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BUSINESS SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company announced on August 21, 2025 that it had reached a definitive agreement with AIP to sell its Global Cellulose Fibers business. As a result of the announcement, the Global Cellulose Fibers business is no longer a reportable segment and all current and historical operating results of the Global Cellulose Fibers business are presented as Discontinued Operations, net of tax, in the condensed consolidated statement of operations. All current and historical assets and liabilities of the Global Cellulose Fibers business are classified as Assets held for sale and Long-Term Assets Held For Sale and Liabilities held for sale and Long-Term Liabilities Held For Sale in the accompanying condensed balance sheets. See Note 9 - Divestiture for further details regarding the Global Cellulose Fibers business and discontinued operations. As a result of the acquisition of DS Smith, the Chief Operating Decision Maker (CODM) began reviewing and managing the Company’s financial results and operations under a revised structure that reflects the scope of the Company’s continuing operations: Packaging Solutions North America (PS NA) and Packaging Solutions EMEA (PS EMEA). The PS EMEA segment includes the Company's legacy EMEA Industrial Packaging business and the EMEA DS Smith business. As such, amounts related to the Company's legacy EMEA Industrial Packaging business have been recast out of the Industrial Packaging segment into the new PS EMEA segment for all prior periods. The North America DS Smith business has been included in the PS NA segment. Amounts related to the Company's legacy North America Industrial Packaging business have been reported in the PS NA segment for all prior periods. PS NA and PS EMEA are primarily focused on producing fiber-based packaging. We produce linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft of which a majority of our production is converted into corrugated packaging and other packaging. The revenue for our PS NA and PS EMEA segments are derived from selling these products to our customers. The CODM assesses performance for these segments and decides how to allocate resources based on business segment operating profit. Business segment operating profits (losses) are also used by International Paper's CODM to measure the earnings performance of its businesses and to focus on on-going operations. INFORMATION BY BUSINESS SEGMENT The following tables illustrate reportable segment revenue, significant segment expenses, and measures of a segment’s profit or loss for the three months and nine months ended September 30, 2025 and 2024. The table also reconciles these amounts to Earnings (loss) before income taxes and equity earnings (loss).
|  | Three Months Ended September 30, 2025
In millions |  | Packaging Solutions North America |  | Packaging Solutions EMEA |  | Total
Net Sales |  | $ | 3,898 |  |  | $ | 2,310 |  |  | 6,208 |
Corporate and Intrasegment Sales |  |  |  |  |  | 14 |
Total Net Sales |  |  |  |  |  | 6,222 |
Less: |  |  |  |  |  |
Cost of products sold |  | 2,582 |  |  | 1,721 |  |  |
Selling and administrative expenses |  | 335 |  |  | 134 |  |  |
Depreciation and amortization |  | 831 |  |  | 267 |  |  |
Distribution expenses |  | 287 |  |  | 235 |  |  |
Other segment items (a) |  | 29 |  |  | 11 |  |  |
Business Segment Operating Profit (Loss) |  | (166) |  |  | (58) |  |  | (224) |
Interest Expense, net |  |  |  |  |  | 85 |
Adjustment for less than wholly owned subsidiaries (b) |  |  |  |  |  | (1) |
Corporate expenses, net |  |  |  |  |  | 17 |
Net special items (i) |  |  |  |  |  | 354 |
Non-operating pension (income) expense |  |  |  |  |  | (4) |
Earnings (loss) from continuing operations before income taxes and equity earnings (loss) | $ | (675) |
(i)Includes a charge of $38 million for transaction and other costs related to the DS Smith acquisition, a charge of $135 million for costs related to the closure of our Savannah containerboard mill, a charge of $95 million for costs related to the closure of our Riceboro containerboard mill, a charge of $31 million for the impairment of assets and a net charge of $55 million for other items.
|  | Nine Months Ended September 30, 2025
In millions |  | Packaging Solutions North America |  | Packaging Solutions EMEA |  | Total
Net Sales |  | $ | 11,460 |  |  | $ | 6,151 |  |  | $ | 17,611 |
Corporate and Intrasegment Sales |  |  |  |  |  | 17 |
Total Net Sales |  |  |  |  |  | 17,628 |
Less: |  |  |  |  |  |
Cost of products sold |  | 7,846 |  |  | 4,567 |  |  |
Selling and administrative expenses |  | 957 |  |  | 381 |  |  |
Depreciation and amortization |  | 1,480 |  |  | 569 |  |  |
Distribution expenses |  | 834 |  |  | 621 |  |  |
Other segment items (a) |  | 90 |  |  | 26 |  |  |
Business Segment Operating Profit (Loss) |  | 253 |  |  | (13) |  |  | 240 |
Interest Expense, net |  |  |  |  |  | 277 |
Adjustment for less than wholly owned subsidiaries (b) |  |  |  |  |  | (2) |
Corporate expenses, net |  |  |  |  |  | 74 |
Net special items (i) |  |  |  |  |  | 611 |
Non-operating pension (income) expense |  |  |  |  |  | (6) |
Earnings (loss) from continuing operations before income taxes and equity earnings (loss) |  | $ | (714) |
(i)Includes a charge of $314 million for transaction and other costs related to the DS Smith acquisition, a charge of $85 million for severance and other costs related to the closure of our Red River containerboard mill, a net gain of $51 million related to the sale of EMEA plants, a net gain of $67 million related to the sale of fixed assets primarily associated with our permanently closed Orange, Texas containerboard mill, a charge of $135 million for costs related to the closure of our Savannah containerboard mill, a charge of $95 million for costs related to the closure of our Riceboro containerboard mill, a charge of $31 million for the impairment of assets and a net charge of $69 million for other items.
|  | Three Months Ended September 30, 2024
In millions |  | Packaging Solutions North America |  | Packaging Solutions EMEA |  | Total
Net Sales |  | $ | 3,640 |  |  | $ | 322 |  |  | $ | 3,962 |
Corporate and Intrasegment Sales |  |  |  |  |  | 17 |
Total Net Sales |  |  |  |  |  | 3,979 |
Less: |  |  |  |  |  |
Cost of products sold |  | 2,605 |  |  | 246 |  |  |
Selling and administrative expenses |  | 360 |  |  | 29 |  |  |
Depreciation and amortization |  | 192 |  |  | 16 |  |  |
Distribution expenses |  | 265 |  |  | 23 |  |  |
Other segment items (a) |  | 28 |  |  | 1 |  |  |
Business Segment Operating Profit (Loss) |  | 190 |  |  | 7 |  |  | 197 |
Interest Expense, net |  |  |  |  |  | 52 |
Adjustment for less than wholly owned subsidiaries (b) |  |  |  |  |  | (1) |
Corporate expenses, net |  |  |  |  |  | 40 |
Net special items |  |  |  |  |  | 113 |
Non-operating pension (income) expense |  |  |  |  |  | (12) |
Earnings (loss) from continuing operations before income taxes and equity earnings (loss) |  | $ | 5 |
|  | Nine Months Ended September 30, 2024
In millions |  | Packaging Solutions North America |  | Packaging Solutions EMEA |  | Total
Net Sales |  | $ | 10,754 |  |  | $ | 998 |  |  | $ | 11,752 |
Corporate and Intrasegment Sales |  |  |  |  |  | 161 |
Total Net Sales |  |  |  |  |  | 11,913 |
Less: |  |  |  |  |  |
Cost of products sold |  | 7,631 |  |  | 758 |  |  |
Selling and administrative expenses |  | 960 |  |  | 79 |  |  |
Depreciation and amortization |  | 581 |  |  | 48 |  |  |
Distribution expenses |  | 834 |  |  | 68 |  |  |
Other segment items (a) |  | 85 |  |  | 4 |  |  |
Business Segment Operating Profit (Loss) |  | 663 |  |  | 41 |  |  | 704 |
Interest Expense, net |  |  |  |  |  | 156 |
Adjustment for less than wholly owned subsidiaries (b) |  |  |  |  |  | (4) |
Corporate expenses, net |  |  |  |  |  | 144 |
Net special items |  |  |  |  |  | 186 |
Non-operating pension (income) expense |  |  |  |  |  | (34) |
Earnings (loss) from continuing operations before income taxes and equity earnings (loss) |  | $ | 256 |
Assets
In millions |  | September 30, 2025 |  | December 31, 2024 |
Packaging Solutions North America |  | $ | 16,613 |  |  | $ | 14,501 |  |
Packaging Solutions EMEA |  | 18,127 |  |  | 1,276 |  |
Corporate and other (c) |  | 5,828 |  |  | 7,023 |  |
Assets |  | $ | 40,568 |  |  | $ | 22,800 |  |
Capital Expenditures
In millions |  | Nine Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2024 |
Packaging Solutions North America |  | $ | 720 |  |  | $ | 512 |  |
Packaging Solutions EMEA |  | 362 |  |  | 37 |  |
Subtotal |  | 1,082 |  |  | 549 |  |
Corporate and other (d) |  | 125 |  |  | 112 |  |
Capital Expenditures |  | $ | 1,207 |  |  | $ | 661 |  |
External Sales By Segment (e)
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
In millions |  | 2025 |  | 2024 |  | 2025 |  | 2024
Packaging Solutions North America |  | $ | 3,859 |  |  | $ | 3,604 |  |  | $ | 11,330 |  |  | $ | 10,667 |
Packaging Solutions EMEA |  | 2,309 |  |  | 322 |  |  | 6,150 |  |  | 997 |
Other |  | 54 |  |  | 53 |  |  | 148 |  |  | 249 |
Net Sales |  | $ | 6,222 |  |  | $ | 3,979 |  |  | $ | 17,628 |  |  | $ | 11,913 |
(a)Other segment items includes Taxes other than payroll. (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 earnings for these subsidiaries is added here to present consolidated earnings from continuing operations before income taxes and equity earnings. (c)Includes corporate assets and held for sale assets related to the Global Cellulose Fibers business. (d)Includes capital expenditures for corporate and the Global Cellulose Fibers business. (e)External sales by segment are defined as those 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.

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