INDUSTRY SEGMENT INFORMATION (Note)

9 Months Ended

Sep. 30, 2021

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. On October 1, 2021, the Company completed the previously announced spin-off of its Printing Papers segment into a standalone, publicly-traded company, Sylvamo Corporation. As a result of the spin-off, the Company no longer operated this Printing Papers segment effective October 1, 2021, and all current and historical financial results will be adjusted to reflect the Printing Papers segment as a discontinued operation in the fourth quarter of 2021. In addition, certain limited historical and ongoing business activities will be included in our Industrial Packaging and Global Cellulose Fibers segments.

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

Net sales by business segment for the three months and nine months ended September 30, 2021 and 2020 were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2021		2020		2021		2020
Industrial Packaging	$	4,087	$	3,768	$	12,096	$	11,220
Global Cellulose Fibers	729		564		1,981		1,737
Printing Papers	846		743		2,473		2,234
Corporate and Intersegment Sales	52		48		143		150
Net Sales	$	5,714	$	5,123	$	16,693	$	15,341

Operating profit (loss) by business segment for the three months and nine months ended September 30, 2021 and 2020 were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2021		2020		2021		2020
Industrial Packaging	$	429	$	469	$	1,284	$	1,388
Global Cellulose Fibers	96		(59)		24		(123)
Printing Papers	106		63		262		148
Business Segment Operating Profits	$	631	473		$	1,570	$	1,413
Earnings (loss) before income taxes and equity earnings	$	916	$	282	$	1,747	$	527
Interest expense, net	93		112		242		345
Noncontrolling interests adjustment	(1)		—		(3)		—
Corporate expenses, net	12		(20)		44		9
Corporate net special items	11		108		81		195
Business net special items	(349)		2		(385)		368
Non-operating pension expense (income)	(51)		(11)		(156)		(31)
Business Segment Operating Profits	$	631	$	473	$	1,570	$	1,413