INDUSTRY SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2012

Sales And Operating Profit By Industry Segment

Sales by industry segment for the three months and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2012			2011			2012			2011
Industrial Packaging	$	3,450		$	2,705		$	6,565		$	5,260
Printing Papers		1,510			1,585			3,070			3,115
Consumer Packaging		780			945			1,590			1,850
Distribution		1,500			1,655			2,975			3,295
Corporate and Intersegment Sales		(163	)		(242	)		(468	)		(485	)
Net Sales	$	7,077		$	6,648		$	13,732		$	13,035

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

	Three Months Ended June  30,						Six Months Ended June  30,
In millions	2012			2011			2012			2011
Industrial Packaging	$	260	(1)	$	269		$	475	(1)	$	548	(5)
Printing Papers		104	(2)		243	(6)		250	(2)		444	(6)
Consumer Packaging		57	(3)		(33	)(7)		160	(3)		67	(7)
Distribution		5	(4)		4	(8)		3	(4)		9	(8)
Operating Profit		426			483			888			1,068
Interest expense, net		(172	)		(137	)		(340	)		(273	)
Noncontrolling interests/equity earnings adjustment (9)		4			9			8			7
Corporate items, net		(45	)		(36	)		(114	)		(80	)
Restructuring and other charges		(9	)		(26	)		(25	)		(61	)
Earnings (loss) from continuing operations before income taxes and equity earnings	$	204		$	293		$	417		$	661
Equity earnings (loss), net of taxes – Ilim	$	(25	)	$	52		$	15		$	108

(1) Includes a charge of $62 million for three months and six months ended June 30, 2012 to adjust the value of the long-lived assets of the Hueneme mill in Oxnard, California to their fair value in anticipation of its divestiture, charges of $35 million and $78 million for the three months and six months ended June 30, 2012, respectively, for integration costs associated with the acquisition of Temple-Inland, charges of $9 million for both the three months and six months ended June 30, 2012 for costs associated with the announced third-quarter 2012 divestiture of the Hueneme mill and two other containerboard mills, a charge of $20 million for the six months ended June 30, 2012 related to the write-up of the Temple-Inland inventory to fair value, and charges of $1 million for other items.

(2) Includes losses of $2 million and $1 million for the three months and six months ended June 30, 2012, respectively, related to the acquisition of a majority interest in Andhra Pradesh Paper Mills Limited.

(3) Includes a loss of $6 million for the three months ended June 30, 2012 and a net gain of $1 million for the six months ended June 30, 2012 for adjustments related to the sale of the Shorewood business.

(4) Includes a charge of $12 million and $33 million for the three months and six months ended June 30, 2012, respectively, associated with the restructuring of the Company’s xpedx operations.

(5) Includes charges of $2 million for the six months ended June 30, 2011 for additional closure costs for the Etienne mill in France and a gain of $7 million for the six months ended June 30, 2011 for a bargain purchase price adjustment on an acquisition by our joint venture in Turkey

(6) Includes a gain of $21 million for the three months and six months ended June 30, 2011 related to the repurposing of the Franklin, Virginia mill to produce fluff pulp and a charge of $8 million for the six months ended June 30, 2011 for asset impairment costs associated with the Inverurie mill.

(7) Includes a charge of $129 million for both the three months and six months ended June 30, 2011 for a fixed asset impairment of the North American Shorewood business and charges of $2 million and $3 million for the three months and six months ended June 30, 2011, respectively, related to the reorganization of the Company’s Shorewood operations.

(8) Includes charges of $10 million and $17 million for the three months and six months ended June 30, 2011, respectively, 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.