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ACQUISITIONS
 6 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
2026: On June 4, 2026, the Company completed its acquisition of North Pacific Paper Company ("NORPAC"), a portfolio company of One Rock Capital Partners located in Longview, Washington, for $368 million, subject to post-closing adjustments. This acquisition is expected to enhance the Company's system flexibility and expand capabilities. Acquisition related costs were $5 million for the three months and six months ended June 30, 2026 and were recorded in Selling and administrative expenses in the accompanying condensed consolidated statement of operations.

The Company accounted for the acquisition under ASC 805, "Business Combinations" and the results of operations have been included in International Paper's financial statements beginning with the date of acquisition.

The following table summarizes the provisional fair values assigned to assets and liabilities acquired as of June 4, 2026:

In millions
Cash and temporary investments$9 
Accounts and notes receivable61 
Inventories43 
Other current assets12 
Plants, properties and equipment321 
Deferred charges and other assets3 
Total assets acquired449 
Accounts payable69 
Accrued payroll and benefits5 
Other current liabilities4 
Deferred income taxes3 
Total liabilities assumed81 
Net assets acquired$368 

The purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price and as additional information is obtained regarding assets acquired and liabilities assumed including, but not limited to,
working capital adjustments, income taxes and the completion of independent appraisals and valuations related to property, plant and equipment. Adjustments to provisional amounts will be finalized as new information becomes available, but within the adjustment period of up to one year from the acquisition date.

Since acquisition, Net sales of $36 million and Net earnings (loss) of $(5) million have been included in the Company's condensed consolidated statement of operations for the three months and six months ended June 30, 2026.

Below are the consolidated results on an unaudited pro forma basis assuming the NORPAC acquisition had closed on January 1, 2025:

(Unaudited)Three Months Ended
June 30		Six Months Ended
June 30
In millions2026202520262025
Net Sales$6,118 $6,294 $12,258 $11,714 
Net Earnings (Loss)(19)70 39 (43)

The unaudited pro forma information for the three months and six months ended June 30, 2026 includes $6 million and $15 million, respectively, of additional depreciation expense on identifiable fixed assets. The unaudited pro forma information for the three months and six months ended June 30, 2025 includes $9 million and $18 million, respectively, of additional depreciation expense on identifiable fixed assets.

The unaudited pro forma consolidated financial information was prepared for comparative purposes only and includes certain adjustments, as noted above. The adjustments are estimates based on currently available information and actual amounts may have differed materially from these estimates. They do not reflect the effect of costs or synergies that would have been expected to result from the integration of the acquisition. The pro forma information does not purport to represent International Paper's actual results of operations as if the transaction described above would have occurred as of January 1, 2025, nor is it necessarily
an indicator of future results.

On May 18, 2026, the Company completed its acquisition of a converting facility in Dover, Delaware from Delmarva Corrugated Packaging, for $95 million, subject to post-closing adjustments. This acquisition aligns with the Company's strategy to expand its market presence and enhance its capabilities and production capacity. The transaction was accounted for as an asset acquisition and the purchase price was allocated to the acquired assets based on their relative fair values. The operations of the facility have been included in the Company's results beginning on the acquisition date.

2025: On January 31, 2025, the Company completed its acquisition of the entire issued and to be issued share capital of DS Smith. Upon closing, IP issued 0.1285 shares for each DS Smith share, resulting in the issuance of 178,126,631 new shares of IP common stock ("New Company Common Stock"). As a result of the share issuance, the holders of the New Company Common Stock own approximately 34.1% of the Company's outstanding share capital. Based on the issuance of 178,126,631 new shares and the closing price of $55.63 on the close of January 31, 2025, for a total purchase consideration for the completed acquisition of approximately $9.9 billion. Acquisition-related costs were $3 million and $90 million for the three months and six months ended June 30, 2025 and were recorded in Selling and administrative expenses and Taxes other than payroll and income taxes in the accompanying condensed consolidated statement of operations. Following the acquisition, the New Company Common Stock continues to be listed on the New York Stock Exchange under the trading symbol "IP" and via a secondary listing on the London Stock Exchange under the trading symbol "IPC." The headquarters of the combined company is based in Memphis, Tennessee, and the EMEA headquarters has been established at DS Smith's existing main office in London.

The Company accounted for the acquisition under ASC 805, "Business Combinations" and the results of operations have been included in International Paper's financial statements beginning with the date of acquisition.
The following table summarizes the fair value assigned to assets and liabilities acquired as of January 31, 2025:

In millions
Cash and temporary investments$448 
Accounts and notes receivable1,301 
Contract assets236 
Inventories626 
Other current assets311 
Plants, properties and equipment6,707 
Intangibles3,915 
Goodwill4,335 
Overfunded pension plan assets79 
Right of use assets270 
Deferred charges and other assets84 
Total assets acquired18,312 
Notes payable and current maturities of long-term debt118 
Accounts payable1,660 
Accrued payroll and benefits232 
Other current liabilities783 
Long-term debt3,571 
Deferred income taxes1,513 
Underfunded pension benefit obligation71 
Long-term lease obligations199 
Other liabilities256 
Total liabilities assumed8,403 
Net assets acquired$9,909 

The fair value assigned to the assets and liabilities acquired above were measured using Level 2 and Level 3 inputs, which are further defined in Note 1 in the Company's Annual Report. The estimated fair value of inventory was determined using the Comparative Sales and Replacement Cost methods. Fair value estimates related to the trade name and patents identified intangible assets were determined using the Relief from Royalty method. The fair value estimates related to customer relationships and lists identified intangible assets were determined using the Multi-Period Excess Earnings method. The plants, properties and equipment, specifically the machinery and equipment and buildings and improvements, were valued using either the indirect or direct methods of the Cost Approach, while the land was valued using the Sales Comparison Approach. The allocation of the consideration transferred to the assets acquired and liabilities assumed has been finalized. Goodwill is not deductible for local income tax purposes and is primarily related to the value of new customers through expansion opportunities not reflected in the fair value of the existing customers relationships and the value of the intellectual property beyond selected life for trade names.

Net sales of $2.1 billion and $3.5 billion and Net earnings (loss) of $(82) million and $(189) million were included in the Company's condensed consolidated statement of operations for the three months and six months ended June 30, 2025, respectively.

The identifiable intangible assets acquired in connection with the acquisition of DS Smith included the following:
In millionsEstimated Fair ValueAverage Useful Life
Customer relationships and lists$3,434 
19 years
Tradenames363 
15 years
Software (a)90 
3 - 5 years
Other (b)28 10 years
Total$3,915 
(a) Of this balance, $57 million has been placed in service and $33 million is in development.
(b) Includes $10 million of intangible assets with indefinite lives.

Below are the consolidated results on an unaudited pro forma basis assuming the DS Smith acquisition had closed on January 1, 2024:

(Unaudited)
In millionsThree Months Ended June 30, 2025Six Months Ended June 30, 2025
Net Sales$6,767 $13,403 
Net Earnings (Loss)104 (16)

The unaudited pro forma information for the three months ended June 30, 2025 excludes $29 million of non-recurring integration costs associated with the acquisition. The unaudited pro forma information for the six months ended June 30, 2025 includes additional amortization expense on identifiable intangible assets of $13 million, additional depreciation expense on identifiable fixed assets of $13 million and eliminates the incremental expense of $70 million associated with the write-off of the estimated fair value of inventory and non-recurring integration costs associated with the acquisition of $94 million.

The unaudited pro forma consolidated financial information was prepared for comparative purposes only and includes certain adjustments, as noted above. The adjustments are estimates based on the preliminary valuation and information available as of June 30, 2025 and actual amounts may have differed materially from these estimates. These estimates do not reflect the effect of costs or synergies that would have been expected to result from the integration of the acquisition. The pro forma information does not purport to represent International Paper's actual results of operations as if the transaction described above would have occurred as of January 1, 2024, nor is it necessarily indicative of future results.

In connection with the DS Smith acquisition, the European Commission issued its Phase I clearance of the business combination between International Paper and DS Smith on January 31, 2025, with the condition that International Paper commit to divest five European plants in Mortagne, Saint-Amand, and Cabourg (France), Ovar (Portugal) and Bilbao (Spain), (the "Remedies Divestiture"). On June 30, 2025, the Company completed the sale of these locations to Palm Group of Germany for €125 million (approximately $147 million at the June 30, 2025 exchange rate) in cash. The Company recorded a net gain of $46 million in Net (gains) losses on sales and impairments of businesses in the accompanying condensed consolidated statement of operations during the year ended December 31, 2025.