INDUSTRY SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2018

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.

The Company also holds a 50% interest in Ilim Holding S.A. and a 20.5% interest in Graphic Packaging International LLC, which are separate reportable industry segments. See Note 11 for details of the Company's ownership in each of these investments.

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) from continuing operations before income taxes and equity earnings, but including the impact of equity earnings and noncontrolling interests, excluding corporate items, corporate special items and non-operating pension expense.

Sales by business segment for the three months and three months ended March 31, 2018 and 2017 were as follows:



	Three Months Ended March 31,
In millions	2018		2017
Industrial Packaging	$	3,827	$	3,577
Global Cellulose Fibers	677		564
Printing Papers	1,053		995
Corporate and Intersegment Sales	64		(4		)
Net Sales	$	5,621	$	5,132

Operating profit by business segment for the three months ended March 31, 2018 and 2017 were as follows:



	Three Months Ended March 31,
In millions	2018			2017
Industrial Packaging	$	437		$	384
Global Cellulose Fibers	11			(70		)
Printing Papers	64			100
Business Segment Operating Profits	512			414

Earnings (loss) from continuing operations before income taxes and equity earnings	356			217
Interest expense, net	135			142
Noncontrolling interests/equity earnings adjustment	(1		)	—
Corporate items, net	9			24
Corporate special items, net	9			—
Non-operating pension expense	4			31
	$	512		$	414