Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-03157 | |
Entity Registrant Name | INTERNATIONAL PAPER COMPANY | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-0872805 | |
Entity Address, Address Line One | 6400 Poplar Avenue | |
Entity Address, City or Town | Memphis, | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 38197 | |
City Area Code | 901 | |
Local Phone Number | 419-7000 | |
Title of 12(b) Security | Common Shares | |
Trading Symbol | IP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 392,116,473 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000051434 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Sales | $ 5,568 | $ 5,901 | $ 16,878 | $ 17,355 |
Costs and Expenses | ||||
Cost of products sold | 3,772 | 3,887 | 11,602 | 11,757 |
Selling and administrative expenses | 387 | 405 | 1,202 | 1,277 |
Depreciation, amortization and cost of timber harvested | 327 | 335 | 963 | 990 |
Distribution expenses | 395 | 397 | 1,168 | 1,166 |
Taxes other than payroll and income taxes | 42 | 44 | 128 | 130 |
Restructuring and other charges, net | 21 | 0 | 21 | 48 |
Net (gains) losses on sales and impairments of businesses | 8 | 122 | 153 | 122 |
Litigation fines and settlements - antitrust | 32 | 0 | 32 | 0 |
Interest expense, net | 123 | 133 | 378 | 401 |
Non-operating pension expense | 9 | 25 | 27 | 65 |
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 452 | 553 | 1,204 | 1,399 |
Income tax provision (benefit) | 137 | 83 | 371 | 302 |
Equity earnings (loss), net of taxes | 27 | 92 | 221 | 257 |
Earnings (Loss) From Continuing Operations | 342 | 562 | 1,054 | 1,354 |
Discontinued operations, net of taxes | 0 | 0 | 0 | 345 |
Net Earnings (Loss) | 342 | 562 | 1,054 | 1,699 |
Less: Net earnings (loss) attributable to noncontrolling interests | (2) | 0 | (6) | 3 |
Net Earnings (Loss) Attributable to International Paper Company | $ 344 | $ 562 | $ 1,060 | $ 1,696 |
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||||
Earnings (loss) from continuing operations | $ 0.88 | $ 1.38 | $ 2.67 | $ 3.28 |
Discontinued operations, net of taxes | 0 | 0 | 0 | 0.84 |
Net earnings (loss) | 0.88 | 1.38 | 2.67 | 4.12 |
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||||
Earnings (loss) from continuing operations | 0.87 | 1.37 | 2.65 | 3.25 |
Discontinued operations, net of taxes | 0 | 0 | 0 | 0.83 |
Net earnings (loss) | $ 0.87 | $ 1.37 | $ 2.65 | $ 4.08 |
Average Shares of Common Stock Outstanding – assuming dilution | 395.4 | 411.4 | 399.6 | 416.3 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Earnings (Loss) | $ 342 | $ 562 | $ 1,054 | $ 1,699 |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Change in cumulative foreign currency translation adjustment | (179) | (87) | (106) | (467) |
Net gains/losses on cash flow hedging derivatives: | ||||
Net gains (losses) arising during the period | (10) | 1 | (6) | (20) |
Reclassification adjustment for (gains) losses included in net earnings (loss) | 4 | 2 | 5 | 2 |
Total Other Comprehensive Income (Loss), Net of Tax | (144) | (8) | 15 | (258) |
Comprehensive Income (Loss) | 198 | 554 | 1,069 | 1,441 |
Net (earnings) loss attributable to noncontrolling interests | 2 | 0 | 6 | (3) |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 2 | 0 | 4 |
Comprehensive Income (Loss) Attributable to International Paper Company | 200 | 556 | 1,075 | 1,442 |
U.S. plans | ||||
Other Comprehensive Income (Loss), Net of Tax: | ||||
Amortization of pension and post-retirement prior service costs and net loss: | $ 41 | $ 76 | $ 122 | $ 227 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and temporary investments | $ 697 | $ 589 |
Accounts and notes receivable, net | 3,305 | 3,521 |
Contract assets | 388 | 395 |
Inventories | 2,194 | 2,241 |
Assets held for sale | 278 | 0 |
Other current assets | 189 | 250 |
Total Current Assets | 7,051 | 6,996 |
Plants, Properties and Equipment, net | 12,845 | 13,067 |
Forestlands | 378 | 402 |
Investments | 1,651 | 1,648 |
Financial Assets of Variable Interest Entities (Note 16) | 7,084 | 7,070 |
Goodwill | 3,412 | 3,374 |
Right of Use Assets | 425 | 0 |
Deferred Charges and Other Assets | 1,002 | 1,019 |
Total Assets | 33,848 | 33,576 |
Current Liabilities | ||
Notes payable and current maturities of long-term debt | 402 | 639 |
Accounts payable | 2,349 | 2,413 |
Accrued payroll and benefits | 442 | 535 |
Liabilities held for sale | 248 | 0 |
Other current liabilities | 1,288 | 1,107 |
Total Current Liabilities | 4,729 | 4,694 |
Long-Term Debt | 9,957 | 10,015 |
Nonrecourse Financial Liabilities of Variable Interest Entities (Note 16) | 6,303 | 6,298 |
Deferred Income Taxes | 2,643 | 2,600 |
Pension Benefit Obligation | 1,653 | 1,762 |
Postretirement and Postemployment Benefit Obligation | 248 | 264 |
Long-Term Lease Obligations | 292 | 0 |
Other Liabilities | 567 | 560 |
Equity | ||
Common stock, $1 par value, 2019 – 448.9 shares and 2018 – 448.9 shares | 449 | 449 |
Paid-in capital | 6,261 | 6,280 |
Retained earnings | 8,447 | 7,465 |
Accumulated other comprehensive loss | (5,014) | (4,500) |
Shareholders' Equity before Treasury Stock, Total | 10,143 | 9,694 |
Less: Common stock held in treasury, at cost, 2019 – 56.8 shares and 2018 – 48.3 shares | 2,702 | 2,332 |
Total International Paper Shareholders’ Equity | 7,441 | 7,362 |
Noncontrolling interests | 15 | 21 |
Total Equity | 7,456 | 7,383 |
Total Liabilities and Equity | $ 33,848 | $ 33,576 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares | 448.9 | 448.9 |
Common stock held in treasury, shares | 56.8 | 48.3 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||
Net earnings (loss) | $ 1,054 | $ 1,699 |
Depreciation, amortization and cost of timber harvested | 963 | 990 |
Deferred income tax provision (benefit), net | 68 | 163 |
Restructuring and other charges, net | 21 | 48 |
Net gain on transfer of North American Consumer Packaging business | 0 | (488) |
Net (gains) losses on sales and impairments of businesses | 153 | 122 |
Litigation fines and settlements - antitrust | 32 | 0 |
Equity method dividends received | 260 | 130 |
Equity (earnings) losses, net | (221) | (257) |
Periodic pension expense, net | 70 | 172 |
Other, net | 106 | 75 |
Changes in current assets and liabilities | ||
Accounts and notes receivable | 168 | (441) |
Contract assets | 6 | (20) |
Inventories | (9) | (120) |
Accounts payable and accrued liabilities | (11) | 301 |
Interest payable | (31) | (33) |
Other | 53 | 64 |
Cash Provided By (Used For) Operations | 2,682 | 2,405 |
Investment Activities | ||
Invested in capital projects | (913) | (1,286) |
Acquisitions, net of cash acquired | (99) | 0 |
Net settlement on transfer of North American Consumer Packaging business | 0 | (40) |
Proceeds from divestitures, net of cash divested | 17 | 0 |
Proceeds from sale of fixed assets | 15 | 12 |
Other | (14) | 4 |
Cash Provided By (Used For) Investment Activities | (994) | (1,310) |
Financing Activities | ||
Repurchases of common stock and payments of restricted stock tax withholding | (535) | (532) |
Issuance of debt | 381 | 349 |
Reduction of debt | (772) | (242) |
Change in book overdrafts | (29) | (33) |
Dividends paid | (595) | (588) |
Other | 3 | 0 |
Cash Provided By (Used For) Financing Activities | (1,547) | (1,046) |
Cash Included in Assets Held for Sale | (19) | 0 |
Effect of Exchange Rate Changes on Cash | (14) | (41) |
Change in Cash and Temporary Investments | 108 | 8 |
Cash and Temporary Investments | ||
Beginning of period | 589 | 1,018 |
End of period | $ 697 | $ 1,026 |
BASIS OF PRESENTATION Footnote
BASIS OF PRESENTATION Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation [Note Text Block] | The accompanying unaudited condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of International Paper Company’s (International Paper’s, the Company’s or our) financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first nine months of the year may not necessarily be indicative of full year results. It is suggested that these condensed financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Developments [Note Text Block] | Recently Adopted Accounting Pronouncements Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The Company adopted the provisions of this guidance effective January 1, 2019, using the modified retrospective optional transition method. Therefore, the standard was applied beginning January 1, 2019 and prior periods were not restated. The adoption of the standard did not result in a cumulative-effect adjustment to the opening balance of Retained earnings. The Company elected the package of practical expedients and implemented internal controls and system functionality to enable the preparation of financial information upon adoption. The adoption of the new standard resulted in the recognition of a right of use asset and short-term and long-term liabilities recorded on the Company's consolidated balance sheet related to operating leases. Accounting for finance leases remained substantially unchanged. In addition, the adoption of the standard did not have a material impact on the Company's results of operations or cash flows. Comprehensive Income In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This guidance gives entities the option to reclassify stranded tax effects caused by the newly-enacted U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. As a result, the Company adopted this guidance effective January 1, 2019, and recorded a net increase to opening Retained earnings and a decrease to opening Accumulated other comprehensive income of $529 million , due to the cumulative impact of adopting the new guidance. Recently Issued Accounting Pronouncements Not Yet Adopted Intangibles In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." This guidance eliminates the requirement to calculate the implied fair value of goodwill under Step 2 of today's goodwill impairment test to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. This guidance should be applied prospectively and is effective for annual reporting periods beginning after December 15, 2019, for any impairment test performed in 2020. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company plans to early adopt this guidance in the fourth quarter of 2019 in conjunction with our annual evaluation for possible goodwill impairment which is performed in addition to interim evaluations when management believes that it is more likely than not, that events or circumstances have occurred that would result in the impairment of a reporting unit's goodwill. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This guidance replaces the current incurred loss impairment method with a method that reflects expected credit losses. This guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. This guidance should be applied using the modified-retrospective approach. In May 2019, the FASB issued ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief." The amendments in this Update provide entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. The amendments also decrease costs for some financial statement preparers while providing financial statement users with decision-useful information. For entities that have not yet adopted the amendments in Update 2016-13, the effective date and transition methodology for the amendments in this Update are the same as in Update 2016-13. The Company is currently evaluating the provisions of this guidance and plans to adopt this guidance and the related amendments on its effective date of January 1, 2020, by recognizing any cumulative effect of initially applying the new standard as an adjustment to the opening balance of Retained earnings. Pension Plan Disclosures In July 2018, the FASB issued ASU 2018-09, "Codification Improvements," which included amendments to Subtopic 962-325. This disclosure guidance pertains to the presentation of certain types of investments and is effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the provisions of this guidance and its potential impact on our 2019 annual Form 10-K disclosures and presentation related to pension plan assets. |
REVENUE RECOGNITION Footnote
REVENUE RECOGNITION Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Generally, the Company recognizes revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods. For customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time which, generally, is as the goods are produced. Disaggregated Revenue A geographic disaggregation of revenues across our company segmentation in the following tables provides information to assist in evaluating the nature, timing and uncertainty of revenue and cash flows and how they may be impacted by economic factors. Three Months Ended September 30, 2019 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 3,180 $ 535 $ 486 $ 56 $ 4,257 EMEA 415 62 315 (1 ) 791 Pacific Rim and Asia 20 27 47 3 97 Americas, other than U.S. 205 — 223 (5 ) 423 Total $ 3,820 $ 624 $ 1,071 $ 53 $ 5,568 Operating Segments North American Industrial Packaging $ 3,368 $ — $ — $ — $ 3,368 EMEA Industrial Packaging 324 — — — 324 Brazilian Industrial Packaging 61 — — — 61 European Coated Paperboard 92 — — — 92 Global Cellulose Fibers — 624 — — 624 North American Printing Papers — — 492 — 492 Brazilian Papers — — 247 — 247 European Papers — — 299 — 299 Indian Papers — — 38 — 38 Intra-segment Eliminations (25 ) — (5 ) — (30 ) Corporate & Inter-segment Sales — — 53 53 Total $ 3,820 $ 624 $ 1,071 $ 53 $ 5,568 (a) Net sales are attributed to countries based on the location of the seller. Nine Months Ended September 30, 2019 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 9,531 $ 1,656 $ 1,448 $ 174 $ 12,809 EMEA 1,263 207 986 (8 ) 2,448 Pacific Rim and Asia 50 111 167 9 337 Americas, other than U.S. 672 — 623 (11 ) 1,284 Total $ 11,516 $ 1,974 $ 3,224 $ 164 $ 16,878 Operating Segments North American Industrial Packaging $ 10,158 $ — $ — $ — $ 10,158 EMEA Industrial Packaging 994 — — — 994 Brazilian Industrial Packaging 176 — — — 176 European Coated Paperboard 275 — — — 275 Global Cellulose Fibers — 1,974 — — 1,974 North American Printing Papers — — 1,474 — 1,474 Brazilian Papers — — 702 — 702 European Papers — — 929 — 929 Indian Papers — — 144 — 144 Intra-segment Eliminations (87 ) — (25 ) — (112 ) Corporate & Inter-segment Sales — — 164 164 Total $ 11,516 $ 1,974 $ 3,224 $ 164 $ 16,878 (a) Net sales are attributed to countries based on the location of the seller. Three Months Ended September 30, 2018 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 3,394 $ 602 $ 482 $ 52 $ 4,530 EMEA 396 77 328 (4 ) 797 Pacific Rim and Asia 40 35 62 6 143 Americas, other than U.S. 204 — 230 (3 ) 431 Total $ 4,034 $ 714 $ 1,102 $ 51 $ 5,901 Operating Segments North American Industrial Packaging $ 3,653 $ — $ — $ — $ 3,653 EMEA Industrial Packaging 311 — — — 311 Brazilian Industrial Packaging 57 — — — 57 European Coated Paperboard 87 — — — 87 Global Cellulose Fibers — 714 — — 714 North American Printing Papers — — 492 — 492 Brazilian Papers — — 255 — 255 European Papers — — 311 — 311 Indian Papers — — 47 — 47 Intra-segment Eliminations (74 ) — (3 ) — (77 ) Corporate & Inter-segment Sales — — — 51 51 Total $ 4,034 $ 714 $ 1,102 $ 51 $ 5,901 (a) Net sales are attributed to countries based on the location of the seller. Nine Months Ended September 30, 2018 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 9,832 $ 1,720 $ 1,399 $ 163 $ 13,114 EMEA 1,275 222 988 (13 ) 2,472 Pacific Rim and Asia 110 140 185 35 470 Americas, other than U.S. 666 1 643 (11 ) 1,299 Total $ 11,883 $ 2,083 $ 3,215 $ 174 $ 17,355 Operating Segments North American Industrial Packaging $ 10,604 $ — $ — $ — $ 10,604 EMEA Industrial Packaging 1,017 — — — 1,017 Brazilian Industrial Packaging 175 — — — 175 European Coated Paperboard 265 — — — 265 Global Cellulose Fibers — 2,083 — — 2,083 North American Printing Papers — — 1,443 — 1,443 Brazilian Papers — — 706 — 706 European Papers — — 932 — 932 Indian Papers — — 150 — 150 Intra-segment Eliminations (178 ) — (16 ) — (194 ) Corporate & Inter-segment Sales — — — 174 174 Total $ 11,883 $ 2,083 $ 3,215 $ 174 $ 17,355 (a) Net sales are attributed to countries based on the location of the seller. Revenue Contract Balances The opening and closing balances of the Company's contract assets and current contract liabilities are as follows: In millions Contract Assets (Short-Term) Contract Liabilities (Short-Term) Beginning Balance - January 1, 2019 $ 395 $ 56 Ending Balance -September 30, 2019 388 28 Increase / (Decrease) $ (7 ) $ (28 ) A contract asset is created when the Company recognizes revenue on its customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes to the customer. A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months. The difference between the opening and closing balances of the Company's contract assets and contract liabilities primarily results from the difference between the price and quantity at comparable points in time for goods for which we have an unconditional right to payment or receive pre-payment from the customer, respectively. |
EQUITY Footnote
EQUITY Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Equity [Note Text Block] | A summary of the changes in equity for the three months and nine months ended September 30, 2019 and 2018 is provided below: Three Months Ended September 30, 2019 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, July 1 $ 449 $ 6,229 $ 8,302 $ (4,870 ) $ 2,628 $ 7,482 $ 17 $ 7,499 Issuance of stock for various plans, net — 32 — — (1 ) 33 — 33 Repurchase of stock — — — — 75 (75 ) — (75 ) Common stock dividends ($0.5000 per share) — — (199 ) — — (199 ) — (199 ) Transactions of equity method investees — — — — — — — — Comprehensive income (loss) — — 344 (144 ) — 200 (2 ) 198 Ending Balance, September 30 $ 449 $ 6,261 $ 8,447 $ (5,014 ) $ 2,702 $ 7,441 $ 15 $ 7,456 Nine Months Ended September 30, 2019 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, January 1 $ 449 $ 6,280 $ 7,465 $ (4,500 ) $ 2,332 $ 7,362 $ 21 $ 7,383 Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform — — 529 (529 ) — — — — Issuance of stock for various plans, net — (52 ) — — (165 ) 113 — 113 Repurchase of stock — — — — 535 (535 ) — (535 ) Common stock dividends ($1.5000 per share) — — (607 ) — — (607 ) — (607 ) Transactions of equity method investees — 33 — — — 33 — 33 Comprehensive income (loss) — — 1,060 15 — 1,075 (6 ) 1,069 Ending Balance, September 30 $ 449 $ 6,261 $ 8,447 $ (5,014 ) $ 2,702 $ 7,441 $ 15 $ 7,456 Three Months Ended September 30, 2018 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, July 1 $ 449 $ 6,219 $ 6,988 $ (4,881 ) $ 1,931 $ 6,844 $ 20 $ 6,864 Issuance of stock for various plans, net — 36 — — (1 ) 37 — 37 Repurchase of stock — — — — 201 (201 ) — (201 ) Common stock dividends ($0.4750 per share) — — (197 ) — — (197 ) — (197 ) Transactions of equity method investees — 1 — — — 1 — 1 Comprehensive income (loss) — — 562 (6 ) — 556 (2 ) 554 Ending Balance, September 30 $ 449 $ 6,256 $ 7,353 $ (4,887 ) $ 2,131 $ 7,040 $ 18 $ 7,058 Nine Months Ended September 30, 2018 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, January 1 $ 449 $ 6,206 $ 6,180 $ (4,633 ) $ 1,680 $ 6,522 $ 19 $ 6,541 Adoption of ASC 606 revenue from contracts with customers — — 73 — — 73 — 73 Issuance of stock for various plans, net — 31 — — (81 ) 112 — 112 Repurchase of stock — — — — 532 (532 ) — (532 ) Common stock dividends ($1.4250 per share) — — (596 ) — — (596 ) — (596 ) Transactions of equity method investees — 19 — — — 19 — 19 Comprehensive income (loss) — — 1,696 (254 ) — 1,442 (1 ) 1,441 Ending Balance, September 30 $ 449 $ 6,256 $ 7,353 $ (4,887 ) $ 2,131 $ 7,040 $ 18 $ 7,058 |
OTHER COMPREHENSIVE INCOME Foot
OTHER COMPREHENSIVE INCOME Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income [Note Text Block] | The following table presents changes in accumulated other comprehensive income (AOCI) for the three months and nine months ended September 30, 2019 and 2018 : Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (2,362 ) $ (2,376 ) $ (1,916 ) $ (2,527 ) Reclassification of stranded tax effects — — (527 ) — Amounts reclassified from accumulated other comprehensive income 41 76 122 227 Balance at end of period (2,321 ) (2,300 ) (2,321 ) (2,300 ) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (2,508 ) (2,489 ) (2,581 ) (2,111 ) Other comprehensive income (loss) before reclassifications (179 ) (87 ) (110 ) (469 ) Amounts reclassified from accumulated other comprehensive income — — 4 2 Other comprehensive income (loss) attributable to noncontrolling interest — 2 — 4 Balance at end of period (2,687 ) (2,574 ) (2,687 ) (2,574 ) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period — (16 ) (3 ) 5 Other comprehensive income (loss) before reclassifications (10 ) 1 (6 ) (20 ) Reclassification of stranded tax effects — — (2 ) — Amounts reclassified from accumulated other comprehensive income 4 2 5 2 Balance at end of period (6 ) (13 ) (6 ) (13 ) Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (5,014 ) $ (4,887 ) $ (5,014 ) $ (4,887 ) The following table presents details of the reclassifications out of AOCI for the three months and nine months ended September 30, 2019 and 2018 : In millions: Amounts Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI Three Months Ended Nine Months Ended 2019 2018 2019 2018 Defined benefit pension and postretirement items: Prior-service costs $ (4 ) $ (4 ) $ (10 ) $ (11 ) (a) Non-operating pension expense Actuarial gains (losses) (50 ) (97 ) (152 ) (291 ) (a) Non-operating pension expense Total pre-tax amount (54 ) (101 ) (162 ) (302 ) Tax (expense) benefit 13 25 40 75 Net of tax (41 ) (76 ) (122 ) (227 ) Reclassification of stranded tax effects — — 527 — Retained Earnings Total, net of tax (41 ) (76 ) 405 (227 ) Change in cumulative foreign currency translation adjustments: Business acquisitions/divestitures — — (4 ) (2 ) (b) Cost of products sold Tax (expense) benefit — — — — Net of tax — — (4 ) (2 ) Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts (6 ) (3 ) (7 ) (3 ) (c) Cost of products sold Total pre-tax amount (6 ) (3 ) (7 ) (3 ) Tax (expense)/benefit 2 1 2 1 Net of tax (4 ) (2 ) (5 ) (2 ) Reclassification of stranded tax effects — — 2 — Retained Earnings Total, net of tax (4 ) (2 ) (3 ) (2 ) Total reclassifications for the period $ (45 ) $ (78 ) $ 398 $ (231 ) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details). (b) Amounts for the three months and nine months ended September 30, 2018 were reclassified to Discontinued operations, net of taxes. (c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 18 for additional details). |
EARNINGS PER SHARE ATTRIBUTABLE
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Note Text Block] | Basic earnings per share is computed by dividing earnings by the weighted average number of common shares outstanding. Diluted earnings per share is computed assuming that all potentially dilutive securities were converted into common shares. There are no adjustments required to be made to net income for purposes of computing basic and diluted earnings per share. A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing operations, and diluted earnings (loss) per share from continuing operations is as follows: Three Months Ended Nine Months Ended In millions, except per share amounts 2019 2018 2019 2018 Earnings (loss) from continuing operations attributable to International Paper Company common shareholders $ 344 $ 562 $ 1,060 $ 1,351 Weighted average common shares outstanding 392.6 407.4 396.3 411.4 Effect of dilutive securities Restricted performance share plan 2.8 4.0 3.3 4.9 Weighted average common shares outstanding – assuming dilution 395.4 411.4 399.6 416.3 Basic earnings (loss) per share from continuing operations $ 0.88 $ 1.38 $ 2.67 $ 3.28 Diluted earnings (loss) per share from continuing operations $ 0.87 $ 1.37 $ 2.65 $ 3.25 |
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities [Note Text Block] | 2019: During the three months ended September 30, 2019, the Company recorded an $11 million pre-tax charge in Corporate, a $6 million pre-tax charge in the Printing Papers segment, and a $4 million pre-tax charge in the Global Cellulose Fibers segment for severance related to an overhead cost reduction initiative. The majority of the severance is expected to be paid over the next twelve months. There were no restructuring and other charges recorded during the three months and six months ended June 30, 2019. 2018 : There were no restructuring and other charges recorded during the three months ended September 30, 2018. During the three months ended June 30, 2018, the Company recorded a $26 million pre-tax charge, in the Industrial Packaging segment, related to approximately $12 million of severance, $6 million in accelerated depreciation, $2 million in accelerated amortization, and $6 million in other charges in conjunction with the optimization of our EMEA Packaging business. During the three months ended March 31, 2018, the Company recorded a $22 million |
ACQUISITIONS (Notes)
ACQUISITIONS (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | On June 28, 2019, the Company closed on the previously announced acquisition of two packaging businesses located in Portugal (Ovar) and France (Torigni and Cabourg) from DS Smith Packaging. The total purchase consideration, inclusive of working capital adjustments, was approximately €72 million (approximately $82 million at June 30, 2019 exchange rates), subject to post-closing adjustments. The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of June 28, 2019: In millions Cash and temporary investments $ 1 Accounts and notes receivable 23 Inventory 8 Plants, properties and equipment 28 Goodwill 48 Right of use assets 2 Total assets acquired 110 Accounts payable and accrued liabilities 20 Other current liabilities 1 Long-term debt 2 Postretirement and postemployment benefit obligation 3 Long-term lease obligations 2 Total liabilities assumed 28 Net assets acquired $ 82 Since the date of acquisition, Net sales of $25 million and Earnings (loss) from continuing operations before income taxes and equity earnings of $2 million from the acquired business have been included in the Company's consolidated statement of operations for the three months ended September 30, 2019. The purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding assets acquired and liabilities assumed, and revisions of provisional estimates of fair values, including, but not limited to, the completion of independent appraisals and valuations related to inventory, property, plant and equipment and acquired intangible assets. Adjustments to provisional amounts will be finalized as new information becomes available, but within the adjustment period of up to one year from the acquisition date. Pro forma information has not been included as it is impracticable to obtain the information due to the lack of availability of historical U.S. GAAP financial data. The results of the operations of these businesses do not have a material effect on the Company's consolidated results of operations. The Company has accounted for the above acquisition under ASC 805, "Business Combinations" and the results of operations have been included in International Paper's financial statements beginning with the date of acquisition. |
DIVESTITURES Footnote
DIVESTITURES Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Note Text Block] | Discontinued Operations On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which included its North American Coated Paperboard and Foodservice businesses, to Graphic Packaging International Partners, LLC (GPIP), a subsidiary of Graphic Packaging Holding Company, in exchange for a 20.5% ownership interest in GPIP. GPIP subsequently transferred the North American Consumer Packaging business to Graphic Packaging International, LLC (GPI), a wholly owned subsidiary of GPIP. International Paper is accounting for its ownership interest in the combined business under the equity method. The Company determined the fair value of its investment in the combined business and recorded a pre-tax gain of $516 million ( $385 million after taxes) on the transfer in the first quarter of 2018, subject to final working capital settlement. During the second quarter of 2018, the Company recorded a pre-tax charge of $28 million ( $21 million after taxes) to adjust the previously recorded gain on the transfer. The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued operations, net of tax, related to the transfer of the North American Consumer Packaging business for all periods presented in the consolidated statement of operations: Three Months Ended Nine Months Ended In millions 2018 2018 Net Sales $ — $ — Costs and Expenses Selling and administrative expenses — 25 (Gain) loss on transfer of business — (488 ) Earnings (Loss) Before Income Taxes and Equity Earnings — 463 Income tax provision (benefit) — 118 Discontinued Operations, Net of Taxes $ — $ 345 Total cash used for operations related to the North American Consumer Packaging business of $25 million for the nine months ended September 30, 2018 , is included in Cash Provided By (Used For) Operations in the consolidated statement of cash flows. Total cash used for investing activities related to the North American Consumer Packaging business of $40 million for the nine months ended September 30, 2018 , is included in Cash Provided By (Used For) Investing Activities in the consolidated statement of cash flows. Other Divestitures On May 29, 2019, the Company announced that it had entered into an agreement with West Coast Paper Mills Limited (WCPM) to sell its controlling interest in International Paper APPM Limited (APPM), an India-based paper business, for ₨275 (Indian Rupees) per share. International Paper then owned approximately 30 million shares, or 75% of the outstanding shares of APPM. In conjunction with the announced agreement in the second quarter of 2019, a determination was made that the current book value of the APPM disposal group exceeded its estimated fair value of $119 million which was based on the agreed upon transaction price. As a result, a preliminary pre-tax charge of $152 million ( $150 million after taxes) was recorded during the second quarter of 2019. During the third quarter of 2019, the Company recorded an additional charge of $8 million (before and after taxes), which included $2 million related to the change in cumulative foreign currency translation loss and a $6 million loss related to the change in the book value of the long-lived assets of APPM compared to the estimated fair value of the disposal group. These charges are included in the Net (gains) losses on sales and impairments of businesses line item in the accompanying consolidated statement of operations and is included in the results for the Printing Papers segment. A year-to- date loss of $9 million (before and after taxes) has been allocated to the noncontrolling interest related to the impairment of the long-lived assets of APPM. The transaction closed on October 30, 2019 and the Company retained a passive investment of 20% in APPM. During the fourth quarter of 2019, a final immaterial adjustment to the impairment charge to reflect the difference between the proceeds received from the transaction and the closing book value of the long-lived assets will be recorded. In addition, the Company will record our retained investment at fair value. At September 30, 2019, all assets and liabilities related to APPM are classified as current assets held for sale and current liabilities held for sale in the accompanying consolidated balance sheet. The following summarizes the major classes of assets and liabilities of APPM reconciled to total Assets held for sale and total Liabilities held for sale in the accompanying consolidated balance sheet: In millions September 30, 2019 Cash and temporary investments $ 19 Accounts and notes receivable 16 Inventories 23 Other current assets 19 Plants, properties and equipment 195 Deferred charges and other assets 6 Total Assets Held for Sale $ 278 Accounts payable and accrued liabilities $ 18 Other current liabilities 22 Deferred income taxes 47 Other liabilities 1 Net impairment reserve 160 Total Liabilities Held for Sale $ 248 |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Statement Information [Note Text Block] | Temporary Investments Temporary investments with an original maturity of three months or less are treated as cash equivalents and are stated at cost. Temporary investments totaled $484 million and $402 million at September 30, 2019 and December 31, 2018 , respectively. Accounts and Notes Receivable In millions September 30, 2019 December 31, 2018 Accounts and notes receivable, net: Trade $ 3,055 $ 3,249 Other 250 272 Total $ 3,305 $ 3,521 The allowance for doubtful accounts was $77 million and $81 million at September 30, 2019 and December 31, 2018 , respectively. Inventories In millions September 30, 2019 December 31, 2018 Raw materials $ 270 $ 260 Finished pulp, paper and packaging 1,140 1,241 Operating supplies 637 641 Other 147 99 Total $ 2,194 $ 2,241 Plants, Properties and Equipment Accumulated depreciation was $20.4 billion and $20.5 billion at September 30, 2019 and December 31, 2018 , respectively. Depreciation expense was $305 million and $315 million for the three months ended September 30, 2019 and 2018 , respectively, and $902 million and $930 million for the nine months ended September 30, 2019 and 2018 , respectively. Non-cash additions to plants, property and equipment included within accounts payable were $104 million and $135 million at September 30, 2019 and December 31, 2018 , respectively. Interest Interest payments made during the nine months ended September 30, 2019 and 2018 were $591 million and $606 million , respectively. Amounts related to interest were as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Interest expense $ 177 $ 184 $ 538 $ 547 Interest income 54 51 160 146 Capitalized interest costs 7 9 21 26 Asset Retirement Obligations The Company had recorded liabilities of $95 million and $86 million related to asset retirement obligations at September 30, 2019 and December 31, 2018 , respectively. |
LEASES (Notes)
LEASES (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have remaining lease terms of one year to 97 years . Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases. Right of use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Effective January 1, 2019, operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company's leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles, and leases within supply agreements primarily relate to usage, repairs, and maintenance. As the implicit rate is not readily determinable for most of the Company's leases, the Company applies a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities. Components of Lease Expense In millions Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease costs $ 39 $ 115 Variable lease costs 16 53 Short-term lease costs 9 27 Finance lease cost Amortization of lease assets 3 8 Interest on lease liabilities 1 3 Total lease cost, net $ 68 $ 206 Supplemental Balance Sheet Information Related to Leases In millions Classification September 30, 2019 Assets Operating lease assets Right-of-use assets $ 425 Finance lease assets Plants, properties and equipment, net (a) 105 Total leased assets $ 530 Liabilities Current Operating Other current liabilities $ 136 Finance Notes payable and current maturities of long-term debt 13 Noncurrent Operating Long-term lease obligations 292 Finance Long-term debt 91 Total lease liabilities $ 532 (a) Finance leases are recorded net of accumulated amortization of $37 million . Lease Term and Discount Rate In millions September 30, 2019 Weighted average remaining lease term (years) Operating leases 9.8 years Finance leases 11.3 years Weighted average discount rate Operating leases 3.24 % Finance leases 4.74 % Supplemental Cash Flow Information Related to Leases In millions Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 110 Operating cash flows related to financing leases 3 Financing cash flows related to finance leases 7 Maturity of Lease Liabilities September 30, 2019 In millions Operating Leases Financing Leases Total 2019 (remainder of year) $ 39 $ 4 $ 43 2020 138 17 155 2021 97 15 112 2022 64 13 77 2023 35 11 46 2024 18 10 28 Thereafter 95 65 160 Total lease payments 486 135 621 Less: Interest (a) 58 31 89 Present value of lease liabilities $ 428 $ 104 $ 532 (a) Calculated using the interest rate for each lease. At December 31, 2018, total future minimum commitments under existing non-cancelable operating leases were as follows: In millions 2019 2020 2021 2022 2023 Thereafter Lease obligations $ 160 $ 125 $ 77 $ 49 $ 28 $ 118 |
EQUITY METHOD INVESTMENTS Footn
EQUITY METHOD INVESTMENTS Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | The Company accounts for the following investments in affiliated companies under the equity method of accounting. Graphic Packaging International Partners, LLC On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which included its North American Coated Paperboard and Foodservice businesses, to a subsidiary of Graphic Packaging International Partners, LLC (GPIP), a subsidiary of Graphic Packaging Holding Company, in exchange for a 20.5% ownership interest in GPIP. GPIP subsequently transferred the North American Consumer Packaging business to Graphic Packaging International, LLC (GPI), a wholly-owned subsidiary of GPIP that holds the assets of the combined business. As of September 30, 2019, the Company's ownership interest in GPIP was 21.6% . The Company recorded equity earnings of $10 million and $19 million for the three months ended September 30, 2019 and 2018 , respectively, and $37 million and $36 million for the nine months ended September 30, 2019 and 2018 , respectively. The Company received cash dividends from GPIP of $20 million and $12 million during the first nine months of 2019 and 2018 , respectively. The Company's investment in GPIP was $1.1 billion at both September 30, 2019 and December 31, 2018 , which was $534 million and $562 million , respectively, more than the Company's proportionate share of the entity's underlying net assets. The difference primarily relates to the basis difference between the fair value of our investment and the underlying net assets, and is generally amortized in equity earnings over a period consistent with the underlying long-lived assets. The Company is party to various agreements with GPI under which it sells fiber and other products to GPI. Sales under these agreements were $69 million and $62 million for the three months ended September 30, 2019 and 2018 , respectively, and $212 million and $180 million for the nine months ended September 30, 2019 and 2018 , respectively. Summarized financial information for GPIP is presented in the following tables: Balance Sheet In millions September 30, 2019 December 31, 2018 Current assets $ 1,765 $ 1,757 Noncurrent assets 5,419 5,292 Current liabilities 1,067 1,148 Noncurrent liabilities 3,325 3,156 Income Statement Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Net sales $ 1,581 $ 1,530 $ 4,640 $ 4,515 Gross profit 266 256 820 714 Income from continuing operations 83 135 283 278 Net income 83 135 283 278 Ilim S.A. The Company has a 50% equity interest in Ilim S.A. (Ilim), which has subsidiaries whose primary operations are in Russia. The Company recorded equity earnings, net of taxes, of $18 million and $74 million for the three months ended September 30, 2019 and 2018 , respectively, and $186 million and $223 million for the nine months ended September 30, 2019 and 2018 , respectively. The Company received cash dividends from the joint venture of $239 million and $118 million during the first nine months of 2019 and 2018 , respectively. At September 30, 2019 and December 31, 2018 , the Company's investment in Ilim was $477 million and $478 million , respectively, which was $146 million and $145 million , respectively, more than the Company's proportionate share of the joint venture's underlying net assets. The differences primarily relate to currency translation adjustments and the basis difference between the fair value of our investment at acquisition and the underlying net assets. The Company is party to a joint marketing agreement with JSC Ilim Group, a subsidiary of Ilim, under which the Company purchases, markets and sells paper produced by JSC Ilim Group. Purchases under this agreement were $51 million and $50 million for the three months ended September 30, 2019 and 2018 , respectively, and $162 million and $159 million for the nine months ended September 30, 2019 and 2018 , respectively. Summarized financial information for Ilim is presented in the following tables: Balance Sheet In millions September 30, 2019 December 31, 2018 Current assets $ 749 $ 981 Noncurrent assets 2,392 1,710 Current liabilities 947 545 Noncurrent liabilities 1,509 1,470 Noncontrolling interests 22 11 Income Statement Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Net sales $ 479 $ 655 $ 1,692 $ 2,030 Gross profit 196 376 836 1,152 Income from continuing operations 41 149 388 454 Net income 40 143 375 438 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles [Note Text Block] | Goodwill The following table presents changes in goodwill balances as allocated to each business segment for the nine -months ended September 30, 2019 : In millions Industrial Packaging Global Cellulose Fibers Printing Papers Total Balance as of January 1, 2019 Goodwill $ 3,379 $ 52 $ 2,116 $ 5,547 Accumulated impairment losses (296 ) — (1,877 ) (2,173 ) 3,083 52 239 3,374 Currency translation and other (a) (2 ) — (14 ) (16 ) Goodwill additions/reductions 54 (b) — (112 ) (c) (58 ) Accumulated impairment loss additions / reductions — — 112 (c) 112 Balance as of September 30, 2019 Goodwill 3,431 52 1,990 5,473 Accumulated impairment losses (296 ) — (1,765 ) (2,061 ) Total $ 3,135 $ 52 $ 225 $ 3,412 (a) Represents the effects of foreign currency translations. (b) Reflects the provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA. (c) Reflects the reclassification of India goodwill and accumulated impairment losses to held for sale. Other Intangibles Identifiable intangible assets comprised the following: September 30, 2019 December 31, 2018 In millions Gross Carrying Amount Accumulated Amortization Net Intangible Assets Gross Carrying Amount Accumulated Amortization Net Intangible Assets Customer relationships and lists $ 541 $ 266 $ 275 $ 542 $ 247 $ 295 Non-compete agreements 26 26 — 67 67 — Tradenames, patents and trademarks, and developed technology 173 101 72 174 90 84 Land and water rights 8 2 6 8 2 6 Software 26 25 1 26 25 1 Other 25 18 7 30 23 7 Total $ 799 $ 438 $ 361 $ 847 $ 454 $ 393 The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Amortization expense related to intangible assets $ 15 $ 15 $ 40 $ 44 |
INCOME TAXES Footnote
INCOME TAXES Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Note Text Block] | International Paper made income tax payments, net of refunds, of $245 million and $195 million for the nine months ended September 30, 2019 and 2018 , respectively. The Company currently estimates, that as a result of ongoing discussions, pending tax settlements and expirations of statutes of limitations, the amount of unrecognized tax benefits could be reduced by approximately $10 million during the next 12 months. International Paper uses the flow-through method to account for investment tax credits earned on eligible open loop-biomass facilities and Combined Heat and Power system expenditures. Under this method, the investment tax credits are recognized as a reduction to income tax expense in the year they are earned rather than a reduction in the asset basis. The Company recorded a tax benefit of $8 million and $6 million for the nine months ended September 30, 2019 and 2018 , respectively. The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by International Paper do Brasil Ltda., a wholly-owned subsidiary of the Company. The Company received assessments for the tax years 2007-2015 totaling approximately $146 million in tax, and $379 million in interest and penalties as of September 30, 2019 (adjusted for variation in currency exchange rates). After a previous favorable ruling challenging the basis for these assessments, we received an unfavorable decision in October 2018 from the Brazilian Administrative Council of Tax Appeals. The Company has appealed this judgment to the Brazilian federal courts; however, this tax litigation matter may take many years to resolve. The Company believes that it has appropriately evaluated the transaction underlying these assessments, and has concluded based on Brazilian tax law, that its position would be sustained. The Company intends to vigorously defend its position against the current assessments and any similar assessments that may be issued for tax years subsequent to 2015. |
COMMITMENTS AND CONTINGENCIES F
COMMITMENTS AND CONTINGENCIES Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Note Text Block] | Environmental International Paper has been named as a potentially responsible party (PRP) in environmental remediation actions under various federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Many of these proceedings involve the cleanup of hazardous substances at large commercial landfills that received waste from many different sources. While joint and several liability is authorized under CERCLA and equivalent state laws, as a practical matter, liability for CERCLA cleanups is typically allocated among the many PRPs. There are other remediation costs typically associated with the cleanup of hazardous substances at the Company’s current, closed or formerly-owned facilities, and recorded as liabilities in the balance sheet. Remediation costs are recorded in the consolidated financial statements when they become probable and reasonably estimable. International Paper has estimated the probable liability associated with these matters to be approximately $145 million ( $155 million undiscounted) in the aggregate as of September 30, 2019 . Other than as described below, completion of required remedial actions is not expected to have a material effect on our consolidated financial statements. Cass Lake: One of the matters included above arises out of a closed wood-treating facility located in Cass Lake, Minnesota. In June 2011, the United States Environmental Protection Agency (EPA) selected and published a proposed soil remedy at the site with an estimated cost of $46 million . The overall remediation reserve for the site is currently $47 million to address the selection of an alternative for the soil remediation component of the overall site remedy, which includes the ongoing groundwater remedy. In October 2011, the EPA released a public statement indicating that the final soil remedy decision would be delayed. In June 2019, the EPA issued a revised proposed plan concerning clean-up standards at a portion of the site, the estimated cost of which is included within the reserve referenced above. In October 2012, the Natural Resource Trustees for this site provided notice to International Paper and other PRPs of their intent to perform a Natural Resource Damage Assessment. It is premature to predict the outcome of the assessment or to estimate a loss or range of loss, if any, which may be incurred. Kalamazoo River: The Company is a PRP with respect to the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund Site in Michigan. The EPA asserts that the site is contaminated by polychlorinated biphenyls (PCBs) primarily as a result of discharges from various paper mills located along the Kalamazoo River, including a paper mill (the Allied Paper Mill) formerly owned by St. Regis Paper Company (St. Regis). The Company is a successor in interest to St. Regis. • Operable Unit 5, Area 1: In March 2016, the Company and other PRPs received a special notice letter from the EPA (i) inviting participation in implementing a remedy for a portion of the site known as Operable Unit 5, Area 1, and (ii) demanding reimbursement of EPA past costs totaling $37 million , including $19 million in past costs previously demanded by the EPA. The Company responded to the special notice letter. In December 2016, the EPA issued a unilateral administrative order to the Company and other PRPs to perform the remedy. The Company responded to the unilateral administrative order, agreeing to comply with the order subject to its sufficient cause defenses. • Operable Unit 5, Area 2: In September 2017, the EPA issued a Record of Decision selecting the final remedy for a portion of the site known as Operable Unit 5, Area 2, but has not yet issued a special notice letter for implementing the remedy. • Operable Unit 5, Area 3: In April 2016, the EPA issued a separate unilateral administrative order to the Company and certain other PRPs for a time-critical removal action (TCRA) of PCB-contaminated banks and sediments from a portion of the site known as Operable Unit 5, Area 3. The Company responded to the unilateral administrative order and agreed along with two other parties to comply with the order subject to its sufficient cause defenses.The removal work has been completed. • Operable Unit 1: In October 2016, the Company and another PRP received a special notice letter from the EPA inviting participation in the remedial design component of the landfill remedy for the Allied Paper Mill, which is also known as Operable Unit 1. The Record of Decision establishing the final landfill remedy for the Allied Paper Mill was issued by the EPA in September 2016. The Company responded to the Allied Paper Mill special notice letter in December 2016. In February 2017, the EPA informed the Company that it would make other arrangements for the performance of the remedial design. The Company’s CERCLA liability has not been finally determined with respect to these or any other portions of the site, and except as noted above, the Company has declined to perform any work or reimburse the EPA at this time. As noted below, the Company is involved in allocation/apportionment litigation with regard to the site. Accordingly, it is premature to predict the outcome or estimate our maximum reasonably possible loss with respect to this site. We have an immaterial recorded liability for future remediation costs at the site that are probable and reasonably estimable, and it remains reasonably possible that additional losses could be material. $79 million as of the filing of the complaint) and for future remediation costs. The suit alleges that a mill, during the time it was allegedly owned and operated by St. Regis, discharged PCB contaminated solids and paper residuals resulting from paper de-inking and recycling. NCR Corporation and Weyerhaeuser Company are also named as defendants in the suit. In mid-2011, the suit was transferred from the District Court for the Eastern District of Wisconsin to the District Court for the Western District of Michigan. The trial of the initial liability phase took place in February 2013. Weyerhaeuser conceded prior to trial that it was a liable party with respect to the site. In September 2013, an opinion and order was issued in the suit. The order concluded that the Company (as the successor to St. Regis) was not an “operator,” but was an “owner,” of the mill at issue during a portion of the relevant period and is therefore liable under CERCLA. The order also determined that NCR is a liable party as an "arranger for disposal" of PCBs in waste paper that was de-inked and recycled by mills along the Kalamazoo River. The order did not address the Company's responsibility, if any, for past or future costs. The parties’ responsibility, including that of the Company, was the subject of a second trial, which was concluded in late 2015. In June 2018, the Court issued its Final Judgment and Order, which fixed the past cost amount at approximately $50 million (plus interest to be determined) and allocated to the Company a 15% share of responsibility for those past costs. The Court did not address responsibility for future costs in its decision. In July 2018, the Company and each of the other parties filed notices appealing the Final Judgment and prior orders incorporated into that Judgment. Harris County: International Paper and McGinnis Industrial Maintenance Corporation (MIMC), a subsidiary of Waste Management, Inc. (WMI), are PRPs at the San Jacinto River Waste Pits Superfund Site in Harris County, Texas. The PRPs have been actively participating in the activities at the site and share the costs of these activities. In September 2016, the EPA issued a proposed remedial action plan (PRAP) for the site, which identified the preferred remedy as the removal of the contaminated material currently protected by an armored cap. In addition, the EPA selected a preferred remedy for the separate southern impoundment that requires offsite disposal. In January 2017, the PRPs submitted comments on the PRAP. On October 11, 2017, the EPA issued a Record of Decision (ROD) selecting the final remedy for the site: removal and relocation of the waste material from both the northern and southern impoundments. The EPA did not specify the methods or practices needed to perform this work. While the EPA’s selected remedy was accompanied by a cost estimate of approximately $115 million , we do not believe that estimate provides a reasonable basis for accrual under GAAP because the estimate was based on a technological method for performing the work that we believe is not feasible. Subsequent to the issuance of the ROD, there have been numerous meetings between the EPA and the PRPs, and the Company continues to work with the EPA and MIMC/WMI to develop the remedial design. To this end, in April 2018, the PRPs entered into an Administrative Order on Consent (AOC) with the EPA, agreeing to work together to develop the remedial design over the subsequent 29 months . The AOC does not include any agreement to perform waste removal or other construction activity at the site. Rather, it involves adaptive management techniques and a pre-design investigation, the objectives of which include filling data gaps (including but not limited to post-Hurricane Harvey technical data generated prior to the ROD and not incorporated into the selected remedy), refining areas and volumes of materials to be addressed, determining if an excavation remedy is able to be implemented in a manner protective of human health and the environment, and investigating potential impacts of remediation activities to infrastructure in the vicinity. On October 14, 2019, the PRPs received a special notice letter from the EPA (i) inviting participation in implementing the remedy described in the ROD, and (ii) demanding reimbursement of EPA past costs totaling $8 million. The PRPs are preparing their response to the special notice letter. The Company has identified a number of concerns and uncertainties regarding the remedy described in the ROD and regarding the EPA’s estimates for the costs and time required to implement the selected remedy. The Company has determined, however, that even if the ROD cannot be implemented, a sheet pile "engineered barrier" can be constructed, which would enhance the existing remedy and could also be used should the ROD be determined to be feasible and implementable. In the third quarter of 2018, we increased our recorded liability accordingly to reflect the estimated cost of constructing this barrier. Because of ongoing questions regarding cost effectiveness, technical feasibility, timing and other technical data, however, it is uncertain how the ROD will be implemented. Consequently, while additional losses are probable as a result of the selected remedy, we are currently unable to determine any further adjustment to our immaterial recorded liability. It remains reasonably possible that additional losses could be material as the remedial design process with the EPA continues over the coming quarters. International Paper and MIMC/WMI are also defending an additional lawsuit related to the site brought by approximately 600 individuals who allege property damage and personal injury. This case is still in the discovery phase, and it is premature to predict the outcome or to estimate our maximum reasonably possible loss. However, we do not believe that any material loss is probable. Antitrust Containerboard: In January 2011, International Paper was named as a defendant in a lawsuit filed in state court in Cocke County, Tennessee alleging that International Paper violated Tennessee law by conspiring to limit the supply and fix the prices of containerboard from mid-2005 to the present. Plaintiffs in the state court action seek certification of a class of Tennessee indirect purchasers of containerboard products, damages and costs, including attorneys' fees. No class certification materials have been filed to date in the Tennessee action. The Company disputes the allegations made in the Tennessee lawsuit and is vigorously defending it. At this time, however, because the action is in a preliminary stage, we are unable to predict an outcome or estimate a range of reasonably possible loss. Italy: In March 2017, the Italian Competition Authority (ICA) commenced an investigation into the Italian packaging industry to determine whether producers of corrugated sheets and boxes violated the applicable European competition law. In April 2019, the ICA concluded its investigation and issued initial findings alleging that over 30 producers, including our Italian packaging subsidiary (IP Italy), improperly coordinated the production and sale of corrugated sheets and boxes. On August 6, 2019, the ICA issued its decision and assessed IP Italy a fine of €29 million (approximately $32 million at current exchange rates) which was recorded in the third quarter of 2019. This charge is included in the Antitrust fines line item in the accompanying consolidated statement of operations. However, we are vigorously appealing this decision of the ICA to the Italian courts and have numerous and strong bases for our appeal. Contract Signature: In August 2014, a lawsuit captioned Signature Industrial Services LLC et al. v. International Paper Company was filed in state court in Texas. The Signature lawsuit arises out of approximately $1 million in disputed invoices related to the installation of new equipment at the Company's Orange, Texas mill. In addition to the invoices in dispute, Signature and its president allege consequential damages arising from the Company's nonpayment of those invoices. The lawsuit was tried before a jury in Beaumont, Texas, in May 2017. On June 1, 2017, the jury returned a verdict awarding approximately $125 million in damages to the plaintiffs. The Court issued a judgment on December 14, 2017, awarding the plaintiffs a total of approximately $137 million in actual and consequential damages, fees, costs and pre-judgment interest, and awarding post-judgment interest. The Company has appealed this judgment. The Company has presented in its briefing numerous and strong bases for appeal, and we believe we will prevail on appeal. Because the appellate proceedings are ongoing, we are unable to estimate a range of reasonably possible loss, but we expect the amount of any loss to be immaterial. General The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, personal injury, labor and employment, contracts, sales of property, intellectual property, tax, antitrust and other matters, some of which allege substantial monetary damages. While any proceeding or litigation has the element of uncertainty, the Company believes that the outcome of any of these other lawsuits or claims that are pending or threatened or all of them combined (other than those that cannot be assessed due to their preliminary nature) will not have a material effect on its consolidated financial statements. See Note 14 for details regarding a tax matter. |
VARIABLE INTEREST ENTITIES AND
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entities And Preferred Securities Of Subsidiaries [Abstract] | |
Variable Interest Entities and Preferred Securities of Subsidiaries [Note Text Block] | Variable Interest Entities As of September 30, 2019 , the fair value of the Timber Notes and Extension Loans is $4.84 billion and $4.27 billion , respectively, for the 2015 Financing Entities. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 16 in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. Activity between the Company and the 2015 Financing Entities was as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Revenue (a) $ 24 $ 24 $ 71 $ 71 Expense (a) 32 32 96 96 Cash receipts (b) 48 48 95 95 Cash payments (c) 64 64 128 128 (a) The revenue and expense are included in Interest expense, net in the accompanying statement of operations. (b) The cash receipts are interest received on the Financial assets of special purpose entities. (c) The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. As of September 30, 2019 , the fair value of the Timber Notes and Extension Loans is $2.28 billion and $2.11 billion , respectively, for the 2007 Financing Entities. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 16 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Activity between the Company and the 2007 Financing Entities was as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Revenue (a) $ 19 $ 19 $ 61 $ 52 Expense (b) 19 18 60 48 Cash receipts (c) 16 15 48 34 Cash payments (d) 17 16 53 40 (a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for three and nine months ended September 30, 2019 and 2018 , respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities. (b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three and nine months ended September 30, 2019 and 2018 , respectively, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities. (c) The cash receipts are interest received on the Financial assets of special purpose entities. (d) The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
DEBT Footnote
DEBT Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt [Note Text Block] | In June 2019, International Paper issued $200 million of 3.55% senior unsecured notes with a maturity date in 2029 . The proceeds from this offering, together with a combination of available cash and other borrowings, were used for general corporate purposes, including repayment of outstanding commercial paper borrowings and other existing indebtedness. In June 2018, the borrowing capacity of International Paper's commercial paper program was increased from $750 million to $1.0 billion . Under the terms of the program, individual maturities on borrowings may vary, but not exceed one year from the date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. As of September 30, 2019 , the Company had $245 million of borrowings outstanding under the program at a weighted average interest rate of 2.29% . At September 30, 2019 , the fair value of International Paper’s $10.4 billion of debt was approximately $11.4 billion . The fair value of the Company’s long-term debt is estimated based on the quoted market prices for the same or similar issues. International Paper’s long-term debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 16 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . In October 2019, International Paper issued $127 million of industrial development bonds with interest rates ranging from 1.90% to 2.10% and maturity dates in 2024 . The proceeds from this offering will be used to repay other existing industrial development bonds. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities [Note Text Block] | As a multinational company International Paper is exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows: In millions September 30, 2019 December 31, 2018 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 570 $ 407 Derivatives in Fair Value Hedging Relationships: Interest rate contracts 700 700 Derivatives in Net Investment Hedging Relationships: Interest rate contracts 475 — Derivatives Not Designated as Hedging Instruments: Electricity contract 19 8 Foreign exchange contracts 11 19 The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (10 ) $ 1 $ (6 ) $ (18 ) Interest rate contracts — — — (2 ) Total $ (10 ) $ 1 $ (6 ) $ (20 ) Derivatives in Net Investment Hedging Relationships: Interest rate contracts $ 18 $ — $ 15 $ — Total $ 18 $ — $ 15 $ — During the next 12 months, the amount of the September 30, 2019 AOCI balance, after tax, that is expected to be reclassified to earnings is a loss of $3 million . The amounts of gains and losses recognized in the statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows: Gain (Loss) Reclassified from AOCI (Effective Portion) Location of Gain (Loss) Reclassified from AOCI (Effective Portion) Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (4 ) $ (2 ) $ (5 ) $ (2 ) Cost of products sold Total $ (4 ) $ (2 ) $ (5 ) $ (2 ) Gain (Loss) Recognized Location of Gain (Loss) In Statement of Operations Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ 11 $ — $ 42 $ — Interest expense, net Debt (11 ) — (42 ) — Interest expense, net Total — — — — Derivatives Not Designated as Hedging Instruments: Electricity contract $ (5 ) $ 2 $ — $ 1 Cost of products sold Foreign exchange contracts (1 ) 3 (2 ) 4 Cost of products sold Total $ (6 ) $ 5 $ (2 ) $ 5 Fair Value Measurements The Company has not changed its valuation techniques for measuring the fair value of any financial assets or liabilities during the year. Transfers between levels, if any, are recognized at the end of the reporting period. The following table provides a summary of the impact of our derivative instruments in the balance sheet: Fair Value Measurements Level 2 – Significant Other Observable Inputs Assets Liabilities In millions September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 5 $ 3 $ 13 $ 10 Interest rate contracts - net investment 20 — — — Interest rate contracts - fair value 59 16 — — Total derivatives designated as hedging instruments 84 19 13 10 Derivatives not designated as hedging instruments Electricity contract — — 5 4 Foreign exchange contracts — — 2 1 Total derivatives not designated as hedging instruments — — 7 5 Total derivatives $ 84 (a) $ 19 (b) $ 20 (c) $ 15 (d) (a) Includes $8 million recorded in Other current assets and $76 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (b) Includes $2 million recorded in Other current assets and $17 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (c) Includes $15 million recorded in Other accrued liabilities and $5 million recorded in Other liabilities in the accompanying consolidated balance sheet. (d) Included in Other current liabilities in the accompanying consolidated balance sheet. The above contracts are subject to enforceable master netting arrangements that provide rights of offset with each counterparty when amounts are payable on the same date in the same currency or in the case of certain specified defaults. Management has made an accounting policy election to not offset the fair value of recognized derivative assets and derivative liabilities in the balance sheet. The amounts owed to the counterparties and owed to the Company are considered immaterial with respect to each counterparty and in the aggregate with all counterparties. |
RETIREMENT PLANS Footnote
RETIREMENT PLANS Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans [Note Text Block] | International Paper sponsors and maintains the Retirement Plan of International Paper Company (the Pension Plan), a tax-qualified defined benefit pension plan that provides retirement benefits to substantially all U.S. salaried employees and hourly employees (receiving salaried benefits) hired prior to July 1, 2004, and substantially all other U.S. hourly and union employees who work at a participating business unit regardless of hire date. These employees generally are eligible to participate in the Pension Plan upon attaining 21 years of age and completing one year of eligibility service. U.S. salaried employees and hourly employees (receiving salaried benefits) hired after June 30, 2004, are not eligible for the Pension Plan, but receive a company contribution to their Retirement Savings Account under the International Paper Company Salaried Savings Plan; however, salaried employees hired by Temple Inland prior to March 1, 2007 or Weyerhaeuser Company's Cellulose Fibers division prior to December 1, 2011 also participate in the Pension Plan. The Pension Plan provides defined pension benefits based on years of credited service and either final average earnings (salaried employees and hourly employees receiving salaried benefits), hourly job rates or specified benefit rates (hourly and union employees). Effective January 1, 2019, the Company froze participation, including credited service and compensation, for salaried employees under the Pension Plan, the Pension Restoration Plan and the SERP plan. This change does not affect benefits accrued through December 31, 2018. For service after December 31, 2018, employees affected by the freeze receive a company contribution to their individual Retirement Savings Account. Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Service cost $ 17 $ 40 $ 51 $ 119 Interest cost 110 118 330 356 Expected return on plan assets (158 ) (200 ) (473 ) (600 ) Actuarial loss 50 95 150 285 Amortization of prior service cost 4 4 12 12 Net periodic pension expense $ 23 $ 57 $ 70 $ 172 The components of net periodic pension expense other than the Service cost component are included in Non-operating pension expense in the Consolidated Statement of Operations. The Company’s funding policy for our pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that the Company may determine to be appropriate considering the funded status of the plan, tax deductibility, the cash flows generated by the Company, and other factors. The Company made no voluntary cash contributions to the qualified pension plan in the first nine months of 2019 or 2018. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $21 million for the nine months ended September 30, 2019 . |
STOCK-BASED COMPENSATION Footno
STOCK-BASED COMPENSATION Footnote | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation [Note Text Block] | International Paper has an Incentive Compensation Plan (ICP) which is administered by the Management Development and Compensation Committee of the Board of Directors (the Committee). The ICP authorizes the grants of restricted stock, restricted or deferred stock units, performance awards payable in cash or stock upon the attainment of specified performance goals, dividend equivalents, stock options, stock appreciation rights, other stock-based awards and cash-based awards at the discretion of the Committee. As of September 30, 2019 , 9.8 million shares were available for grant under the ICP. Stock-based compensation expense and related income tax benefits were as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Total stock-based compensation expense (selling and administrative) $ 31 $ 35 $ 94 $ 102 Income tax benefits related to stock-based compensation (2 ) (6 ) 31 16 At September 30, 2019 , $124 million , net of estimated forfeitures, of compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future service had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 1.8 years. Performance Share Plan During the first nine months of 2019 , the Company granted 2.4 million performance units at an average grant date fair value of $43.49 . |
INDUSTRY SEGMENT INFORMATION
INDUSTRY SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | International Paper’s business segments, Industrial Packaging, Global Cellulose Fibers and Printing Papers, are consistent with the internal structure used to manage these businesses. All segments are differentiated on a common product, common customer basis consistent with the business segmentation generally used in the Forest Products industry. Business segment operating profits are used by International Paper's management to measure the earnings performance of its businesses. Management believes that this measure allows a better understanding of trends in costs, operating efficiencies, prices and volumes. Business segment operating profits are defined as earnings (loss) from continuing operations before income taxes and equity earnings, but including the impact of equity earnings and noncontrolling interests, excluding interest expense, net, corporate expenses, net, corporate special items, net and non-operating pension expense. Sales by business segment for the three months and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Industrial Packaging $ 3,820 $ 4,034 $ 11,516 $ 11,883 Global Cellulose Fibers 624 714 1,974 2,083 Printing Papers 1,071 1,102 3,224 3,215 Corporate and Intersegment Sales 53 51 164 174 Net Sales $ 5,568 $ 5,901 $ 16,878 $ 17,355 Operating profit by business segment for the three months and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Industrial Packaging $ 510 $ 472 $ 1,421 $ 1,446 Global Cellulose Fibers (3 ) 83 27 160 Printing Papers 148 183 258 341 Business Segment Operating Profits $ 655 $ 738 $ 1,706 $ 1,947 Earnings (loss) from continuing operations before income taxes and equity earnings $ 452 $ 553 $ 1,204 $ 1,399 Interest expense, net 123 133 378 401 Noncontrolling interests/equity earnings adjustment 2 (2 ) 4 (7 ) Corporate expenses, net 21 20 45 59 Corporate special items, net 48 9 48 30 Non-operating pension expense 9 25 27 65 Business Segment Operating Profits $ 655 $ 738 $ 1,706 $ 1,947 |
LEASES (Policies)
LEASES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have remaining lease terms of one year to 97 years . Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases. Right of use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Effective January 1, 2019, operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company's leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases primarily relate to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles, and leases within supply agreements primarily relate to usage, repairs, and maintenance. As the implicit rate is not readily determinable for most of the Company's leases, the Company applies a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Nine Months Ended September 30, 2019 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 9,531 $ 1,656 $ 1,448 $ 174 $ 12,809 EMEA 1,263 207 986 (8 ) 2,448 Pacific Rim and Asia 50 111 167 9 337 Americas, other than U.S. 672 — 623 (11 ) 1,284 Total $ 11,516 $ 1,974 $ 3,224 $ 164 $ 16,878 Operating Segments North American Industrial Packaging $ 10,158 $ — $ — $ — $ 10,158 EMEA Industrial Packaging 994 — — — 994 Brazilian Industrial Packaging 176 — — — 176 European Coated Paperboard 275 — — — 275 Global Cellulose Fibers — 1,974 — — 1,974 North American Printing Papers — — 1,474 — 1,474 Brazilian Papers — — 702 — 702 European Papers — — 929 — 929 Indian Papers — — 144 — 144 Intra-segment Eliminations (87 ) — (25 ) — (112 ) Corporate & Inter-segment Sales — — 164 164 Total $ 11,516 $ 1,974 $ 3,224 $ 164 $ 16,878 (a) Net sales are attributed to countries based on the location of the seller. A geographic disaggregation of revenues across our company segmentation in the following tables provides information to assist in evaluating the nature, timing and uncertainty of revenue and cash flows and how they may be impacted by economic factors. Three Months Ended September 30, 2019 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 3,180 $ 535 $ 486 $ 56 $ 4,257 EMEA 415 62 315 (1 ) 791 Pacific Rim and Asia 20 27 47 3 97 Americas, other than U.S. 205 — 223 (5 ) 423 Total $ 3,820 $ 624 $ 1,071 $ 53 $ 5,568 Operating Segments North American Industrial Packaging $ 3,368 $ — $ — $ — $ 3,368 EMEA Industrial Packaging 324 — — — 324 Brazilian Industrial Packaging 61 — — — 61 European Coated Paperboard 92 — — — 92 Global Cellulose Fibers — 624 — — 624 North American Printing Papers — — 492 — 492 Brazilian Papers — — 247 — 247 European Papers — — 299 — 299 Indian Papers — — 38 — 38 Intra-segment Eliminations (25 ) — (5 ) — (30 ) Corporate & Inter-segment Sales — — 53 53 Total $ 3,820 $ 624 $ 1,071 $ 53 $ 5,568 (a) Net sales are attributed to countries based on the location of the seller. Three Months Ended September 30, 2018 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 3,394 $ 602 $ 482 $ 52 $ 4,530 EMEA 396 77 328 (4 ) 797 Pacific Rim and Asia 40 35 62 6 143 Americas, other than U.S. 204 — 230 (3 ) 431 Total $ 4,034 $ 714 $ 1,102 $ 51 $ 5,901 Operating Segments North American Industrial Packaging $ 3,653 $ — $ — $ — $ 3,653 EMEA Industrial Packaging 311 — — — 311 Brazilian Industrial Packaging 57 — — — 57 European Coated Paperboard 87 — — — 87 Global Cellulose Fibers — 714 — — 714 North American Printing Papers — — 492 — 492 Brazilian Papers — — 255 — 255 European Papers — — 311 — 311 Indian Papers — — 47 — 47 Intra-segment Eliminations (74 ) — (3 ) — (77 ) Corporate & Inter-segment Sales — — — 51 51 Total $ 4,034 $ 714 $ 1,102 $ 51 $ 5,901 (a) Net sales are attributed to countries based on the location of the seller. Nine Months Ended September 30, 2018 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 9,832 $ 1,720 $ 1,399 $ 163 $ 13,114 EMEA 1,275 222 988 (13 ) 2,472 Pacific Rim and Asia 110 140 185 35 470 Americas, other than U.S. 666 1 643 (11 ) 1,299 Total $ 11,883 $ 2,083 $ 3,215 $ 174 $ 17,355 Operating Segments North American Industrial Packaging $ 10,604 $ — $ — $ — $ 10,604 EMEA Industrial Packaging 1,017 — — — 1,017 Brazilian Industrial Packaging 175 — — — 175 European Coated Paperboard 265 — — — 265 Global Cellulose Fibers — 2,083 — — 2,083 North American Printing Papers — — 1,443 — 1,443 Brazilian Papers — — 706 — 706 European Papers — — 932 — 932 Indian Papers — — 150 — 150 Intra-segment Eliminations (178 ) — (16 ) — (194 ) Corporate & Inter-segment Sales — — — 174 174 Total $ 11,883 $ 2,083 $ 3,215 $ 174 $ 17,355 (a) Net sales are attributed to countries based on the location of the seller. |
Contract with Customer, Asset and Liability [Table Text Block] | The opening and closing balances of the Company's contract assets and current contract liabilities are as follows: In millions Contract Assets (Short-Term) Contract Liabilities (Short-Term) Beginning Balance - January 1, 2019 $ 395 $ 56 Ending Balance -September 30, 2019 388 28 Increase / (Decrease) $ (7 ) $ (28 ) |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity [Table Text Block] | A summary of the changes in equity for the three months and nine months ended September 30, 2019 and 2018 is provided below: Three Months Ended September 30, 2019 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, July 1 $ 449 $ 6,229 $ 8,302 $ (4,870 ) $ 2,628 $ 7,482 $ 17 $ 7,499 Issuance of stock for various plans, net — 32 — — (1 ) 33 — 33 Repurchase of stock — — — — 75 (75 ) — (75 ) Common stock dividends ($0.5000 per share) — — (199 ) — — (199 ) — (199 ) Transactions of equity method investees — — — — — — — — Comprehensive income (loss) — — 344 (144 ) — 200 (2 ) 198 Ending Balance, September 30 $ 449 $ 6,261 $ 8,447 $ (5,014 ) $ 2,702 $ 7,441 $ 15 $ 7,456 Nine Months Ended September 30, 2018 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, January 1 $ 449 $ 6,206 $ 6,180 $ (4,633 ) $ 1,680 $ 6,522 $ 19 $ 6,541 Adoption of ASC 606 revenue from contracts with customers — — 73 — — 73 — 73 Issuance of stock for various plans, net — 31 — — (81 ) 112 — 112 Repurchase of stock — — — — 532 (532 ) — (532 ) Common stock dividends ($1.4250 per share) — — (596 ) — — (596 ) — (596 ) Transactions of equity method investees — 19 — — — 19 — 19 Comprehensive income (loss) — — 1,696 (254 ) — 1,442 (1 ) 1,441 Ending Balance, September 30 $ 449 $ 6,256 $ 7,353 $ (4,887 ) $ 2,131 $ 7,040 $ 18 $ 7,058 Nine Months Ended September 30, 2019 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, January 1 $ 449 $ 6,280 $ 7,465 $ (4,500 ) $ 2,332 $ 7,362 $ 21 $ 7,383 Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform — — 529 (529 ) — — — — Issuance of stock for various plans, net — (52 ) — — (165 ) 113 — 113 Repurchase of stock — — — — 535 (535 ) — (535 ) Common stock dividends ($1.5000 per share) — — (607 ) — — (607 ) — (607 ) Transactions of equity method investees — 33 — — — 33 — 33 Comprehensive income (loss) — — 1,060 15 — 1,075 (6 ) 1,069 Ending Balance, September 30 $ 449 $ 6,261 $ 8,447 $ (5,014 ) $ 2,702 $ 7,441 $ 15 $ 7,456 Three Months Ended September 30, 2018 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, July 1 $ 449 $ 6,219 $ 6,988 $ (4,881 ) $ 1,931 $ 6,844 $ 20 $ 6,864 Issuance of stock for various plans, net — 36 — — (1 ) 37 — 37 Repurchase of stock — — — — 201 (201 ) — (201 ) Common stock dividends ($0.4750 per share) — — (197 ) — — (197 ) — (197 ) Transactions of equity method investees — 1 — — — 1 — 1 Comprehensive income (loss) — — 562 (6 ) — 556 (2 ) 554 Ending Balance, September 30 $ 449 $ 6,256 $ 7,353 $ (4,887 ) $ 2,131 $ 7,040 $ 18 $ 7,058 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in accumulated other comprehensive income (AOCI) for the three months and nine months ended September 30, 2019 and 2018 : Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (2,362 ) $ (2,376 ) $ (1,916 ) $ (2,527 ) Reclassification of stranded tax effects — — (527 ) — Amounts reclassified from accumulated other comprehensive income 41 76 122 227 Balance at end of period (2,321 ) (2,300 ) (2,321 ) (2,300 ) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (2,508 ) (2,489 ) (2,581 ) (2,111 ) Other comprehensive income (loss) before reclassifications (179 ) (87 ) (110 ) (469 ) Amounts reclassified from accumulated other comprehensive income — — 4 2 Other comprehensive income (loss) attributable to noncontrolling interest — 2 — 4 Balance at end of period (2,687 ) (2,574 ) (2,687 ) (2,574 ) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period — (16 ) (3 ) 5 Other comprehensive income (loss) before reclassifications (10 ) 1 (6 ) (20 ) Reclassification of stranded tax effects — — (2 ) — Amounts reclassified from accumulated other comprehensive income 4 2 5 2 Balance at end of period (6 ) (13 ) (6 ) (13 ) Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (5,014 ) $ (4,887 ) $ (5,014 ) $ (4,887 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents details of the reclassifications out of AOCI for the three months and nine months ended September 30, 2019 and 2018 : In millions: Amounts Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI Three Months Ended Nine Months Ended 2019 2018 2019 2018 Defined benefit pension and postretirement items: Prior-service costs $ (4 ) $ (4 ) $ (10 ) $ (11 ) (a) Non-operating pension expense Actuarial gains (losses) (50 ) (97 ) (152 ) (291 ) (a) Non-operating pension expense Total pre-tax amount (54 ) (101 ) (162 ) (302 ) Tax (expense) benefit 13 25 40 75 Net of tax (41 ) (76 ) (122 ) (227 ) Reclassification of stranded tax effects — — 527 — Retained Earnings Total, net of tax (41 ) (76 ) 405 (227 ) Change in cumulative foreign currency translation adjustments: Business acquisitions/divestitures — — (4 ) (2 ) (b) Cost of products sold Tax (expense) benefit — — — — Net of tax — — (4 ) (2 ) Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts (6 ) (3 ) (7 ) (3 ) (c) Cost of products sold Total pre-tax amount (6 ) (3 ) (7 ) (3 ) Tax (expense)/benefit 2 1 2 1 Net of tax (4 ) (2 ) (5 ) (2 ) Reclassification of stranded tax effects — — 2 — Retained Earnings Total, net of tax (4 ) (2 ) (3 ) (2 ) Total reclassifications for the period $ (45 ) $ (78 ) $ 398 $ (231 ) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details). (b) Amounts for the three months and nine months ended September 30, 2018 were reclassified to Discontinued operations, net of taxes. (c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 18 for additional details). |
EARNINGS PER SHARE ATTRIBUTAB_2
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing operations, and diluted earnings (loss) per share from continuing operations is as follows: Three Months Ended Nine Months Ended In millions, except per share amounts 2019 2018 2019 2018 Earnings (loss) from continuing operations attributable to International Paper Company common shareholders $ 344 $ 562 $ 1,060 $ 1,351 Weighted average common shares outstanding 392.6 407.4 396.3 411.4 Effect of dilutive securities Restricted performance share plan 2.8 4.0 3.3 4.9 Weighted average common shares outstanding – assuming dilution 395.4 411.4 399.6 416.3 Basic earnings (loss) per share from continuing operations $ 0.88 $ 1.38 $ 2.67 $ 3.28 Diluted earnings (loss) per share from continuing operations $ 0.87 $ 1.37 $ 2.65 $ 3.25 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of June 28, 2019: In millions Cash and temporary investments $ 1 Accounts and notes receivable 23 Inventory 8 Plants, properties and equipment 28 Goodwill 48 Right of use assets 2 Total assets acquired 110 Accounts payable and accrued liabilities 20 Other current liabilities 1 Long-term debt 2 Postretirement and postemployment benefit obligation 3 Long-term lease obligations 2 Total liabilities assumed 28 Net assets acquired $ 82 In millions September 30, 2019 Cash and temporary investments $ 19 Accounts and notes receivable 16 Inventories 23 Other current assets 19 Plants, properties and equipment 195 Deferred charges and other assets 6 Total Assets Held for Sale $ 278 Accounts payable and accrued liabilities $ 18 Other current liabilities 22 Deferred income taxes 47 Other liabilities 1 Net impairment reserve 160 Total Liabilities Held for Sale $ 248 |
DIVESTITURES (Tables)
DIVESTITURES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued operations, net of tax, related to the transfer of the North American Consumer Packaging business for all periods presented in the consolidated statement of operations: Three Months Ended Nine Months Ended In millions 2018 2018 Net Sales $ — $ — Costs and Expenses Selling and administrative expenses — 25 (Gain) loss on transfer of business — (488 ) Earnings (Loss) Before Income Taxes and Equity Earnings — 463 Income tax provision (benefit) — 118 Discontinued Operations, Net of Taxes $ — $ 345 |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of June 28, 2019: In millions Cash and temporary investments $ 1 Accounts and notes receivable 23 Inventory 8 Plants, properties and equipment 28 Goodwill 48 Right of use assets 2 Total assets acquired 110 Accounts payable and accrued liabilities 20 Other current liabilities 1 Long-term debt 2 Postretirement and postemployment benefit obligation 3 Long-term lease obligations 2 Total liabilities assumed 28 Net assets acquired $ 82 In millions September 30, 2019 Cash and temporary investments $ 19 Accounts and notes receivable 16 Inventories 23 Other current assets 19 Plants, properties and equipment 195 Deferred charges and other assets 6 Total Assets Held for Sale $ 278 Accounts payable and accrued liabilities $ 18 Other current liabilities 22 Deferred income taxes 47 Other liabilities 1 Net impairment reserve 160 Total Liabilities Held for Sale $ 248 |
SUPPLEMENTAL FINANCIAL STATEM_2
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts and Notes Receivable In millions September 30, 2019 December 31, 2018 Accounts and notes receivable, net: Trade $ 3,055 $ 3,249 Other 250 272 Total $ 3,305 $ 3,521 |
Inventories [Table Text Block] | Inventories In millions September 30, 2019 December 31, 2018 Raw materials $ 270 $ 260 Finished pulp, paper and packaging 1,140 1,241 Operating supplies 637 641 Other 147 99 Total $ 2,194 $ 2,241 |
Interest Income and Interest Expense Disclosure [Table Text Block] | Amounts related to interest were as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Interest expense $ 177 $ 184 $ 538 $ 547 Interest income 54 51 160 146 Capitalized interest costs 7 9 21 26 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Components of Lease Expense In millions Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease costs $ 39 $ 115 Variable lease costs 16 53 Short-term lease costs 9 27 Finance lease cost Amortization of lease assets 3 8 Interest on lease liabilities 1 3 Total lease cost, net $ 68 $ 206 |
Schedule of Supplemental Balance Sheet Information Related to Leases [Table Text Block] | Supplemental Balance Sheet Information Related to Leases In millions Classification September 30, 2019 Assets Operating lease assets Right-of-use assets $ 425 Finance lease assets Plants, properties and equipment, net (a) 105 Total leased assets $ 530 Liabilities Current Operating Other current liabilities $ 136 Finance Notes payable and current maturities of long-term debt 13 Noncurrent Operating Long-term lease obligations 292 Finance Long-term debt 91 Total lease liabilities $ 532 (a) Finance leases are recorded net of accumulated amortization of $37 million . |
Schedule of Lease Terms and Discount Rates Related to Leases [Table Text Block] | Lease Term and Discount Rate In millions September 30, 2019 Weighted average remaining lease term (years) Operating leases 9.8 years Finance leases 11.3 years Weighted average discount rate Operating leases 3.24 % Finance leases 4.74 % |
Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block] | Supplemental Cash Flow Information Related to Leases In millions Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 110 Operating cash flows related to financing leases 3 Financing cash flows related to finance leases 7 |
Schedule of Maturities of Operating and Finance Leases Liabilities [Table Text Block] | Maturity of Lease Liabilities September 30, 2019 In millions Operating Leases Financing Leases Total 2019 (remainder of year) $ 39 $ 4 $ 43 2020 138 17 155 2021 97 15 112 2022 64 13 77 2023 35 11 46 2024 18 10 28 Thereafter 95 65 160 Total lease payments 486 135 621 Less: Interest (a) 58 31 89 Present value of lease liabilities $ 428 $ 104 $ 532 (a) Calculated using the interest rate for each lease. |
Contractual Obligation, Fiscal Year Maturity [Table Text Block] | At December 31, 2018, total future minimum commitments under existing non-cancelable operating leases were as follows: In millions 2019 2020 2021 2022 2023 Thereafter Lease obligations $ 160 $ 125 $ 77 $ 49 $ 28 $ 118 |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Graphic Packaging LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | Summarized financial information for GPIP is presented in the following tables: Balance Sheet In millions September 30, 2019 December 31, 2018 Current assets $ 1,765 $ 1,757 Noncurrent assets 5,419 5,292 Current liabilities 1,067 1,148 Noncurrent liabilities 3,325 3,156 Income Statement Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Net sales $ 1,581 $ 1,530 $ 4,640 $ 4,515 Gross profit 266 256 820 714 Income from continuing operations 83 135 283 278 Net income 83 135 283 278 |
Ilim Holding | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | Summarized financial information for Ilim is presented in the following tables: Balance Sheet In millions September 30, 2019 December 31, 2018 Current assets $ 749 $ 981 Noncurrent assets 2,392 1,710 Current liabilities 947 545 Noncurrent liabilities 1,509 1,470 Noncontrolling interests 22 11 Income Statement Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Net sales $ 479 $ 655 $ 1,692 $ 2,030 Gross profit 196 376 836 1,152 Income from continuing operations 41 149 388 454 Net income 40 143 375 438 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill Balances [Table Text Block] | The following table presents changes in goodwill balances as allocated to each business segment for the nine -months ended September 30, 2019 : In millions Industrial Packaging Global Cellulose Fibers Printing Papers Total Balance as of January 1, 2019 Goodwill $ 3,379 $ 52 $ 2,116 $ 5,547 Accumulated impairment losses (296 ) — (1,877 ) (2,173 ) 3,083 52 239 3,374 Currency translation and other (a) (2 ) — (14 ) (16 ) Goodwill additions/reductions 54 (b) — (112 ) (c) (58 ) Accumulated impairment loss additions / reductions — — 112 (c) 112 Balance as of September 30, 2019 Goodwill 3,431 52 1,990 5,473 Accumulated impairment losses (296 ) — (1,765 ) (2,061 ) Total $ 3,135 $ 52 $ 225 $ 3,412 (a) Represents the effects of foreign currency translations. (b) Reflects the provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA. (c) Reflects the reclassification of India goodwill and accumulated impairment losses to held for sale. |
Finite and Indefinite-Lived Intangible Assets [Table Text Block] | Identifiable intangible assets comprised the following: September 30, 2019 December 31, 2018 In millions Gross Carrying Amount Accumulated Amortization Net Intangible Assets Gross Carrying Amount Accumulated Amortization Net Intangible Assets Customer relationships and lists $ 541 $ 266 $ 275 $ 542 $ 247 $ 295 Non-compete agreements 26 26 — 67 67 — Tradenames, patents and trademarks, and developed technology 173 101 72 174 90 84 Land and water rights 8 2 6 8 2 6 Software 26 25 1 26 25 1 Other 25 18 7 30 23 7 Total $ 799 $ 438 $ 361 $ 847 $ 454 $ 393 |
Amortization Expense of Intangible Assets [Table Text Block] | The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Amortization expense related to intangible assets $ 15 $ 15 $ 40 $ 44 |
VARIABLE INTEREST ENTITIES AN_2
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
2015 Financing Entities | |
Activity Between Company And Entities [Table Text Block] | Activity between the Company and the 2015 Financing Entities was as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Revenue (a) $ 24 $ 24 $ 71 $ 71 Expense (a) 32 32 96 96 Cash receipts (b) 48 48 95 95 Cash payments (c) 64 64 128 128 (a) The revenue and expense are included in Interest expense, net in the accompanying statement of operations. (b) The cash receipts are interest received on the Financial assets of special purpose entities. (c) The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. |
2007 Financing Entities | |
Activity Between Company And Entities [Table Text Block] | Activity between the Company and the 2007 Financing Entities was as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Revenue (a) $ 19 $ 19 $ 61 $ 52 Expense (b) 19 18 60 48 Cash receipts (c) 16 15 48 34 Cash payments (d) 17 16 53 40 (a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for three and nine months ended September 30, 2019 and 2018 , respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities. (b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three and nine months ended September 30, 2019 and 2018 , respectively, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities. (c) The cash receipts are interest received on the Financial assets of special purpose entities. (d) The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Financial Instruments [Table Text Block] | The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows: In millions September 30, 2019 December 31, 2018 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 570 $ 407 Derivatives in Fair Value Hedging Relationships: Interest rate contracts 700 700 Derivatives in Net Investment Hedging Relationships: Interest rate contracts 475 — Derivatives Not Designated as Hedging Instruments: Electricity contract 19 8 Foreign exchange contracts 11 19 |
Gains Or Losses Recognized In Accumulated Other Comprehensive Income (AOCI), Net Of Tax, Related To Derivative Instruments [Table Text Block] | The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (10 ) $ 1 $ (6 ) $ (18 ) Interest rate contracts — — — (2 ) Total $ (10 ) $ 1 $ (6 ) $ (20 ) Derivatives in Net Investment Hedging Relationships: Interest rate contracts $ 18 $ — $ 15 $ — Total $ 18 $ — $ 15 $ — |
Gains And Losses Recognized In Consolidated Statement Of Operations On Qualifying And Non-Qualifying Financial Instruments [Table Text Block] | The amounts of gains and losses recognized in the statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows: Gain (Loss) Reclassified from AOCI (Effective Portion) Location of Gain (Loss) Reclassified from AOCI (Effective Portion) Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (4 ) $ (2 ) $ (5 ) $ (2 ) Cost of products sold Total $ (4 ) $ (2 ) $ (5 ) $ (2 ) Gain (Loss) Recognized Location of Gain (Loss) In Statement of Operations Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ 11 $ — $ 42 $ — Interest expense, net Debt (11 ) — (42 ) — Interest expense, net Total — — — — Derivatives Not Designated as Hedging Instruments: Electricity contract $ (5 ) $ 2 $ — $ 1 Cost of products sold Foreign exchange contracts (1 ) 3 (2 ) 4 Cost of products sold Total $ (6 ) $ 5 $ (2 ) $ 5 |
Impact Of Derivative Instruments In Consolidated Balance Sheet [Table Text Block] | The following table provides a summary of the impact of our derivative instruments in the balance sheet: Fair Value Measurements Level 2 – Significant Other Observable Inputs Assets Liabilities In millions September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 5 $ 3 $ 13 $ 10 Interest rate contracts - net investment 20 — — — Interest rate contracts - fair value 59 16 — — Total derivatives designated as hedging instruments 84 19 13 10 Derivatives not designated as hedging instruments Electricity contract — — 5 4 Foreign exchange contracts — — 2 1 Total derivatives not designated as hedging instruments — — 7 5 Total derivatives $ 84 (a) $ 19 (b) $ 20 (c) $ 15 (d) (a) Includes $8 million recorded in Other current assets and $76 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (b) Includes $2 million recorded in Other current assets and $17 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (c) Includes $15 million recorded in Other accrued liabilities and $5 million recorded in Other liabilities in the accompanying consolidated balance sheet. (d) Included in Other current liabilities in the accompanying consolidated balance sheet. |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans [Table Text Block] | Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Service cost $ 17 $ 40 $ 51 $ 119 Interest cost 110 118 330 356 Expected return on plan assets (158 ) (200 ) (473 ) (600 ) Actuarial loss 50 95 150 285 Amortization of prior service cost 4 4 12 12 Net periodic pension expense $ 23 $ 57 $ 70 $ 172 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits [Table Text Block] | Stock-based compensation expense and related income tax benefits were as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Total stock-based compensation expense (selling and administrative) $ 31 $ 35 $ 94 $ 102 Income tax benefits related to stock-based compensation (2 ) (6 ) 31 16 |
INDUSTRY SEGMENT INFORMATION (T
INDUSTRY SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment [Table Text Block] | Sales by business segment for the three months and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Industrial Packaging $ 3,820 $ 4,034 $ 11,516 $ 11,883 Global Cellulose Fibers 624 714 1,974 2,083 Printing Papers 1,071 1,102 3,224 3,215 Corporate and Intersegment Sales 53 51 164 174 Net Sales $ 5,568 $ 5,901 $ 16,878 $ 17,355 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating profit by business segment for the three months and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended In millions 2019 2018 2019 2018 Industrial Packaging $ 510 $ 472 $ 1,421 $ 1,446 Global Cellulose Fibers (3 ) 83 27 160 Printing Papers 148 183 258 341 Business Segment Operating Profits $ 655 $ 738 $ 1,706 $ 1,947 Earnings (loss) from continuing operations before income taxes and equity earnings $ 452 $ 553 $ 1,204 $ 1,399 Interest expense, net 123 133 378 401 Noncontrolling interests/equity earnings adjustment 2 (2 ) 4 (7 ) Corporate expenses, net 21 20 45 59 Corporate special items, net 48 9 48 30 Non-operating pension expense 9 25 27 65 Business Segment Operating Profits $ 655 $ 738 $ 1,706 $ 1,947 |
RECENT ACCOUNTING DEVELOPMENT_2
RECENT ACCOUNTING DEVELOPMENTS Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Net of Tax | $ (529) |
REVENUE RECOGNITION Disaggregat
REVENUE RECOGNITION Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 5,568 | $ 5,901 | $ 16,878 | $ 17,355 |
North American Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,368 | 3,653 | 10,158 | 10,604 |
EMEA Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 324 | 311 | 994 | 1,017 |
Brazilian Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 61 | 57 | 176 | 175 |
European Coated Paperboard | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 92 | 87 | 275 | 265 |
Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 624 | 714 | 1,974 | 2,083 |
North American Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 492 | 492 | 1,474 | 1,443 |
Brazilian Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 247 | 255 | 702 | 706 |
European Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 299 | 311 | 929 | 932 |
Indian Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 38 | 47 | 144 | 150 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,257 | 4,530 | 12,809 | 13,114 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 791 | 797 | 2,448 | 2,472 |
Pacific Rim and Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 97 | 143 | 337 | 470 |
Americas, other than U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 423 | 431 | 1,284 | 1,299 |
Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,820 | 4,034 | 11,516 | 11,883 |
Industrial Packaging | North American Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,368 | 3,653 | 10,158 | 10,604 |
Industrial Packaging | EMEA Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 324 | 311 | 994 | 1,017 |
Industrial Packaging | Brazilian Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 61 | 57 | 176 | 175 |
Industrial Packaging | European Coated Paperboard | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 92 | 87 | 275 | 265 |
Industrial Packaging | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,180 | 3,394 | 9,531 | 9,832 |
Industrial Packaging | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 415 | 396 | 1,263 | 1,275 |
Industrial Packaging | Pacific Rim and Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 20 | 40 | 50 | 110 |
Industrial Packaging | Americas, other than U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 205 | 204 | 672 | 666 |
Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 624 | 714 | 1,974 | 2,083 |
Global Cellulose Fibers | Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 624 | 714 | 1,974 | 2,083 |
Global Cellulose Fibers | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 535 | 602 | 1,656 | 1,720 |
Global Cellulose Fibers | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 62 | 77 | 207 | 222 |
Global Cellulose Fibers | Pacific Rim and Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 27 | 35 | 111 | 140 |
Global Cellulose Fibers | Americas, other than U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 1 |
Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,071 | 1,102 | 3,224 | 3,215 |
Printing Papers | North American Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 492 | 492 | 1,474 | 1,443 |
Printing Papers | Brazilian Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 247 | 255 | 702 | 706 |
Printing Papers | European Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 299 | 311 | 929 | 932 |
Printing Papers | Indian Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 38 | 47 | 144 | 150 |
Printing Papers | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 486 | 482 | 1,448 | 1,399 |
Printing Papers | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 315 | 328 | 986 | 988 |
Printing Papers | Pacific Rim and Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 47 | 62 | 167 | 185 |
Printing Papers | Americas, other than U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 223 | 230 | 623 | 643 |
Operating Segments [Member] | Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,820 | 4,034 | 11,516 | 11,883 |
Operating Segments [Member] | Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 624 | 714 | 1,974 | 2,083 |
Operating Segments [Member] | Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,071 | 1,102 | 3,224 | 3,215 |
Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 53 | 51 | 164 | 174 |
Intersegment Eliminations [Member] | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 56 | 52 | 174 | 163 |
Intersegment Eliminations [Member] | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (1) | (4) | (8) | (13) |
Intersegment Eliminations [Member] | Pacific Rim and Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3 | 6 | 9 | 35 |
Intersegment Eliminations [Member] | Americas, other than U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (5) | (3) | (11) | (11) |
Geography Eliminations [Member] | Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,820 | 4,034 | 11,516 | 11,883 |
Geography Eliminations [Member] | Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 624 | 714 | 1,974 | 2,083 |
Geography Eliminations [Member] | Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,071 | 1,102 | 3,224 | 3,215 |
Subsegments Consolidation Items [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (30) | (77) | (112) | (194) |
Subsegments Consolidation Items [Domain] | Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (25) | (74) | (87) | (178) |
Subsegments Consolidation Items [Domain] | Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ (5) | $ (3) | $ (25) | $ (16) |
REVENUE RECOGNITION Contract As
REVENUE RECOGNITION Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, Net, Current | $ 388 | $ 395 |
Contract with Customer, Liability, Current | 28 | $ 56 |
Contract with customer, asset, increase (decrease) | (7) | |
Contract with customer, liability increase (decrease) | $ (28) |
EQUITY Table (Details)
EQUITY Table (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Beginning Balance | $ 7,499,000,000 | $ 6,864,000,000 | $ 7,383,000,000 | $ 6,541,000,000 | ||||
Stockholders' Equity Attributable to Parent | 7,441,000,000 | 7,441,000,000 | $ 7,362,000,000 | |||||
Adoption of ASC 606 revenue from contracts with customers | 73,000,000 | 73,000,000 | ||||||
Issuance of stock for various plans, net | 33,000,000 | 37,000,000 | 113,000,000 | 112,000,000 | ||||
Repurchase of stock | (75,000,000) | (201,000,000) | (535,000,000) | (532,000,000) | ||||
Common stock dividends | (199,000,000) | (197,000,000) | (607,000,000) | (596,000,000) | ||||
Transactions of equity method investees | 0 | 1,000,000 | 33,000,000 | 19,000,000 | ||||
Comprehensive income (loss) | 198,000,000 | 554,000,000 | 1,069,000,000 | 1,441,000,000 | ||||
Stockholders' equity attributable to noncontrolling interest | 15,000,000 | 15,000,000 | 21,000,000 | |||||
Ending Balance | 7,456,000,000 | 7,058,000,000 | 7,456,000,000 | 7,058,000,000 | ||||
Common Stock Issued | ||||||||
Stockholders' Equity Attributable to Parent | 449,000,000 | 449,000,000 | 449,000,000 | 449,000,000 | $ 449,000,000 | 449,000,000 | $ 449,000,000 | $ 449,000,000 |
Paid-in Capital | ||||||||
Stockholders' Equity Attributable to Parent | 6,261,000,000 | 6,256,000,000 | 6,261,000,000 | 6,256,000,000 | 6,229,000,000 | 6,280,000,000 | 6,219,000,000 | 6,206,000,000 |
Issuance of stock for various plans, net | 32,000,000 | 36,000,000 | (52,000,000) | 31,000,000 | ||||
Transactions of equity method investees | 0 | 1,000,000 | 33,000,000 | 19,000,000 | ||||
Retained Earnings | ||||||||
Stockholders' Equity Attributable to Parent | 8,447,000,000 | 7,353,000,000 | 8,447,000,000 | 7,353,000,000 | 8,302,000,000 | 7,465,000,000 | 6,988,000,000 | 6,180,000,000 |
Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform | 529,000,000 | |||||||
Adoption of ASC 606 revenue from contracts with customers | 73,000,000 | 73,000,000 | ||||||
Common stock dividends | (199,000,000) | (197,000,000) | (607,000,000) | (596,000,000) | ||||
Comprehensive income (loss) | 344,000,000 | 562,000,000 | 1,060,000,000 | 1,696,000,000 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Stockholders' Equity Attributable to Parent | (5,014,000,000) | (4,887,000,000) | (5,014,000,000) | (4,887,000,000) | (4,870,000,000) | (4,500,000,000) | (4,881,000,000) | (4,633,000,000) |
Adoption of ASU 2018-02 reclassification of stranded tax effects resulting from Tax Reform | (529,000,000) | |||||||
Comprehensive income (loss) | (144,000,000) | (6,000,000) | 15,000,000 | (254,000,000) | ||||
Treasury Stock | ||||||||
Stockholders' Equity Attributable to Parent | 2,702,000,000 | 2,131,000,000 | 2,702,000,000 | 2,131,000,000 | 2,628,000,000 | 2,332,000,000 | 1,931,000,000 | 1,680,000,000 |
Issuance of stock for various plans, net | (1,000,000) | (1,000,000) | (165,000,000) | (81,000,000) | ||||
Repurchase of stock | 75,000,000 | 201,000,000 | 535,000,000 | 532,000,000 | ||||
Total International Paper Shareholders’ Equity | ||||||||
Stockholders' Equity Attributable to Parent | 7,441,000,000 | 7,040,000,000 | 7,441,000,000 | 7,040,000,000 | 7,482,000,000 | 7,362,000,000 | 6,844,000,000 | 6,522,000,000 |
Adoption of ASC 606 revenue from contracts with customers | 73,000,000 | 73,000,000 | ||||||
Issuance of stock for various plans, net | 33,000,000 | 37,000,000 | 113,000,000 | 112,000,000 | ||||
Repurchase of stock | (75,000,000) | (201,000,000) | (535,000,000) | (532,000,000) | ||||
Common stock dividends | (199,000,000) | (197,000,000) | (607,000,000) | (596,000,000) | ||||
Transactions of equity method investees | 0 | 1,000,000 | 33,000,000 | 19,000,000 | ||||
Comprehensive income (loss) | 200,000,000 | 556,000,000 | 1,075,000,000 | 1,442,000,000 | ||||
Noncontrolling Interests | ||||||||
Comprehensive income (loss), portion attributable to noncontrolling interest | (2,000,000) | (2,000,000) | (6,000,000) | (1,000,000) | ||||
Stockholders' equity attributable to noncontrolling interest | $ 15,000,000 | $ 18,000,000 | $ 15,000,000 | $ 18,000,000 | $ 17,000,000 | $ 21,000,000 | $ 20,000,000 | $ 19,000,000 |
EQUITY Phantom (Details)
EQUITY Phantom (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Common stock dividends, per share | $ 0.5000 | $ 0.4750 | $ 1.5000 | $ 1.4250 |
Total International Paper Shareholders’ Equity | ||||
Common stock dividends, per share | 0.5000 | 0.4750 | 1.5000 | 1.4250 |
Noncontrolling Interests | ||||
Common stock dividends, per share | $ 0.5000 | $ 0.4750 | $ 1.5000 | $ 1.4250 |
OTHER COMPREHENSIVE INCOME Sche
OTHER COMPREHENSIVE INCOME Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ (4,500) | |||
Amounts reclassified from accumulated other comprehensive income | $ 45 | $ 78 | (398) | $ 231 |
Other comprehensive income (loss) attributable to noncontrolling interest | 0 | (2) | 0 | (4) |
Ending Balance | (5,014) | (4,887) | (5,014) | (4,887) |
Defined Benefit Pension and Postretirement Items (a) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (2,362) | (2,376) | (1,916) | (2,527) |
Reclassification of stranded tax effects - Defined benefit pension and postretirement adjustments | 0 | 0 | (527) | 0 |
Amounts reclassified from accumulated other comprehensive income | 41 | 76 | 122 | 227 |
Ending Balance | (2,321) | (2,300) | (2,321) | (2,300) |
Change in Cumulative Foreign Currency Translation Adjustments (a) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (2,508) | (2,489) | (2,581) | (2,111) |
Other comprehensive income (loss) before reclassifications | (179) | (87) | (110) | (469) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 4 | 2 |
Other comprehensive income (loss) attributable to noncontrolling interest | 0 | 2 | 0 | 4 |
Ending Balance | (2,687) | (2,574) | (2,687) | (2,574) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 0 | (16) | (3) | 5 |
Reclassification of stranded tax effects - Defined benefit pension and postretirement adjustments | 0 | 0 | (2) | 0 |
Other comprehensive income (loss) before reclassifications | (10) | 1 | (6) | (20) |
Amounts reclassified from accumulated other comprehensive income | 4 | 2 | 5 | 2 |
Ending Balance | $ (6) | $ (13) | $ (6) | $ (13) |
OTHER COMPREHENSIVE INCOME Sc_2
OTHER COMPREHENSIVE INCOME Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Tax (expense)/benefit | $ (137) | $ (83) | $ (371) | $ (302) | |
Earnings (Loss) From Continuing Operations | (342) | (562) | (1,054) | (1,354) | |
Total reclassifications for the period | (45) | (78) | 398 | (231) | |
Prior-service costs | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from accumulated other comprehensive income, current period, before tax | [1] | (4) | (4) | (10) | (11) |
Actuarial gains (losses) | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from accumulated other comprehensive income, current period, before tax | [1] | (50) | (97) | (152) | (291) |
Accumulated defined benefit plans adjustment including portion attributable to noncontrolling interest | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from accumulated other comprehensive income, current period, before tax | (54) | (101) | (162) | (302) | |
Tax (expense)/benefit | 13 | 25 | 40 | 75 | |
Earnings (Loss) From Continuing Operations | (41) | (76) | (122) | (227) | |
Income (Loss) from Continuing Operations, Total, Net of Tax | (41) | (76) | 405 | (227) | |
Reclassification of stranded tax effects | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Tax cut and jobs act reclassification from AOCI to retained earnings pension and postretirement benefit plans, before tax | 0 | 0 | 527 | 0 | |
Total reclassifications for the period | (41) | (76) | (122) | (227) | |
Accumulated foreign currency adjustment including portion attributable to noncontrolling interest | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from accumulated other comprehensive income, current period, before tax | [2] | 0 | 0 | (4) | (2) |
Tax (expense)/benefit | 0 | 0 | 0 | 0 | |
Earnings (Loss) From Continuing Operations | 0 | 0 | (4) | (2) | |
Accumulated net gain (loss) from cash flow hedges including portion attributable to noncontrolling interest | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from accumulated other comprehensive income, current period, before tax | (6) | (3) | (7) | (3) | |
Tax (expense)/benefit | 2 | 1 | 2 | 1 | |
Accumulated net gain (loss) from cash flow hedges including portion attributable to noncontrolling interest | Foreign Exchange Contract | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from accumulated other comprehensive income, current period, before tax | [3] | (6) | (3) | (7) | (3) |
Net gains and loses on cash flow hedging derivatives | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings (Loss) From Continuing Operations | (4) | (2) | (5) | (2) | |
Tax cut and jobs act reclassification from AOCI to retained earnings pension and postretirement benefit plans, before tax | 0 | 0 | 2 | 0 | |
Income (Loss) from Continuing Operations, Total, Net of Tax | (4) | (2) | (3) | (2) | |
Total reclassifications for the period | $ (4) | $ (2) | $ (5) | $ (2) | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details). | ||||
[2] | Amounts for the three months and nine months ended September 30, 2018 were reclassified to Discontinued operations, net of taxes. | ||||
[3] | This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 18 for additional details). |
EARNINGS PER SHARE ATTRIBUTAB_3
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS Table (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings (loss) from continuing operations attributable to International Paper Company common shareholders | $ 344 | $ 562 | $ 1,060 | $ 1,351 |
Weighted average common shares outstanding | 392.6 | 407.4 | 396.3 | 411.4 |
Weighted average common shares outstanding – assuming dilution | 395.4 | 411.4 | 399.6 | 416.3 |
Basic earnings (loss) per share from continuing operations | $ 0.88 | $ 1.38 | $ 2.67 | $ 3.28 |
Diluted earnings (loss) per share from continuing operations | $ 0.87 | $ 1.37 | $ 2.65 | $ 3.25 |
Restricted performance share plan | ||||
Restricted performance share plan | 2.8 | 4 | 3.3 | 4.9 |
RESTRUCTURING AND OTHER CHARG_2
RESTRUCTURING AND OTHER CHARGES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges, net | $ 21 | $ 0 | $ 0 | $ 0 | $ 21 | $ 48 | ||
Corporate and Other [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance costs | 11 | |||||||
Printing Papers | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance costs | 6 | |||||||
Global Cellulose Fibers [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance costs | $ 4 | |||||||
EMEA Industrial Packaging [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance costs | $ 12 | |||||||
Restructuring and other charges, net | 26 | $ 22 | ||||||
Restructuring and related cost, accelerated depreciation | 6 | |||||||
Restructuring and other related charges, accelerated amortization and other noncash costs | 2 | |||||||
Other restructuring costs | $ 6 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - DS Smith Packaging [Member] $ in Millions | Sep. 30, 2019USD ($) |
Business Acquisition [Line Items] | |
Cash and temporary investments | $ 1 |
Accounts and notes receivable | 23 |
Inventory | 8 |
Plants, properties and equipment | 28 |
Goodwill | 48 |
Right of use assets | 2 |
Total assets acquired | 110 |
Accounts payable and accrued liabilities | 20 |
Other current liabilities | 1 |
Long-term debt | 2 |
Postretirement and postemployment benefit obligation | 3 |
Long-term lease obligations | 2 |
Total liabilities assumed | 28 |
Net assets acquired | $ 82 |
ACQUISITIONS Narrative (Details
ACQUISITIONS Narrative (Details) - 3 months ended Sep. 30, 2019 € in Millions, $ in Millions | USD ($) | EUR (€) |
Business Acquisition [Line Items] | ||
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | $ 25 | |
Business combination, pro forma information, earnings or loss of scquiree since scquisition fate, sctual | 2 | |
DS Smith Packaging [Member] | ||
Business Acquisition [Line Items] | ||
Business combination, provisional information, initial accounting incomplete, adjustment, consideration transferred | $ 82 | € 72 |
DIVESTITURES Disposal Group Inc
DIVESTITURES Disposal Group Including Discontinued Operations Table (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net gain on transfer of North American Consumer Packaging business | $ 0 | $ (488) | ||
Discontinued Operations, Net of Taxes | $ 0 | $ 0 | 0 | 345 |
North American Consumer Packaging [Member] | Discontinued Operations, Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Sales | 0 | 0 | ||
Selling and administrative expenses | 0 | 25 | ||
Net gain on transfer of North American Consumer Packaging business | 0 | (488) | ||
Earnings (Loss) Before Income Taxes and Equity Earnings | 0 | 463 | ||
Income tax provision (benefit) | 0 | 118 | ||
Discontinued Operations, Net of Taxes | $ 0 | $ 345 | ||
APPM [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and temporary investments | 19 | 19 | ||
Accounts and notes receivable | 16 | 16 | ||
Inventories | 23 | 23 | ||
Other current assets | 19 | 19 | ||
Plants, properties and equipment | 195 | 195 | ||
Deferred charges and other assets | 6 | 6 | ||
Total Assets Held for Sale | 278 | 278 | ||
Accounts payable and accrued liabilities | 18 | 18 | ||
Other current liabilities | 22 | 22 | ||
Deferred income taxes | 47 | 47 | ||
Net impairment reserve | 1 | 1 | ||
Net impairment reserve | 160 | 160 | ||
Total Liabilities Held for Sale | $ 248 | $ 248 |
DIVESTITURES Narrative (Details
DIVESTITURES Narrative (Details) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019₨ / sharesshares | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Net settlement on transfer of North American Consumer Packaging business | $ 0 | $ (40) | ||||||
Net (gains) losses on sales and impairments of businesses | $ 8 | $ 122 | $ 153 | 122 | ||||
North American Consumer Packaging [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest after Disposal | 20.50% | |||||||
Gain (loss) on disposition of business | $ 516 | |||||||
Gain (loss) on disposition of business, net of taxes | $ 385 | |||||||
Discontinued operation, amount of adjustment to prior period gain (Loss) on disposal, before income tax | 28 | |||||||
Discontinued operation, amount of adjustment to prior period gain (loss) on disposal, net of tax | $ 21 | |||||||
Cash provided by (used in) operating activities, discontinued operations | (25) | |||||||
Net settlement on transfer of North American Consumer Packaging business | $ (40) | |||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | APPM [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sale of stock, price per share | ₨ / shares | ₨ 275 | |||||||
Investment owned, balance, shares | shares | 30 | |||||||
Sale of stock, percentage of ownership before transaction | 75.00% | |||||||
Assets held-for-sale, long lived, fair value disclosure | $ 119 | |||||||
Net (gains) losses on sales and impairments of businesses | 152 | |||||||
Net (gains) losses on sale of assets and impairment charge, net of tax | 8 | $ 150 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 2 | |||||||
Impairment of Long-Lived Assets to be Disposed of | 6 | |||||||
Gain (loss) on sale of assets and impairment charge allocated to minority interest | $ 9 | |||||||
Gain (loss) on sale of assets and impairment charge allocated to minority interest, net of tax | $ 9 | |||||||
Subsequent Event [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | APPM [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 20.00% |
SUPPLEMENTAL FINANCIAL STATEM_3
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Accounts and Notes Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | $ 3,305 | $ 3,521 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | 3,055 | 3,249 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | $ 250 | $ 272 |
SUPPLEMENTAL FINANCIAL STATEM_4
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Inventories by Major Category (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Raw materials | $ 270 | $ 260 |
Finished pulp, paper and packaging | 1,140 | 1,241 |
Operating supplies | 637 | 641 |
Other | 147 | 99 |
Total | $ 2,194 | $ 2,241 |
SUPPLEMENTAL FINANCIAL STATEM_5
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Interest Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Income Statement Elements [Abstract] | ||||
Interest expense | $ 177 | $ 184 | $ 538 | $ 547 |
Interest income | 54 | 51 | 160 | 146 |
Capitalized interest costs | $ 7 | $ 9 | $ 21 | $ 26 |
SUPPLEMENTAL FINANCIAL STATEM_6
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |||||
Temporary investments | $ 484 | $ 484 | $ 402 | ||
Allowance for doubtful accounts | 77 | 77 | 81 | ||
Accumulated depreciation | 20,400 | 20,400 | 20,500 | ||
Depreciation expense | 305 | $ 315 | 902 | $ 930 | |
Capital expenditures incurred but not yet paid | 104 | 135 | |||
Interest payments | 591 | $ 606 | |||
Asset retirement obligation | $ 95 | $ 95 | $ 86 |
LEASES Lease Costs (Details)
LEASES Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating lease costs | $ 39 | $ 115 |
Variable lease costs | 16 | 53 |
Short-term lease costs | 9 | 27 |
Amortization of lease assets | 3 | 8 |
Interest on lease liabilities | 1 | 3 |
Total lease cost, net | $ 68 | $ 206 |
LEASES Schedule of Supplemental
LEASES Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease, right-of-use asset | $ 425 | $ 0 | |
Finance lease, right-of-use asset | [1] | 105 | |
Leased assets, total | 530 | ||
Operating lease, liability, current | 136 | ||
Finance lease, liability, current | 13 | ||
Operating lease, liability, noncurrent | 292 | $ 0 | |
Finance lease, liability, noncurrent | 91 | ||
Lease liability, total | $ 532 | ||
[1] | Finance leases are recorded net of accumulated amortization of $37 million . |
LEASES Schedule of Supplement_2
LEASES Schedule of Supplemental Balance Sheet Information Footnotes (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Finance lease, right-of-use asset, accumulated amortization | $ 37 |
LEASES Schedule of Lease Terms
LEASES Schedule of Lease Terms and Discount Rates Related to Leases (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term | 9 years 9 months 18 days |
Finance lease, weighted average remaining lease term | 11 years 3 months 18 days |
Operating lease, weighted average discount rate, percent | 3.24% |
Finance lease, weighted average discount rate, percent | 4.74% |
LEASES Schedule of Supplement_3
LEASES Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease, payments | $ 110 | |
Finance lease, interest expense | $ 1 | 3 |
Finance lease, principal payments | $ 7 |
LEASES Schedule of Maturities o
LEASES Schedule of Maturities of Operating and Finance Lease Liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Lessee, operating lease, liability, payments, due remainder of year | $ 39 | |
Finance lease, liability, payments, due remainder of year | 4 | |
Lease liability, payments, due remainder of year | 43 | |
Lessee, operating lease, liability, payments, due next twelve months | 138 | |
Finance lease, liability, payments, due next twelve months | 17 | |
Lease liability, payments, due next twelve months | 155 | |
Lessee, operating lease, liability, payments, due year two | 97 | |
Finance lease, liability, payments, due year two | 15 | |
Lease liability, payments, due year two | 112 | |
Lessee, operating lease, liability, payments, due year three | 64 | |
Finance lease, liability, payments, due year three | 13 | |
Lease liability, payments due, year three | 77 | |
Lessee, operating lease, liability, payments, due year four | 35 | |
Finance lease, liability, payments, due year four | 11 | |
Lease liability, payments, due year four | 46 | |
Lessee, operating lease, liability, payments, due year five | 18 | |
Finance lease, liability, payments, due year five | 10 | |
Lease liability, payments, due year five | 28 | |
Lessee, operating lease, liability, payments, due after year six | 95 | |
Finance lease, liability, payments, due after year six | 65 | |
Lease liability payments, due after year six | 160 | |
Lessee, operating lease, liability, payments, due | 486 | |
Finance lease, liability, payments, due | 135 | |
Lease liability, payments, total | 621 | |
Lessee, operating lease, liability, undiscounted excess amount | 58 | [1] |
Finance lease, liability, undiscounted excess amount | 31 | [1] |
Lease liability, undiscounted excess amount | 89 | [1] |
Operating lease, liability | 428 | |
Finance lease, liability | 104 | |
Lease liability, total | $ 532 | |
[1] | Calculated using the interest rate for each lease. |
LEASES Contractual Obligation,
LEASES Contractual Obligation, Fiscal Year Maturities Schedule (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Operating leases, future minimum payments due, next twelve months | $ 160 |
Operating leases, future minimum payments, due in two years | 125 |
Operating leases, future minimum payments, due in three years | 77 |
Operating leases, future minimum payments, due in four years | 49 |
Operating leases, future minimum payments, due in five years | 28 |
Operating leases, future minimum payments, due thereafter | $ 118 |
LEASES Narrative (Details)
LEASES Narrative (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum [Member] | |
Lessee, operating and financing leases, remaining lease term | 1 year |
Maximum [Member] | |
Lessee, operating and financing leases, remaining lease term | 97 years |
EQUITY METHOD INVESTMENTS Summa
EQUITY METHOD INVESTMENTS Summarized Financial Information of Equity Method Investees (Details) - Reportable Subsegments - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Graphic Packaging LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Current assets | $ 1,765 | $ 1,765 | $ 1,757 | ||
Noncurrent assets | 5,419 | 5,419 | 5,292 | ||
Current liabilities | 1,067 | 1,067 | 1,148 | ||
Noncurrent liabilities | 3,325 | 3,325 | 3,156 | ||
Net sales | 1,581 | $ 1,530 | 4,640 | $ 4,515 | |
Gross profit | 266 | 256 | 820 | 714 | |
Income from continuing operations | 83 | 135 | 283 | 278 | |
Net income | 83 | 135 | 283 | 278 | |
Ilim Holding | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Current assets | 749 | 749 | 981 | ||
Noncurrent assets | 2,392 | 2,392 | 1,710 | ||
Current liabilities | 947 | 947 | 545 | ||
Noncurrent liabilities | 1,509 | 1,509 | 1,470 | ||
Noncontrolling interests | 22 | 22 | $ 11 | ||
Net sales | 479 | 655 | 1,692 | 2,030 | |
Gross profit | 196 | 376 | 836 | 1,152 | |
Income from continuing operations | 41 | 149 | 388 | 454 | |
Net income | $ 40 | $ 143 | $ 375 | $ 438 |
EQUITY METHOD INVESTMENTS Narra
EQUITY METHOD INVESTMENTS Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Mar. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity earnings (loss), net of taxes | $ 27 | $ 92 | $ 221 | $ 257 | ||
Document Period End Date | Sep. 30, 2019 | |||||
Equity method dividends received | $ 260 | 130 | ||||
Reportable Subsegments | Graphic Packaging LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of equity interest | 21.60% | 21.60% | 20.50% | |||
Equity earnings (loss), net of taxes | $ 10 | 19 | $ 37 | 36 | ||
Equity method dividends received | 20 | 12 | ||||
Equity method investments | 1,100 | 1,100 | $ 1,100 | |||
Equity method investment, difference between carrying amount and underlying equity | 534 | 534 | 562 | |||
Revenue from related parties | $ 69 | 62 | $ 212 | 180 | ||
Reportable Subsegments | Ilim Holding | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of equity interest | 50.00% | 50.00% | ||||
Equity earnings (loss), net of taxes | $ 18 | 74 | $ 186 | 223 | ||
Equity method dividends received | 239 | 118 | ||||
Equity method investments | 477 | 477 | 478 | |||
Equity method investment, difference between carrying amount and underlying equity | 146 | 146 | $ 145 | |||
Related party transaction, purchases from related party | $ 51 | $ 50 | $ 162 | $ 159 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES Changes in Goodwill Balances (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | ||
Goodwill [Line Items] | |||
Beginning balance | $ 5,547 | ||
Accumulated impairment losses | (2,173) | ||
Total | 3,412 | $ 3,374 | |
Currency translation and other (a) | [1] | (16) | |
Goodwill additions/reductions | (58) | ||
Accumulated impairment loss additions / reductions | 112 | ||
Accumulated impairment losses | (2,061) | ||
Ending balance | 5,473 | ||
Industrial Packaging | |||
Goodwill [Line Items] | |||
Beginning balance | 3,379 | ||
Accumulated impairment losses | (296) | ||
Total | 3,135 | 3,083 | |
Currency translation and other (a) | [1] | (2) | |
Goodwill additions/reductions | [2] | 54 | |
Accumulated impairment loss additions / reductions | 0 | ||
Accumulated impairment losses | (296) | ||
Ending balance | 3,431 | ||
Global Cellulose Fibers | |||
Goodwill [Line Items] | |||
Beginning balance | 52 | ||
Accumulated impairment losses | 0 | ||
Total | 52 | 52 | |
Currency translation and other (a) | [1] | 0 | |
Goodwill additions/reductions | 0 | ||
Accumulated impairment loss additions / reductions | 0 | ||
Accumulated impairment losses | 0 | ||
Ending balance | 52 | ||
Printing Papers | |||
Goodwill [Line Items] | |||
Beginning balance | 2,116 | ||
Accumulated impairment losses | (1,877) | ||
Total | 225 | $ 239 | |
Currency translation and other (a) | [1] | (14) | |
Goodwill additions/reductions | [3] | (112) | |
Accumulated impairment loss additions / reductions | [3] | 112 | |
Accumulated impairment losses | (1,765) | ||
Ending balance | $ 1,990 | ||
[1] | Represents the effects of foreign currency translations | ||
[2] | Reflects the provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA. | ||
[3] | Reflects the reclassification of India goodwill and accumulated impairment losses to held for sale. |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 799 | $ 847 |
Accumulated Amortization | 438 | 454 |
Net Intangible Assets | 361 | 393 |
Customer relationships and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 541 | 542 |
Accumulated Amortization | 266 | 247 |
Net Intangible Assets | 275 | 295 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26 | 67 |
Accumulated Amortization | 26 | 67 |
Net Intangible Assets | 0 | 0 |
Tradenames, patents and trademarks, and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 173 | 174 |
Accumulated Amortization | 101 | 90 |
Net Intangible Assets | 72 | 84 |
Land and water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8 | 8 |
Accumulated Amortization | 2 | 2 |
Net Intangible Assets | 6 | 6 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26 | 26 |
Accumulated Amortization | 25 | 25 |
Net Intangible Assets | 1 | 1 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 25 | 30 |
Accumulated Amortization | 18 | 23 |
Net Intangible Assets | $ 7 | $ 7 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 15 | $ 15 | $ 40 | $ 44 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income tax payments, net of refunds | $ 245 | $ 195 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 10 | |
Investment tax credit | 8 | $ 6 |
Secretariat of the Federal Revenue Bureau of Brazil [Member] | ||
Income tax examination, estimate of possible loss | 146 | |
Income tax examination, penalties and interest expense | $ 379 |
COMMITMENTS AND CONTINGENCIES E
COMMITMENTS AND CONTINGENCIES Environmental Remediation Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2011 |
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 145 | |
Accrual for environmental loss contingencies, gross | 155 | |
Cass Lake, Minnesota | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 47 | $ 46 |
COMMITMENTS AND CONTINGENCIES L
COMMITMENTS AND CONTINGENCIES Litigation (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2019USD ($)Plaintiffs | Dec. 31, 2015USD ($) | Sep. 30, 2014USD ($) | |
Signature Industrial Services LLC et al. v. International Paper | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, damages awarded, value | $ 137 | $ 125 | ||||||
Disputed invoices, value | $ 1 | |||||||
Kalamazoo River Superfund Site | Time Critical Removal Action | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, damages sought, value | $ 37 | $ 19 | ||||||
Kalamazoo River Superfund Site | Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC Cost Recovery Action | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, damages awarded, value | $ 50 | |||||||
Loss contingency, damages sought, value | $ 79 | |||||||
Responsible party percentage | 15.00% | |||||||
San Jacinto River Superfund Site | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, damages sought, value | $ 115 | |||||||
Remediation design period | 29 months | |||||||
San Jacinto River Superfund Site | Medical Monitoring and Damages | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of plaintiffs seeking damages | Plaintiffs | 600 | |||||||
Italian Competition Authority [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, damages sought, value | $ 32 | € 29 | ||||||
Potentially Responsible Parties | 30 | 30 |
VARIABLE INTEREST ENTITIES AN_3
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Activity Between Company and Entities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
2015 Financing Entities | |||||
Variable Interest Entity [Line Items] | |||||
Revenue | [1] | $ 24 | $ 24 | $ 71 | $ 71 |
Expense | [1] | 32 | 32 | 96 | 96 |
Cash receipts | [2] | 48 | 48 | 95 | 95 |
Cash payments | [3] | 64 | 64 | 128 | 128 |
2007 Financing Entities | |||||
Variable Interest Entity [Line Items] | |||||
Revenue | [4] | 19 | 19 | 61 | 52 |
Expense | [5] | 19 | 18 | 60 | 48 |
Cash receipts | [6] | 16 | 15 | 48 | 34 |
Cash payments | [7] | $ 17 | $ 16 | $ 53 | $ 40 |
[1] | The revenue and expense are included in Interest expense, net in the accompanying statement of operations. | ||||
[2] | The cash receipts are interest received on the Financial assets of special purpose entities. | ||||
[3] | The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. | ||||
[4] | The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for three and nine months ended September 30, 2019 and 2018 , respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities. | ||||
[5] | The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three and nine months ended September 30, 2019 and 2018 , respectively, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities. | ||||
[6] | The cash receipts are interest received on the Financial assets of special purpose entities. | ||||
[7] | The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
VARIABLE INTEREST ENTITIES AN_4
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Activity Between Company and Entities Footnotes (Details) - 2007 Financing Entities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Variable Interest Entity [Line Items] | ||||
Accretion income for amortization of purchase accounting adjustment, financial assets | $ 5 | $ 5 | $ 14 | $ 14 |
Accretion expense for amortization of purchase accounting adjustment, financial liabiities | $ 2 | $ 2 | $ 5 | $ 5 |
VARIABLE INTEREST ENTITIES AN_5
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Narrative (Details) $ in Millions | Sep. 30, 2019USD ($) |
2015 Financing Entities | |
Variable Interest Entity [Line Items] | |
Notes receivable, fair value disclosure | $ 4,840 |
Long-term debt, fair value | 4,270 |
2007 Financing Entities | |
Variable Interest Entity [Line Items] | |
Notes receivable, fair value disclosure | 2,280 |
Long-term debt, fair value | $ 2,110 |
DEBT Narrative (Details)
DEBT Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Proceeds from issuance of debt | $ 200 | |||
Debt instrument, interest rate, stated percentage | 3.55% | |||
Debt instrument, maturity date | Jun. 15, 2029 | |||
Debt and capital lease obligations | $ 10,400 | |||
Debt fair value | 11,400 | |||
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,000 | $ 750 | ||
Line of credit, current | $ 245 | |||
Debt, weighted average interest rate | 2.29% | |||
Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of debt | $ 127 | |||
Debt instrument, maturity date | Jan. 1, 2024 | |||
Subsequent Event [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 1.90% | |||
Subsequent Event [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.10% |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES Schedule of Notional Amounts of Financial Instruments (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 11,000,000 | $ 19,000,000 |
Energy Related Derivative | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 19,000,000 | 8,000,000 |
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 570,000,000 | 407,000,000 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 700,000,000 | 700,000,000 |
Net Investment Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 475,000,000 | $ 0 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES Gains Losses Recognized in Accumulated Other Comprehensive Income AOCI Net of Tax Related to Derivative Instruments (Details) - Other Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (10) | $ 1 | $ (6) | $ (20) |
Cash Flow Hedging | Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (10) | 1 | (6) | (18) |
Cash Flow Hedging | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 0 | 0 | 0 | (2) |
Net Investment Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 18 | 0 | 15 | 0 |
Net Investment Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 18 | $ 0 | $ 15 | $ 0 |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES Gains and Losses Recognized in Consolidated Statement of Operations on Qualifying and Non-Qualifying Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Designated as Hedging Instrument | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 0 | $ 0 | $ 0 |
Designated as Hedging Instrument | Interest Expense [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 11 | 0 | 42 | 0 |
Designated as Hedging Instrument | Interest Expense [Member] | Debt [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (11) | 0 | (42) | 0 |
Designated as Hedging Instrument | Cost of Products Sold | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (4) | (2) | (5) | (2) |
Designated as Hedging Instrument | Cost of Products Sold | Cash Flow Hedging | Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (4) | (2) | (5) | (2) |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (6) | 5 | (2) | 5 |
Not Designated as Hedging Instrument | Cost of Products Sold | Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (1) | 3 | (2) | 4 |
Not Designated as Hedging Instrument | Cost of Products Sold | Energy Related Derivative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (5) | $ 2 | $ 0 | $ 1 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | $ 84 | $ 19 | |||
Derivative Liabilities | 20 | 15 | |||
Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 84 | [1] | 19 | [2] | |
Derivative Liabilities | 13 | [3] | 10 | [4] | |
Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 0 | 0 | |||
Derivative Liabilities | [4] | 7 | 5 | ||
Foreign Exchange Contract | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 0 | 0 | |||
Derivative Liabilities | 2 | 1 | |||
Energy Related Derivative | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 0 | 0 | |||
Derivative Liabilities | 5 | 4 | |||
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 5 | 3 | |||
Derivative Liabilities | 13 | 10 | |||
Net Investment Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 20 | 0 | |||
Derivative Liabilities | 0 | 0 | |||
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 59 | 16 | |||
Derivative Liabilities | $ 0 | $ 0 | |||
[1] | Includes $8 million recorded in Other current assets and $76 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | ||||
[2] | Includes $2 million recorded in Other current assets and $17 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | ||||
[3] | (c) Includes $15 million recorded in Other accrued liabilities and $5 million recorded in Other liabilities in the accompanying consolidated balance sheet. | ||||
[4] | Included in Other current liabilities in the accompanying consolidated balance sheet. |
DERIVATIVES AND HEDGING ACTIV_7
DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet Other (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | $ 84 | $ 19 | |||
Derivative Liabilities | 20 | 15 | |||
Other Current Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | [1] | 8 | 2 | ||
Deferred charges and other assets [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | [1] | 76 | 17 | ||
Accrued Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liabilities | 15 | ||||
Other Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liabilities | 5 | ||||
Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 84 | [1] | 19 | [2] | |
Derivative Liabilities | 13 | [3] | 10 | [4] | |
Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 0 | 0 | |||
Derivative Liabilities | [4] | $ 7 | $ 5 | ||
[1] | Includes $8 million recorded in Other current assets and $76 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | ||||
[2] | Includes $2 million recorded in Other current assets and $17 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | ||||
[3] | (c) Includes $15 million recorded in Other accrued liabilities and $5 million recorded in Other liabilities in the accompanying consolidated balance sheet. | ||||
[4] | Included in Other current liabilities in the accompanying consolidated balance sheet. |
DERIVATIVES AND HEDGING ACTIV_8
DERIVATIVES AND HEDGING ACTIVITIES Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain / (Loss) Recorded to AOCI After Tax, That Is Expected to be Reclassified to Earnings | $ 3 |
RETIREMENT PLANS Net Periodic P
RETIREMENT PLANS Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans (Details) - U.S. plans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 17 | $ 40 | $ 51 | $ 119 |
Interest cost | 110 | 118 | 330 | 356 |
Expected return on plan assets | (158) | (200) | (473) | (600) |
Actuarial loss | 50 | 95 | 150 | 285 |
Amortization of prior service cost | 4 | 4 | 12 | 12 |
Net periodic pension expense | $ 23 | $ 57 | $ 70 | $ 172 |
RETIREMENT PLANS Narrative (Det
RETIREMENT PLANS Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Age to participate in the pension plan | 21 | |
Years of eligibility to participate in pension plan | 1 | |
Domestic Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan contributions | $ 0 | $ 0 |
Non Qualified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefits paid | $ 21 |
STOCK-BASED COMPENSATION Schedu
STOCK-BASED COMPENSATION Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Income tax benefits related to stock-based compensation | $ (2) | $ (6) | $ 31 | $ 16 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense (selling and administrative) | $ 31 | $ 35 | $ 94 | $ 102 |
STOCK-BASED COMPENSATION Narrat
STOCK-BASED COMPENSATION Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures | $ | $ 124 |
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures, weighted-average period (in years) | 1 year 9 months 18 days |
Granted, nonvested shares / units | 2.4 |
Granted, nonvested, weighted average grant date fair value | $ / shares | $ 43.49 |
Stock Compensation Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant under ICP | 9.8 |
INDUSTRY SEGMENT INFORMATION Sa
INDUSTRY SEGMENT INFORMATION Sales by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 5,568 | $ 5,901 | $ 16,878 | $ 17,355 |
Industrial Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,820 | 4,034 | 11,516 | 11,883 |
Global Cellulose Fibers | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 624 | 714 | 1,974 | 2,083 |
Printing Papers | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,071 | 1,102 | 3,224 | 3,215 |
Corporate and Intersegment Sales | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 53 | $ 51 | $ 164 | $ 174 |
INDUSTRY SEGMENT INFORMATION Op
INDUSTRY SEGMENT INFORMATION Operating Profit by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | $ 655 | $ 738 | $ 1,706 | $ 1,947 |
Earnings (loss) from continuing operations before income taxes and equity earnings | 452 | 553 | 1,204 | 1,399 |
Interest expense, net | (123) | (133) | (378) | (401) |
Noncontrolling interests/equity earnings adjustment | 2 | (2) | 4 | (7) |
Corporate expenses, net | 21 | 20 | 45 | 59 |
Corporate special items, net | 48 | 9 | 48 | 30 |
Non-operating pension expense | 9 | 25 | 27 | 65 |
Segment Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Interest expense, net | 123 | 133 | 378 | 401 |
Industrial Packaging | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | 510 | 472 | 1,421 | 1,446 |
Global Cellulose Fibers | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | (3) | 83 | 27 | 160 |
Printing Papers | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | $ 148 | $ 183 | $ 258 | $ 341 |