FINANCIAL HIGHLIGHTS

In millions, except per share amounts, at December 31 2012 2011
FINANCIAL SUMMARY    
Net Sales $27,833 $26,034
Operating Profit 1,955(a) 2,216(a)
Earnings from Continuing Operations Before Income Taxes
and Equity Earnings
1,024(b) 1,458(d)
Net Earnings 799(b,c) 1,336(d,e)
Net Earnings Attributable to Noncontrolling Interests 5 14
Net Earnings Attributable to International Paper Company 794(b,c) 1,322(d,e)
Total Assets 32,153 27,018
Total Shareholders’ Equity Attributable to International Paper
Company
6,304 6,645
Return on Investment from Continuing Operations
Attributable to International Paper Company
4.8%(b,c) 7.5%(d,e)
PER SHARE OF COMMON STOCK    
Basic Earnings Per Share Attributable to International Paper
Company Common Shareholders
$1.82(b,c) $3.06(b,e)
Diluted Earnings Per Share Attributable to International Paper
Company Common Shareholders
1.80(b,c) 3.03(d,e)
Cash Dividends 1.0875 0.9750
Common Shareholders’ Equity 14.33 15.21
SHAREHOLDER PROFILE    
Shareholders of Record at December 31 15,111 16,133
Shares Outstanding at December 31 439.8 437.1
Average Shares Outstanding 435.2 432.2
Average Shares Outstanding—Assuming Dilution 440.2 437.0

(a) See the operating profit table on page 86 for details of operating profit by industry segment.

(b) Includes restructuring and other charges of $109 million before taxes ($70 million after taxes) including pre-tax charges of $48 million ($30 million after taxes) for early debt extinguishment costs, pre-tax charges of $44 million ($28 million after taxes) for costs associated with the restructuring of the Company’s xpedx operations, and pre-tax charges of $17 million ($12 million after taxes) for costs associated with the restructuring of the Company’s Packaging business in Europe. Also included are a pre-tax charge of $20 million ($12 million after taxes) related to the write-up of the Temple-Inland inventories to fair value, pre-tax charges of $164 million ($108 million after taxes) for integration costs associated with the acquisition of Temple-Inland, a pre-tax charge of $62 million ($38 million after taxes) to adjust the long-lived assets of the Hueneme mill in Oxnard, California to their fair value in anticipation of its divestiture, and pre-tax charges of $29 million ($55 million after taxes) for costs associated with the divestiture of three containerboard mills.

(c) Includes a net tax expense of $14 million related to internal restructurings and a $5 million expense to adjust deferred tax assets related to post-retirement prescription drug coverage (Medicare Part D reimbursement).

(d) Includes restructuring and other charges of $102 million before taxes ($90 million after taxes) including pre-tax charges of $49 million ($34 million after taxes) for costs associated with the restructuring of the Company’s xpedx operations, pre-tax charges of $32 million ($19 million after taxes) for early debt extinguishment costs, pre-tax charges of $18 million ($12 million after taxes) for costs associated with the acquisition of a majority share of Andhra Pradesh Paper Mills Limited in India, pre-tax charges of $20 million ($12 million after taxes) for costs associated with signing an agreement to acquire Temple-Inland, and a pre-tax gain of $24 million ($15 million after taxes) related to the reversal of environmental and other reserves due to the announced repurposing of a portion of the Franklin mill. Also included are a pre-tax charge of $27 million ($17 million after taxes) for an environmental reserve related to the Company’s property in Cass Lake, Minnesota, a pre-tax charge of $129 million ($104 million after taxes) for a fixed-asset impairment of the North American Shorewood business, pre-tax charges of $78 million (a gain of $143 million after taxes) to reduce the carrying value of the Shorewood business based on the terms of the definitive agreement to sell this business, and a charge of $11 million (before and after taxes) for asset impairment costs associated with the Inverurie, Scotland mill which was closed in 2009.

(e) Includes a tax benefit of $222 million related to the reduction of the carrying value of the Shorewood business and the write-off of a deferred tax liability associated with Shorewood, a $24 million tax expense related to internal restructurings, a $9 million tax expense for costs associated with our acquisition of a majority share of Andhra Pradesh Paper Mills Limited in India, a $13 million tax benefit related to the release of a deferred tax asset valuation allowance, and a $2 million tax expense for other items.