Discontinued Operations

On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which included its North American Coated Paperboard and Foodservice businesses, to a subsidiary of Graphic Packaging Holding Company in exchange for a 20.5% ownership interest in a subsidiary of Graphic Packaging Holding Company that holds the assets of the combined business. International Paper is accounting for its ownership interest in the combined business under the equity method. The Company determined the fair value of its investment in the combined business and recorded a pre-tax gain of $516 million ($385 million after taxes) on the transfer in the first quarter of 2018, subject to final working capital settlement. During the second quarter of 2018, the Company recorded a pre-tax charge of $28 million ($21 million after tax) to adjust the previously recorded gain on the transfer. See Note 11 for further discussion on the Company's investment in Graphic Packaging International, LLC.

All historical operating results for North American Consumer Packaging are included in Discontinued operations, net of tax in the accompanying consolidated statement of operations. The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued operations, net of tax, related to the transfer of the North American Consumer Packaging business for all periods presented in the consolidated statement of operations:



	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2018			2017			2018			2017
Net Sales	$	—		$	389		$	—		$	768
Costs and Expenses
Cost of products sold	—			316			—			587
Selling and administrative expenses	2			22			25			45
Depreciation, amortization and cost of timber harvested	—			22			—			48
Distribution expenses	—			32			—			62
Taxes other than payroll and income taxes	—			3			—			5
(Gain) loss on transfer of business	28			—			(488		)	—
Earnings (Loss) Before Income Taxes and Equity Earnings	(30		)	(6		)	463			21
Income tax provision (benefit)	(7		)	(2		)	118			8
Discontinued Operations, Net of Taxes	$	(23	)	$	(4	)	$	345		$	13

Total cash provided by (used for) operations related to the North American Consumer Packaging business of $(25) million and $86 million for the six months ended June 30, 2018 and June 30, 2017 is included in Cash Provided By (Used For) Operations in the consolidated statement of cash flows. Total cash provided by (used for) investing activities related to the North American Consumer Packaging business of $(40) million and $(52) million for the six months ended June 30, 2018 and June 30, 2017, is included in Cash Provided By (Used For) Investing Activities in the consolidated statement of cash flows.