International Paper Reports Second Quarter 2017 Earnings

Diluted Net EPS Attributable to International Paper Shareholders and Adjusted Operating EPS

SecondQuarter2017

FirstQuarter2017

SecondQuarter2016

Net Earnings

$

0.19

$

0.50

$

0.10

Add Back – Discontinued Operations (Gain) Loss

—

—

—

Net Earnings (Loss) from Continuing Operations

0.19

0.50

0.10

Add Back – Non-Operating Pension Expense

0.05

0.05

0.72

Add Back – Net Special Items Expense (Income)

0.41

0.05

0.10

Adjusted Operating Earnings*

$

0.65

$

0.60

$

0.92

*    Adjusted operating earnings (non-GAAP) is defined as net earnings from continuing operations attributable to International Paper Company (GAAP) excluding special items and non-operating pension expense. Management uses this measure to focus on on-going operations, and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present operating results.  Non-operating pension expense in the second quarter of 2016 included a pre-tax charge of $439 million ($270 million after taxes or $0.65 per share) for a settlement accounting charge associated with payments under a term-vested lump sum buyout.

INTERNATIONAL PAPER COMPANYConsolidated Statement of OperationsPreliminary and Unaudited(In millions, except per share amounts)

Three Months EndedJune 30,

ThreeMonthsEndedMarch 31,

Six Months EndedJune 30,

2017

2016

2017

2017

2016

Net Sales

$     5,772

$       5,322

$       5,511

$   11,283

$     10,432

Costs and Expenses

Cost of products sold

4,105

(a)

4,112

(h)

3,940

(l)

8,045

(p)

7,723

(h)

Selling and administrative expenses

422

(b)

386

(i)

422

(m)

844

(q)

762

(i)

Depreciation, amortization and cost of timber harvested

357

301

345

702

585

Distribution expenses

390

339

379

769

659

Taxes other than payroll and income taxes

43

41

45

88

82

Restructuring and other charges

(16)

(c)

—

—

(16)

(c)

1

(s)

Net (gains) losses on sales and impairment of businesses

9

(d)

28

(j)

—

9

(d)

65

(t)

Litigation settlement

354

(e)

—

—

354

(e)

—

Net bargain purchase gain on acquisition of business

—

—

(6)

(n)

(6)

(n)

—

Interest expense, net

137

(f)

129

142

279

(f)

252

Earnings (Loss) From Continuing Operations Before IncomeTaxes and Equity Earnings

(29)

(a-f)

(14)

(h-j)

244

(l-n)

215

(c-f,n,p,q)

303

(h,i,s,t)

Income tax provision (benefit)

(89)

(g)

(9)

(k)

83

(o)

(6)

(r)

32

(u)

Equity earnings (loss), net of taxes

20

45

48

68

108

Earnings (Loss) From Continuing Operations

80

(a-g)

40

(h-k)

209

(l-o)

289

(c-f,n,p-r)

379

(h,i,s-u)

Discontinued operations, net of taxes

—

—

—

—

(5)

(v)

Net Earnings (Loss)

80

(a-g)

40

(h-k)

209

(l-o)

289

(c-f,n,p-r)

374

(h,i,s-v)

Less: Net earnings (loss) attributable to noncontrollinginterests

—

—

—

—

—

Net Earnings (Loss) Attributable to International PaperCompany

$           80

(a-g)

$            40

(h-k)

$          209

(l-o)

$        289

(c-f,n,p-r)

$          374

(h,i,s-v)

Basic Earnings Per Common Share Attributable toInternational Paper Common Shareholders

Earnings (loss) from continuing operations

$       0.19

(a-g)

$         0.10

(h-k)

$         0.51

(l-o)

$       0.70

(c-f,n,p-r)

$         0.92

(h,i,s-u)

Discontinued operations

—

—

—

—

(0.01)

(v)

Net earnings (loss)

$       0.19

(a-g)

$         0.10

(h-k)

$         0.51

(l-o)

$       0.70

(c-f,n,p-r)

$         0.91

(h,i,s-v)

Diluted Earnings Per Common Share Attributable toInternational Paper Common Shareholders

Earnings (loss) from continuing operations

$       0.19

(a-g)

$         0.10

(h-k)

$         0.50

(l-o)

$       0.69

(c-f,n,p-r)

$         0.91

(h,i,s-u)

Discontinued operations

—

—

—

—

(0.01)

(v)

Net earnings (loss)

$       0.19

(a-g)

$         0.10

(h-k)

$         0.50

(l-o)

$       0.69

(c-f,n,p-r)

$         0.90

(h,i,s-v)

Average Shares of Common Stock Outstanding - Diluted

416.4

414.7

416.0

416.7

415.1

Cash Dividends Per Common Share

$   0.4625

$     0.4400

$     0.4625

$   0.9250

$     0.8800

Amounts Attributable to International Paper CommonShareholders

Earnings (loss) from continuing operations, net of tax

$           80

(a-g)

$            40

(h-k)

$          209

(l-o)

$        289

(c-f,n,p-r)

$          379

(h,i,s-u)

Discontinued operations, net of tax

—

—

—

—

(5)

(v)

Net earnings

$           80

(a-g)

$            40

(h-k)

$          209

(l-o)

$        289

(c-f,n,p-r)

$          374

(h,i,s-v)

The accompanying notes are an integral part of this consolidated statement of operations.

(a)

Includes a pre-tax charge of $5 million ($3 million after taxes) associated with the pulp, coated paperboard, containerboard and printing papers businesses for abandoned property at our mills.

(b)

Includes a pre-tax charge of $5 million ($3 million after taxes) for integration costs associated with the pulp business acquired in December 2016.

(c)

Includes a gain of $14 million ($9 million after taxes) related to the sale of our investment in ArborGen and a gain of $2 million (before and after taxes) for other items.

(d)

Includes a pre-tax charge of $9 million ($4 million after taxes) for the impairment of the assets of our Foodservice business in Asia.

(e)

Includes a pre-tax charge of $354 million ($219 million after taxes) related to the agreement to settle the Kleen Products anti-trust class action lawsuit.

(f)

Includes a pre-tax gain of $4 million ($2 million after taxes) for interest income related to an income tax refund claim.

(g)

Includes a net tax benefit of $47 million primarily due to planned income tax refund claims.

(h)

Includes a pre-tax charge of $439 million ($270 million after taxes) for a settlement accounting charge associated with term-vested lump sum pension payments.

(i)

Includes a pre-tax charge of $5 million ($3 million after taxes) for costs associated with the agreement to purchase the Weyerhaeuser Pulp business.

(j)

Includes a pre-tax charge of $28 million ($20 million after taxes) for costs associated with the sale of our Asia corrugated packaging business.

(k)

Includes a tax expense of $23 million associated with 2016 cash pension contributions and a tax benefit of $6 million related to an international legal entity restructuring.

(l)

Includes a pre-tax charge of $14 million ($8 million after taxes) to amortize the inventory fair value step-up for the pulp business acquired in December 2016 and charges of $2 million (before and after taxes) for other costs.

(m)

Includes a pre-tax charge of $4 million ($2 million after taxes) for costs associated with the pulp business acquisition in December 2016.

(n)

Includes a net bargain purchase gain of $6 million (before and after taxes) associated with the June 2016 Holmen Paper mill acquisition in Madrid, Spain.

(o)

Includes a tax expense of $15 million for international investment restructuring.

(p)

Includes a pre-tax charge of $14 million ($8 million after taxes) to amortize the inventory fair value step-up for the pulp business acquired in December 2016, and pre-tax charges of $7 million ($5 million after taxes) associated with the pulp, coated paperboard, containerboard and printing papers businesses for abandoned property at our mills.

(q)

Includes a pre-tax charge of $9 million ($5 million after taxes) for costs associated with the pulp business acquisition in December 2016.

(r)

Includes a net tax benefit of $47 million primarily due to planned income tax refund claims and a tax expense of $15 million for international investment restructuring.

(s)

Includes a pre-tax gain of $8 million ($5 million after taxes) related to the sale of our investment in Arizona Chemical, and a pre-tax charge of $9 million ($6 million after taxes) for costs associated with the Riegelwood mill conversion to 100% pulp production.

(t)

Includes a pre-tax charge of $65 million ($54 million after taxes) for the impairment of the assets of our Asia corrugated packaging business and costs associated with the sale of that business.

(u)

Includes a tax benefit of $57 million related to the legal restructuring of our Brazil Packaging business, a tax expense of $23 million associated with 2016 cash pension contributions, a tax benefit of $14 million related to the closure of a U.S. federal  tax audit, and a tax benefit of $6 million related to an international legal entity restructuring.

(v)

Includes a pre-tax charge of $8 million ($5 million after taxes) for a legal settlement associated with the xpedx business.

INTERNATIONAL PAPER COMPANYReconciliation of Net Earnings (Loss) Attributable to International Paper Company to Adjusted Operating EarningsPreliminary and Unaudited(In millions except for per share amounts)

Three Months EndedJune 30,

ThreeMonthsEndedMarch 31,

Six Months EndedJune 30,

2017

2016

2017

2017

2016

Net Earnings (Loss) Attributable to International Paper Company

$           80

$            40

$          209

$         289

$          374

Add back: Discontinued operations (gain) loss

—

—

—

—

5

(e)

Earnings (Loss) from Continuing Operations, including non-controllinginterest

80

40

209

289

379

Add back: Non-operating pension expense

21

299

(g)

19

40

326

(g)

Add back: Special items expense (gain)

169

(a)

40

(b)

21

(c)

190

(d)

4

(f)

Adjusted Operating Earnings

$         270

$          379

$          249

$         519

$          709

Three Months EndedJune 30,

ThreeMonthsEndedMarch 31,

Six Months EndedJune 30,

2017

2016

2017

2017

2016

Diluted Earnings per Common Share as Reported

$        0.19

$         0.10

$         0.50

$        0.69

$         0.90

Add back: Discontinued operations (gain) loss

—

—

—

—

0.01

Continuing Operations

0.19

0.10

0.50

0.69

0.91

Add back: Non-operating pension expense

0.05

0.72

0.05

0.10

0.79

Add back: Special items expense (gain)

0.41

0.10

0.05

0.46

0.01

Adjusted Operating Earnings per Share

$        0.65

$         0.92

$         0.60

$        1.25

$         1.71

Notes:

(a)

See footnotes (a) - (g) on the Consolidated Statement of Operations

(b)

See footnotes (i) - (k) on the Consolidated Statement of Operations

(c)

See footnotes (l) - (o) on the Consolidated Statement of Operations

(d)

See footnotes (c) - (f), (n), (p) - (r) on the Consolidated Statement of Operations

(e)

See footnote (v) on the Consolidated Statement of Operations

(f)

See footnotes (i), (s) - (u) on the Consolidated Statement of Operations

(g)

See footnote (h) on the Consolidated Statement of Operations

(1)

The Company calculates Adjusted Operating Earnings (non-GAAP) by excluding the after-tax effect of non-operating pension expense and items considered by management to be unusual from the earnings reported under U.S. generally accepted accounting principles ("GAAP"). Management uses this measure to focus on on-going operations, and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present operating results. International Paper believes that using this information, along with net earnings, provides for a more complete analysis of the results of operations by quarter. Net earnings attributable to International Paper is the most directly comparable GAAP measure.

(2)

Since diluted earnings per share are computed independently for each period, six-month per share amounts may not equal the sum of the respective quarters.

INTERNATIONAL PAPER COMPANYSales and Earnings by Business SegmentPreliminary and Unaudited(In millions)

Sales by Business Segment

Three Months EndedJune 30,

ThreeMonthsEndedMarch 31,

Six Months EndedJune 30,

2017

2016

2017

2017

2016

Industrial Packaging

$     3,706

$       3,520

$       3,499

$     7,205

$       6,931

Global Cellulose Fibers

612

259

564

1,176

471

Printing Papers

1,017

1,012

995

2,012

1,984

Consumer Packaging

474

501

466

940

996

Corporate and Inter-segment Sales

(37)

30

(13)

(50)

50

Net Sales

$     5,772

$       5,322

$       5,511

$   11,283

$     10,432

Operating Profit by Business Segment

Three Months EndedJune 30,

ThreeMonthsEndedMarch 31,

Six Months EndedJune 30,

2017

2016

2017

2017

2016

Industrial Packaging

$           50

(a)

$          458

(f)

$          365

(a)

$        415

(a)

$          854

(f)

Global Cellulose Fibers

7

(b)

(21)

(g)

(70)

(b)

(63)

(b)

(71)

(g)

Printing Papers

86

(c)

117

100

186

(c)

252

Consumer Packaging

(14)

(d)

73

33

19

(d)

89

(h)

Total Business Segment Operating Profit

$        129

$          627

$          428

$        557

$       1,124

Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings

$         (29)

$          (14)

$          244

$        215

$          303

Interest expense, net

137

(e)

129

142

279

(e)

252

Noncontrolling interest/equity earnings adjustment (j)

(1)

—

—

(1)

—

Corporate items, net

4

25

11

15

46

Special items, net

(16)

—

—

(16)

(8)

Non-operating pension expense

34

487

(i)

31

65

531

(i)

Adjusted Operating Profit

$        129

$          627

$          428

$        557

$       1,124

Equity Earnings (Loss) in Ilim Holdings S.A., Net of Taxes

$           21

$            46

$            50

$           71

$          108

(a)

Includes a charge of $354 million for the three months and six months ended June 30, 2017 related to the agreement to settle the Kleen Products anti-trust class action lawsuit, a gain of $6 million for the three months ended March 31, 2017 and six months ended June 30, 2017 for a net bargain purchase gain associated with the June 2016 acquisition of Holmen Paper's newsprint mill in Madrid, Spain and charges of $3 million, $1 million and $4 million for the three months ended June 30, 2017 and March 31, 2017 and six months ended June 30, 2017, respectively, for other items.

(b)

Includes a charge of $14 million for the three months ended March 31, 2017 and six months ended June 30, 2017 for the amortization of the inventory fair value step-up for the pulp business acquired in December 2016, charges of $5 million, $4 million and $9 million for the three months ended June 30, 2017 and March 31, 2017 and six months ended June 30, 2017, respectively, for costs associated with the acquisition and integration of that business and a charge of $1 million for the three months ended March 31, 2017 and six months ended June 30, 2017 for other items.

(c)

Includes a charge of $2 million for the three months and six months ended June 30, 2017 for other items.

(d)

Includes a charge of $9 million for the three months and six months ended June 30, 2017 for the impairment of the assets of our Foodservice business in Asia.

(e)

Includes a gain of $4 million for the three months and six months ended June 30, 2017 for interest income associated with an income tax refund claim.

(f)

Includes a charge of $28 million and $65 million for the three months and six months ended June 30, 2016, respectively, for the impairment of the assets of our corrugated packaging business in Asia and costs associated with the sale of that business.

(g)

Includes a charge of $5 million for the three months and six months ended June 30, 2016 for costs associated with the agreement to purchase the Weyerhaeuser pulp business.

(h)

Includes a charge of $9 million for the six months ended June 30, 2016 for costs associated with the Riegelwood mill conversion to 100% pulp production.

(i)

Includes a charge of $439 million for the three months and six months ended June 30, 2016 for a settlement accounting charge associated with term-vested lump sum payments.

(j)

Operating profits for business segments include each segment's percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings.

INTERNATIONAL PAPER COMPANYReconciliation of Operating Profit to Operating Profit Before Special ItemsPreliminary and Unaudited(In millions)

Three Months Ended June 30, 2017

IndustrialPackaging

GlobalCelluloseFibers

PrintingPapers

ConsumerPackaging

Total

Operating Profit (Loss) as Reported

$              50

$                 7

$              86

$             (14)

$            129

Special Items Expense (Income) (a)

357

5

2

9

373

Operating Profit (Loss) Before Special Items

$            407

$              12

$              88

$               (5)

$            502

Three Months Ended June 30, 2016

IndustrialPackaging

GlobalCelluloseFibers

PrintingPapers

ConsumerPackaging

Total

Operating Profit (Loss) as Reported

$             458

$              (21)

$             117

$               73

$             627

Special Items Expense (Income) (b)

28

5

—

—

33

Operating Profit (Loss) Before Special Items

$             486

$              (16)

$             117

$               73

$             660

Three Months Ended March 31, 2017

IndustrialPackaging

GlobalCelluloseFibers

PrintingPapers

ConsumerPackaging

Total

Operating Profit (Loss) as Reported

$             365

$              (70)

$             100

$               33

$             428

Special Items Expense (Income) (c)

(5)

19

—

—

14

Operating Profit (Loss) Before Special Items

$             360

$              (51)

$             100

$               33

$             442

Six Months Ended June 30, 2017

IndustrialPackaging

GlobalCelluloseFibers

PrintingPapers

ConsumerPackaging

Total

Operating Profit (Loss) as Reported

$            415

$             (63)

$            186

$              19

$            557

Special Items Expense (Income) (a)

352

24

2

9

387

Operating Profit (Loss) Before Special Items

$            767

$             (39)

$            188

$              28

$            944

Six Months Ended June 30, 2016

IndustrialPackaging

GlobalCelluloseFibers

PrintingPapers

ConsumerPackaging

Total

Operating Profit (Loss) as Reported

$             854

$              (71)

$             252

$               89

$          1,124

Special Items Expense (Income) (d)

65

5

—

9

79

Operating Profit (Loss) Before Special Items

$             919

$              (66)

$             252

$               98

$          1,203

(a)

See footnotes (a) - (d) on Sales and Earnings by Business Segment

(b)

See footnotes (f) - (g) on Sales and Earnings by Business Segment

(c)

See footnotes (a) - (b) on Sales and Earnings by Business Segment

(d)

See footnotes (f) - (h) on Sales and Earnings by Business Segment

(1)

The Company calculates Operating Profit Before Special Items (non-GAAP) by excluding the pre-tax effect of items considered by management to be unusual from the earnings reported under U.S. generally accepted accounting principles ("GAAP"). Management uses this measure to focus on on-going operations, and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present operating results. International Paper believes that using this information, along with net earnings, provides for a more complete analysis of the results of operations by quarter. Net earnings attributable to International Paper is the most directly comparable GAAP measure.

INTERNATIONAL PAPER COMPANYSales Volume by Product (a)Preliminary and Unaudited

International Paper Consolidated

Three Months EndedJune 30,

ThreeMonthsEndedMarch 31,

Six Months EndedJune 30,

2017

2016

2017

2017

2016

Industrial Packaging (In thousands of short tons)

Corrugated Packaging (c)

2,648

2,642

2,537

5,185

5,161

Containerboard

797

770

813

1,610

1,510

Recycling

925

968

950

1,875

1,896

Saturated Kraft

41

44

46

87

91

Gypsum /Release Kraft

58

47

53

111

93

Bleached Kraft

6

5

7

13

11

EMEA Packaging (c) (d)

400

373

374

774

747

Asian Box (c) (e)

—

105

—

—

208

Brazilian Packaging  (c)

87

84

86

173

161

Industrial Packaging

4,962

5,038

4,866

9,828

9,878

Global Cellulose Fibers (In thousands of metric tons) (b)

896

451

877

1,773

818

Printing Papers (In thousands of short tons)

U.S. Uncoated Papers

465

460

489

954

935

European & Russian Uncoated Papers

380

389

359

739

762

Brazilian Uncoated Papers

288

272

264

552

526

Indian Uncoated Papers

67

61

61

128

124

Uncoated Papers

1,200

1,182

1,173

2,373

2,347

Consumer Packaging (In thousands of short tons)

North American Consumer Packaging

289

306

291

580

614

European Coated Paperboard

94

99

99

193

193

Consumer Packaging

383

405

390

773

807

(a)

Sales volumes include third party and inter-segment sales and exclude sales of equity investees.

(b)

Includes North American, European and Brazilian volumes and internal sales to mills. Includes sales volumes from the pulp business acquired beginning December 1, 2016.

(c)

Volumes for corrugated box sales reflect consumed tons sold (CTS). Board sales by these businesses reflect invoiced tons.

(d)

Excludes newsprint sales volumes at Madrid, Spain mill.

(e)

Includes sales volumes through the date of sale on June 30, 2016.

INTERNATIONAL PAPER COMPANYConsolidated Balance SheetPreliminary and Unaudited(In millions)

June 30, 2017

December 31, 2016

Assets

Current Assets

Cash and Temporary Investments

$                        1,041

$                         1,033

Accounts and Notes Receivable, Net

3,283

3,001

Inventories

2,361

2,438

Other

552

198

Total Current Assets

7,237

6,670

Plants, Properties and Equipment, Net

14,040

13,990

Forestlands

451

456

Investments

325

360

Financial Assets of Special Purpose Entities

7,042

7,033

Goodwill

3,409

3,364

Deferred Charges and Other Assets

1,373

1,220

Total Assets

$                     33,877

$                       33,093

Liabilities and Equity

Current Liabilities

Notes Payable and Current Maturities of Long-Term Debt

$                           824

$                            239

Accounts Payable and Accrued Liabilities

4,178

3,830

Total Current Liabilities

5,002

4,069

Long-Term Debt

10,392

11,075

Nonrecourse Financial Liabilities of Special Purpose Entities

6,287

6,284

Deferred Income Taxes

3,499

3,127

Pension Benefit Obligation

3,357

3,400

Postretirement and Postemployment Benefit Obligation

318

330

Other Liabilities

457

449

Equity

Invested Capital

(172)

(477)

Retained Earnings

4,717

4,818

Total Shareholders' Equity

4,545

4,341

Noncontrolling interests

20

18

Total Equity

4,565

4,359

Total Liabilities and Equity

$                     33,877

$                       33,093

INTERNATIONAL PAPER COMPANYConsolidated Statement of Cash FlowsPreliminary and Unaudited(In millions)

Six Months EndedJune 30,

2017

2016

Operating Activities

Net earnings (loss)

$               289

$                 374

Depreciation, amortization and cost of timber harvested

702

585

Deferred income tax expense (benefit), net

304

22

Litigation Settlement

354

—

Restructuring and other charges

(16)

1

Pension plan contributions

—

(250)

Net bargain purchase gain on acquisition of business

(6)

—

Net (gains) losses on sales and impairments of businesses

9

65

Ilim dividends received

127

58

Equity (earnings) loss, net

(68)

(108)

Periodic pension expense, net

158

624

Other, net

73

65

Changes in current assets and liabilities

Accounts and notes receivable

(230)

(86)

Inventories

21

48

Accounts payable and accrued liabilities

(110)

(76)

Interest payable

(1)

13

Other

(328)

(110)

Cash Provided By (Used For) Operating Activities

1,278

1,225

Investment Activities

Invested in capital projects

(664)

(637)

Acquisitions, net of cash acquired

(44)

(61)

Proceeds from divestitures, net of cash divested

—

101

Proceeds from sale of fixed assets

17

11

Other

(39)

(106)

Cash Provided By (Used For) Investment Activities

(730)

(692)

Financing Activities

Repurchases of common stock and payments of restricted stock tax withholding

(46)

(132)

Issuance of debt

132

1,204

Reduction of debt

(248)

(1,070)

Change in book overdrafts

(6)

6

Dividends paid

(382)

(362)

Cash Provided By (Used for) Financing Activities

(550)

(354)

Cash Included in Assets Held for Sale

(4)

—

Effect of Exchange Rate Changes on Cash

14

25

Change in Cash and Temporary Investments

8

204

Cash and Temporary Investments

Beginning of the period

1,033

1,050

End of the period

$            1,041

$              1,254

INTERNATIONAL PAPER COMPANYReconciliation of Cash Provided by Operations to Free Cash FlowPreliminary and Unaudited(In millions)

Three Months EndedJune 30,

Six Months EndedJune 30,

2017

2016

2017

2016

Cash provided by (used for) Operating Activities

$      645

$      605

$   1,278

$   1,225

Adjustments:

Cash invested in capital projects

(290)

(328)

(664)

(637)

Cash contribution to pension plan

—

250

—

250

Free Cash Flow

$      355

$      527

$      614

$      838

(1) Free cash flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provided by operations. Management believes that free cash flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. By adjusting for certain items that are not indicative of the Company's ongoing performance, free cash flow also enables investors to perform meaningful comparisons between past and present periods.