On October 15, 2024, International Paper Company (the "Company") announced a corporate overhead restructuring plan aimed at reducing operating costs, optimizing its organizational structure, and better aligning its workforce with the needs of the business and its customers. The majority of the corporate overhead restructuring plan is expected to be substantially implemented in the fourth quarter of 2024.

Under the corporate overhead restructuring plan, the Company plans to reduce its workforce by approximately 650 employees. Impacted employees are eligible to receive certain severance payments and other employee termination benefits under the Company's Salaried Employee Severance Plan including outplacement services. Payment of severance and employee termination benefits are contingent upon the employee's execution (and non-revocation) of a separation agreement, which includes a general release of claims against the Company.

In connection with the restructuring, the Company estimates it will incur aggregate pre-tax restructuring charges of approximately $80 million to $100 million related to one-time severance payments and other employee termination benefits, with approximately $50 million of such charges recorded in the third quarter of 2024 and approximately $30 million to $50 million of such charges anticipated to be recorded in the fourth quarter of 2024. Substantially all of the charges noted above will involve cash payments, and it is contemplated that the majority of these cash payments will be paid during the first quarter of 2025.

The estimated charges disclosed above in connection with this corporate overhead restructuring are subject to assumptions and actual results may differ materially.