STOCK-BASED COMPENSATION (Note)

9 Months Ended

Sep. 30, 2020

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, 2020, 8.4 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	2020		2019		2020		2019
Total stock-based compensation expense (selling and administrative)	$	17	$	31	$	48	$	94
Income tax benefits related to stock-based compensation	1		(2)		18		31

At September 30, 2020, $85 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 1.7 years.

Performance Share Plan

During the first nine months of 2020, the Company granted 2.2 million performance units at an average grant date fair value of $49.15.