INTERNATIONAL PAPER CO /NEW/
For the period ended Oct 28, 2026. Filed Oct 28, 2026.
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A notice of a major event between regular reports, such as results, a deal or a change of executives. It is often the first formal record of the news.
Oct 28, 2026 · Filed Oct 28, 2026
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Contents
EX-99.1 · Continuing Operations
Continuing Operations
Net special items include items considered by management to not be reflective of the Company's underlying operations. Net special items in the third quarter of 2026 amount to a net after-tax charge of $1.31 billion ($2.46 per diluted share) compared with a net after-tax charge of $205 million ($0.39 per diluted share) in the third quarter of 2025 and a net after-tax charge of $42 million ($0.08 per diluted share) in the second quarter of 2026. Net special items in all periods include the following charges (benefits):
| Third Quarter 2026 | Third Quarter 2025 | Second Quarter 2026 | ||||
|---|---|---|---|---|---|---|
| (In millions) | Before Tax | After Tax | Before Tax | After Tax | Before Tax | After Tax |
| PS EMEA goodwill impairment | $1,377 | $1,377(a) | $— | $— | $— | $— |
| PS EMEA separation costs | 65 | 52(b) | — | — | 43 | 32(b) |
| Severance and other costs | 9 | 8(c) | 342 | 257(c) | 9 | 7(c) |
| NORPAC acquisition transaction costs | 2 | 2(b) | — | — | 5 | 4(b) |
| DS Smith combination costs (benefits) | — | — | (26) | (18)(b) | — | — |
| Net (gains) losses on sales and impairments of assets | (23) | (18)(d) | 15 | 11(d) | — | — |
| Net (gains) losses on sales and impairments of businesses | — | — | 16 | 12(f) | (11) | (8)(f) |
| Environmental remediation adjustments | — | — | 7 | 5(g) | — | — |
| Tax benefit related to settlement of tax audits | — | (78)(e) | — | — | — | — |
| Tax benefit related to capital losses | — | (38)(e) | — | (62)(e) | — | — |
| Other | — | — | — | — | 8 | 7 |
| Total special items, net | $1,430 | $1,305 | $354 | $205 | $54 | $42 |
| (a) | In conjunction with management's evaluation of goodwill, we measured the current fair value of PS EMEA business segment relative to its carrying value. Based on the results of this analysis and in accordance with U.S. GAAP, the company recorded a pre-tax, non-cash goodwill impairment charge of $1.38 billion as of September 30, 2026 related to the PS EMEA business segment. See note (d) of the Consolidated Statement of Operations. |
|---|---|
| (b) | Transaction, integration, separation and other costs/benefits that the Company believes are not reflective of the Company's underlying operations. See notes (a), (j) and (k) of the Consolidated Statement of Operations. |
| (c) | Severance and other costs associated with the Company's 80/20 strategic approach which includes the realignment of resources and mill strategic actions. See notes (c) and (n) of the Consolidated Statement of Operations. |
| (d) | Includes the sale of assets of the previously closed box plant in Compton, California and charges associated with the Company's subsequently sold aircraft assets. See notes (f) and (p) of the Consolidated Statement of Operations. |
| (e) | Includes a tax benefit associated with the settlement of tax audits and a decrease in the valuation against capital losses. See notes (h) and (q) of the Consolidated Statement of Operations. |
| (f) | Includes amounts related to the sale of our kraft paper bag business and the sale of the Company's box plant in Chile. See notes (e) and (o) of the Consolidated Statement of Operations. |
| (g) | Environmental remediation adjustments associated with remediation work at a waste pit site at a mill acquired but never operated by the Company, and last utilized by the predecessor owner of the mill. See note (j) on the Consolidated Statement of Operations. |
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