NOTE 21 FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA

International Paper’s business segments, Industrial Packaging, Global Cellulose Fibers and Printing Papers, are consistent with the internal structure used to manage these businesses. See the Description of Business Segments in Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for a description of the types of products and services from which each reportable segment derives its revenues. All segments are differentiated on a common product, common customer basis consistent with the business segmentation generally used in the Forest Products industry.

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 interest expense, net, corporate items, net, corporate special items, net, and non-operating pension expense.

External sales by major product is determined by aggregating sales from each segment based on similar products or services. External sales are defined as those that are made to parties outside International Paper’s consolidated group, whereas sales by segment in the Net Sales table are determined using a management approach and include intersegment sales.

INFORMATION BY BUSINESS SEGMENT

Net Sales



In millions	2018		2017			2016
Industrial Packaging	$	15,900	$	15,077		$	14,226
Global Cellulose Fibers	2,819		2,551			1,092
Printing Papers	4,375		4,157			4,058
Corporate and Intersegment Sales (a)	212		(42		)	119
Net Sales	$	23,306	$	21,743		$	19,495

Operating Profit



In millions	2018			2017			2016
Industrial Packaging	$	2,093		$	1,547		$	1,741
Global Cellulose Fibers	251			65			(179		)
Printing Papers	533			457			540
Business Segment Operating Profit	2,877			2,069			2,102

Earnings (loss) from continuing operations before income taxes and equity earnings	1,781			848			795
Interest expense, net	536			572			520
Noncontrolling interests / equity earnings adjustment (b)	(10		)	(2		)	1
Corporate items, net (a)	67			91			121
Corporate special items, net (a)	9			76			55
Non-operating pension expense	494			484			610
	$	2,877		$	2,069		$	2,102

Restructuring and Other Charges



In millions	2018			2017		2016
Industrial Packaging	$	47		$	—	$	7
Global Cellulose Fibers	—			—		—
Printing Papers	3			—		—
Corporate (c)	(21		)	67		47
Restructuring and Other Charges	$	29		$	67	$	54

Assets



In millions	2018		2017
Industrial Packaging	$	15,859	$	15,354
Global Cellulose Fibers	3,880		3,913
Printing Papers	3,905		4,054
Corporate and other (d)	9,932		10,582
Assets	$	33,576	$	33,903

Capital Spending



In millions	2018		2017		2016
Industrial Packaging	$	1,061	$	836	$	832
Global Cellulose Fibers	183		188		174
Printing Papers	303		235		215
Subtotal	1,547		1,259		1,221
Corporate and other (e)	25		21		20
Capital Spending	$	1,572	$	1,280	$	1,241

Depreciation, Amortization and Cost of Timber Harvested (f)(g)



In millions	2018		2017		2016
Industrial Packaging	$	803	$	815	$	760
Global Cellulose Fibers	262		264		110
Printing Papers	258		254		242
Corporate (h)	5		10		12
Depreciation and Amortization	$	1,328	$	1,343	$	1,124

External Sales By Major Product



In millions	2018		2017		2016
Industrial Packaging	$	15,828	$	14,946	$	14,142
Global Cellulose Fibers	2,810		2,524		1,090
Printing Papers	4,359		4,142		4,062
Other (i)	309		131		201
Net Sales	$	23,306	$	21,743	$	19,495

INFORMATION BY GEOGRAPHIC AREA

Net Sales (j)



In millions	2018		2017		2016
United States (k)	$	17,609	$	16,247	$	14,363
EMEA	3,321		3,129		2,852
Pacific Rim and Asia	605		625		699
Americas, other than U.S.	1,771		1,742		1,581
Net Sales	$	23,306	$	21,743	$	19,495

Long-Lived Assets (l)



In millions	2018		2017
United States	$	10,586	$	10,545
EMEA	1,315		1,302
Pacific Rim and Asia	201		236
Americas, other than U.S.	1,367		1,630
Long-Lived Assets	$	13,469	$	13,713


(a)	Includes sales of $0 million in 2018, $15 million in 2017 and $42 million in 2016, operating profits (losses) of $0 million in 2018, $0 million in 2017 and $(2) million in 2016, and corporate special items expense of $0 million in 2018, $9 million in 2017 and $9 million in 2016, from previously divested businesses.


(b)	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 interests and equity earnings for these subsidiaries is added here to present consolidated earnings from continuing operations before income taxes and equity earnings.


(c)	Includes corporate expenses and expenses of $0 million in 2018, $9 million in 2017 and $9 million in 2016, from previously divested businesses.


(d)	Includes corporate assets, assets of businesses held for sale and assets of previously divested businesses.


(e)	Includes corporate assets and assets of previously divested businesses of $0 million in 2018, $0 million in 2017 and $1 million in 2016.


(f)	Excludes accelerated depreciation related to the closure and/or repurposing of mills in 2016.


(g)	Prior years recast to reflect current methodology for allocation of Corporate depreciation and amortization to the business segments. There is no change to segment operating profit.


(h)	Includes $0 million in 2018, $1 million in 2017 and $2 million in 2016, from previously divested businesses.


(i)	Includes $0 million in 2018, $15 million in 2017, and $42 million in 2016, from previously divested businesses.


(j)	Net sales are attributed to countries based on the location of the seller.


(k)	Export sales to unaffiliated customers were $3.1 billion in 2018, $2.9 billion in 2017 and $1.8 billion in 2016.


(l)	Long-Lived Assets includes Forestlands and Plants, Properties and Equipment, net.