FINANCIAL  HIGHLIGHTS RECONCILIATION OF NON-GAAP  FINANCIAL MEASURES In millions, except per share amounts, at December 31 2014 2013 FINANCIAL SUMMARY Net Sales $23,617 $23,483 Operating Profit 2,058 (a) 2,233 (a) Earnings from Continuing Operations Before Income Taxes and Equity Earnings 872 (b) 1,228 (d) Net Earnings 536 (b,c) 1,378 (d,e) Net Earnings Attributable to Noncontrolling Interests (19) (17) Net Earnings Attributable to International Paper Company 555 (b,c) 1,395 (d,e) Total Assets 28,684 31,528 Total Shareholders’ Equity Attributable to International Paper Company 5,115 8,105 PER SHARE OF COMMON STOCK Basic Earnings Per Share Attributable to International Paper Company Common Shareholders $  1.30 (b,c) $  3.15 (d,e) Diluted Earnings Per Share Attributable to International Paper Company Common Shareholders $  1.29 (b,c) $  3.11 (d,e) Cash Dividends 1.4500 1.2500 Total Shareholders’ Equity 12.18 18.57 SHAREHOLDER PROFILE Shareholders of Record at December 31 13,351 14,169 Shares Outstanding at December 31 420.1 436.3 Average Common Shares Outstanding 427.7 443.3 Average Common Shares Outstanding—Assuming Dilution 432.0 448.1 (a) See the reconciliation of net earnings (loss) attributable to International Paper Company to its total industry segment operating profit on page 21 and the  operating profit table on page 85 for details of operating profit by industry segment. (b) Includes restructuring and other charges of $846 million before taxes ($518 million after taxes) including pre-tax charges of $276 million ($169 million after  taxes) for early debt extinguishment costs, pre-tax charges of $554 million ($338 million after taxes) for costs associated with the shutdown of our  Courtland, Alabama mill and a net pre-tax charge of $16 million ($11 million after taxes) for other items. Also included are a pre-tax charge of $47 million  ($36 million after taxes) for a loss on the sale of a business by ASG in which we hold an investment and the subsequent partial impairment of our ASG  investment, a goodwill impairment charge of $100 million (before and after taxes) related to our Asia Industrial Packaging business, pre-tax charges of $35  million ($21 million after taxes) for a multi-employer pension withdrawal liability, a pre-tax charge of $32 million ($17 million after taxes) for costs associated  with a foreign tax amnesty program, a gain of $20 million (before and after taxes) for the resolution of a legal contingency in India, pre-tax charges of $16  million ($10 million after taxes) for costs associated with the integration of Temple-Inland, and a net gain of $4 million ($2 million after taxes) for other items. (c) Includes a tax benefit of $90 million related to internal restructurings and a net tax expense of $9 million for other items. Also includes the operating earn- ings of the xpedx business through the date of the spin-off on July 1, 2014, net pre-tax charges of $24 million ($16 million after taxes) for costs associated  with the spin-off of the xpedx business, pre-tax charges of $1 million (a gain of $1 million after taxes) for costs associated with the restructuring of xpedx  and pre-tax charges of $16 million ($9 million after taxes) for costs associated with the Building Products divestiture. (d) Includes restructuring and other charges of $156 million before taxes ($98 million after taxes) including pre-tax charges of $25 million ($16 million after  taxes) for early debt extinguishment costs, pre-tax charges of $118 million ($72 million after taxes) for costs associated with the shutdown of our  Courtland, Alabama mill, a pre-tax gain of $30 million ($19 million after taxes) for insurance reimbursements related to the 2012 Guaranty Bank legal set- tlement, a pre-tax charge of $45 million ($28 million after taxes) for costs associated with the permanent shutdown of a paper machine at our Augusta,  Georgia mill, and a net pre-tax gain of $2 million (a loss of $1 million after taxes) for other items. Also included are a pre-tax goodwill and trade name  intangible asset impairment of $127 million ($122 million after taxes) related to our India Papers business, pre-tax charges of $9 million ($5 million after  taxes) to adjust the value of two Company airplanes to fair value, pre-tax charges of $62 million ($38 million after taxes) for integration costs associated  with the acquisition of Temple-Inland, pre-tax charges of $6 million ($4 million after taxes) for an environmental reserve related to the Company’s property  in Cass Lake, Minnesota, and a gain of $13 million (before and after taxes) related to a bargain purchase adjustment on the acquisition of a majority share  of our operations in Turkey. (e) Includes a tax benefit of $744 million associated with the closings of U.S. federal tax audits, a tax benefit of $31 million for an income tax reserve release  and a net tax loss of $1 million for other items. Also includes the operating results of the xpedx business for the full year and the Temple-Inland Building  Products business through the date of sale in July 2013, pre-tax charges of $32 million ($19 million after taxes) for costs associated with the restructuring  of the Company’s xpedx operations, pre-tax charges of $22 million ($14 million after taxes) for costs associated with the spin-off of our xpedx operations,  a pre-tax goodwill impairment charge of $400 million ($366 million after taxes) related to our xpedx business and pre-tax charges of $23 million ($19 mil- lion after taxes) for expenses associated with the divestiture of the Temple-Inland Building Products business. For reconciliations of free cash flow to cash provided by operations, see page 32. In millions, at December 31 2014 2013 2012 CALCULATION OF EBITDA BEFORE SPECIAL ITEMS Earnings from Continuing Operations Before Interest, Income Taxes and Equity Earnings $1,479 $1,840 $1,638 Depreciation, Amortization and Cost of Timber Harvested 1,406 1,531 1,473 Special Items 1,046 341 335 Non-operating Pension Expense 212 323 159 EBITDA BEFORE SPECIAL ITEMS 4,143 4,035 3,605 For reconciliations of Operating Earnings per share attributable to International Paper Company common shareholders  to diluted earnings (loss) per share attributable to International Paper Company common shareholders, see page 20.