New York
|
13-0872805
|
||
(State or other jurisdiction of
|
(I.R.S. Employer
|
||
incorporation of organization)
|
Identification No.)
|
||
|
|
|
|
6400 Poplar Avenue
|
Memphis,
|
TN
|
38197
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Shares
|
IP
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
|
|
PAGE NO.
|
|
|
|
|
|
|
|
||
|
|
|
|
Condensed Consolidated Statement of Operations - Three Months and Nine Months Ended September 30, 2019 and 2018
|
|
|
|
|
|
Condensed Consolidated Statement of Comprehensive Income - Three Months and Nine Months Ended September 30, 2019 and 2018
|
|
|
|
|
|
Condensed Consolidated Balance Sheet - September 30, 2019 and December 31, 2018
|
|
|
|
|
|
Condensed Consolidated Statement of Cash Flows - Nine Months Ended September 30, 2019 and 2018
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITEM 1.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Sales
|
$
|
5,568
|
|
|
$
|
5,901
|
|
|
$
|
16,878
|
|
|
$
|
17,355
|
|
Costs and Expenses
|
|
|
|
|
|
|
|
||||||||
Cost of products sold
|
3,772
|
|
|
3,887
|
|
|
11,602
|
|
|
11,757
|
|
||||
Selling and administrative expenses
|
387
|
|
|
405
|
|
|
1,202
|
|
|
1,277
|
|
||||
Depreciation, amortization and cost of timber harvested
|
327
|
|
|
335
|
|
|
963
|
|
|
990
|
|
||||
Distribution expenses
|
395
|
|
|
397
|
|
|
1,168
|
|
|
1,166
|
|
||||
Taxes other than payroll and income taxes
|
42
|
|
|
44
|
|
|
128
|
|
|
130
|
|
||||
Restructuring and other charges, net
|
21
|
|
|
—
|
|
|
21
|
|
|
48
|
|
||||
Net (gains) losses on sales and impairments of businesses
|
8
|
|
|
122
|
|
|
153
|
|
|
122
|
|
||||
Antitrust fines
|
32
|
|
|
—
|
|
|
32
|
|
|
—
|
|
||||
Interest expense, net
|
123
|
|
|
133
|
|
|
378
|
|
|
401
|
|
||||
Non-operating pension expense
|
9
|
|
|
25
|
|
|
27
|
|
|
65
|
|
||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings
|
452
|
|
|
553
|
|
|
1,204
|
|
|
1,399
|
|
||||
Income tax provision (benefit)
|
137
|
|
|
83
|
|
|
371
|
|
|
302
|
|
||||
Equity earnings (loss), net of taxes
|
27
|
|
|
92
|
|
|
221
|
|
|
257
|
|
||||
Earnings (Loss) From Continuing Operations
|
342
|
|
|
562
|
|
|
1,054
|
|
|
1,354
|
|
||||
Discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
345
|
|
||||
Net Earnings (Loss)
|
342
|
|
|
562
|
|
|
1,054
|
|
|
1,699
|
|
||||
Less: Net earnings (loss) attributable to noncontrolling interests
|
(2
|
)
|
|
—
|
|
|
(6
|
)
|
|
3
|
|
||||
Net Earnings (Loss) Attributable to International Paper Company
|
$
|
344
|
|
|
$
|
562
|
|
|
$
|
1,060
|
|
|
$
|
1,696
|
|
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations
|
$
|
0.88
|
|
|
$
|
1.38
|
|
|
$
|
2.67
|
|
|
$
|
3.28
|
|
Discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
0.84
|
|
||||
Net earnings (loss)
|
$
|
0.88
|
|
|
$
|
1.38
|
|
|
$
|
2.67
|
|
|
$
|
4.12
|
|
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations
|
$
|
0.87
|
|
|
$
|
1.37
|
|
|
$
|
2.65
|
|
|
$
|
3.25
|
|
Discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
0.83
|
|
||||
Net earnings (loss)
|
$
|
0.87
|
|
|
$
|
1.37
|
|
|
$
|
2.65
|
|
|
$
|
4.08
|
|
Average Shares of Common Stock Outstanding – assuming dilution
|
395.4
|
|
|
411.4
|
|
|
399.6
|
|
|
416.3
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Earnings (Loss)
|
$
|
342
|
|
|
$
|
562
|
|
|
$
|
1,054
|
|
|
$
|
1,699
|
|
Other Comprehensive Income (Loss), Net of Tax:
|
|
|
|
|
|
|
|
||||||||
Amortization of pension and post-retirement prior service costs and net loss:
|
|
|
|
|
|
|
|
||||||||
U.S. plans
|
41
|
|
|
76
|
|
|
122
|
|
|
227
|
|
||||
Change in cumulative foreign currency translation adjustment
|
(179
|
)
|
|
(87
|
)
|
|
(106
|
)
|
|
(467
|
)
|
||||
Net gains/losses on cash flow hedging derivatives:
|
|
|
|
|
|
|
|
||||||||
Net gains (losses) arising during the period
|
(10
|
)
|
|
1
|
|
|
(6
|
)
|
|
(20
|
)
|
||||
Reclassification adjustment for (gains) losses included in net earnings (loss)
|
4
|
|
|
2
|
|
|
5
|
|
|
2
|
|
||||
Total Other Comprehensive Income (Loss), Net of Tax
|
(144
|
)
|
|
(8
|
)
|
|
15
|
|
|
(258
|
)
|
||||
Comprehensive Income (Loss)
|
198
|
|
|
554
|
|
|
1,069
|
|
|
1,441
|
|
||||
Net (earnings) loss attributable to noncontrolling interests
|
2
|
|
|
—
|
|
|
6
|
|
|
(3
|
)
|
||||
Other comprehensive (income) loss attributable to noncontrolling interests
|
—
|
|
|
2
|
|
|
—
|
|
|
4
|
|
||||
Comprehensive Income (Loss) Attributable to International Paper Company
|
$
|
200
|
|
|
$
|
556
|
|
|
$
|
1,075
|
|
|
$
|
1,442
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and temporary investments
|
$
|
697
|
|
|
$
|
589
|
|
Accounts and notes receivable, net
|
3,305
|
|
|
3,521
|
|
||
Contract assets
|
388
|
|
|
395
|
|
||
Inventories
|
2,194
|
|
|
2,241
|
|
||
Assets held for sale
|
278
|
|
|
—
|
|
||
Other current assets
|
189
|
|
|
250
|
|
||
Total Current Assets
|
7,051
|
|
|
6,996
|
|
||
Plants, Properties and Equipment, net
|
12,845
|
|
|
13,067
|
|
||
Forestlands
|
378
|
|
|
402
|
|
||
Investments
|
1,651
|
|
|
1,648
|
|
||
Financial Assets of Variable Interest Entities (Note 16)
|
7,084
|
|
|
7,070
|
|
||
Goodwill
|
3,412
|
|
|
3,374
|
|
||
Right of Use Assets
|
425
|
|
|
—
|
|
||
Deferred Charges and Other Assets
|
1,002
|
|
|
1,019
|
|
||
Total Assets
|
$
|
33,848
|
|
|
$
|
33,576
|
|
Liabilities and Equity
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Notes payable and current maturities of long-term debt
|
$
|
402
|
|
|
$
|
639
|
|
Accounts payable
|
2,349
|
|
|
2,413
|
|
||
Accrued payroll and benefits
|
442
|
|
|
535
|
|
||
Liabilities held for sale
|
248
|
|
|
—
|
|
||
Other current liabilities
|
1,288
|
|
|
1,107
|
|
||
Total Current Liabilities
|
4,729
|
|
|
4,694
|
|
||
Long-Term Debt
|
9,957
|
|
|
10,015
|
|
||
Nonrecourse Financial Liabilities of Variable Interest Entities (Note 16)
|
6,303
|
|
|
6,298
|
|
||
Deferred Income Taxes
|
2,643
|
|
|
2,600
|
|
||
Pension Benefit Obligation
|
1,653
|
|
|
1,762
|
|
||
Postretirement and Postemployment Benefit Obligation
|
248
|
|
|
264
|
|
||
Long-Term Lease Obligations
|
292
|
|
|
—
|
|
||
Other Liabilities
|
567
|
|
|
560
|
|
||
Equity
|
|
|
|
||||
Common stock, $1 par value, 2019 – 448.9 shares and 2018 – 448.9 shares
|
449
|
|
|
449
|
|
||
Paid-in capital
|
6,261
|
|
|
6,280
|
|
||
Retained earnings
|
8,447
|
|
|
7,465
|
|
||
Accumulated other comprehensive loss
|
(5,014
|
)
|
|
(4,500
|
)
|
||
|
10,143
|
|
|
9,694
|
|
||
Less: Common stock held in treasury, at cost, 2019 – 56.8 shares and 2018 – 48.3 shares
|
2,702
|
|
|
2,332
|
|
||
Total International Paper Shareholders’ Equity
|
7,441
|
|
|
7,362
|
|
||
Noncontrolling interests
|
15
|
|
|
21
|
|
||
Total Equity
|
7,456
|
|
|
7,383
|
|
||
Total Liabilities and Equity
|
$
|
33,848
|
|
|
$
|
33,576
|
|
|
Nine Months Ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
Operating Activities
|
|
|
|
||||
Net earnings (loss)
|
$
|
1,054
|
|
|
$
|
1,699
|
|
Depreciation, amortization and cost of timber harvested
|
963
|
|
|
990
|
|
||
Deferred income tax provision (benefit), net
|
68
|
|
|
163
|
|
||
Restructuring and other charges, net
|
21
|
|
|
48
|
|
||
Net gain on transfer of North American Consumer Packaging business
|
—
|
|
|
(488
|
)
|
||
Net (gains) losses on sales and impairments of businesses
|
153
|
|
|
122
|
|
||
Antitrust fines
|
32
|
|
|
—
|
|
||
Equity method dividends received
|
260
|
|
|
130
|
|
||
Equity (earnings) losses, net
|
(221
|
)
|
|
(257
|
)
|
||
Periodic pension expense, net
|
70
|
|
|
172
|
|
||
Other, net
|
106
|
|
|
75
|
|
||
Changes in current assets and liabilities
|
|
|
|
||||
Accounts and notes receivable
|
168
|
|
|
(441
|
)
|
||
Contract assets
|
6
|
|
|
(20
|
)
|
||
Inventories
|
(9
|
)
|
|
(120
|
)
|
||
Accounts payable and accrued liabilities
|
(11
|
)
|
|
301
|
|
||
Interest payable
|
(31
|
)
|
|
(33
|
)
|
||
Other
|
53
|
|
|
64
|
|
||
Cash Provided By (Used For) Operations
|
2,682
|
|
|
2,405
|
|
||
Investment Activities
|
|
|
|
||||
Invested in capital projects
|
(913
|
)
|
|
(1,286
|
)
|
||
Acquisitions, net of cash acquired
|
(99
|
)
|
|
—
|
|
||
Net settlement on transfer of North American Consumer Packaging business
|
—
|
|
|
(40
|
)
|
||
Proceeds from divestitures, net of cash divested
|
17
|
|
|
—
|
|
||
Proceeds from sale of fixed assets
|
15
|
|
|
12
|
|
||
Other
|
(14
|
)
|
|
4
|
|
||
Cash Provided By (Used For) Investment Activities
|
(994
|
)
|
|
(1,310
|
)
|
||
Financing Activities
|
|
|
|
||||
Repurchases of common stock and payments of restricted stock tax withholding
|
(535
|
)
|
|
(532
|
)
|
||
Issuance of debt
|
381
|
|
|
349
|
|
||
Reduction of debt
|
(772
|
)
|
|
(242
|
)
|
||
Change in book overdrafts
|
(29
|
)
|
|
(33
|
)
|
||
Dividends paid
|
(595
|
)
|
|
(588
|
)
|
||
Other
|
3
|
|
|
—
|
|
||
Cash Provided By (Used For) Financing Activities
|
(1,547
|
)
|
|
(1,046
|
)
|
||
Cash Included in Assets Held for Sale
|
(19
|
)
|
|
—
|
|
||
Effect of Exchange Rate Changes on Cash
|
(14
|
)
|
|
(41
|
)
|
||
Change in Cash and Temporary Investments
|
108
|
|
|
8
|
|
||
Cash and Temporary Investments
|
|
|
|
||||
Beginning of period
|
589
|
|
|
1,018
|
|
||
End of period
|
$
|
697
|
|
|
$
|
1,026
|
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||
In millions
|
|
Industrial Packaging
|
|
Global Cellulose Fibers
|
|
Printing Papers
|
|
Corporate and Inter-segment Sales
|
|
Total
|
||||||||||
Primary Geographical Markets (a)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
3,180
|
|
|
$
|
535
|
|
|
$
|
486
|
|
|
$
|
56
|
|
|
$
|
4,257
|
|
EMEA
|
|
415
|
|
|
62
|
|
|
315
|
|
|
(1
|
)
|
|
791
|
|
|||||
Pacific Rim and Asia
|
|
20
|
|
|
27
|
|
|
47
|
|
|
3
|
|
|
97
|
|
|||||
Americas, other than U.S.
|
|
205
|
|
|
—
|
|
|
223
|
|
|
(5
|
)
|
|
423
|
|
|||||
Total
|
|
$
|
3,820
|
|
|
$
|
624
|
|
|
$
|
1,071
|
|
|
$
|
53
|
|
|
$
|
5,568
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Segments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North American Industrial Packaging
|
|
$
|
3,368
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,368
|
|
EMEA Industrial Packaging
|
|
324
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
324
|
|
|||||
Brazilian Industrial Packaging
|
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|||||
European Coated Paperboard
|
|
92
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92
|
|
|||||
Global Cellulose Fibers
|
|
—
|
|
|
624
|
|
|
—
|
|
|
—
|
|
|
624
|
|
|||||
North American Printing Papers
|
|
—
|
|
|
—
|
|
|
492
|
|
|
—
|
|
|
492
|
|
|||||
Brazilian Papers
|
|
—
|
|
|
—
|
|
|
247
|
|
|
—
|
|
|
247
|
|
|||||
European Papers
|
|
—
|
|
|
—
|
|
|
299
|
|
|
—
|
|
|
299
|
|
|||||
Indian Papers
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
38
|
|
|||||
Intra-segment Eliminations
|
|
(25
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(30
|
)
|
|||||
Corporate & Inter-segment Sales
|
|
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
53
|
|
|||||
Total
|
|
$
|
3,820
|
|
|
$
|
624
|
|
|
$
|
1,071
|
|
|
$
|
53
|
|
|
$
|
5,568
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||
In millions
|
|
Industrial Packaging
|
|
Global Cellulose Fibers
|
|
Printing Papers
|
|
Corporate and Inter-segment Sales
|
|
Total
|
||||||||||
Primary Geographical Markets (a)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
9,531
|
|
|
$
|
1,656
|
|
|
$
|
1,448
|
|
|
$
|
174
|
|
|
$
|
12,809
|
|
EMEA
|
|
1,263
|
|
|
207
|
|
|
986
|
|
|
(8
|
)
|
|
2,448
|
|
|||||
Pacific Rim and Asia
|
|
50
|
|
|
111
|
|
|
167
|
|
|
9
|
|
|
337
|
|
|||||
Americas, other than U.S.
|
|
672
|
|
|
—
|
|
|
623
|
|
|
(11
|
)
|
|
1,284
|
|
|||||
Total
|
|
$
|
11,516
|
|
|
$
|
1,974
|
|
|
$
|
3,224
|
|
|
$
|
164
|
|
|
$
|
16,878
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Segments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North American Industrial Packaging
|
|
$
|
10,158
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,158
|
|
EMEA Industrial Packaging
|
|
994
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
994
|
|
|||||
Brazilian Industrial Packaging
|
|
176
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
176
|
|
|||||
European Coated Paperboard
|
|
275
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
275
|
|
|||||
Global Cellulose Fibers
|
|
—
|
|
|
1,974
|
|
|
—
|
|
|
—
|
|
|
1,974
|
|
|||||
North American Printing Papers
|
|
—
|
|
|
—
|
|
|
1,474
|
|
|
—
|
|
|
1,474
|
|
|||||
Brazilian Papers
|
|
—
|
|
|
—
|
|
|
702
|
|
|
—
|
|
|
702
|
|
|||||
European Papers
|
|
—
|
|
|
—
|
|
|
929
|
|
|
—
|
|
|
929
|
|
|||||
Indian Papers
|
|
—
|
|
|
—
|
|
|
144
|
|
|
—
|
|
|
144
|
|
|||||
Intra-segment Eliminations
|
|
(87
|
)
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(112
|
)
|
|||||
Corporate & Inter-segment Sales
|
|
|
|
|
—
|
|
|
—
|
|
|
164
|
|
|
164
|
|
|||||
Total
|
|
$
|
11,516
|
|
|
$
|
1,974
|
|
|
$
|
3,224
|
|
|
$
|
164
|
|
|
$
|
16,878
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||
In millions
|
|
Industrial Packaging
|
|
Global Cellulose Fibers
|
|
Printing Papers
|
|
Corporate & Intersegment
|
|
Total
|
||||||||||
Primary Geographical Markets (a)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
3,394
|
|
|
$
|
602
|
|
|
$
|
482
|
|
|
$
|
52
|
|
|
$
|
4,530
|
|
EMEA
|
|
396
|
|
|
77
|
|
|
328
|
|
|
(4
|
)
|
|
797
|
|
|||||
Pacific Rim and Asia
|
|
40
|
|
|
35
|
|
|
62
|
|
|
6
|
|
|
143
|
|
|||||
Americas, other than U.S.
|
|
204
|
|
|
—
|
|
|
230
|
|
|
(3
|
)
|
|
431
|
|
|||||
Total
|
|
$
|
4,034
|
|
|
$
|
714
|
|
|
$
|
1,102
|
|
|
$
|
51
|
|
|
$
|
5,901
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Segments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North American Industrial Packaging
|
|
$
|
3,653
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,653
|
|
EMEA Industrial Packaging
|
|
311
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
311
|
|
|||||
Brazilian Industrial Packaging
|
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|||||
European Coated Paperboard
|
|
87
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|||||
Global Cellulose Fibers
|
|
—
|
|
|
714
|
|
|
—
|
|
|
—
|
|
|
714
|
|
|||||
North American Printing Papers
|
|
—
|
|
|
—
|
|
|
492
|
|
|
—
|
|
|
492
|
|
|||||
Brazilian Papers
|
|
—
|
|
|
—
|
|
|
255
|
|
|
—
|
|
|
255
|
|
|||||
European Papers
|
|
—
|
|
|
—
|
|
|
311
|
|
|
—
|
|
|
311
|
|
|||||
Indian Papers
|
|
—
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
47
|
|
|||||
Intra-segment Eliminations
|
|
(74
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(77
|
)
|
|||||
Corporate & Inter-segment Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
51
|
|
|||||
Total
|
|
$
|
4,034
|
|
|
$
|
714
|
|
|
$
|
1,102
|
|
|
$
|
51
|
|
|
$
|
5,901
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
In millions
|
|
Industrial Packaging
|
|
Global Cellulose Fibers
|
|
Printing Papers
|
|
Corporate & Intersegment
|
|
Total
|
||||||||||
Primary Geographical Markets (a)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
9,832
|
|
|
$
|
1,720
|
|
|
$
|
1,399
|
|
|
$
|
163
|
|
|
$
|
13,114
|
|
EMEA
|
|
1,275
|
|
|
222
|
|
|
988
|
|
|
(13
|
)
|
|
2,472
|
|
|||||
Pacific Rim and Asia
|
|
110
|
|
|
140
|
|
|
185
|
|
|
35
|
|
|
470
|
|
|||||
Americas, other than U.S.
|
|
666
|
|
|
1
|
|
|
643
|
|
|
(11
|
)
|
|
1,299
|
|
|||||
Total
|
|
$
|
11,883
|
|
|
$
|
2,083
|
|
|
$
|
3,215
|
|
|
$
|
174
|
|
|
$
|
17,355
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Segments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North American Industrial Packaging
|
|
$
|
10,604
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,604
|
|
EMEA Industrial Packaging
|
|
1,017
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,017
|
|
|||||
Brazilian Industrial Packaging
|
|
175
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
175
|
|
|||||
European Coated Paperboard
|
|
265
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
265
|
|
|||||
Global Cellulose Fibers
|
|
—
|
|
|
2,083
|
|
|
—
|
|
|
—
|
|
|
2,083
|
|
|||||
North American Printing Papers
|
|
—
|
|
|
—
|
|
|
1,443
|
|
|
—
|
|
|
1,443
|
|
|||||
Brazilian Papers
|
|
—
|
|
|
—
|
|
|
706
|
|
|
—
|
|
|
706
|
|
|||||
European Papers
|
|
—
|
|
|
—
|
|
|
932
|
|
|
—
|
|
|
932
|
|
|||||
Indian Papers
|
|
—
|
|
|
—
|
|
|
150
|
|
|
—
|
|
|
150
|
|
|||||
Intra-segment Eliminations
|
|
(178
|
)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(194
|
)
|
|||||
Corporate & Inter-segment Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|
174
|
|
|
174
|
|
|||||
Total
|
|
$
|
11,883
|
|
|
$
|
2,083
|
|
|
$
|
3,215
|
|
|
$
|
174
|
|
|
$
|
17,355
|
|
In millions
|
|
Contract Assets (Short-Term)
|
|
Contract Liabilities (Short-Term)
|
||||
Beginning Balance - January 1, 2019
|
|
$
|
395
|
|
|
$
|
56
|
|
Ending Balance -September 30, 2019
|
|
388
|
|
|
28
|
|
||
Increase / (Decrease)
|
|
$
|
(7
|
)
|
|
$
|
(28
|
)
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||||||||||
In millions, except per share amounts
|
Common Stock Issued
|
|
Paid-in Capital
|
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Total
International
Paper
Shareholders’
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
|
||||||||||||||||
Balance, July 1
|
$
|
449
|
|
|
$
|
6,229
|
|
|
$
|
8,302
|
|
$
|
(4,870
|
)
|
|
$
|
2,628
|
|
|
$
|
7,482
|
|
|
$
|
17
|
|
|
$
|
7,499
|
|
|
Issuance of stock for various plans, net
|
—
|
|
|
32
|
|
|
—
|
|
—
|
|
|
(1
|
)
|
|
33
|
|
|
—
|
|
|
33
|
|
|
||||||||
Repurchase of stock
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
75
|
|
|
(75
|
)
|
|
—
|
|
|
(75
|
)
|
|
||||||||
Common stock dividends
($0.5000 per share)
|
—
|
|
|
—
|
|
|
(199
|
)
|
—
|
|
|
—
|
|
|
(199
|
)
|
|
—
|
|
|
(199
|
)
|
|
||||||||
Transactions of equity method investees
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Comprehensive income (loss)
|
—
|
|
|
—
|
|
|
344
|
|
(144
|
)
|
|
—
|
|
|
200
|
|
|
(2
|
)
|
|
198
|
|
|
||||||||
Ending Balance, September 30
|
$
|
449
|
|
|
$
|
6,261
|
|
|
$
|
8,447
|
|
$
|
(5,014
|
)
|
|
$
|
2,702
|
|
|
$
|
7,441
|
|
|
$
|
15
|
|
|
$
|
7,456
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||||||
In millions, except per share amounts
|
Common Stock Issued
|
|
Paid-in Capital
|
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Total
International
Paper
Shareholders’
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
|
||||||||||||||||
Balance, January 1
|
$
|
449
|
|
|
$
|
6,280
|
|
|
$
|
7,465
|
|
$
|
(4,500
|
)
|
|
$
|
2,332
|
|
|
$
|
7,362
|
|
|
$
|
21
|
|
|
$
|
7,383
|
|
|
Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform
|
—
|
|
|
—
|
|
|
529
|
|
(529
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Issuance of stock for various plans, net
|
—
|
|
|
(52
|
)
|
|
—
|
|
—
|
|
|
(165
|
)
|
|
113
|
|
|
—
|
|
|
113
|
|
|
||||||||
Repurchase of stock
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
535
|
|
|
(535
|
)
|
|
—
|
|
|
(535
|
)
|
|
||||||||
Common stock dividends
($1.5000 per share)
|
—
|
|
|
—
|
|
|
(607
|
)
|
—
|
|
|
—
|
|
|
(607
|
)
|
|
—
|
|
|
(607
|
)
|
|
||||||||
Transactions of equity method investees
|
—
|
|
|
33
|
|
|
—
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
|
||||||||
Comprehensive income (loss)
|
—
|
|
|
—
|
|
|
1,060
|
|
15
|
|
|
—
|
|
|
1,075
|
|
|
(6
|
)
|
|
1,069
|
|
|
||||||||
Ending Balance, September 30
|
$
|
449
|
|
|
$
|
6,261
|
|
|
$
|
8,447
|
|
$
|
(5,014
|
)
|
|
$
|
2,702
|
|
|
$
|
7,441
|
|
|
$
|
15
|
|
|
$
|
7,456
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||||||||||
In millions, except per share amounts
|
Common Stock Issued
|
|
Paid-in Capital
|
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Total
International
Paper
Shareholders’
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
|
||||||||||||||||
Balance, July 1
|
$
|
449
|
|
|
$
|
6,219
|
|
|
$
|
6,988
|
|
$
|
(4,881
|
)
|
|
$
|
1,931
|
|
|
$
|
6,844
|
|
|
$
|
20
|
|
|
$
|
6,864
|
|
|
Issuance of stock for various plans, net
|
—
|
|
|
36
|
|
|
—
|
|
—
|
|
|
(1
|
)
|
|
37
|
|
|
—
|
|
|
37
|
|
|
||||||||
Repurchase of stock
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
201
|
|
|
(201
|
)
|
|
—
|
|
|
(201
|
)
|
|
||||||||
Common stock dividends ($0.4750 per share)
|
—
|
|
|
—
|
|
|
(197
|
)
|
—
|
|
|
—
|
|
|
(197
|
)
|
|
—
|
|
|
(197
|
)
|
|
||||||||
Transactions of equity method investees
|
—
|
|
|
1
|
|
|
—
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
||||||||
Comprehensive income (loss)
|
—
|
|
|
—
|
|
|
562
|
|
(6
|
)
|
|
—
|
|
|
556
|
|
|
(2
|
)
|
|
554
|
|
|
||||||||
Ending Balance, September 30
|
$
|
449
|
|
|
$
|
6,256
|
|
|
$
|
7,353
|
|
$
|
(4,887
|
)
|
|
$
|
2,131
|
|
|
$
|
7,040
|
|
|
$
|
18
|
|
|
$
|
7,058
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||||
In millions, except per share amounts
|
Common Stock Issued
|
|
Paid-in Capital
|
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Total
International
Paper
Shareholders’
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
|
||||||||||||||||
Balance, January 1
|
$
|
449
|
|
|
$
|
6,206
|
|
|
$
|
6,180
|
|
$
|
(4,633
|
)
|
|
$
|
1,680
|
|
|
$
|
6,522
|
|
|
$
|
19
|
|
|
$
|
6,541
|
|
|
Adoption of ASC 606 revenue from contracts with customers
|
—
|
|
|
—
|
|
|
73
|
|
—
|
|
|
—
|
|
|
73
|
|
|
—
|
|
|
73
|
|
|
||||||||
Issuance of stock for various plans, net
|
—
|
|
|
31
|
|
|
—
|
|
—
|
|
|
(81
|
)
|
|
112
|
|
|
—
|
|
|
112
|
|
|
||||||||
Repurchase of stock
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
532
|
|
|
(532
|
)
|
|
—
|
|
|
(532
|
)
|
|
||||||||
Common stock dividends ($1.4250 per share)
|
—
|
|
|
—
|
|
|
(596
|
)
|
—
|
|
|
—
|
|
|
(596
|
)
|
|
—
|
|
|
(596
|
)
|
|
||||||||
Transactions of equity method investees
|
—
|
|
|
19
|
|
|
—
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|
||||||||
Comprehensive income (loss)
|
—
|
|
|
—
|
|
|
1,696
|
|
(254
|
)
|
|
—
|
|
|
1,442
|
|
|
(1
|
)
|
|
1,441
|
|
|
||||||||
Ending Balance, September 30
|
$
|
449
|
|
|
$
|
6,256
|
|
|
$
|
7,353
|
|
$
|
(4,887
|
)
|
|
$
|
2,131
|
|
|
$
|
7,040
|
|
|
$
|
18
|
|
|
$
|
7,058
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Defined Benefit Pension and Postretirement Adjustments
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
|
$
|
(2,362
|
)
|
|
$
|
(2,376
|
)
|
|
$
|
(1,916
|
)
|
|
$
|
(2,527
|
)
|
Reclassification of stranded tax effects
|
|
—
|
|
|
—
|
|
|
(527
|
)
|
|
—
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
|
41
|
|
|
76
|
|
|
122
|
|
|
227
|
|
||||
Balance at end of period
|
|
(2,321
|
)
|
|
(2,300
|
)
|
|
(2,321
|
)
|
|
(2,300
|
)
|
||||
Change in Cumulative Foreign Currency Translation Adjustments
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
|
(2,508
|
)
|
|
(2,489
|
)
|
|
(2,581
|
)
|
|
(2,111
|
)
|
||||
Other comprehensive income (loss) before reclassifications
|
|
(179
|
)
|
|
(87
|
)
|
|
(110
|
)
|
|
(469
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
|
—
|
|
|
—
|
|
|
4
|
|
|
2
|
|
||||
Other comprehensive income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
2
|
|
|
—
|
|
|
4
|
|
||||
Balance at end of period
|
|
(2,687
|
)
|
|
(2,574
|
)
|
|
(2,687
|
)
|
|
(2,574
|
)
|
||||
Net Gains and Losses on Cash Flow Hedging Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
|
—
|
|
|
(16
|
)
|
|
(3
|
)
|
|
5
|
|
||||
Other comprehensive income (loss) before reclassifications
|
|
(10
|
)
|
|
1
|
|
|
(6
|
)
|
|
(20
|
)
|
||||
Reclassification of stranded tax effects
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
|
4
|
|
|
2
|
|
|
5
|
|
|
2
|
|
||||
Balance at end of period
|
|
(6
|
)
|
|
(13
|
)
|
|
(6
|
)
|
|
(13
|
)
|
||||
Total Accumulated Other Comprehensive Income (Loss) at End of Period
|
|
$
|
(5,014
|
)
|
|
$
|
(4,887
|
)
|
|
$
|
(5,014
|
)
|
|
$
|
(4,887
|
)
|
In millions:
|
|
Amounts Reclassified from Accumulated Other Comprehensive Income
|
Location of Amount Reclassified from AOCI
|
||||||||||||||||
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
||||||||||
Defined benefit pension and postretirement items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Prior-service costs
|
|
$
|
(4
|
)
|
|
$
|
(4
|
)
|
|
$
|
(10
|
)
|
|
$
|
(11
|
)
|
|
(a)
|
Non-operating pension expense
|
Actuarial gains (losses)
|
|
(50
|
)
|
|
(97
|
)
|
|
(152
|
)
|
|
(291
|
)
|
|
(a)
|
Non-operating pension expense
|
||||
Total pre-tax amount
|
|
(54
|
)
|
|
(101
|
)
|
|
(162
|
)
|
|
(302
|
)
|
|
|
|
||||
Tax (expense) benefit
|
|
13
|
|
|
25
|
|
|
40
|
|
|
75
|
|
|
|
|
||||
Net of tax
|
|
(41
|
)
|
|
(76
|
)
|
|
(122
|
)
|
|
(227
|
)
|
|
|
|
||||
Reclassification of stranded tax effects
|
|
—
|
|
|
—
|
|
|
527
|
|
|
—
|
|
|
|
Retained Earnings
|
||||
Total, net of tax
|
|
(41
|
)
|
|
(76
|
)
|
|
405
|
|
|
(227
|
)
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change in cumulative foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Business acquisitions/divestitures
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(2
|
)
|
|
(b)
|
Cost of products sold
|
||||
Tax (expense) benefit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
||||
Net of tax
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(2
|
)
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net gains and losses on cash flow hedging derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
(6
|
)
|
|
(3
|
)
|
|
(7
|
)
|
|
(3
|
)
|
|
(c)
|
Cost of products sold
|
||||
Total pre-tax amount
|
|
(6
|
)
|
|
(3
|
)
|
|
(7
|
)
|
|
(3
|
)
|
|
|
|
||||
Tax (expense)/benefit
|
|
2
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
|
|
||||
Net of tax
|
|
(4
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
(2
|
)
|
|
|
|
||||
Reclassification of stranded tax effects
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
|
Retained Earnings
|
||||
Total, net of tax
|
|
(4
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
|
|
||||
Total reclassifications for the period
|
|
$
|
(45
|
)
|
|
$
|
(78
|
)
|
|
$
|
398
|
|
|
$
|
(231
|
)
|
|
|
|
(a)
|
These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details).
|
(b)
|
Amounts for the three months and nine months ended September 30, 2018 were reclassified to Discontinued operations, net of taxes.
|
(c)
|
This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 18 for additional details).
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions, except per share amounts
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Earnings (loss) from continuing operations attributable to International Paper Company common shareholders
|
$
|
344
|
|
|
$
|
562
|
|
|
$
|
1,060
|
|
|
$
|
1,351
|
|
Weighted average common shares outstanding
|
392.6
|
|
|
407.4
|
|
|
396.3
|
|
|
411.4
|
|
||||
Effect of dilutive securities
|
|
|
|
|
|
|
|
||||||||
Restricted performance share plan
|
2.8
|
|
|
4.0
|
|
|
3.3
|
|
|
4.9
|
|
||||
Weighted average common shares outstanding – assuming dilution
|
395.4
|
|
|
411.4
|
|
|
399.6
|
|
|
416.3
|
|
||||
Basic earnings (loss) per share from continuing operations
|
$
|
0.88
|
|
|
$
|
1.38
|
|
|
$
|
2.67
|
|
|
$
|
3.28
|
|
Diluted earnings (loss) per share from continuing operations
|
$
|
0.87
|
|
|
$
|
1.37
|
|
|
$
|
2.65
|
|
|
$
|
3.25
|
|
In millions
|
|
||
Cash and temporary investments
|
$
|
1
|
|
Accounts and notes receivable
|
23
|
|
|
Inventory
|
8
|
|
|
Plants, properties and equipment
|
28
|
|
|
Goodwill
|
48
|
|
|
Right of use assets
|
2
|
|
|
Total assets acquired
|
110
|
|
|
Accounts payable and accrued liabilities
|
20
|
|
|
Other current liabilities
|
1
|
|
|
Long-term debt
|
2
|
|
|
Postretirement and postemployment benefit obligation
|
3
|
|
|
Long-term lease obligations
|
2
|
|
|
Total liabilities assumed
|
28
|
|
|
Net assets acquired
|
$
|
82
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||
In millions
|
2018
|
|
2018
|
||||
Net Sales
|
$
|
—
|
|
|
$
|
—
|
|
Costs and Expenses
|
|
|
|
||||
Selling and administrative expenses
|
—
|
|
|
25
|
|
||
(Gain) loss on transfer of business
|
—
|
|
|
(488
|
)
|
||
Earnings (Loss) Before Income Taxes and Equity Earnings
|
—
|
|
|
463
|
|
||
Income tax provision (benefit)
|
—
|
|
|
118
|
|
||
Discontinued Operations, Net of Taxes
|
$
|
—
|
|
|
$
|
345
|
|
In millions
|
September 30, 2019
|
||
Cash and temporary investments
|
$
|
19
|
|
Accounts and notes receivable
|
16
|
|
|
Inventories
|
23
|
|
|
Other current assets
|
19
|
|
|
Plants, properties and equipment
|
195
|
|
|
Deferred charges and other assets
|
6
|
|
|
Total Assets Held for Sale
|
$
|
278
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
18
|
|
Other current liabilities
|
22
|
|
|
Deferred income taxes
|
47
|
|
|
Other liabilities
|
1
|
|
|
Net impairment reserve
|
160
|
|
|
Total Liabilities Held for Sale
|
$
|
248
|
|
In millions
|
September 30, 2019
|
|
December 31, 2018
|
||||
Accounts and notes receivable, net:
|
|
|
|
||||
Trade
|
$
|
3,055
|
|
|
$
|
3,249
|
|
Other
|
250
|
|
|
272
|
|
||
Total
|
$
|
3,305
|
|
|
$
|
3,521
|
|
In millions
|
September 30, 2019
|
|
December 31, 2018
|
||||
Raw materials
|
$
|
270
|
|
|
$
|
260
|
|
Finished pulp, paper and packaging
|
1,140
|
|
|
1,241
|
|
||
Operating supplies
|
637
|
|
|
641
|
|
||
Other
|
147
|
|
|
99
|
|
||
Total
|
$
|
2,194
|
|
|
$
|
2,241
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest expense
|
$
|
177
|
|
|
$
|
184
|
|
|
$
|
538
|
|
|
$
|
547
|
|
Interest income
|
54
|
|
|
51
|
|
|
160
|
|
|
146
|
|
||||
Capitalized interest costs
|
7
|
|
|
9
|
|
|
21
|
|
|
26
|
|
In millions
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||
Operating lease costs
|
|
$
|
39
|
|
|
$
|
115
|
|
Variable lease costs
|
|
16
|
|
|
53
|
|
||
Short-term lease costs
|
|
9
|
|
|
27
|
|
||
Finance lease cost
|
|
|
|
|
||||
Amortization of lease assets
|
|
3
|
|
|
8
|
|
||
Interest on lease liabilities
|
|
1
|
|
|
3
|
|
||
Total lease cost, net
|
|
$
|
68
|
|
|
$
|
206
|
|
In millions
|
|
Classification
|
|
September 30, 2019
|
||
Assets
|
|
|
|
|
||
Operating lease assets
|
|
Right-of-use assets
|
|
$
|
425
|
|
Finance lease assets
|
|
Plants, properties and equipment, net (a)
|
|
105
|
|
|
Total leased assets
|
|
|
|
$
|
530
|
|
Liabilities
|
|
|
|
|
||
Current
|
|
|
|
|
||
Operating
|
|
Other current liabilities
|
|
$
|
136
|
|
Finance
|
|
Notes payable and current maturities of long-term debt
|
|
13
|
|
|
Noncurrent
|
|
|
|
|
||
Operating
|
|
Long-term lease obligations
|
|
292
|
|
|
Finance
|
|
Long-term debt
|
|
91
|
|
|
Total lease liabilities
|
|
|
|
$
|
532
|
|
(a)
|
Finance leases are recorded net of accumulated amortization of $37 million.
|
In millions
|
|
September 30, 2019
|
|
Weighted average remaining lease term (years)
|
|
|
|
Operating leases
|
|
9.8 years
|
|
Finance leases
|
|
11.3 years
|
|
Weighted average discount rate
|
|
|
|
Operating leases
|
|
3.24
|
%
|
Finance leases
|
|
4.74
|
%
|
In millions
|
|
Nine Months Ended September 30, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
|
||
Operating cash flows related to operating leases
|
|
$
|
110
|
|
Operating cash flows related to financing leases
|
|
3
|
|
|
Financing cash flows related to finance leases
|
|
7
|
|
|
|
September 30, 2019
|
||||||||||
In millions
|
|
Operating Leases
|
|
Financing Leases
|
|
Total
|
||||||
2019 (remainder of year)
|
|
$
|
39
|
|
|
$
|
4
|
|
|
$
|
43
|
|
2020
|
|
138
|
|
|
17
|
|
|
155
|
|
|||
2021
|
|
97
|
|
|
15
|
|
|
112
|
|
|||
2022
|
|
64
|
|
|
13
|
|
|
77
|
|
|||
2023
|
|
35
|
|
|
11
|
|
|
46
|
|
|||
2024
|
|
18
|
|
|
10
|
|
|
28
|
|
|||
Thereafter
|
|
95
|
|
|
65
|
|
|
160
|
|
|||
Total lease payments
|
|
486
|
|
|
135
|
|
|
621
|
|
|||
Less: Interest (a)
|
|
58
|
|
|
31
|
|
|
89
|
|
|||
Present value of lease liabilities
|
|
$
|
428
|
|
|
$
|
104
|
|
|
$
|
532
|
|
(a)
|
Calculated using the interest rate for each lease.
|
In millions
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
||||||||||||
Lease obligations
|
|
$
|
160
|
|
|
$
|
125
|
|
|
$
|
77
|
|
|
$
|
49
|
|
|
$
|
28
|
|
|
$
|
118
|
|
In millions
|
September 30, 2019
|
|
December 31, 2018
|
||||
Current assets
|
$
|
1,765
|
|
|
$
|
1,757
|
|
Noncurrent assets
|
5,419
|
|
|
5,292
|
|
||
Current liabilities
|
1,067
|
|
|
1,148
|
|
||
Noncurrent liabilities
|
3,325
|
|
|
3,156
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net sales
|
$
|
1,581
|
|
|
$
|
1,530
|
|
|
$
|
4,640
|
|
|
$
|
4,515
|
|
Gross profit
|
266
|
|
|
256
|
|
|
820
|
|
|
714
|
|
||||
Income from continuing operations
|
83
|
|
|
135
|
|
|
283
|
|
|
278
|
|
||||
Net income
|
83
|
|
|
135
|
|
|
283
|
|
|
278
|
|
In millions
|
September 30, 2019
|
|
December 31, 2018
|
||||
Current assets
|
$
|
749
|
|
|
$
|
981
|
|
Noncurrent assets
|
2,392
|
|
|
1,710
|
|
||
Current liabilities
|
947
|
|
|
545
|
|
||
Noncurrent liabilities
|
1,509
|
|
|
1,470
|
|
||
Noncontrolling interests
|
22
|
|
|
11
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net sales
|
$
|
479
|
|
|
$
|
655
|
|
|
$
|
1,692
|
|
|
$
|
2,030
|
|
Gross profit
|
196
|
|
|
376
|
|
|
836
|
|
|
1,152
|
|
||||
Income from continuing operations
|
41
|
|
|
149
|
|
|
388
|
|
|
454
|
|
||||
Net income
|
40
|
|
|
143
|
|
|
375
|
|
|
438
|
|
In millions
|
Industrial
Packaging
|
|
Global Cellulose Fibers
|
|
Printing
Papers
|
|
Total
|
||||||||
Balance as of January 1, 2019
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
3,379
|
|
|
$
|
52
|
|
|
$
|
2,116
|
|
|
$
|
5,547
|
|
Accumulated impairment losses
|
(296
|
)
|
|
—
|
|
|
(1,877
|
)
|
|
(2,173
|
)
|
||||
|
3,083
|
|
|
52
|
|
|
239
|
|
|
3,374
|
|
||||
Currency translation and other (a)
|
(2
|
)
|
|
—
|
|
|
(14
|
)
|
|
(16
|
)
|
||||
Goodwill additions/reductions
|
54
|
|
(b)
|
—
|
|
|
(112
|
)
|
(c)
|
(58
|
)
|
||||
Accumulated impairment loss additions / reductions
|
—
|
|
|
—
|
|
|
112
|
|
(c)
|
112
|
|
||||
Balance as of September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
3,431
|
|
|
52
|
|
|
1,990
|
|
|
5,473
|
|
||||
Accumulated impairment losses
|
(296
|
)
|
|
—
|
|
|
(1,765
|
)
|
|
(2,061
|
)
|
||||
Total
|
$
|
3,135
|
|
|
$
|
52
|
|
|
$
|
225
|
|
|
$
|
3,412
|
|
(a)
|
Represents the effects of foreign currency translations.
|
(b)
|
Reflects the provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA.
|
(c)
|
Reflects the reclassification of India goodwill and accumulated impairment losses to held for sale.
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
In millions
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net Intangible Assets
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net Intangible Assets
|
||||||||||||
Customer relationships and lists
|
$
|
541
|
|
|
$
|
266
|
|
|
$
|
275
|
|
|
$
|
542
|
|
|
$
|
247
|
|
|
$
|
295
|
|
Non-compete agreements
|
26
|
|
|
26
|
|
|
—
|
|
|
67
|
|
|
67
|
|
|
—
|
|
||||||
Tradenames, patents and trademarks, and developed technology
|
173
|
|
|
101
|
|
|
72
|
|
|
174
|
|
|
90
|
|
|
84
|
|
||||||
Land and water rights
|
8
|
|
|
2
|
|
|
6
|
|
|
8
|
|
|
2
|
|
|
6
|
|
||||||
Software
|
26
|
|
|
25
|
|
|
1
|
|
|
26
|
|
|
25
|
|
|
1
|
|
||||||
Other
|
25
|
|
|
18
|
|
|
7
|
|
|
30
|
|
|
23
|
|
|
7
|
|
||||||
Total
|
$
|
799
|
|
|
$
|
438
|
|
|
$
|
361
|
|
|
$
|
847
|
|
|
$
|
454
|
|
|
$
|
393
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Amortization expense related to intangible assets
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
40
|
|
|
$
|
44
|
|
•
|
Operable Unit 5, Area 1: In March 2016, the Company and other PRPs received a special notice letter from the EPA (i) inviting participation in implementing a remedy for a portion of the site known as Operable Unit 5, Area 1, and (ii) demanding reimbursement of EPA past costs totaling $37 million, including $19 million in past costs previously demanded by the EPA. The Company responded to the special notice letter. In December 2016, the EPA issued a unilateral administrative order to the Company and other PRPs to perform the remedy. The Company responded to the unilateral administrative order, agreeing to comply with the order subject to its sufficient cause defenses.
|
•
|
Operable Unit 5, Area 2: In September 2017, the EPA issued a Record of Decision selecting the final remedy for a portion of the site known as Operable Unit 5, Area 2, but has not yet issued a special notice letter for implementing the remedy.
|
•
|
Operable Unit 5, Area 3: In April 2016, the EPA issued a separate unilateral administrative order to the Company and certain other PRPs for a time-critical removal action (TCRA) of PCB-contaminated banks and sediments from a portion of the site known as Operable Unit 5, Area 3. The Company responded to the unilateral administrative order and agreed along with two other parties to comply with the order subject to its sufficient cause defenses.The removal work has been completed.
|
•
|
Operable Unit 1: In October 2016, the Company and another PRP received a special notice letter from the EPA inviting participation in the remedial design component of the landfill remedy for the Allied Paper Mill, which is also known as Operable Unit 1. The Record of Decision establishing the final landfill remedy for the Allied Paper Mill was issued by the EPA in September 2016. The Company responded to the Allied Paper Mill special notice letter in December 2016. In February 2017, the EPA informed the Company that it would make other arrangements for the performance of the remedial design.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenue (a)
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
71
|
|
|
$
|
71
|
|
Expense (a)
|
32
|
|
|
32
|
|
|
96
|
|
|
96
|
|
||||
Cash receipts (b)
|
48
|
|
|
48
|
|
|
95
|
|
|
95
|
|
||||
Cash payments (c)
|
64
|
|
|
64
|
|
|
128
|
|
|
128
|
|
(a)
|
The revenue and expense are included in Interest expense, net in the accompanying statement of operations.
|
(b)
|
The cash receipts are interest received on the Financial assets of special purpose entities.
|
(c)
|
The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenue (a)
|
$
|
19
|
|
|
$
|
19
|
|
|
$
|
61
|
|
|
$
|
52
|
|
Expense (b)
|
19
|
|
|
18
|
|
|
60
|
|
|
48
|
|
||||
Cash receipts (c)
|
16
|
|
|
15
|
|
|
48
|
|
|
34
|
|
||||
Cash payments (d)
|
17
|
|
|
16
|
|
|
53
|
|
|
40
|
|
(a)
|
The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for three and nine months ended September 30, 2019 and 2018, respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities.
|
(b)
|
The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three and nine months ended September 30, 2019 and 2018, respectively, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities.
|
(c)
|
The cash receipts are interest received on the Financial assets of special purpose entities.
|
(d)
|
The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities.
|
In millions
|
September 30, 2019
|
|
December 31, 2018
|
||||
Derivatives in Cash Flow Hedging Relationships:
|
|
|
|
||||
Foreign exchange contracts
|
$
|
570
|
|
|
$
|
407
|
|
Derivatives in Fair Value Hedging Relationships:
|
|
|
|
||||
Interest rate contracts
|
700
|
|
|
700
|
|
||
Derivatives in Net Investment Hedging Relationships:
|
|
|
|
||||
Interest rate contracts
|
475
|
|
|
—
|
|
||
Derivatives Not Designated as Hedging Instruments:
|
|
|
|
||||
Electricity contract
|
19
|
|
|
8
|
|
||
Foreign exchange contracts
|
11
|
|
|
19
|
|
|
Gain (Loss)
Reclassified from
AOCI
(Effective Portion)
|
|
Location of Gain (Loss)
Reclassified from AOCI
(Effective Portion)
|
||||||||||||||
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
||||||||
Derivatives in Cash Flow Hedging Relationships:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
|
$
|
(5
|
)
|
|
$
|
(2
|
)
|
|
Cost of products sold
|
Total
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
|
$
|
(5
|
)
|
|
$
|
(2
|
)
|
|
|
|
Gain (Loss) Recognized
|
|
Location of Gain (Loss)
In
Statement
of Operations
|
||||||||||||||
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
||||||||
Derivatives in Fair Value Hedging Relationships:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
Interest expense, net
|
Debt
|
(11
|
)
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
Interest expense, net
|
||||
Total
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||
Derivatives Not Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Electricity contract
|
$
|
(5
|
)
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
Cost of products sold
|
Foreign exchange contracts
|
(1
|
)
|
|
3
|
|
|
(2
|
)
|
|
4
|
|
|
Cost of products sold
|
||||
Total
|
$
|
(6
|
)
|
|
$
|
5
|
|
|
$
|
(2
|
)
|
|
$
|
5
|
|
|
|
|
Assets
|
|
Liabilities
|
|
||||||||||||
In millions
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2019
|
|
December 31, 2018
|
|
||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts – cash flow
|
$
|
5
|
|
|
$
|
3
|
|
|
$
|
13
|
|
|
$
|
10
|
|
|
Interest rate contracts - net investment
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Interest rate contracts - fair value
|
59
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
||||
Total derivatives designated as hedging instruments
|
84
|
|
|
19
|
|
|
13
|
|
|
10
|
|
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||||||
Electricity contract
|
—
|
|
|
—
|
|
|
5
|
|
|
4
|
|
|
||||
Foreign exchange contracts
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
||||
Total derivatives not designated as hedging instruments
|
—
|
|
|
—
|
|
|
7
|
|
|
5
|
|
|
||||
Total derivatives
|
$
|
84
|
|
(a)
|
$
|
19
|
|
(b)
|
$
|
20
|
|
(c)
|
$
|
15
|
|
(d)
|
(a)
|
Includes $8 million recorded in Other current assets and $76 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.
|
(b)
|
Includes $2 million recorded in Other current assets and $17 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.
|
(c)
|
Includes $15 million recorded in Other accrued liabilities and $5 million recorded in Other liabilities in the accompanying consolidated balance sheet.
|
(d)
|
Included in Other current liabilities in the accompanying consolidated balance sheet.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service cost
|
$
|
17
|
|
|
$
|
40
|
|
|
$
|
51
|
|
|
$
|
119
|
|
Interest cost
|
110
|
|
|
118
|
|
|
330
|
|
|
356
|
|
||||
Expected return on plan assets
|
(158
|
)
|
|
(200
|
)
|
|
(473
|
)
|
|
(600
|
)
|
||||
Actuarial loss
|
50
|
|
|
95
|
|
|
150
|
|
|
285
|
|
||||
Amortization of prior service cost
|
4
|
|
|
4
|
|
|
12
|
|
|
12
|
|
||||
Net periodic pension expense
|
$
|
23
|
|
|
$
|
57
|
|
|
$
|
70
|
|
|
$
|
172
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Total stock-based compensation expense (selling and administrative)
|
$
|
31
|
|
|
$
|
35
|
|
|
$
|
94
|
|
|
$
|
102
|
|
Income tax benefits related to stock-based compensation
|
(2
|
)
|
|
(6
|
)
|
|
31
|
|
|
16
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Industrial Packaging
|
$
|
3,820
|
|
|
$
|
4,034
|
|
|
$
|
11,516
|
|
|
$
|
11,883
|
|
Global Cellulose Fibers
|
624
|
|
|
714
|
|
|
1,974
|
|
|
2,083
|
|
||||
Printing Papers
|
1,071
|
|
|
1,102
|
|
|
3,224
|
|
|
3,215
|
|
||||
Corporate and Intersegment Sales
|
53
|
|
|
51
|
|
|
164
|
|
|
174
|
|
||||
Net Sales
|
$
|
5,568
|
|
|
$
|
5,901
|
|
|
$
|
16,878
|
|
|
$
|
17,355
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Industrial Packaging
|
$
|
510
|
|
|
$
|
472
|
|
|
$
|
1,421
|
|
|
$
|
1,446
|
|
Global Cellulose Fibers
|
(3
|
)
|
|
83
|
|
|
27
|
|
|
160
|
|
||||
Printing Papers
|
148
|
|
|
183
|
|
|
258
|
|
|
341
|
|
||||
Business Segment Operating Profits
|
$
|
655
|
|
|
$
|
738
|
|
|
$
|
1,706
|
|
|
$
|
1,947
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations before income taxes and equity earnings
|
$
|
452
|
|
|
$
|
553
|
|
|
$
|
1,204
|
|
|
$
|
1,399
|
|
Interest expense, net
|
123
|
|
|
133
|
|
|
378
|
|
|
401
|
|
||||
Noncontrolling interests/equity earnings adjustment
|
2
|
|
|
(2
|
)
|
|
4
|
|
|
(7
|
)
|
||||
Corporate expenses, net
|
21
|
|
|
20
|
|
|
45
|
|
|
59
|
|
||||
Corporate special items, net
|
48
|
|
|
9
|
|
|
48
|
|
|
30
|
|
||||
Non-operating pension expense
|
9
|
|
|
25
|
|
|
27
|
|
|
65
|
|
||||
Business Segment Operating Profits
|
$
|
655
|
|
|
$
|
738
|
|
|
$
|
1,706
|
|
|
$
|
1,947
|
|
ITEM 2.
|
|
Three Months Ended
September 30, |
|
Three Months Ended June 30,
|
||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
||||||
Net Earnings (Loss) Attributable to International Paper Company
|
$
|
344
|
|
|
$
|
562
|
|
|
$
|
292
|
|
Less - Discontinued operations (gain) loss
|
—
|
|
|
—
|
|
|
—
|
|
|||
Earnings (Loss) from Continuing Operations
|
344
|
|
|
562
|
|
|
292
|
|
|||
Add Back - Non-operating pension expense (income)
|
9
|
|
|
25
|
|
|
8
|
|
|||
Add Back - Net special items expense (income)
|
94
|
|
|
142
|
|
|
158
|
|
|||
Income tax effect - Non-operating pension and special items expense
|
(16
|
)
|
|
(88
|
)
|
|
2
|
|
|||
Adjusted Operating Earnings (Loss) Attributable to International Paper Company
|
$
|
431
|
|
|
$
|
641
|
|
|
$
|
460
|
|
|
Three Months Ended
September 30, |
|
Three Months Ended June 30,
|
||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
||||||
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
|
$
|
0.87
|
|
|
$
|
1.37
|
|
|
$
|
0.73
|
|
Less - Discontinued operations (gain) loss per share
|
—
|
|
|
—
|
|
|
—
|
|
|||
Diluted Earnings (Loss) Per Share from Continuing Operations
|
0.87
|
|
|
1.37
|
|
|
0.73
|
|
|||
Add Back - Non-operating pension expense (income) per share
|
0.02
|
|
|
0.06
|
|
|
0.02
|
|
|||
Add Back - Net special items expense (income) per share
|
0.24
|
|
|
0.34
|
|
|
0.40
|
|
|||
Income tax effect per share - Non-operating pension and special items expense
|
(0.04
|
)
|
|
(0.21
|
)
|
|
—
|
|
|||
Adjusted Operating Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
|
$
|
1.09
|
|
|
$
|
1.56
|
|
|
$
|
1.15
|
|
|
Nine Months Ended
September 30, |
||||||
In millions
|
2019
|
|
2018
|
||||
Cash provided by operations
|
$
|
2,682
|
|
|
$
|
2,405
|
|
Adjustments:
|
|
|
|
||||
Cash invested in capital projects
|
(913
|
)
|
|
(1,286
|
)
|
||
Free Cash Flow
|
$
|
1,769
|
|
|
$
|
1,119
|
|
|
Three Months Ended
|
||||||||||
|
September 30,
|
|
June 30,
|
||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
||||||
Net Earnings (Loss) From Continuing Operations Attributable to International Paper Company
|
$
|
344
|
|
|
$
|
562
|
|
|
$
|
292
|
|
Add back (deduct):
|
|
|
|
|
|
||||||
Income tax provision (benefit)
|
137
|
|
|
83
|
|
|
128
|
|
|||
Equity (earnings) loss, net of taxes
|
(27
|
)
|
|
(92
|
)
|
|
(80
|
)
|
|||
Noncontrolling interests, net of taxes
|
(2
|
)
|
|
—
|
|
|
(6
|
)
|
|||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings
|
452
|
|
|
553
|
|
|
334
|
|
|||
Interest expense, net
|
123
|
|
|
133
|
|
|
122
|
|
|||
Noncontrolling interests / equity earnings included in operations
|
2
|
|
|
(2
|
)
|
|
5
|
|
|||
Corporate expenses, net
|
21
|
|
|
20
|
|
|
3
|
|
|||
Corporate special items (income) expense
|
48
|
|
|
9
|
|
|
—
|
|
|||
Non-operating pension expense
|
9
|
|
|
25
|
|
|
8
|
|
|||
Adjusted Operating Profit
|
$
|
655
|
|
|
$
|
738
|
|
|
$
|
472
|
|
Business Segment Operating Profit:
|
|
|
|
|
|
||||||
Industrial Packaging
|
$
|
510
|
|
|
$
|
472
|
|
|
$
|
507
|
|
Global Cellulose Fibers
|
(3
|
)
|
|
83
|
|
|
(2
|
)
|
|||
Printing Papers
|
148
|
|
|
183
|
|
|
(33
|
)
|
|||
Total Business Segment Operating Profit
|
$
|
655
|
|
|
$
|
738
|
|
|
$
|
472
|
|
in thousands of tons
|
Three Months Ended September 30, 2019
|
Three Months Ended September 30, 2018
|
Three Months Ended June 30, 2019
|
|||
Economic-related downtime
|
287
|
|
—
|
|
339
|
|
Maintenance downtime
|
125
|
|
197
|
|
303
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
In thousands of short tons (except as noted)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Industrial Packaging
|
|
|
|
|
|
|
|
||||
Corrugated Packaging (b)
|
2,651
|
|
|
2,666
|
|
|
7,810
|
|
|
7,969
|
|
Containerboard
|
736
|
|
|
853
|
|
|
2,140
|
|
|
2,436
|
|
Recycling
|
556
|
|
|
566
|
|
|
1,790
|
|
|
1,700
|
|
Saturated Kraft
|
47
|
|
|
51
|
|
|
140
|
|
|
149
|
|
Gypsum/Release Kraft
|
49
|
|
|
56
|
|
|
149
|
|
|
176
|
|
Bleached Kraft
|
5
|
|
|
8
|
|
|
17
|
|
|
24
|
|
EMEA Packaging (b)
|
375
|
|
|
329
|
|
|
1,124
|
|
|
1,113
|
|
Brazilian Packaging (b)
|
96
|
|
|
92
|
|
|
272
|
|
|
263
|
|
European Coated Paperboard
|
106
|
|
|
98
|
|
|
312
|
|
|
284
|
|
Industrial Packaging
|
4,621
|
|
|
4,719
|
|
|
13,754
|
|
|
14,114
|
|
Global Cellulose Fibers (in thousands of metric tons) (c)
|
878
|
|
|
886
|
|
|
2,606
|
|
|
2,665
|
|
Printing Papers
|
|
|
|
|
|
|
|
||||
U.S. Uncoated Papers
|
451
|
|
|
461
|
|
|
1,340
|
|
|
1,415
|
|
European and Russian Uncoated Papers
|
352
|
|
|
363
|
|
|
1,073
|
|
|
1,066
|
|
Brazilian Uncoated Papers
|
301
|
|
|
293
|
|
|
828
|
|
|
818
|
|
Indian Uncoated Papers
|
49
|
|
|
62
|
|
|
183
|
|
|
195
|
|
Printing Papers
|
1,153
|
|
|
1,179
|
|
|
3,424
|
|
|
3,494
|
|
(a)
|
Sales volumes include third party and inter-segment sales and exclude sales of equity investees.
|
(b)
|
Volumes for corrugated box sales reflect consumed tons sold (CTS). Board sales for these businesses reflect invoiced tons.
|
(c)
|
Includes North American, European and Brazilian volumes and internal sales to mills.
|
|
|
Three Months Ended
|
||||||||||||||||||||||
|
|
September 30,
|
|
June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
||||||||||||||||||
In millions
|
|
Before Tax
|
|
After Tax
|
|
Before Tax
|
|
After Tax
|
|
Before Tax
|
|
After Tax
|
||||||||||||
Business Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
India impairment
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
145
|
|
|
$
|
143
|
|
Brazil Packaging impairment
|
|
—
|
|
|
—
|
|
|
122
|
|
|
81
|
|
|
—
|
|
|
—
|
|
||||||
Italian antitrust fine
|
|
32
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Overhead cost reduction initiative
|
|
10
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multi-employer pension plan exit liability
|
|
(7
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gain on sale of previously closed Oregon mill site
|
|
(9
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Abandoned property removal
|
|
13
|
|
|
10
|
|
|
6
|
|
|
4
|
|
|
11
|
|
|
8
|
|
||||||
Riverdale mill conversion
|
|
1
|
|
|
1
|
|
|
5
|
|
|
4
|
|
|
1
|
|
|
1
|
|
||||||
Business Segments Total
|
|
46
|
|
|
44
|
|
|
133
|
|
|
89
|
|
|
157
|
|
|
152
|
|
||||||
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Litigation reserves
|
|
22
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Environmental remediation reserve adjustment
|
|
15
|
|
|
11
|
|
|
9
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||||
Overhead cost reduction initiative
|
|
11
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense related to settlement of foreign tax audits
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Corporate Total
|
|
48
|
|
|
36
|
|
|
9
|
|
|
7
|
|
|
1
|
|
|
1
|
|
||||||
Total special items
|
|
94
|
|
|
80
|
|
|
142
|
|
|
96
|
|
|
158
|
|
|
153
|
|
||||||
Non-operating pension expense
|
|
9
|
|
|
7
|
|
|
25
|
|
|
19
|
|
|
8
|
|
|
6
|
|
||||||
Total special items and non-operating pension expense
|
|
$
|
103
|
|
|
$
|
87
|
|
|
$
|
167
|
|
|
$
|
115
|
|
|
$
|
166
|
|
|
$
|
159
|
|
|
|
Three Months Ended
|
||||||||||
|
|
September 30,
|
|
June 30,
|
||||||||
In millions
|
|
2019
|
|
2018
|
|
2019
|
||||||
Luxembourg tax law rate change
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
Tax benefits from Tax Cuts and Jobs Act
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|||
State income tax legislative changes
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
Settlement of foreign tax audits
|
|
—
|
|
|
—
|
|
|
3
|
|
|||
Total
|
|
$
|
—
|
|
|
$
|
(36
|
)
|
|
$
|
9
|
|
|
|
Nine Months Ended
|
||||||||||||||
|
|
September 30,
|
||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||
In millions
|
|
Before Tax
|
|
After Tax
|
|
Before Tax
|
|
After Tax
|
||||||||
Business Segments
|
|
|
|
|
|
|
|
|
||||||||
India impairment
|
|
$
|
151
|
|
|
$
|
149
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Brazil Packaging impairment
|
|
—
|
|
|
—
|
|
|
122
|
|
|
81
|
|
||||
Italian antitrust fine
|
|
32
|
|
|
32
|
|
|
—
|
|
|
—
|
|
||||
Overhead cost reduction initiative
|
|
10
|
|
|
8
|
|
|
—
|
|
|
—
|
|
||||
Multi-employer pension plan exit liability
|
|
9
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Gain on sale of previously closed Oregon mill site
|
|
(9
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
||||
Gain on sale of EMEA Packaging box plant
|
|
(7
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
||||
EMEA Packaging optimization
|
|
—
|
|
|
—
|
|
|
48
|
|
|
35
|
|
||||
Abandoned property removal
|
|
35
|
|
|
26
|
|
|
24
|
|
|
18
|
|
||||
Riverdale mill conversion
|
|
3
|
|
|
3
|
|
|
5
|
|
|
4
|
|
||||
Business Segments Total
|
|
224
|
|
|
211
|
|
|
199
|
|
|
138
|
|
||||
Corporate
|
|
|
|
|
|
|
|
|
||||||||
Litigation reserves
|
|
22
|
|
|
17
|
|
|
—
|
|
|
—
|
|
||||
Environmental remediation reserve adjustment
|
|
15
|
|
|
11
|
|
|
9
|
|
|
7
|
|
||||
Overhead cost reduction initiative
|
|
11
|
|
|
8
|
|
|
—
|
|
|
—
|
|
||||
Smurfit-Kappa acquisition proposal costs
|
|
—
|
|
|
—
|
|
|
12
|
|
|
9
|
|
||||
Interest expense related to settlement of foreign tax audits
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Legal settlement
|
|
—
|
|
|
—
|
|
|
9
|
|
|
7
|
|
||||
Corporate Total
|
|
49
|
|
|
37
|
|
|
30
|
|
|
23
|
|
||||
Total special items
|
|
273
|
|
|
248
|
|
|
229
|
|
|
161
|
|
||||
Non-operating pension expense
|
|
27
|
|
|
21
|
|
|
65
|
|
|
49
|
|
||||
Total special items and non-operating pension expense
|
|
$
|
300
|
|
|
$
|
269
|
|
|
$
|
294
|
|
|
$
|
210
|
|
|
|
Nine Months Ended
|
||||||
|
|
September 30,
|
||||||
In millions
|
|
2019
|
|
2018
|
||||
Luxembourg tax law rate change
|
|
$
|
9
|
|
|
$
|
—
|
|
Tax benefits from Tax Cuts and Jobs Act
|
|
—
|
|
|
(36
|
)
|
||
State income tax legislative changes
|
|
(3
|
)
|
|
9
|
|
||
Settlement of foreign tax audits
|
|
3
|
|
|
—
|
|
||
Total
|
|
$
|
9
|
|
|
$
|
(27
|
)
|
Total Industrial Packaging
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales
|
$
|
3,820
|
|
|
$
|
3,864
|
|
|
$
|
11,516
|
|
|
$
|
4,034
|
|
|
$
|
4,022
|
|
|
$
|
11,883
|
|
Operating Profit
|
$
|
510
|
|
|
$
|
507
|
|
|
$
|
1,421
|
|
|
$
|
472
|
|
|
$
|
537
|
|
|
$
|
1,446
|
|
Italian antitrust fine
|
32
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gain on sale of previously closed Oregon mill site
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multi-employer pension plan exit liability
|
(7
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gain on sale of EMEA Packaging box plant
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Brazil Packaging impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
122
|
|
||||||
EMEA Packaging optimization
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
48
|
|
||||||
Abandoned property removal
|
9
|
|
|
8
|
|
|
25
|
|
|
4
|
|
|
6
|
|
|
15
|
|
||||||
Operating Profit Before Special Items
|
$
|
535
|
|
|
$
|
515
|
|
|
$
|
1,471
|
|
|
$
|
598
|
|
|
$
|
569
|
|
|
$
|
1,631
|
|
North American Industrial Packaging
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales (a)
|
$
|
3,368
|
|
|
$
|
3,414
|
|
|
$
|
10,158
|
|
|
$
|
3,653
|
|
|
$
|
3,582
|
|
|
$
|
10,604
|
|
Operating Profit
|
$
|
532
|
|
|
$
|
507
|
|
|
$
|
1,434
|
|
|
$
|
618
|
|
|
$
|
574
|
|
|
$
|
1,651
|
|
Gain on sale of previously closed Oregon mill site
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multi-employer pension plan exit liability
|
(7
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Abandoned property removal
|
9
|
|
|
8
|
|
|
25
|
|
|
4
|
|
|
6
|
|
|
15
|
|
||||||
Operating Profit Before Special Items
|
$
|
525
|
|
|
$
|
515
|
|
|
$
|
1,459
|
|
|
$
|
622
|
|
|
$
|
580
|
|
|
$
|
1,666
|
|
(a)
|
Includes intra-segment sales of $25 million and $74 million for the three months ended September 30, 2019 and 2018, respectively; $31 million and $46 million for the three months ended June 30, 2019 and 2018, respectively; and $87 million and $178 million for the nine months ended September 30, 2019 and 2018, respectively.
|
EMEA Industrial Packaging
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales
|
$
|
324
|
|
|
$
|
331
|
|
|
$
|
994
|
|
|
$
|
311
|
|
|
$
|
344
|
|
|
$
|
1,017
|
|
Operating Profit
|
$
|
(33
|
)
|
|
$
|
(7
|
)
|
|
$
|
(48
|
)
|
|
$
|
(37
|
)
|
|
$
|
(43
|
)
|
|
$
|
(114
|
)
|
Italian antitrust fine
|
32
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gain on sale of EMEA Packaging box plant
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
EMEA Packaging optimization
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
48
|
|
||||||
Operating Profit Before Special Items
|
$
|
(1
|
)
|
|
$
|
(7
|
)
|
|
$
|
(23
|
)
|
|
$
|
(37
|
)
|
|
$
|
(17
|
)
|
|
$
|
(66
|
)
|
Brazilian Industrial Packaging
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales
|
$
|
61
|
|
|
$
|
58
|
|
|
$
|
176
|
|
|
$
|
57
|
|
|
$
|
56
|
|
|
$
|
175
|
|
Operating Profit
|
$
|
(6
|
)
|
|
$
|
(1
|
)
|
|
$
|
(12
|
)
|
|
$
|
(127
|
)
|
|
$
|
(11
|
)
|
|
$
|
(146
|
)
|
Brazil Packaging impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
122
|
|
||||||
Operating Profit Before Special Items
|
$
|
(6
|
)
|
|
$
|
(1
|
)
|
|
$
|
(12
|
)
|
|
$
|
(5
|
)
|
|
$
|
(11
|
)
|
|
$
|
(24
|
)
|
European Coated Paperboard
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales
|
$
|
92
|
|
|
$
|
92
|
|
|
$
|
275
|
|
|
$
|
87
|
|
|
$
|
86
|
|
|
$
|
265
|
|
Operating Profit
|
$
|
17
|
|
|
$
|
8
|
|
|
$
|
47
|
|
|
$
|
18
|
|
|
$
|
17
|
|
|
$
|
55
|
|
Total Global Cellulose Fibers
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales
|
$
|
624
|
|
|
$
|
661
|
|
|
$
|
1,974
|
|
|
$
|
714
|
|
|
$
|
692
|
|
|
$
|
2,083
|
|
Operating Profit
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
|
$
|
27
|
|
|
$
|
83
|
|
|
$
|
66
|
|
|
$
|
160
|
|
Overhead cost reduction initiative
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Abandoned property removal
|
3
|
|
|
2
|
|
|
8
|
|
|
2
|
|
|
3
|
|
|
9
|
|
||||||
Operating Profit Before Special Items
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
85
|
|
|
$
|
69
|
|
|
$
|
169
|
|
Total Printing Papers
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales
|
$
|
1,071
|
|
|
$
|
1,088
|
|
|
$
|
3,224
|
|
|
$
|
1,102
|
|
|
$
|
1,060
|
|
|
$
|
3,215
|
|
Operating Profit
|
$
|
148
|
|
|
$
|
(33
|
)
|
|
$
|
258
|
|
|
$
|
183
|
|
|
$
|
94
|
|
|
$
|
341
|
|
India impairment
|
6
|
|
|
145
|
|
|
151
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Abandoned property removal
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Overhead cost reduction initiative
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Riverdale mill conversion
|
1
|
|
|
1
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||
Operating Profit Before Special Items
|
$
|
162
|
|
|
$
|
114
|
|
|
$
|
420
|
|
|
$
|
188
|
|
|
$
|
94
|
|
|
$
|
346
|
|
North American Papers
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales
|
$
|
492
|
|
|
$
|
486
|
|
|
$
|
1,474
|
|
|
$
|
492
|
|
|
$
|
493
|
|
|
$
|
1,443
|
|
Operating Profit
|
$
|
69
|
|
|
$
|
39
|
|
|
$
|
164
|
|
|
$
|
59
|
|
|
$
|
25
|
|
|
$
|
85
|
|
Abandoned property removal
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Overhead cost reduction initiative
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Riverdale mill conversion
|
1
|
|
|
1
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||
Operating Profit Before Special Items
|
$
|
76
|
|
|
$
|
41
|
|
|
$
|
174
|
|
|
$
|
64
|
|
|
$
|
25
|
|
|
$
|
90
|
|
European Papers
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales
|
$
|
299
|
|
|
$
|
321
|
|
|
$
|
929
|
|
|
$
|
311
|
|
|
$
|
302
|
|
|
$
|
932
|
|
Operating Profit
|
$
|
40
|
|
|
$
|
29
|
|
|
$
|
116
|
|
|
$
|
46
|
|
|
$
|
15
|
|
|
$
|
82
|
|
Overhead cost reduction initiative
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Operating Profit Before Special Items
|
$
|
41
|
|
|
$
|
29
|
|
|
$
|
117
|
|
|
$
|
46
|
|
|
$
|
15
|
|
|
$
|
82
|
|
Brazilian Papers
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales (a)
|
$
|
247
|
|
|
$
|
240
|
|
|
$
|
702
|
|
|
$
|
255
|
|
|
$
|
222
|
|
|
$
|
706
|
|
Operating Profit
|
$
|
44
|
|
|
$
|
37
|
|
|
$
|
114
|
|
|
$
|
75
|
|
|
$
|
49
|
|
|
$
|
164
|
|
(a)
|
Includes intra-segment sales of $5 million and $3 million for the three months ended September 30, 2019 and 2018, respectively; $12 million and $8 million for the three months ended June 30, 2019 and 2018, respectively; and $25 million and $16 million for the nine months ended September 30, 2019 and 2018, respectively.
|
Indian Papers
|
2019
|
|
2018
|
||||||||||||||||||||
In millions
|
3nd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
|
3rd Quarter
|
|
2nd Quarter
|
|
Nine Months
|
||||||||||||
Sales
|
$
|
38
|
|
|
$
|
53
|
|
|
$
|
144
|
|
|
$
|
47
|
|
|
$
|
51
|
|
|
$
|
150
|
|
Operating Profit
|
$
|
(5
|
)
|
|
$
|
(138
|
)
|
|
$
|
(136
|
)
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
10
|
|
India Impairment
|
6
|
|
|
145
|
|
|
151
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Operating Profit Before Special Items
|
$
|
1
|
|
|
$
|
7
|
|
|
$
|
15
|
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
10
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
In millions
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Early debt reductions (a)
|
$
|
77
|
|
|
$
|
75
|
|
|
$
|
245
|
|
|
$
|
79
|
|
Pre-tax early debt extinguishment (gain) loss, net
|
2
|
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
(a)
|
Reductions related to notes with interest rates ranging from 3.00% to 4.40% with original maturities from 2027 to 2047 and from 3.00% to 7.00% with original maturities from 2022 to 2032 for the three months ended September 30, 2019 and 2018, respectively, and from 3.00% to 9.50% with original maturities from 2024 to 2048 and from 3.00% to 7.00% with original maturities from 2022 to 2032 for the nine months ended September 30, 2019 and 2018, respectively.
|
ITEM 3.
|
ITEM 4.
|
ITEM 1.
|
ITEM 1A.
|
Period
|
Total Number of Shares Purchased (a)
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in billions)
|
||||
July 1, 2019 - July 31, 2019
|
1,329,575
|
|
$43.04
|
1,329,064
|
|
$1.76
|
||
August 1, 2019 - August 31, 2019
|
436,700
|
|
38.93
|
|
436,700
|
|
1.75
|
|
September 1, 2019 - September 30, 2019
|
917
|
|
40.57
|
|
—
|
|
1.75
|
|
Total
|
1,767,192
|
|
|
|
|
10.1
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase.
|
|
|
|
101.PRE
|
|
XBRL Extension Presentation Linkbase.
|
|
INTERNATIONAL PAPER COMPANY
(Registrant)
|
|
|
|
|
November 1, 2019
|
By
|
/s/ Tim S. Nicholls
|
|
|
Tim S. Nicholls
|
|
|
Senior Vice President and Chief
Financial Officer
|
|
|
|
November 1, 2019
|
By
|
/s/ Vincent P. Bonnot
|
|
|
Vincent P. Bonnot
|
|
|
Vice President – Finance and Controller
|
1.
|
By replacing "(i)" and "(ii)" in the last sentence of paragraph (ii) of Section 6. (B) with "(a)" and "(b)", respectively;
|
2.
|
By replacing "(i)" and "(ii)" in the last sentence of paragraph (iii) of Section 6. (B) with "(a)" and "(b)", respectively; and
|
3.
|
By adding a new paragraph (iv) to Section 6. (B) of the Plan, as follows:
|
1.
|
I have reviewed this quarterly report on Form 10-Q of International Paper Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
November 1, 2019
|
|
/s/ Mark S. Sutton
|
Mark S. Sutton
|
Chairman of the Board and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of International Paper Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
November 1, 2019
|
|
/s/ Tim S. Nicholls
|
Tim S. Nicholls
|
Senior Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Mark S. Sutton
|
Mark S. Sutton
|
Chairman of the Board and Chief Executive Officer
|
November 1, 2019
|
|
|
/s/ Tim S. Nicholls
|
Tim S. Nicholls
|
Senior Vice President and Chief Financial Officer
|
November 1, 2019
|