INDUSTRY SEGMENT INFORMATION (Note)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

International Paper’s business segments, Industrial Packaging and Global Cellulose Fibers, are consistent with the internal structure used to manage these businesses. Both segments are differentiated on a common product, common customer basis consistent with the business segmentation generally used in the Forest Products industry. On October 1, 2021, the Company completed the previously announced spin-off of its Printing Papers business into a new, publicly-traded company, Sylvamo, listed on the New York Stock Exchange. Additionally, on August 6, 2021, the Company completed the sale of its Kwidzyn, Poland mill which included the pulp and paper mill in Kwidzyn and supporting functions. As a result of the Sylvamo spin-off and the sale of Kwidzyn, the Company no longer has a Printing Papers segment, and all prior year amounts have been adjusted to reflect the Sylvamo and Kwidzyn businesses as a discontinued operation.

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 less than wholly owned subsidiaries, and excluding interest expense, net, corporate expenses, net, corporate net special items, business net special items and non-operating pension expense.

Net sales by business segment for the three months and nine months ended September 30, 2022 and 2021 were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2022		2021		2022		2021
Industrial Packaging	$	4,385	$	4,111	$	13,282	$	12,071
Global Cellulose Fibers	887		740		2,385		2,015
Corporate and Intersegment Sales	130		63		361		191
Net Sales	$	5,402	$	4,914	$	16,028	$	14,277

Operating profit (loss) by business segment for the three months and nine months ended September 30, 2022 and 2021 were as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2022		2021		2022		2021
Industrial Packaging	$	369	$	414	$	1,326	$	1,224
Global Cellulose Fibers	95		76		71		(4)
Business Segment Operating Profits	$	464	490		$	1,397	1,220
Earnings (loss) from continuing operations before income taxes and equity earnings	$	313	$	397	$	1,189	$	955
Interest expense, net	123		82		266		261
Adjustment for less than wholly owned subsidiaries	(1)		(1)		(2)		(3)
Corporate expenses, net	15		13		54		85
Corporate net special items	62		49		34		70
Business net special items	—		—		—		5
Non-operating pension expense (income)	(48)		(50)		(144)		(153)
Business Segment Operating Profits	$	464	$	490	$	1,397	$	1,220