International Paper Company CONSOLIDATED STATEMENT OF CHANGES IN  COMMON SHAREHOLDERS’ EQUITY In millions, except share amounts in thousands $_{Accumulated}$) $_{Total}$) $_{Other}$) $_{Common}$) $_{Paid-in}$) $_{Retained}$) $_{Comprehensive}$) $_{Shareholders’}$) Shares Amount $_{Capital}$) $_{Earnings}$) Income (Loss) (1) $_{Shares}$) Amount $_{Equity}$) Balance, January 1, 2002 484,281 $484 $6,465 $4,622) $(1,175) 2,693) $105) $10,291 ) Issuance of stock for various plans 4791 28 - ) -) (1,403) (55) 84 ) Repurchase of stock - - - -) -) 4,390) 169) (169) Cash dividends - Common stock  ($1.00 per share) - - - (482) -) -) -) (482) Comprehensive income (loss): Net loss - - - (880) -) -) -) (880) Minimum pension liability adjustment: U.S. plans (less tax of $964) - - - -) (1,543) -) -) (1,543) Non-U.S. plans (less tax of $9) - - - -) (21) -) -) (21) Change in cumulative foreign currency translation adjustment (less tax of $2) - - - -) 27) -) - ) 27 ) Net gains on cash flow hedging derivatives: Net gain arising during the period  (less tax of $33) - - - -) 71) -) -) 71) Less: Reclassification adjustment for  gains included in net income  (less tax of $3) - - - -) (4) -) -) (4) Total comprehensive loss (2,350) Balance, December 31, 2002 484,760 485 6,493 3,260) (2,645) 5,680) 219) 7,374) Issuance of stock for various plans 402 - 7 -) -) (2,725) (105) 112) Repurchase of stock - - - -) -) 713) 26) (26) Cash dividends - Common stock  ($1.00 per share) - - - (480) -) -) -) (480) Comprehensive income (loss): Net income - - - 302) -) -) -) 302) Minimum pension liability adjustment: U.S. plans (less tax of $94) - - - -) 150) -) -) 150) Non-U.S. plans (less tax of $2) - - - -) (4) -) -) (4) Change in cumulative foreign currency translation adjustment (less tax  of $51) - - - -) 808) -) -) 808) Net gains on cash flow hedging derivatives: Net gain arising during the period  (less tax of $38)  - - - -) 66) -) -) 66) Less: Reclassification adjustment for  gains included in net income  (less tax of $36) - - - -) (65) -) -) (65) Total comprehensive income 1,257) Balance, December 31, 2003 485,162 485 6,500 3,082) (1,690) 3,668) 140) 8,237) Issuance of stock for various plans 2,333 2 62 -) -) (3,652) (140) 204) Cash dividends - Common stock ($1.00 per share) - - - (485) -) -) -) (485) Comprehensive income (loss): Net loss - - - (35) -) -) -) (35) Minimum pension liability adjustment: U.S. plans (less tax of $20) - - - -) 33) -) -) 33) Non-U.S. plans (less tax of $5) - - - -) 1) -) -) 1) Change in cumulative foreign currency translation adjustment (less tax of $17) - - - -) 255) -) -) 255) Net gains on cash flow hedging derivatives: Net gain arising during the period (less tax of $19) -  - - -) 70) -) -) 70) Less: Reclassification adjustment for gains included in net income (less tax of $13) - - - -) (26) -) -) (26) Total comprehensive income 298) Balance, December 31, 2004 487,495 $487 $6,562 $2,562) $(1,357) 16) $-) $8,254) Common Stock Issued Treasury Stock (1) The cumulative foreign currency translation adjustment (in millions) was  $(29), $(284) and $(1,092) at December 31, 2004, 2003 and 2002, respectively, and is included as a component of accumulated other  comprehensive income (loss). The accompanying notes are an integral part of these financial statements. 41