ITEM 8. FINANCIAL STATEMENTS AND  SUPPLEMENTARY DATA Financial Information by Industry Segment and Geographic Area INFORMATION BY INDUSTRY SEGMENT  For information about our industry segments, see the “Description of Industry Segments” included on pages 15 through 17 of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. For management purposes, we report the operating performance of each business based on earnings before interest and income taxes (“EBIT”) excluding special and extraordinary items, gains or losses on sales of businesses and cumulative effects of accounting changes. Our Carter Holt Harvey segment includes our share, about half, of their operating earnings adjusted for accounting principles generally accepted in the United States of America. The remaining half is included in minority interest. Intersegment sales and transfers are recorded at current market prices. External Sales by Major Product is determined by aggregating sales from each segment based on similar products or services. External sales are defined as those that are made to parties outside International Paper’s consolidated group, whereas sales by segment in the Net Sales table are determined by the management approach and include intersegment sales. Capital Spending by Industry Segment is reported on page 22 of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Prior-year industry segment information has been restated to conform to the 2004 management structure and to reflect the Weldwood of Canada Limited business and Carter Holt Harvey Tissue business sold in 2004 as discontinued operations. Net Sales Operating Profit Assets 33 In millions 2004) 2003) 2002) Printing Papers $ 579) $ 460) $ 545) Industrial and Consumer Packaging 543) 451) 551) Distribution 87) 80) 91) Forest Products 793) 720) 641) Carter Holt Harvey 47) 38) 41) Specialty Businesses and Other (a) 38) 23) 18) Operating Profit 2,087) 1,772) 1,887) Interest expense, net (743) (772) (785) Minority interest (c) 59) 48) 43) Corporate items, net (469) (466) (253) Restructuring and other charges (211) (298) (695) Insurance recoveries 123) -) -) Reversals of reserves no longer required 35) 40) 68) Net gains (losses) on sales and  impairments of businesses held  for sale (135) (32) 41) Earnings from Continuing Operations Before  Income Taxes and Minority Interest $ 746) $ 292) $ 306) In millions 2004) 2003) 2002) Printing Papers $ 9,171) $ 8,948) $ 9,011) Industrial and Consumer  Packaging 6,865) 6,499) 6,468) Distribution 1,515) 1,458) 1,533) Forest Products 3,068) 3,324) 3,564) Carter Holt Harvey  4,026) 3,731) 3,108) Specialty Businesses and  Other (a)  652) 625) 694) Corporate and other (b) 8,920) 10,940) 9,414) Assets $34,217) $35,525) $33,792) In millions 2004) 2003) 2002) Printing Papers  $ 7,635) $ 7,245) $ 7,265) Industrial and Consumer  Packaging 7,470) 6,670) 6,530) Distribution 6,065) 5,860) 5,990) Forest Products 2,395) 2,390) 2,525) Carter Holt Harvey 2,190) 1,820) 1,540) Specialty Businesses and  Other (a) 1,120) 1,235) 1,455) Corporate and  Intersegment Sales  (1,327) (1,265) (1,406) Net Sales $25,548) $23,955) $23,899)