Industry Segment Information

3 Months Ended

Mar. 31, 2012

Industry Segment Information [Abstract]

Industry Segment Information

NOTE 17 – INDUSTRY SEGMENT INFORMATION

International Paper's industry segments, Industrial Packaging, Printing Papers, Consumer Packaging and Distribution, 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.

The Company also has a 50% equity interest in Ilim in Russia that is a separate reportable industry segment.

Sales by industry segment for the three months ended March 31, 2012 and 2011 were as follows:

	Three Months Ended March  31,
In millions	2012			2011
Industrial Packaging	$	3,115		$	2,555
Printing Papers		1,560			1,530
Consumer Packaging		810			905
Distribution		1,475			1,640
Corporate and Intersegment Sales		(305	)		(243	)
Net Sales	$	6,655		$	6,387

Operating profit by industry segment for the three months ended March 31, 2012 and 2011 were as follows:

	Three Months Ended March 31,
In millions	2012			2011
Industrial Packaging	$	215	(1)	$	279	(5)
Printing Papers		146	(2)		201	(6)
Consumer Packaging		103	(3)		100	(7)
Distribution		(2	)(4)		5	(8)
Operating Profit		462			585
Interest expense, net		(168	)		(136	)
Noncontrolling interests/equity earnings adjustment (9)		4			(2	)
Corporate items, net		(69	)		(44	)
Restructuring and other charges		(16	)		(35	)
Earnings (loss) from continuing operations before income taxes and equity earnings	$	213		$	368
Equity earnings (loss), net of taxes – Ilim	$	40		$	56

(1) Includes charges of $43 million for integration costs associated with the acquisition of Temple-Inland and a charge of $20 million related to the write-up of the Temple-Inland inventory to fair value.

(2) Includes a gain of $1 million related to the acquisition of a majority interest in Andhra Pradesh Paper Mills Limited.

(3) Includes a net gain of $7 million for adjustments related to the sale of the Shorewood business.

(4) Includes charges of $21 million associated with the restructuring of the Company's xpedx operations.

(5) Includes charges of $2 million for additional closure costs for the Etienne mill in France and a gain of $7 million for a bargain purchase price adjustment on an acquisition by our joint venture in Turkey

(6) Includes a charge of $8 million for asset impairment costs associated with the Inverurie mill.

(7) Includes a charge of $1 million related to the reorganization of the Company's Shorewood operations.

(8) Includes a charge of $7 million associated with the restructuring of the Company's xpedx operations.

(9) 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 interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings.