INDUSTRY SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2019

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