INDUSTRY SEGMENT INFORMATION (Note)

9 Months Ended

Sep. 30, 2020

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) before income taxes and equity earnings, but including the impact of noncontrolling interests, excluding interest expense, net, corporate items, net, corporate net special items, business net special items and non-operating pension expense. In the fourth quarter of 2019, the Company changed its measure of business segment operating profits to exclude items considered by management to be unusual (business net special items) from the normal operations of the business segment. As a result, all prior periods have been restated to reflect the current measure.

Net sales by business segment for the three months and nine months ended September 30, 2020 and 2019 were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2020		2019		2020		2019
Industrial Packaging	$	3,768	$	3,820	$	11,220	$	11,516
Global Cellulose Fibers	564		624		1,737		1,974
Printing Papers	743		1,071		2,234		3,224
Corporate and Intersegment Sales	48		53		150		164
Net Sales	$	5,123	$	5,568	$	15,341	$	16,878

Operating profit (loss) by business segment for the three months and nine months ended September 30, 2020 and 2019 were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2020		2019		2020		2019
Industrial Packaging	$	469	$	535	$	1,388	$	1,471
Global Cellulose Fibers	(59)		4		(123)		39
Printing Papers	63		162		148		420
Business Segment Operating Profits	$	473	$	701	$	1,413	$	1,930
Earnings (loss) before income taxes and equity earnings	$	282	$	452	$	527	$	1,204
Interest expense, net	112		123		345		378
Noncontrolling interests adjustment	—		2		—		4
Corporate expenses, net	(20)		21		9		45
Corporate net special items	108		48		195		48
Business net special items	2		46		368		224
Non-operating pension expense (income)	(11)		9		(31)		27
Business Segment Operating Profits	$	473	$	701	$	1,413	$	1,930