INTERNATIONAL PAPER CO /NEW/ | 2013 | FY | 3


International Paper’s industry segments, Industrial Packaging, Printing Papers, Consumer Packaging and Distribution Businesses, 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.

For management purposes, International Paper reports the operating performance of each business based on earnings before interest and income taxes (EBIT). Intersegment sales and transfers are recorded at current market prices.

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.

The Company also holds a 50% interest in Ilim that is a separate reportable industry segment. The Company recorded equity earnings (losses), net of taxes, of $(46) million, $56 million and $134 million in 2013, 2012, and 2011, respectively, for Ilim.

INFORMATION BY INDUSTRY SEGMENT

Net Sales
In millions
2013

 
2012

 
2011

Industrial Packaging
$
14,810

 
$
13,280

 
$
10,430

Printing Papers
6,205

 
6,230

 
6,215

Consumer Packaging
3,435

 
3,170

 
3,710

Distribution
5,650

 
6,040

 
6,630

Corporate and Intersegment Sales
(1,020
)
 
(887
)
 
(951
)
Net Sales
$
29,080

 
$
27,833

 
$
26,034


Operating Profit
In millions
2013

 
2012

 
2011

Industrial Packaging
$
1,801

 
$
1,066

 
$
1,147

Printing Papers
271

 
599

 
872

Consumer Packaging
161

 
268

 
163

Distribution
(389
)
 
22

 
34

Operating Profit
1,844

 
1,955

 
2,216

Interest expense, net
(612
)
 
(672
)
 
(541
)
Noncontrolling interests / equity earnings adjustment (a)
1

 
—

 
10

Corporate items, net
(29
)
 
(51
)
 
(102
)
Restructuring and other charges
(32
)
 
(51
)
 
(82
)
Net gains (losses) on sales and impairments of businesses
—

 
2

 
—

Non-operating pension expense
(323
)
 
(159
)
 
(43
)
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings
$
849

 
$
1,024

 
$
1,458


Restructuring and Other Charges
In millions
2013

 
2012

 
2011

Industrial Packaging
$
(2
)
 
$
14

 
$
20

Printing Papers
118

 
—

 
(24
)
Consumer Packaging
45

 
—

 
2

Distribution
32

 
44

 
49

Corporate
17

 
51

 
55

Restructuring and Other Charges
$
210

 
$
109

 
$
102


Assets
In millions
2013

 
2012

Industrial Packaging
$
15,083

 
$
13,353

Printing Papers
6,574

 
7,198

Consumer Packaging
3,222

 
3,123

Distribution
1,186

 
1,639

Corporate and other (b)
5,463

 
6,840

Assets
$
31,528

 
$
32,153


Capital Spending
In millions
2013

 
2012

 
2011

Industrial Packaging
$
629

 
$
565

 
$
426

Printing Papers
294

 
449

 
364

Consumer Packaging
208

 
296

 
310

Distribution
9

 
10

 
8

Subtotal
1,140

 
1,320

 
1,108

Corporate and other
58

 
63

 
51

Total from Continuing Operations
$
1,198

 
$
1,383

 
$
1,159


Depreciation, Amortization and Cost of Timber Harvested (c)
In millions
2013

 
2012

 
2011

Industrial Packaging
$
805

 
$
755

 
$
513

Printing Papers
446

 
450

 
486

Consumer Packaging
206

 
196

 
217

Distribution
16

 
13

 
14

Corporate
74

 
72

 
102

Depreciation and Amortization
$
1,547

 
$
1,486

 
$
1,332


External Sales By Major Product 
In millions
2013

 
2012

 
2011

Industrial Packaging
$
14,729

 
$
13,223

 
$
10,376

Printing Papers
5,443

 
5,483

 
5,510

Consumer Packaging
3,311

 
3,146

 
3,577

Distribution
5,597

 
5,981

 
6,571

Net Sales
$
29,080

 
$
27,833

 
$
26,034

INFORMATION BY GEOGRAPHIC AREA
Net Sales (d)
In millions
2013

 
2012

 
2011

United States (e)
$
21,854

 
$
21,523

 
$
19,434

EMEA
3,284

 
2,935

 
3,183

Pacific Rim and Asia
2,112

 
1,816

 
1,807

Americas, other than U.S.
1,830

 
1,559

 
1,610

Net Sales
$
29,080

 
$
27,833

 
$
26,034


Long-Lived Assets (f)
In millions
2013

 
2012

United States
$
10,056

 
$
10,484

EMEA
1,126

 
1,022

Pacific Rim and Asia
946

 
982

Americas, other than U.S.
1,772

 
1,773

Corporate
329

 
310

Long-Lived Assets
$
14,229

 
$
14,571


(a)
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.
(b)
Includes corporate assets and assets of businesses held for sale.
(c)
Excludes accelerated depreciation related to closure of mills.
(d)
Net sales are attributed to countries based on the location of the seller.
(e)
Export sales to unaffiliated customers were $2.4 billion in 2013, $2.2 billion in 2012 and $2.1 billion in 2011.
(f)
Long-Lived Assets includes Forestlands and Plants, Properties and Equipment, net.

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