VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Tables)

6 Months Ended

Jun. 30, 2012

Entities

Activity Between Company And Entities

Activity between the Company and the Entities was as follows:

	Three Months Ended June  30,				Six Months Ended June  30,
In millions	2012		2011		2012		2011
Revenue (a)	$	12	$	12	$	20	$	25
Expense (a)		20		19		40		39
Cash receipts (b)		0		0		15		14
Cash payments (c)		0		0		40		40

(a) The net expense related to the Company’s interest in the Entities is included in Interest expense, net in the accompanying consolidated statement of operations, as International Paper has and intends to affect its legal right to offset as discussed above.

(b) The cash receipts are equity distributions from the Entities to International Paper.

(c) The semi-annual payments are related to interest on the associated debt obligations discussed above.

2001 Financing Entities

Activity Between Company And Entities

Activity between the Company and the 2001 financing entities was as follows:

In millions	Six Months Ended June 30, 2011
Revenue (loss) (a)	$	1
Expense (a)		3
Cash receipts (b)		0
Cash payments (c)		3

(a) The net expense related to the Company’s interest in the 2001 financing entities is included in Interest expense, net in the accompanying consolidated statement of operations, as International Paper has and intends to affect its legal right to offset as discussed above.

(b) The cash receipts are equity distributions from the 2001 financing entities to International Paper.

(c) The cash payments are related to interest on the associated debt obligations discussed above.

2002 Financing Entities

Activity Between Company And Entities

Activity between the Company and the 2002 financing entities was as follows:

	Three Months Ended June  30,				Six Months Ended June  30,
In millions	2012		2011		2012		2011
Revenue (a)	$	0	$	1	$	0	$	2
Expense (b)		0		1		0		3
Cash receipts (c)		141		0		252		1
Cash payments (d)		48		51		159		53

(a) The revenue is included in Equity earnings (losses) in the accompanying consolidated statement of operations.

(b) The expense is in included in Interest expense, net in the accompanying consolidated statement of operations.

(c) The cash receipts are receipts, including interest, from the maturity of the 2002 Monetized Notes.

(d) The payments include both interest and principal on the associated debt obligations.

2007 Financing Entities

Activity Between Company And Entities

Activity between the Company and the 2007 financing entities was as follows:

In millions	Three Months Ended June 30, 2012		Six Months Ended June 30, 2012
Revenue (a)	$	4	$	6
Expense (b)		5		9
Cash receipts (c)		4		7
Cash payments (d)		5		10

(a) The revenue is included in Interest expense, net in the accompanying consolidated statement of operations.

(b) The expense is in included in Interest expense, net in the accompanying consolidated statement of operations.

(c) The cash receipts are interest received on the Financial assets of special purpose entities.

(d) The payments are interest paid on Nonrecourse financial liabilities of special purpose entities.