INTERNATIONAL PAPER CO /NEW/IP
INTERNATIONAL PAPER CO /NEW/ Segments Disclosure
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA
On January 23, 2026, the Company completed the previously announced sale of its Global Cellulose Fibers
business to AIP. As a result of the sale, 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 taxes, in the consolidated statements 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 consolidated balance
sheets. See Note 8 - 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, which is defined as earnings (loss) before income taxes and equity earnings (losses),
including the impact of less than wholly owned subsidiaries and excluding interest expense, net, corporate
expenses, net, net special items and non-operating pension expense. 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 years ended December 31, 2025, 2024 and 2023. The table also reconciles these
amounts to Earnings (loss) from continuing operations before income taxes and equity earnings (losses).
2025:
In millions | Packaging Solutions North America | Packaging Solutions EMEA | Total | ||
Net sales from external customers | $14,987 | $8,450 | $23,437 | ||
Intersegment sales | 188 | 1 | 189 | ||
15,175 | 8,451 | 23,626 | |||
Other external sales | 197 | ||||
Elimination of intersegment sales | (189) | ||||
Total net sales | 23,634 | ||||
Less: | |||||
Cost of products sold | 10,338 | 6,225 | |||
Selling and administrative expenses | 1,293 | 536 | |||
Depreciation and amortization | 1,724 | 1,020 | |||
Distribution expenses | 1,125 | 873 | |||
Other segment items (a) | 123 | 33 | |||
Business Segment Operating Profit (Losses) | 572 | (236) | 336 | ||
Interest Expense, net | 372 | ||||
Adjustment for less than wholly owned subsidiaries (b) | (2) | ||||
Corporate expenses, net | 109 | ||||
Net special items (i) | 3,237 | ||||
Non-operating pension (income) expense | (12) | ||||
Earnings (loss) from continuing operations before income taxes and equity earnings (losses) | $(3,368) |
(i) Includes a charge of $2.47 billion for the impairment of goodwill related to our PS EMEA business, $237 million for transaction and other costs
related to the DS Smith acquisition, a charge of $84 million for severance and other costs related to the closure of our Red River containerboard
mill, a net gain of $46 million related to the sale of EMEA plants, a net gain of $94 million related to the sale of fixed assets primarily associated
with permanently closed mills, a charge of $125 million for costs related to the closure of our Savannah containerboard mill, a charge of $96
million for costs related to the closure of our Riceboro containerboard mill, charges of $321 million for restructuring charges related to resource
and asset realignment and a net charge of $47 million for other items.
2024:
In millions | Packaging Solutions North America | Packaging Solutions EMEA | Total | ||
Net sales from external customers | $14,178 | $1,355 | $15,533 | ||
Intersegment sales | 115 | — | 115 | ||
14,293 | 1,355 | 15,648 | |||
Other external sales | 302 | ||||
Elimination of intersegment sales | (115) | ||||
Total net sales | 15,835 | ||||
Less: | |||||
Cost of products sold | 10,089 | 1,010 | |||
Selling and administrative expenses | 1,326 | 125 | |||
Depreciation and amortization | 786 | 64 | |||
Distribution expenses | 1,091 | 89 | |||
Other segment items (a) | 110 | 7 | |||
Business Segment Operating Profit (Losses) | 891 | 60 | 951 | ||
Interest Expense, net | 214 | ||||
Adjustment for less than wholly owned subsidiaries (b) | (5) | ||||
Corporate expenses, net | 170 | ||||
Net special items (i) | 245 | ||||
Non-operating pension (income) expense | (42) | ||||
Earnings (loss) from continuing operations before income taxes and equity earnings (losses) | $369 |
(i) Includes a charge of $86 million for transaction and other costs related to the DS Smith acquisition, a charge of $104 million for severance and
other costs related to mill closures and other 80/20 actions, charges of $60 million for environmental reserve adjustments, a gain of $54 million
related to the sale of a building at our Orange, Texas containerboard mill, $37 million for strategic advisory fees and a net charge of $12 million
for other items.
2023:
In millions | Packaging Solutions North America | Packaging Solutions EMEA | Total | ||
Net sales from external customers | $14,198 | $1,398 | $15,596 | ||
Intersegment sales | 95 | — | 95 | ||
14,293 | 1,398 | 15,691 | |||
Other external sales | 437 | ||||
Elimination of intersegment sales | (95) | ||||
Total net sales | 16,033 | ||||
Less: | |||||
Cost of products sold | 10,137 | 1,052 | |||
Selling and administrative expenses | 978 | 99 | |||
Depreciation and amortization | 1,080 | 64 | |||
Distribution expenses | 1,141 | 99 | |||
Other segment items (a) | 118 | 4 | |||
Business Segment Operating Profit (Losses) | 839 | 80 | 919 | ||
Interest Expense, net | 230 | ||||
Adjustment for less than wholly owned subsidiaries (b) | (3) | ||||
Corporate expenses, net | 135 | ||||
Net special items (i) | 101 | ||||
Non-operating pension (income) expense | 54 | ||||
Earnings (loss) from continuing operations before income taxes and equity earnings (losses) | $402 |
(i) Includes $81 million for severance and other costs associated with our mill strategic actions, charges of $36 million for environmental reserve
adjustments and other income of $16 million.
Assets
In millions | 2025 | 2024 | |
Packaging Solutions North America | $16,498 | $14,501 | |
Packaging Solutions EMEA | 15,439 | 1,276 | |
Corporate and other (c) | 6,027 | 7,023 | |
Assets | $37,964 | $22,800 |
Capital Expenditures
In millions | 2025 | 2024 | 2023 | ||
Packaging Solutions North America | $1,115 | $710 | $859 | ||
Packaging Solutions EMEA | 573 | 53 | 69 | ||
Subtotal | 1,688 | 763 | 928 | ||
Corporate and other (d) | 169 | 158 | 213 | ||
Capital Expenditures | $1,857 | $921 | $1,141 |
INFORMATION BY GEOGRAPHIC AREA
Net Sales (e)
In millions | 2025 | 2024 | 2023 | ||
United States (f) | $14,439 | $13,686 | $13,777 | ||
EMEA | 8,451 | 1,355 | 1,398 | ||
Pacific Rim and Asia | 31 | 64 | 37 | ||
Americas, other than U.S. | 713 | 730 | 821 | ||
Net Sales | $23,634 | $15,835 | $16,033 |
Long-Lived Assets (g)
In millions | 2025 | 2024 | |
United States | $7,247 | $7,173 | |
EMEA | 6,998 | 634 | |
Americas, other than U.S. | 215 | 126 | |
Long-Lived Assets | $14,460 | $7,933 |
(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 GCF business.
(d)Includes capital expenditures related to Corporate and the GCF business.
(e)Net sales are attributed to countries based on the location of the seller.
(f)Export sales to unaffiliated customers were $965 million in 2025, $1.1 billion in 2024 and $919 million in 2023.
(g)Long-Lived Assets includes Forestlands and Plants, Properties and Equipment, net.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.