2004, are not eligible for the Pension Plan, but receive a company contribution to their Retirement Savings Account under the International Paper Company Salaried Savings Plan; however, salaried employees hired by Temple Inland prior to March 1, 2007 or Weyerhaeuser Company's Cellulose Fibers division prior to December 1, 2011 also participate in the Pension Plan.

The Pension Plan provides defined pension benefits based on years of credited service and either final average earnings (salaried employees and hourly employees receiving salaried benefits), hourly job rates or specified benefit rates (hourly and union employees).

Effective January 1, 2019, the Company froze participation, including credited service and compensation, for salaried employees under the Pension Plan, the Pension Restoration Plan and the SERP plan. This change does not affect benefits accrued through December 31, 2018. For service after December 31, 2018, employees affected by the freeze receive a company contribution to their individual Retirement Savings Account.

Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: 

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions	2019			2018			2019			2018
Service cost	$	17		$	40		$	51		$	119
Interest cost	110			118			330			356
Expected return on plan assets	(158		)	(200		)	(473		)	(600		)
Actuarial loss	50			95			150			285
Amortization of prior service cost	4			4			12			12
Net periodic pension expense	$	23		$	57		$	70		$	172

The components of net periodic pension expense other than the Service cost component are included in Non-operating pension expense in the Consolidated Statement of Operations.

The Company’s funding policy for our pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that the Company may determine to be appropriate considering the funded status of the plan, tax deductibility, the cash flows generated by the Company, and other factors. The Company made no voluntary cash contributions to the qualified pension plan in the first nine months of 2019 or 2018. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $21 million for the nine months ended September 30, 2019.

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REVENUE RECOGNITION (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

	Nine Months Ended September 30, 2019
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate and Inter-segment Sales			Total
Primary Geographical Markets (a)
United States	$	9,531		$	1,656	$	1,448		$	174		$	12,809
EMEA	1,263			207		986			(8		)	2,448
Pacific Rim and Asia	50			111		167			9			337
Americas, other than U.S.	672			—		623			(11		)	1,284
Total	$	11,516		$	1,974	$	3,224		$	164		$	16,878
Operating Segments
North American Industrial Packaging	$	10,158		$	—	$	—		$	—		$	10,158
EMEA Industrial Packaging	994			—		—			—			994
Brazilian Industrial Packaging	176			—		—			—			176
European Coated Paperboard	275			—		—			—			275
Global Cellulose Fibers	—			1,974		—			—			1,974
North American Printing Papers	—			—		1,474			—			1,474
Brazilian Papers	—			—		702			—			702
European Papers	—			—		929			—			929
Indian Papers	—			—		144			—			144
Intra-segment Eliminations	(87		)	—		(25		)	—			(112		)
Corporate & Inter-segment Sales				—		—			164			164
Total	$	11,516		$	1,974	$	3,224		$	164		$	16,878

(a) Net sales are attributed to countries based on the location of the seller.

A geographic disaggregation of revenues across our company segmentation in the following tables provides information to assist in evaluating the nature, timing and uncertainty of revenue and cash flows and how they may be impacted by economic factors.

	Three Months Ended September 30, 2019
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate and Inter-segment Sales			Total
Primary Geographical Markets (a)
United States	$	3,180		$	535	$	486		$	56		$	4,257
EMEA	415			62		315			(1		)	791
Pacific Rim and Asia	20			27		47			3			97
Americas, other than U.S.	205			—		223			(5		)	423
Total	$	3,820		$	624	$	1,071		$	53		$	5,568
Operating Segments
North American Industrial Packaging	$	3,368		$	—	$	—		$	—		$	3,368
EMEA Industrial Packaging	324			—		—			—			324
Brazilian Industrial Packaging	61			—		—			—			61
European Coated Paperboard	92			—		—			—			92
Global Cellulose Fibers	—			624		—			—			624
North American Printing Papers	—			—		492			—			492
Brazilian Papers	—			—		247			—			247
European Papers	—			—		299			—			299
Indian Papers	—			—		38			—			38
Intra-segment Eliminations	(25		)	—		(5		)	—			(30		)
Corporate & Inter-segment Sales				—		—			53			53
Total	$	3,820		$	624	$	1,071		$	53		$	5,568

(a) Net sales are attributed to countries based on the location of the seller.

	Three Months Ended September 30, 2018
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate & Intersegment			Total
Primary Geographical Markets (a)
United States	$	3,394		$	602	$	482		$	52		$	4,530
EMEA	396			77		328			(4		)	797
Pacific Rim and Asia	40			35		62			6			143
Americas, other than U.S.	204			—		230			(3		)	431
Total	$	4,034		$	714	$	1,102		$	51		$	5,901
Operating Segments
North American Industrial Packaging	$	3,653		$	—	$	—		$	—		$	3,653
EMEA Industrial Packaging	311			—		—			—			311
Brazilian Industrial Packaging	57			—		—			—			57
European Coated Paperboard	87			—		—			—			87
Global Cellulose Fibers	—			714		—			—			714
North American Printing Papers	—			—		492			—			492
Brazilian Papers	—			—		255			—			255
European Papers	—			—		311			—			311
Indian Papers	—			—		47			—			47
Intra-segment Eliminations	(74		)	—		(3		)	—			(77		)
Corporate & Inter-segment Sales	—			—		—			51			51
Total	$	4,034		$	714	$	1,102		$	51		$	5,901

(a) Net sales are attributed to countries based on the location of the seller.

	Nine Months Ended September 30, 2018
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate & Intersegment			Total
Primary Geographical Markets (a)
United States	$	9,832		$	1,720	$	1,399		$	163		$	13,114
EMEA	1,275			222		988			(13		)	2,472
Pacific Rim and Asia	110			140		185			35			470
Americas, other than U.S.	666			1		643			(11		)	1,299
Total	$	11,883		$	2,083	$	3,215		$	174		$	17,355
Operating Segments
North American Industrial Packaging	$	10,604		$	—	$	—		$	—		$	10,604
EMEA Industrial Packaging	1,017			—		—			—			1,017
Brazilian Industrial Packaging	175			—		—			—			175
European Coated Paperboard	265			—		—			—			265
Global Cellulose Fibers	—			2,083		—			—			2,083
North American Printing Papers	—			—		1,443			—			1,443
Brazilian Papers	—			—		706			—			706
European Papers	—			—		932			—			932
Indian Papers	—			—		150			—			150
Intra-segment Eliminations	(178		)	—		(16		)	—			(194		)
Corporate & Inter-segment Sales	—			—		—			174			174
Total	$	11,883		$	2,083	$	3,215		$	174		$	17,355

(a) Net sales are attributed to countries based on the location of the seller.

Contract with Customer, Asset and Liability [Table Text Block]

The opening and closing balances of the Company's contract assets and current contract liabilities are as follows:

In millions	Contract Assets (Short-Term)			Contract Liabilities (Short-Term)
Beginning Balance - January 1, 2019	$	395		$	56
Ending Balance -September 30, 2019	388			28
Increase / (Decrease)	$	(7	)	$	(28	)

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 25, 2019
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-03157
Entity Registrant Name	INTERNATIONAL PAPER COMPANY
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	13-0872805
Entity Address, Address Line One	6400 Poplar Avenue
Entity Address, City or Town	Memphis,
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	38197
City Area Code	901
Local Phone Number	419-7000
Title of 12(b) Security	Common Shares
Trading Symbol	IP
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		392,116,473
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000051434
Current Fiscal Year End Date	--12-31

XML

Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Millions	Sep. 30, 2019	Dec. 31, 2018
Common stock, par value	$ 1	$ 1
Common stock, shares	448.9	448.9
Common stock held in treasury, shares	56.8	48.3

XML

RESTRUCTURING AND OTHER CHARGES Footnote

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities [Note Text Block]

2019: During the three months ended September 30, 2019, the Company recorded an $11 million pre-tax charge in Corporate, a $6 million pre-tax charge in the Printing Papers segment, and a $4 million pre-tax charge in the Global Cellulose Fibers segment for severance related to an overhead cost reduction initiative. The majority of the severance is expected to be paid over the next twelve months.

There were no restructuring and other charges recorded during the three months and six months ended June 30, 2019.

2018: There were no restructuring and other charges recorded during the three months ended September 30, 2018.

During the three months ended June 30, 2018, the Company recorded a $26 million pre-tax charge, in the Industrial Packaging segment, related to approximately $12 million of severance, $6 million in accelerated depreciation, $2 million in accelerated amortization, and $6 million in other charges in conjunction with the optimization of our EMEA Packaging business.

During the three months ended March 31, 2018, the Company recorded a $22 million pre-tax charge, in the Industrial Packaging segment, primarily related to severance charges in conjunction with the optimization of our EMEA Packaging business.

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LEASES (Notes)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have remaining lease terms of one year to 97 years. Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases.

Right of use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Effective January 1, 2019, operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company's leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles, and leases within supply agreements primarily relate to usage, repairs, and maintenance. As the implicit rate is not readily determinable for most of the Company's leases, the Company applies a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities.

Components of Lease Expense

In millions	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease costs	$	39	$	115
Variable lease costs	16		53
Short-term lease costs	9		27
Finance lease cost
Amortization of lease assets	3		8
Interest on lease liabilities	1		3
Total lease cost, net	$	68	$	206

Supplemental Balance Sheet Information Related to Leases

In millions	Classification	September 30, 2019
Assets
Operating lease assets	Right-of-use assets	$	425
Finance lease assets	Plants, properties and equipment, net (a)	105
Total leased assets		$	530
Liabilities
Current
Operating	Other current liabilities	$	136
Finance	Notes payable and current maturities of long-term debt	13
Noncurrent
Operating	Long-term lease obligations	292
Finance	Long-term debt	91
Total lease liabilities		$	532

(a) Finance leases are recorded net of accumulated amortization of $37 million.

Lease Term and Discount Rate

In millions	September 30, 2019
Weighted average remaining lease term (years)
Operating leases	9.8 years
Finance leases	11.3 years
Weighted average discount rate
Operating leases	3.24	%
Finance leases	4.74	%

Supplemental Cash Flow Information Related to Leases

In millions	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	110
Operating cash flows related to financing leases	3
Financing cash flows related to finance leases	7

Maturity of Lease Liabilities

	September 30, 2019
In millions	Operating Leases		Financing Leases		Total
2019 (remainder of year)	$	39	$	4	$	43
2020	138		17		155
2021	97		15		112
2022	64		13		77
2023	35		11		46
2024	18		10		28
Thereafter	95		65		160
Total lease payments	486		135		621
Less: Interest (a)	58		31		89
Present value of lease liabilities	$	428	$	104	$	532

(a) Calculated using the interest rate for each lease.

At December 31, 2018, total future minimum commitments under existing non-cancelable operating leases were as follows:

In millions	2019		2020		2021		2022		2023		Thereafter
Lease obligations	$	160	$	125	$	77	$	49	$	28	$	118

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REVENUE RECOGNITION Footnote

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Generally, the Company recognizes revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods. For customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time which, generally, is as the goods are produced.

Disaggregated Revenue

A geographic disaggregation of revenues across our company segmentation in the following tables provides information to assist in evaluating the nature, timing and uncertainty of revenue and cash flows and how they may be impacted by economic factors.

	Three Months Ended September 30, 2019
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate and Inter-segment Sales			Total
Primary Geographical Markets (a)
United States	$	3,180		$	535	$	486		$	56		$	4,257
EMEA	415			62		315			(1		)	791
Pacific Rim and Asia	20			27		47			3			97
Americas, other than U.S.	205			—		223			(5		)	423
Total	$	3,820		$	624	$	1,071		$	53		$	5,568
Operating Segments
North American Industrial Packaging	$	3,368		$	—	$	—		$	—		$	3,368
EMEA Industrial Packaging	324			—		—			—			324
Brazilian Industrial Packaging	61			—		—			—			61
European Coated Paperboard	92			—		—			—			92
Global Cellulose Fibers	—			624		—			—			624
North American Printing Papers	—			—		492			—			492
Brazilian Papers	—			—		247			—			247
European Papers	—			—		299			—			299
Indian Papers	—			—		38			—			38
Intra-segment Eliminations	(25		)	—		(5		)	—			(30		)
Corporate & Inter-segment Sales				—		—			53			53
Total	$	3,820		$	624	$	1,071		$	53		$	5,568

(a) Net sales are attributed to countries based on the location of the seller.

	Nine Months Ended September 30, 2019
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate and Inter-segment Sales			Total
Primary Geographical Markets (a)
United States	$	9,531		$	1,656	$	1,448		$	174		$	12,809
EMEA	1,263			207		986			(8		)	2,448
Pacific Rim and Asia	50			111		167			9			337
Americas, other than U.S.	672			—		623			(11		)	1,284
Total	$	11,516		$	1,974	$	3,224		$	164		$	16,878
Operating Segments
North American Industrial Packaging	$	10,158		$	—	$	—		$	—		$	10,158
EMEA Industrial Packaging	994			—		—			—			994
Brazilian Industrial Packaging	176			—		—			—			176
European Coated Paperboard	275			—		—			—			275
Global Cellulose Fibers	—			1,974		—			—			1,974
North American Printing Papers	—			—		1,474			—			1,474
Brazilian Papers	—			—		702			—			702
European Papers	—			—		929			—			929
Indian Papers	—			—		144			—			144
Intra-segment Eliminations	(87		)	—		(25		)	—			(112		)
Corporate & Inter-segment Sales				—		—			164			164
Total	$	11,516		$	1,974	$	3,224		$	164		$	16,878

(a) Net sales are attributed to countries based on the location of the seller.

	Three Months Ended September 30, 2018
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate & Intersegment			Total
Primary Geographical Markets (a)
United States	$	3,394		$	602	$	482		$	52		$	4,530
EMEA	396			77		328			(4		)	797
Pacific Rim and Asia	40			35		62			6			143
Americas, other than U.S.	204			—		230			(3		)	431
Total	$	4,034		$	714	$	1,102		$	51		$	5,901
Operating Segments
North American Industrial Packaging	$	3,653		$	—	$	—		$	—		$	3,653
EMEA Industrial Packaging	311			—		—			—			311
Brazilian Industrial Packaging	57			—		—			—			57
European Coated Paperboard	87			—		—			—			87
Global Cellulose Fibers	—			714		—			—			714
North American Printing Papers	—			—		492			—			492
Brazilian Papers	—			—		255			—			255
European Papers	—			—		311			—			311
Indian Papers	—			—		47			—			47
Intra-segment Eliminations	(74		)	—		(3		)	—			(77		)
Corporate & Inter-segment Sales	—			—		—			51			51
Total	$	4,034		$	714	$	1,102		$	51		$	5,901

(a) Net sales are attributed to countries based on the location of the seller.

	Nine Months Ended September 30, 2018
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate & Intersegment			Total
Primary Geographical Markets (a)
United States	$	9,832		$	1,720	$	1,399		$	163		$	13,114
EMEA	1,275			222		988			(13		)	2,472
Pacific Rim and Asia	110			140		185			35			470
Americas, other than U.S.	666			1		643			(11		)	1,299
Total	$	11,883		$	2,083	$	3,215		$	174		$	17,355
Operating Segments
North American Industrial Packaging	$	10,604		$	—	$	—		$	—		$	10,604
EMEA Industrial Packaging	1,017			—		—			—			1,017
Brazilian Industrial Packaging	175			—		—			—			175
European Coated Paperboard	265			—		—			—			265
Global Cellulose Fibers	—			2,083		—			—			2,083
North American Printing Papers	—			—		1,443			—			1,443
Brazilian Papers	—			—		706			—			706
European Papers	—			—		932			—			932
Indian Papers	—			—		150			—			150
Intra-segment Eliminations	(178		)	—		(16		)	—			(194		)
Corporate & Inter-segment Sales	—			—		—			174			174
Total	$	11,883		$	2,083	$	3,215		$	174		$	17,355

(a) Net sales are attributed to countries based on the location of the seller.

Revenue Contract Balances

The opening and closing balances of the Company's contract assets and current contract liabilities are as follows:

In millions	Contract Assets (Short-Term)			Contract Liabilities (Short-Term)
Beginning Balance - January 1, 2019	$	395		$	56
Ending Balance -September 30, 2019	388			28
Increase / (Decrease)	$	(7	)	$	(28	)

A contract asset is created when the Company recognizes revenue on its customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes to the customer.

A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months.

The difference between the opening and closing balances of the Company's contract assets and contract liabilities primarily results from the difference between the price and quantity at comparable points in time for goods for which we have an unconditional right to payment or receive pre-payment from the customer, respectively.

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GOODWILL AND OTHER INTANGIBLES (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Goodwill Balances [Table Text Block]

The following table presents changes in goodwill balances as allocated to each business segment for the nine-months ended September 30, 2019: 

In millions	Industrial Packaging				Global Cellulose Fibers		Printing Papers				Total
Balance as of January 1, 2019
Goodwill	$	3,379			$	52	$	2,116			$	5,547
Accumulated impairment losses	(296		)		—		(1,877		)		(2,173		)
	3,083				52		239				3,374
Currency translation and other (a)	(2		)		—		(14		)		(16		)
Goodwill additions/reductions	54			(b)	—		(112		)	(c)	(58		)
Accumulated impairment loss additions / reductions	—				—		112			(c)	112
Balance as of September 30, 2019
Goodwill	3,431				52		1,990				5,473
Accumulated impairment losses	(296		)		—		(1,765		)		(2,061		)
Total	$	3,135			$	52	$	225			$	3,412

(a) Represents the effects of foreign currency translations.

(b) Reflects the provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA.

(c) Reflects the reclassification of India goodwill and accumulated impairment losses to held for sale.

Finite and Indefinite-Lived Intangible Assets [Table Text Block]

Identifiable intangible assets comprised the following: 

	September 30, 2019						December 31, 2018
In millions	Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets		Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets
Customer relationships and lists	$	541	$	266	$	275	$	542	$	247	$	295
Non-compete agreements	26		26		—		67		67		—
Tradenames, patents and trademarks, and developed technology	173		101		72		174		90		84
Land and water rights	8		2		6		8		2		6
Software	26		25		1		26		25		1
Other	25		18		7		30		23		7
Total	$	799	$	438	$	361	$	847	$	454	$	393

Amortization Expense of Intangible Assets [Table Text Block]

The Company recognized the following amounts as amortization expense related to intangible assets: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2019		2018		2019		2018
Amortization expense related to intangible assets	$	15	$	15	$	40	$	44

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DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations [Table Text Block]

The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued operations, net of tax, related to the transfer of the North American Consumer Packaging business for all periods presented in the consolidated statement of operations:

	Three Months Ended September 30,		Nine Months Ended September 30,
In millions	2018		2018
Net Sales	$	—	$	—
Costs and Expenses
Selling and administrative expenses	—		25
(Gain) loss on transfer of business	—		(488		)
Earnings (Loss) Before Income Taxes and Equity Earnings	—		463
Income tax provision (benefit)	—		118
Discontinued Operations, Net of Taxes	$	—	$	345

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of June 28, 2019:

In millions
Cash and temporary investments	$	1
Accounts and notes receivable	23
Inventory	8
Plants, properties and equipment	28
Goodwill	48
Right of use assets	2
Total assets acquired	110
Accounts payable and accrued liabilities	20
Other current liabilities	1
Long-term debt	2
Postretirement and postemployment benefit obligation	3
Long-term lease obligations	2
Total liabilities assumed	28
Net assets acquired	$	82

The following summarizes the major classes of assets and liabilities of APPM reconciled to total Assets held for sale and total Liabilities held for sale in the accompanying consolidated balance sheet:

In millions	September 30, 2019
Cash and temporary investments	$	19
Accounts and notes receivable	16
Inventories	23
Other current assets	19
Plants, properties and equipment	195
Deferred charges and other assets	6
Total Assets Held for Sale	$	278
Accounts payable and accrued liabilities	$	18
Other current liabilities	22
Deferred income taxes	47
Other liabilities	1
Net impairment reserve	160
Total Liabilities Held for Sale	$	248

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EQUITY (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Schedule of Stockholders' Equity [Table Text Block]

A summary of the changes in equity for the three months and nine months ended September 30, 2019 and 2018 is provided below:

	Three Months Ended September 30, 2019
In millions, except per share amounts	Common Stock Issued		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, July 1	$	449	$	6,229	$	8,302		$	(4,870	)	$	2,628		$	7,482		$	17		$	7,499
Issuance of stock for various plans, net	—		32		—			—			(1		)	33			—			33
Repurchase of stock	—		—		—			—			75			(75		)	—			(75		)
Common stock dividends ($0.5000 per share)	—		—		(199		)	—			—			(199		)	—			(199		)
Transactions of equity method investees	—		—		—			—			—			—			—			—
Comprehensive income (loss)	—		—		344			(144		)	—			200			(2		)	198
Ending Balance, September 30	$	449	$	6,261	$	8,447		$	(5,014	)	$	2,702		$	7,441		$	15		$	7,456

	Nine Months Ended September 30, 2018
In millions, except per share amounts	Common Stock Issued		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, January 1	$	449	$	6,206	$	6,180		$	(4,633	)	$	1,680		$	6,522		$	19		$	6,541
Adoption of ASC 606 revenue from contracts with customers	—		—		73			—			—			73			—			73
Issuance of stock for various plans, net	—		31		—			—			(81		)	112			—			112
Repurchase of stock	—		—		—			—			532			(532		)	—			(532		)
Common stock dividends ($1.4250 per share)	—		—		(596		)	—			—			(596		)	—			(596		)
Transactions of equity method investees	—		19		—			—			—			19			—			19
Comprehensive income (loss)	—		—		1,696			(254		)	—			1,442			(1		)	1,441
Ending Balance, September 30	$	449	$	6,256	$	7,353		$	(4,887	)	$	2,131		$	7,040		$	18		$	7,058

	Nine Months Ended September 30, 2019
In millions, except per share amounts	Common Stock Issued		Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, January 1	$	449	$	6,280		$	7,465		$	(4,500	)	$	2,332		$	7,362		$	21		$	7,383
Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform	—		—			529			(529		)	—			—			—			—
Issuance of stock for various plans, net	—		(52		)	—			—			(165		)	113			—			113
Repurchase of stock	—		—			—			—			535			(535		)	—			(535		)
Common stock dividends ($1.5000 per share)	—		—			(607		)	—			—			(607		)	—			(607		)
Transactions of equity method investees	—		33			—			—			—			33			—			33
Comprehensive income (loss)	—		—			1,060			15			—			1,075			(6		)	1,069
Ending Balance, September 30	$	449	$	6,261		$	8,447		$	(5,014	)	$	2,702		$	7,441		$	15		$	7,456

	Three Months Ended September 30, 2018
In millions, except per share amounts	Common Stock Issued		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total International Paper Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, July 1	$	449	$	6,219	$	6,988		$	(4,881	)	$	1,931		$	6,844		$	20		$	6,864
Issuance of stock for various plans, net	—		36		—			—			(1		)	37			—			37
Repurchase of stock	—		—		—			—			201			(201		)	—			(201		)
Common stock dividends ($0.4750 per share)	—		—		(197		)	—			—			(197		)	—			(197		)
Transactions of equity method investees	—		1		—			—			—			1			—			1
Comprehensive income (loss)	—		—		562			(6		)	—			556			(2		)	554
Ending Balance, September 30	$	449	$	6,256	$	7,353		$	(4,887	)	$	2,131		$	7,040		$	18		$	7,058

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EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS Table (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings (loss) from continuing operations attributable to International Paper Company common shareholders	$ 344	$ 562	$ 1,060	$ 1,351
Weighted average common shares outstanding	392.6	407.4	396.3	411.4
Weighted average common shares outstanding – assuming dilution	395.4	411.4	399.6	416.3
Basic earnings (loss) per share from continuing operations	$ 0.88	$ 1.38	$ 2.67	$ 3.28
Diluted earnings (loss) per share from continuing operations	$ 0.87	$ 1.37	$ 2.65	$ 3.25
Restricted performance share plan
Restricted performance share plan	2.8	4.0	3.3	4.9

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DIVESTITURES Disposal Group Including Discontinued Operations Table (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on transfer of North American Consumer Packaging business			$ 0	$ (488)
Discontinued Operations, Net of Taxes	$ 0	$ 0	0	345
North American Consumer Packaging [Member] | Discontinued Operations, Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net Sales		0		0
Selling and administrative expenses		0		25
Net gain on transfer of North American Consumer Packaging business		0		(488)
Earnings (Loss) Before Income Taxes and Equity Earnings		0		463
Income tax provision (benefit)		0		118
Discontinued Operations, Net of Taxes		$ 0		$ 345
APPM [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and temporary investments	19		19
Accounts and notes receivable	16		16
Inventories	23		23
Other current assets	19		19
Plants, properties and equipment	195		195
Deferred charges and other assets	6		6
Total Assets Held for Sale	278		278
Accounts payable and accrued liabilities	18		18
Other current liabilities	22		22
Deferred income taxes	47		47
Net impairment reserve	1		1
Net impairment reserve	160		160
Total Liabilities Held for Sale	$ 248		$ 248

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SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Interest Income and Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Supplemental Income Statement Elements [Abstract]
Interest expense	$ 177	$ 184	$ 538	$ 547
Interest income	54	51	160	146
Capitalized interest costs	$ 7	$ 9	$ 21	$ 26

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COMMITMENTS AND CONTINGENCIES Litigation (Details) € in Millions, $ in Millions	3 Months Ended					9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 EUR (€)	Dec. 31, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2016 USD ($)	Sep. 30, 2019 USD ($) Plaintiffs	Dec. 31, 2015 USD ($)	Sep. 30, 2014 USD ($)
Signature Industrial Services LLC et al. v. International Paper
Loss Contingencies [Line Items]
Loss Contingency, damages awarded, value			$ 137.0	$ 125.0
Disputed invoices, value								$ 1.0
Kalamazoo River Superfund Site | Time Critical Removal Action
Loss Contingencies [Line Items]
Loss contingency, damages sought, value					$ 37.0		$ 19.0
Kalamazoo River Superfund Site | Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC Cost Recovery Action
Loss Contingencies [Line Items]
Loss Contingency, damages awarded, value						$ 50.0
Loss contingency, damages sought, value						$ 79.0
Responsible party percentage						15.00%
San Jacinto River Superfund Site
Loss Contingencies [Line Items]
Loss contingency, damages sought, value						$ 115.0
Remediation design period						29 months
San Jacinto River Superfund Site | Medical Monitoring and Damages
Loss Contingencies [Line Items]
Number of plaintiffs seeking damages | Plaintiffs						600
Italian Competition Authority [Member]
Loss Contingencies [Line Items]
Loss contingency, damages sought, value	$ 32.0	€ 29.0
Potentially Responsible Parties	30	30

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DERIVATIVES AND HEDGING ACTIVITIES Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain / (Loss) Recorded to AOCI After Tax, That Is Expected to be Reclassified to Earnings	$ 3

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DERIVATIVES AND HEDGING ACTIVITIES Gains Losses Recognized in Accumulated Other Comprehensive Income AOCI Net of Tax Related to Derivative Instruments (Details) - Other Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ (10)	$ 1	$ (6)	$ (20)
Cash Flow Hedging | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	(10)	1	(6)	(18)
Cash Flow Hedging | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	0	0	0	(2)
Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	18	0	15	0
Net Investment Hedging [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ 18	$ 0	$ 15	$ 0

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GOODWILL AND OTHER INTANGIBLES Identifiable Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 799	$ 847
Accumulated Amortization	438	454
Net Intangible Assets	361	393
Customer relationships and lists
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	541	542
Accumulated Amortization	266	247
Net Intangible Assets	275	295
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	26	67
Accumulated Amortization	26	67
Net Intangible Assets	0	0
Tradenames, patents and trademarks, and developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	173	174
Accumulated Amortization	101	90
Net Intangible Assets	72	84
Land and water rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	8	8
Accumulated Amortization	2	2
Net Intangible Assets	6	6
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	26	26
Accumulated Amortization	25	25
Net Intangible Assets	1	1
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	25	30
Accumulated Amortization	18	23
Net Intangible Assets	$ 7	$ 7