Financial Information By Industry Segment And Geographic Area

12 Months Ended

Dec. 31, 2011

Financial Information By Industry Segment And Geographic Area [Abstract]

Financial Information By Industry Segment And Geographic Area

NOTE 18 FINANCIAL INFORMATION BY INDUSTRY SEGMENT AND GEOGRAPHIC AREA

International Paper's industry segments, Industrial Packaging, Printing Papers, Consumer Packaging and Distribution Businesses, are consistent with the internal structure used to manage these businesses. Beginning on January 1, 2011, the Forest Products Business is no longer being reported by the Company as a separate industry segment due to the immateriality of the results of the remaining business on the Company's consolidated financial statements. All segments are differentiated on a common product, common customer basis consistent with the business segmentation generally used in the Forest Products industry.

For management purposes, International Paper reports the operating performance of each business based on earnings before interest and income taxes (EBIT). Intersegment sales and transfers are recorded at current market prices.

External sales by major product is determined by aggregating sales from each segment based on similar products or services. External sales are defined as those that are made to parties outside International Paper's consolidated group, whereas sales by segment in the Net Sales table are determined using a management approach and include intersegment sales.

The Company also holds a 50% interest in Ilim that is a separate reportable industry segment. The Company recorded equity earnings, net of taxes, of $153 million and $55 million in 2011 and 2010, respectively, and equity losses, net of taxes, of $50 million in 2009 for Ilim.

INFORMATION BY INDUSTRY SEGMENT

Net Sales

In millions	2011			2010			2009
Industrial Packaging	$	10,430		$	9,840		$	8,890
Printing Papers		6,215			5,940			5,680
Consumer Packaging		3,710			3,400			3,060
Distribution		6,630			6,735			6,525
Forest Products		0			220			45
Corporate and Intersegment Sales		(951	)		(956	)		(834	)
Net Sales	$	26,034		$	25,179		$	23,366

Operating Profit

In millions	2011			2010			2009
Industrial Packaging	$	1,147		$	826		$	761
Printing Papers		872			481			1,091
Consumer Packaging		163			207			433
Distribution		34			78			50
Forest Products		0			94			25
Operating Profit		2,216			1,686			2,360
Interest expense, net		(541	)		(608	)		(669	)
Noncontrolling interests / equity earnings adjustment (a)		10			15			23
Corporate items, net		(145	)		(226	)		(181	)
Restructuring and other charges		(82	)		(70	)		(333	)
Net gains (losses) on sales and impairments of businesses		0			25			(1	)
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings	$	1,458		$	822		$	1,199

Restructuring and Other Charges

In millions	2011			2010		2009
Industrial Packaging	$	20		$	19	$	684
Printing Papers		(24	)		315		257
Consumer Packaging		2			8		74
Distribution		49			0		5
Corporate		55			52		333
Restructuring and Other Charges	$	102		$	394	$	1,353

Assets

In millions	2011		2010
Industrial Packaging	$	9,433	$	9,353
Printing Papers		7,311		7,449
Consumer Packaging		3,086		3,025
Distribution		1,718		1,761
Forest Products		0		627
Corporate and other (b)		5,445		3,153
Assets	$	26,993	$	25,368

Capital Spending

In millions	2011		2010		2009
Industrial Packaging	$	426	$	301	$	183
Printing Papers		364		283		218
Consumer Packaging		310		159		126
Distribution		8		5		6
Forest Products		0		3		1
Subtotal		1,108		751		534
Corporate and other		51		24		0
Total from Continuing Operations	$	1,159	$	775	$	534

Depreciation, Amortization and Cost of Timber Harvested (c)

In millions	2011		2010		2009
Industrial Packaging	$	513	$	597	$	678
Printing Papers		486		479		447
Consumer Packaging		217		228		210
Distribution		14		13		14
Forest Products		0		5		6
Corporate		102		134		117
Depreciation and Amortization	$	1,332	$	1,456	$	1,472

External Sales By Major Product

In millions	2011		2010		2009
Industrial Packaging	$	10,376	$	9,812	$	8,813
Printing Papers		5,510		5,220		5,114
Consumer Packaging		3,577		3,241		2,911
Distribution		6,571		6,683		6,486
Forest Products		0		223		42
Net Sales	$	26,034	$	25,179	$	23,366

INFORMATION BY GEOGRAPHIC AREA

Net Sales (d)

In millions	2011		2010		2009
United States (e)	$	19,434	$	19,501	$	18,355
Europe		3,183		2,839		2,716
Pacific Rim and Asia		1,807		1,377		1,002
Americas, other than U.S.		1,610		1,462		1,293
Net Sales	$	26,034	$	25,179	$	23,366

Long-Lived Assets (f)

In millions	2011		2010
United States	$	8,536	$	8,866
Europe		936		1,047
Pacific Rim and Asia		855		468
Americas, other than U.S.		1,871		2,162
Corporate		279		206
Long-Lived Assets	$	12,477	$	12,749

(a) Operating profits for industry segments include each segment's percentage share of the profits of subsidiaries included in that segment that are less than wholly-owned. The pre-tax noncontrolling interests and equity earnings for these subsidiaries is added here to present consolidated earnings from continuing operations before income taxes and equity earnings.

(b) Includes corporate assets and assets of businesses held for sale.

(c) Excludes accelerated depreciation related to closure of mills.

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

(e) Export sales to unaffiliated customers were $2.1 billion in 2011, $1.8 billion in 2010 and $1.4 billion in 2009.

(f) Long-Lived Assets includes Forestlands and Plants, Properties and Equipment, net.