Debt

6 Months Ended

Jun. 30, 2011

Debt

Debt

NOTE 13 – DEBT

Amounts related to early debt extinguishment during the three months and six months ended June 30, 2011 and 2010 were as follows:

	Three Months Ended June  30,				Six Months Ended June  30,
In millions	2011		2010		2011		2010
Debt reductions (a)	$	0	$	108	$	129	$	228
Pre-tax early debt extinguishment costs (b)		0		21		32		26

(a) Reductions related to notes with interest rates ranging from 5.3% to 9.375% with original maturities from 2015 to 2019 for the three months ended June 30, 2010, and from 6.2% to 9.375% with original maturities from 2018 to 2025 and from 5.25% to 9.375% with original maturities from 2010 to 2027 for the six months ended June 30, 2011 and 2010, respectively.

(b) Amounts are included in Restructuring and Other Charges in the accompanying consolidated statements of operations.

At June 30, 2011 and December 31, 2010, International Paper classified $183 million and $100 million, respectively, of current maturities of long-term debt as Long-term debt. International Paper has the intent and ability, as evidenced by its contractually committed credit facility, to renew or convert these obligations.

At June 30, 2011, the fair value of International Paper's $8.5 billion of debt was approximately $9.4 billion. The fair value of the Company's long-term debt is estimated based on the quoted market prices for the same or similar issues.

Maintaining an investment-grade credit rating is an important element of International Paper's financing strategy. At June 30, 2011, the Company held long-term credit ratings of BBB (stable outlook) and Baa3 (stable outlook) by S&P and Moody's, respectively.