International Paper Reports Strong Industrial Packaging Results for Q1 2013

Net corporate expenses for the 2013 first quarter were $22 million compared with $15 million in the fourth quarter of 2012 and $32 million in the first quarter of 2012.

Effective Tax Rate
The effective tax rate before special items and non-operating pension expense for the first quarter of 2013 was 21 percent, compared with an effective tax rate before special items of 22 percent in the fourth quarter of 2012. The first quarter rate of 21 percent includes a benefit of approximately $35 million related to the enactment into law of The American Taxpayer Relief Act of 2012 on January 2, 2013 (the “Act”). The Act retroactively restored several expired business tax provisions including the research and experimentation credit and the Subpart F controlled foreign corporation look-through exception. The 2012 fourth quarter rate of 22 percent included a $29 million valuation allowance release previously imposed on state income tax attributes.