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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2019

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From to

_________________________________________

Commission File Number 001-03157

INTERNATIONAL PAPER COMPANY

(Exact name of registrant as specified in its charter)



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)

Registrant’s telephone number, including area code: (901) 419-7000

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares	IP	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (paragraph 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange

Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ☐

The number of shares outstanding of the registrant’s common stock, par value $1.00 per share, as of July 26, 2019 was 392,836,359.

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INDEX



		PAGE NO.
	PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Consolidated Statement of Operations - Three Months and Six Months Ended June 30, 2019 and 2018	1

	Condensed Consolidated Statement of Comprehensive Income - Three Months and Six Months Ended June 30, 2019 and 2018	2

	Condensed Consolidated Balance Sheet - June 30, 2019 and December 31, 2018	3

	Condensed Consolidated Statement of Cash Flows - Six Months Ended June 30, 2019 and 2018	4

	Condensed Notes to Consolidated Financial Statements	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46

Item 4.	Controls and Procedures	46

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	47

Item 1A.	Risk Factors	47

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47

Item 6.	Exhibits	48

Signatures		49

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PART I. FINANCIAL INFORMATION


ITEM 1.	FINANCIAL STATEMENTS

INTERNATIONAL PAPER COMPANY

Condensed Consolidated Statement of Operations

(Unaudited)

(In millions, except per share amounts)



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net Sales	$	5,667		$	5,833		$	11,310		$	11,454
Costs and Expenses
Cost of products sold	3,901			3,922			7,830			7,870
Selling and administrative expenses	402			451			815			872
Depreciation, amortization and cost of timber harvested	321			330			636			655
Distribution expenses	384			403			773			769
Taxes other than payroll and income taxes	43			42			86			86
Restructuring and other charges, net	—			26			—			48
Net (gains) losses on sales and impairments of businesses	152			—			145			—
Interest expense, net	122			133			255			268
Non-operating pension expense	8			36			18			40
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings	334			490			752			846
Income tax provision (benefit)	128			130			234			219
Equity earnings (loss), net of taxes	80			70			194			165
Earnings (Loss) From Continuing Operations	286			430			712			792
Discontinued operations, net of taxes	—			(23		)	—			345
Net Earnings (Loss)	286			407			712			1,137
Less: Net earnings (loss) attributable to noncontrolling interests	(6		)	2			(4		)	3
Net Earnings (Loss) Attributable to International Paper Company	$	292		$	405		$	716		$	1,134
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
Earnings (loss) from continuing operations	$	0.74		$	1.03		$	1.80		$	1.91
Discontinued operations, net of taxes	—			(0.05		)	—			0.83
Net earnings (loss)	$	0.74		$	0.98		$	1.80		$	2.74
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders
Earnings (loss) from continuing operations	$	0.73		$	1.02		$	1.78		$	1.88
Discontinued operations, net of taxes	—			(0.05		)	—			0.83
Net earnings (loss)	$	0.73		$	0.97		$	1.78		$	2.71
Average Shares of Common Stock Outstanding – assuming dilution	398.2			417.7			401.4			418.8

The accompanying notes are an integral part of these condensed financial statements.

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INTERNATIONAL PAPER COMPANY

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)

(In millions)



	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019		2018
Net Earnings (Loss)	$	286	$	407		$	712	$	1,137
Other Comprehensive Income (Loss), Net of Tax:
Amortization of pension and post-retirement prior service costs and net loss:
U.S. plans	40		85			81		151
Change in cumulative foreign currency translation adjustment	61		(422		)	73		(380		)
Net gains/losses on cash flow hedging derivatives:
Net gains (losses) arising during the period	4		(18		)	4		(21		)
Reclassification adjustment for (gains) losses included in net earnings (loss)	—		2			1		—
Total Other Comprehensive Income (Loss), Net of Tax	105		(353		)	159		(250		)
Comprehensive Income (Loss)	391		54			871		887
Net (earnings) loss attributable to noncontrolling interests	6		(2		)	4		(3		)
Other comprehensive (income) loss attributable to noncontrolling interests	—		2			—		2
Comprehensive Income (Loss) Attributable to International Paper Company	$	397	$	54		$	875	$	886

The accompanying notes are an integral part of these condensed financial statements.

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INTERNATIONAL PAPER COMPANY

Condensed Consolidated Balance Sheet

(In millions)



	June 30, 2019			December 31, 2018
	(unaudited)
Assets
Current Assets
Cash and temporary investments	$	787		$	589
Accounts and notes receivable, net	3,477			3,521
Contract assets	399			395
Inventories	2,224			2,241
Assets held for sale	286			—
Other current assets	215			250
Total Current Assets	7,388			6,996
Plants, Properties and Equipment, net	12,962			13,067
Forestlands	405			402
Investments	1,646			1,648
Financial Assets of Variable Interest Entities (Note 16)	7,079			7,070
Goodwill	3,441			3,374
Right of Use Assets	408			—
Deferred Charges and Other Assets	1,018			1,019
Total Assets	$	34,347		$	33,576
Liabilities and Equity
Current Liabilities
Notes payable and current maturities of long-term debt	$	676		$	639
Accounts payable	2,498			2,413
Accrued payroll and benefits	404			535
Liabilities held for sale	250			—
Other current liabilities	1,221			1,107
Total Current Liabilities	5,049			4,694
Long-Term Debt	10,050			10,015
Nonrecourse Financial Liabilities of Variable Interest Entities (Note 16)	6,302			6,298
Deferred Income Taxes	2,624			2,600
Pension Benefit Obligation	1,694			1,762
Postretirement and Postemployment Benefit Obligation	257			264
Long-Term Lease Obligations	281			—
Other Liabilities	591			560
Equity
Common stock, $1 par value, 2019 – 448.9 shares and 2018 – 448.9 shares	449			449
Paid-in capital	6,229			6,280
Retained earnings	8,302			7,465
Accumulated other comprehensive loss	(4,870		)	(4,500		)
	10,110			9,694
Less: Common stock held in treasury, at cost, 2019 – 55.0 shares and 2018 – 48.3 shares	2,628			2,332
Total International Paper Shareholders’ Equity	7,482			7,362
Noncontrolling interests	17			21
Total Equity	7,499			7,383
Total Liabilities and Equity	$	34,347		$	33,576

The accompanying notes are an integral part of these condensed financial statements.

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INTERNATIONAL PAPER COMPANY

Condensed Consolidated Statement of Cash Flows

(Unaudited)

(In millions)



	Six Months Ended June 30,
	2019			2018
Operating Activities
Net earnings (loss)	$	712		$	1,137
Depreciation, amortization and cost of timber harvested	636			655
Deferred income tax provision (benefit), net	50			196
Restructuring and other charges, net	—			48
Net gain on transfer of North American Consumer Packaging business	—			(488		)
Net (gains) losses on sales and impairments of businesses	145			—
Equity method dividends received	251			122
Equity (earnings) losses, net	(194		)	(165		)
Periodic pension expense, net	47			115
Other, net	55			57
Changes in current assets and liabilities
Accounts and notes receivable	48			(333		)
Contract assets	(4		)	(17		)
Inventories	48			(26		)
Accounts payable and accrued liabilities	2			142
Interest payable	1			2
Other	3			19
Cash Provided By (Used For) Operations	1,800			1,464
Investment Activities
Invested in capital projects	(628		)	(929		)
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	4			2
Other	(9		)	3
Cash Provided By (Used For) Investment Activities	(715		)	(964		)
Financing Activities
Repurchases of common stock and payments of restricted stock tax withholding	(460		)	(331		)
Issuance of debt	444			411
Reduction of debt	(452		)	(73		)
Change in book overdrafts	(14		)	(24		)
Dividends paid	(398		)	(393		)
Net debt tender premiums paid	4			—
Cash Provided By (Used For) Financing Activities	(876		)	(410		)
Cash Included in Assets Held for Sale	(21		)	—
Effect of Exchange Rate Changes on Cash	10			(35		)
Change in Cash and Temporary Investments	198			55
Cash and Temporary Investments
Beginning of period	589			1,018
End of period	$	787		$	1,073

The accompanying notes are an integral part of these condensed financial statements.

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INTERNATIONAL PAPER COMPANY

Condensed Notes to Consolidated Financial Statements

(Unaudited)

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of International Paper Company’s (International Paper’s, the Company’s or our) financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first six months of the year may not necessarily be indicative of full year results. It is suggested that these condensed financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which have previously been filed with the Securities and Exchange Commission.

NOTE 2 - RECENT ACCOUNTING DEVELOPMENTS

Recently Adopted Accounting Pronouncements

Leases

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The Company adopted the provisions of this guidance effective January 1, 2019, using the modified retrospective optional transition method. Therefore, the standard was applied beginning January 1, 2019 and prior periods were not restated. The adoption of the standard did not result in a cumulative-effect adjustment to the opening balance of Retained earnings. The Company elected the package of practical expedients and implemented internal controls and system functionality to enable the preparation of financial information upon adoption.

The adoption of the new standard resulted in the recognition of a right of use asset and short-term and long-term liabilities recorded on the Company's consolidated balance sheet related to operating leases. Accounting for finance leases remained substantially unchanged. In addition, the adoption of the standard did not have a material impact on the Company's results of operations or cash flows.

Comprehensive Income

In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This guidance gives entities the option to reclassify stranded tax effects caused by the newly-enacted U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. As a result, the Company adopted this guidance effective January 1, 2019, and recorded a net increase to opening Retained earnings and a decrease to opening Accumulated other comprehensive income of $529 million, due to the cumulative impact of adopting the new guidance.

Recently Issued Accounting Pronouncements Not Yet Adopted

Intangibles

In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this guidance. This guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance.

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." This guidance eliminates the requirement to calculate the implied fair value of goodwill under Step 2 of today's goodwill impairment test to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. This guidance should be applied prospectively and is effective for annual reporting periods beginning after December 15, 2019, for any impairment test performed in 2020. Early adoption is

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permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company is currently evaluating the provisions of this guidance; however, we do not anticipate adoption having a material impact on the financial statements.

Financial Instruments - Credit Losses

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This guidance replaces the current incurred loss impairment method with a method that reflects expected credit losses. This guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. This guidance should be applied using the modified-retrospective approach. In May 2019, the FASB issued ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief." The amendments in this Update provide entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. The amendments also decrease costs for some financial statement preparers while providing financial statement users with decision-useful information. For entities that have not yet adopted the amendments in Update 2016-13, the effective date and transition methodology for the amendments in this Update are the same as in Update 2016-13. The Company is currently evaluating the provisions of this guidance and plans to adopt this guidance and the related amendments on its effective date of January 1, 2020, by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of Retained earnings.

NOTE 3 - REVENUE RECOGNITION

Generally, the Company recognizes revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods. For customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time which, generally, is as the goods are produced.

Disaggregated Revenue

A geographic disaggregation of revenues across our company segmentation in the following tables provide information to assist in evaluating the nature, timing and uncertainty of revenue and cash flows and how they may be impacted by economic factors.



	Three Months Ended June 30, 2019
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate and Inter-segment Sales			Total
Primary Geographical Markets (a)
United States	$	3,205		$	551	$	474		$	58		$	4,288
EMEA	420			64		341			(5		)	820
Pacific Rim and Asia	12			46		61			2			121
Americas, other than U.S.	227			—		212			(1		)	438
Total	$	3,864		$	661	$	1,088		$	54		$	5,667

Operating Segments
North American Industrial Packaging	$	3,414		$	—	$	—		$	—		$	3,414
EMEA Industrial Packaging	331			—		—			—			331
Brazilian Industrial Packaging	58			—		—			—			58
European Coated Paperboard	92			—		—			—			92
Global Cellulose Fibers	—			661		—			—			661
North American Printing Papers	—			—		486			—			486
Brazilian Papers	—			—		240			—			240
European Papers	—			—		321			—			321
Indian Papers	—			—		53			—			53
Intra-segment Eliminations	(31		)	—		(12		)	—			(43		)
Corporate & Inter-segment Sales				—					54			54
Total	$	3,864		$	661	$	1,088		$	54		$	5,667

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(a) Net sales are attributed to countries based on the location of the seller.



	Six Months Ended June 30, 2019
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate and Inter-segment Sales			Total
Primary Geographical Markets (a)
United States	$	6,351		$	1,121	$	962		$	118		$	8,552
EMEA	848			145		671			(7		)	1,657
Pacific Rim and Asia	30			84		120			6			240
Americas, other than U.S.	467			—		400			(6		)	861
Total	$	7,696		$	1,350	$	2,153		$	111		$	11,310

Operating Segments
North American Industrial Packaging	$	6,790		$	—	$	—		$	—		$	6,790
EMEA Industrial Packaging	670			—		—			—			670
Brazilian Industrial Packaging	115			—		—			—			115
European Coated Paperboard	183			—		—			—			183
Global Cellulose Fibers	—			1,350		—			—			1,350
North American Printing Papers	—			—		982			—			982
Brazilian Papers	—			—		455			—			455
European Papers	—			—		630			—			630
Indian Papers	—			—		106			—			106
Intra-segment Eliminations	(62		)	—		(20		)	—			(82		)
Corporate & Inter-segment Sales				—		—			111			111
Total	$	7,696		$	1,350	$	2,153		$	111		$	11,310

(a) Net sales are attributed to countries based on the location of the seller.

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	Three Months Ended June 30, 2018
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate & Intersegment			Total
Primary Geographical Markets (a)
United States	$	3,336		$	573	$	477		$	53		$	4,439
EMEA	427			70		324			(4		)	817
Pacific Rim and Asia	36			48		59			13			156
Americas, other than U.S.	223			1		200			(3		)	421
Total	$	4,022		$	692	$	1,060		$	59		$	5,833

Operating Segments
North American Industrial Packaging	$	3,582		$	—	$	—		$	—		$	3,582
EMEA Industrial Packaging	344			—		—			—			344
Brazilian Industrial Packaging	56			—		—			—			56
European Coated Paperboard	86			—		—			—			86
Global Cellulose Fibers	—			692		—			—			692
North American Printing Papers	—			—		493			—			493
Brazilian Papers	—			—		222			—			222
European Papers	—			—		302			—			302
Indian Papers	—			—		51			—			51
Intra-segment Eliminations	(46		)	—		(8		)	—			(54		)
Corporate & Inter-segment Sales	—			—		—			59			59
Total	$	4,022		$	692	$	1,060		$	59		$	5,833

(a) Net sales are attributed to countries based on the location of the seller.

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	Six Months Ended June 30, 2018
In millions	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate & Intersegment			Total
Primary Geographical Markets (a)
United States	$	6,438		$	1,118	$	917		$	111		$	8,584
EMEA	879			145		660			(9		)	1,675
Pacific Rim and Asia	70			105		123			29			327
Americas, other than U.S.	462			1		413			(8		)	868
Total	$	7,849		$	1,369	$	2,113		$	123		$	11,454

Operating Segments
North American Industrial Packaging	$	6,951		$	—	$	—		$	—		$	6,951
EMEA Industrial Packaging	706			—		—			—			706
Brazilian Industrial Packaging	118			—		—			—			118
European Coated Paperboard	178			—		—			—			178
Global Cellulose Fibers	—			1,369		—			—			1,369
North American Printing Papers	—			—		951			—			951
Brazilian Papers	—			—		451			—			451
European Papers	—			—		621			—			621
Indian Papers	—			—		103			—			103
Intra-segment Eliminations	(104		)	—		(13		)	—			(117		)
Corporate & Inter-segment Sales	—			—		—			123			123
Total	$	7,849		$	1,369	$	2,113		$	123		$	11,454

(a) Net sales are attributed to countries based on the location of the seller.

Revenue Contract Balances

The opening and closing balances of the Company's contract assets and current contract liabilities are as follows:



In millions	Contract Assets (Short-Term)		Contract Liabilities (Short-Term)
Beginning Balance - January 1, 2019	$	395	$	56
Ending Balance - June 30, 2019	399		40
Increase / (Decrease)	$	4	$	(16	)

A contract asset is created when the Company recognizes revenue on its customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes to the customer.

A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months.

The difference between the opening and closing balances of the Company's contract assets and contract liabilities primarily results from the difference between the price and quantity at comparable points in time for goods for which we have an unconditional right to payment or receive pre-payment from the customer, respectively.

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NOTE 4 - EQUITY

A summary of the changes in equity for the three months and six months ended June 30, 2019 and 2018 is provided below:



	Three Months Ended June 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, April 1	$	449	$	6,159	$	8,211		$	(4,975	)	$	2,398		$	7,446		$	23		$	7,469
Issuance of stock for various plans, net	—		34		—			—			(1		)	35			—			35
Repurchase of stock	—		—		—			—			231			(231		)	—			(231		)
Common stock dividends ($.5000 per share)	—		—		(201		)	—			—			(201		)	—			(201		)
Transactions of equity method investees	—		36		—			—			—			36			—			36
Comprehensive income (loss)	—		—		292			105			—			397			(6		)	391
Ending Balance, June 30	$	449	$	6,229	$	8,302		$	(4,870	)	$	2,628		$	7,482		$	17		$	7,499



	Six Months Ended June 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	—		(84		)	—			—			(164		)	80			—			80
Repurchase of stock	—		—			—			—			460			(460		)	—			(460		)
Common stock dividends ($1.0000 per share)	—		—			(408		)	—			—			(408		)	—			(408		)
Transactions of equity method investees	—		33			—			—			—			33			—			33
Comprehensive income (loss)	—		—			716			159			—			875			(4		)	871
Ending Balance, June 30	$	449	$	6,229		$	8,302		$	(4,870	)	$	2,628		$	7,482		$	17		$	7,499



	Three Months Ended June 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, April 1	$	449	$	6,175	$	6,783		$	(4,530	)	$	1,632		$	7,245		$	20	$	7,265
Issuance of stock for various plans, net	—		36		—			—			(1		)	37			—		37
Repurchase of stock	—		—		—			—			300			(300		)	—		(300		)
Common stock dividends ($.4750 per share)	—		—		(200		)	—			—			(200		)	—		(200		)
Transactions of equity method investees	—		8		—			—			—			8			—		8
Comprehensive income (loss)	—		—		405			(351		)	—			54			—		54
Ending Balance, June 30	$	449	$	6,219	$	6,988		$	(4,881	)	$	1,931		$	6,844		$	20	$	6,864

Table of Contents

Six Months Ended June 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