Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 | 393,041,293 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Sales | $ 5,352 | $ 5,643 |
Costs and Expenses | ||
Cost of products sold | 3,746 | 3,929 |
Selling and administrative expenses | 418 | 413 |
Depreciation, amortization and cost of timber harvested | 323 | 315 |
Distribution expenses | 407 | 389 |
Taxes other than payroll and income taxes | 44 | 43 |
Restructuring and other charges, net | 8 | 0 |
Net (gains) losses on sales and impairments of businesses | 344 | (7) |
Net (gains) losses on sales of equity method investments | (33) | 0 |
Interest expense, net | 117 | 133 |
Non-operating pension expense (income) | (6) | 10 |
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | (16) | 418 |
Income tax provision (benefit) | 94 | 106 |
Equity earnings (loss), net of taxes | (31) | 114 |
Net Earnings (Loss) | (141) | 426 |
Less: Net earnings (loss) attributable to noncontrolling interests | 0 | 2 |
Net Earnings (Loss) Attributable to International Paper Company | $ (141) | $ 424 |
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||
Net earnings (loss) | $ (0.36) | $ 1.06 |
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||
Net earnings (loss) | $ (0.36) | $ 1.05 |
Average Shares of Common Stock Outstanding – assuming dilution | 392.6 | 403.2 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Earnings (Loss) | $ (141) | $ 426 |
Other Comprehensive Income (Loss), Net of Tax: | ||
Change in cumulative foreign currency translation adjustment | (544) | 12 |
Net gains/losses on cash flow hedging derivatives: | ||
Net gains (losses) arising during the period | (30) | 0 |
Reclassification adjustment for (gains) losses included in net earnings (loss) | 11 | 1 |
Total Other Comprehensive Income (Loss), Net of Tax | (517) | 54 |
Comprehensive Income (Loss) | (658) | 480 |
Net (earnings) loss attributable to noncontrolling interests | 0 | (2) |
Other comprehensive (income) loss attributable to noncontrolling interests | 1 | 0 |
Comprehensive Income (Loss) Attributable to International Paper Company | (657) | 478 |
U.S. plans | ||
Other Comprehensive Income (Loss), Net of Tax: | ||
Amortization of pension and post-retirement prior service costs and net loss: | $ 46 | $ 41 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and temporary investments | $ 1,239 | $ 511 |
Accounts and notes receivable, net | 3,226 | 3,280 |
Contract assets | 423 | 393 |
Inventories | 2,002 | 2,208 |
Assets held for sale | 112 | 0 |
Other current assets | 213 | 247 |
Total Current Assets | 7,215 | 6,639 |
Plants, Properties and Equipment, net | 12,691 | 13,004 |
Forestlands | 308 | 391 |
Investments | 1,370 | 1,721 |
Financial Assets of Variable Interest Entities (Note 16) | 7,093 | 7,088 |
Goodwill | 3,304 | 3,347 |
Right of Use Assets | 422 | 434 |
Deferred Charges and Other Assets | 812 | 847 |
Total Assets | 33,215 | 33,471 |
Current Liabilities | ||
Notes payable and current maturities of long-term debt | 664 | 168 |
Current nonrecourse financial liabilities of variable interest entities (Note 16) | 4,220 | 4,220 |
Accounts payable | 2,379 | 2,423 |
Accrued payroll and benefits | 355 | 466 |
Liabilities held for sale | 364 | 0 |
Other current liabilities | 1,360 | 1,369 |
Total Current Liabilities | 9,342 | 8,646 |
Long-Term Debt | 9,561 | 9,597 |
Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities (Note 16) | 2,087 | 2,085 |
Deferred Income Taxes | 2,662 | 2,633 |
Pension Benefit Obligation | 1,521 | 1,578 |
Postretirement and Postemployment Benefit Obligation | 252 | 270 |
Long-Term Lease Obligations | 293 | 304 |
Other Liabilities | 636 | 640 |
Equity | ||
Common stock, $1 par value, 2020 – 448.9 shares and 2019 – 448.9 shares | 449 | 449 |
Paid-in capital | 6,252 | 6,297 |
Retained earnings | 8,062 | 8,408 |
Accumulated other comprehensive loss | (5,255) | (4,739) |
Shareholders' Equity before Treasury Stock, Total | 9,508 | 10,415 |
Less: Common stock held in treasury, at cost, 2020 – 56.1 shares and 2019 – 56.8 shares | 2,651 | 2,702 |
Total International Paper Shareholders’ Equity | 6,857 | 7,713 |
Noncontrolling interests | 4 | 5 |
Total Equity | 6,861 | 7,718 |
Total Liabilities and Equity | $ 33,215 | $ 33,471 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares | 448.9 | 448.9 |
Common stock held in treasury, shares | 56.1 | 56.8 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Operating Activities | |||
Net earnings (loss) | $ (141) | $ 426 | |
Depreciation, amortization and cost of timber harvested | 323 | 315 | |
Deferred income tax provision (benefit), net | 35 | 22 | |
Restructuring and other charges, net | 8 | 0 | |
Net (gains) losses on sales and impairments of businesses | 344 | (7) | |
Net (gains) losses on sales of equity method investments | (33) | 0 | |
Equity method dividends received | 5 | 6 | |
Equity (earnings) losses, net | 31 | (114) | |
Periodic pension expense, net | 11 | 26 | |
Other, net | 166 | 46 | |
Changes in current assets and liabilities | |||
Accounts and notes receivable | (107) | 26 | |
Contract assets | (33) | (15) | |
Inventories | 60 | (22) | |
Accounts payable and accrued liabilities | (31) | 34 | |
Interest payable | (12) | (25) | |
Other | 23 | 15 | |
Cash Provided By (Used For) Operations | 649 | 733 | |
Investment Activities | |||
Invested in capital projects, net of insurance recoveries | (286) | (293) | |
Acquisitions, net of cash acquired | 0 | (17) | |
Proceeds from divestitures, net of cash divested | 0 | 17 | |
Proceeds from sale of equity method investments | 250 | 0 | |
Proceeds from sale of fixed assets | 1 | 3 | |
Other | 0 | (4) | |
Cash Provided By (Used For) Investment Activities | (35) | (294) | |
Financing Activities | |||
Repurchases of common stock and payments of restricted stock tax withholding | (41) | (229) | |
Issuance of debt | 560 | 208 | |
Reduction of debt | (136) | (142) | |
Change in book overdrafts | (9) | (25) | |
Dividends paid | (202) | (201) | |
Other | (7) | 0 | |
Cash Provided By (Used For) Financing Activities | 165 | (389) | |
Cash Included in Assets Held for Sale | (9) | 0 | |
Effect of Exchange Rate Changes on Cash | (42) | 2 | |
Change in Cash and Temporary Investments | 728 | 52 | |
Cash and Temporary Investments | |||
Beginning of period | 511 | 589 | $ 589 |
End of period | $ 1,239 | $ 641 | $ 511 |
BASIS OF PRESENTATION Footnote
BASIS OF PRESENTATION Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation [Note Text Block] | NOTE 1 - BASIS OF PRESENTATION 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 three 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, 2019 , which have previously been filed with the Securities and Exchange Commission. On March 11, 2020 the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. Governments of countries in which we operate have generally considered forest products and the supply chain on which we depend to be “essential industries” that should remain operational during this pandemic. Accordingly, our manufacturing and converting facilities remain open; however, we have seen a significant negative impact on demand for our printing papers products and demand for our pulp, containerboard and corrugated box products is expected to be unfavorably impacted if the negative economic conditions associated with COVID-19 persist or continue to deteriorate. There continue to be significant uncertainties associated with the COVID-19 pandemic, including with respect to the severity of the disease, the duration of the outbreak, actions that may be taken by governmental authorities and private businesses to attempt to contain the COVID-19 outbreak or to mitigate its impact; the extent and duration of social distancing and the adoption of stay-at-home orders; and the ongoing impact of COVID-19 on economic activity and consumer confidence. As a result, we are unable to fully quantify the impact that the COVID-19 pandemic will have on our financial results during 2020, but developments related to COVID-19 are significantly adversely affecting our business, and could have a material adverse effect on our financial condition, results of operations and cash flows, particularly if negative global economic conditions persist for a significant period of time or continue to deteriorate. |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Developments [Note Text Block] | NOTE 2 - RECENT ACCOUNTING DEVELOPMENTS Recently Adopted Accounting Pronouncements 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. The Company adopted this guidance using the modified retrospective approach on January 1, 2020. As a result of using this approach, the Company recognized a cumulative effect adjustment of $2 million to the opening balance of retained earnings representing the adjustment to our opening allowance for doubtful accounts required to state our trade receivables and contract assets net of their expected credit losses, net of deferred taxes. Recently Issued Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This guidance provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the provisions of this guidance. Income Taxes In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This guidance removes certain exceptions from recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance is effective for annual reporting periods beginning after December 15, 2020, and interim periods within those years. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. The Company is currently evaluating the provisions of this guidance. |
REVENUE RECOGNITION Footnote
REVENUE RECOGNITION Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 3 - REVENUE RECOGNITION 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 March 31, 2020 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 3,130 $ 494 $ 444 $ 58 $ 4,126 EMEA 440 56 302 (2 ) 796 Pacific Rim and Asia 12 18 8 3 41 Americas, other than U.S. 237 — 154 (2 ) 389 Total $ 3,819 $ 568 $ 908 $ 57 $ 5,352 Operating Segments North American Industrial Packaging $ 3,355 $ — $ — $ — $ 3,355 EMEA Industrial Packaging 350 — — — 350 Brazilian Industrial Packaging 54 — — — 54 European Coated Paperboard 92 — — — 92 Global Cellulose Fibers — 568 — — 568 North American Printing Papers — — 446 — 446 Brazilian Papers — — 176 — 176 European Papers — — 287 — 287 Indian Papers — — — — — Intra-segment Eliminations (32 ) — (1 ) — (33 ) Corporate & Inter-segment Sales — — 57 57 Total $ 3,819 $ 568 $ 908 $ 57 $ 5,352 (a) Net sales are attributed to countries based on the location of the seller. Three Months Ended March 31, 2019 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 3,146 $ 570 $ 488 $ 60 $ 4,264 EMEA 428 81 330 (2 ) 837 Pacific Rim and Asia 18 38 59 4 119 Americas, other than U.S. 240 — 188 (5 ) 423 Total $ 3,832 $ 689 $ 1,065 $ 57 $ 5,643 Operating Segments North American Industrial Packaging $ 3,376 $ — $ — $ — $ 3,376 EMEA Industrial Packaging 339 — — — 339 Brazilian Industrial Packaging 57 — — — 57 European Coated Paperboard 91 — — — 91 Global Cellulose Fibers — 689 — — 689 North American Printing Papers — — 496 — 496 Brazilian Papers — — 215 — 215 European Papers — — 309 — 309 Indian Papers — — 53 — 53 Intra-segment Eliminations (31 ) — (8 ) — (39 ) Corporate & Inter-segment Sales — — — 57 57 Total $ 3,832 $ 689 $ 1,065 $ 57 $ 5,643 (a) Net sales are attributed to countries based on the location of the seller. Revenue Contract Balances 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. Contract liabilities of $44 million and $56 million are included in Other current liabilities in the accompanying condensed consolidated balance sheet as of March 31, 2020 and December 31, 2019 , respectively. 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 | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity [Note Text Block] | NOTE 4 - EQUITY A summary of the changes in equity for the three months ended March 31, 2020 and 2019 is provided below: Three Months Ended March 31, 2020 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Held In Treasury, At Cost Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, January 1 $ 449 $ 6,297 $ 8,408 $ (4,739 ) $ 2,702 $ 7,713 $ 5 $ 7,718 Adoption of ASU 2016-13 measurement of credit losses on financial instruments — — (2 ) — — (2 ) — (2 ) Issuance of stock for various plans, net — (51 ) — — (92 ) 41 — 41 Repurchase of stock — — — — 41 (41 ) — (41 ) Common stock dividends ($0.5125 per share) — — (203 ) — — (203 ) — (203 ) Transactions of equity method investees — 6 — — — 6 — 6 Comprehensive income (loss) — — (141 ) (516 ) — (657 ) (1 ) (658 ) Ending Balance, March 31 $ 449 $ 6,252 $ 8,062 $ (5,255 ) $ 2,651 $ 6,857 $ 4 $ 6,861 Three Months Ended March 31, 2019 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Held In Treasury, At Cost 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 — (118 ) — — (163 ) 45 — 45 Repurchase of stock — — — — 229 (229 ) — (229 ) Common stock dividends ($0.5000 per share) — — (207 ) — — (207 ) — (207 ) Transactions of equity method investees — (3 ) — — — (3 ) — (3 ) Comprehensive income (loss) — — 424 54 — 478 2 480 Ending Balance, March 31 $ 449 $ 6,159 $ 8,211 $ (4,975 ) $ 2,398 $ 7,446 $ 23 $ 7,469 |
OTHER COMPREHENSIVE INCOME Foot
OTHER COMPREHENSIVE INCOME Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Other Comprehensive Income [Note Text Block] | NOTE 5 - OTHER COMPREHENSIVE INCOME The following table presents changes in accumulated other comprehensive income (AOCI) for the three months ended March 31, 2020 and 2019 : Three Months Ended In millions 2020 2019 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (2,277 ) $ (1,916 ) Reclassification of stranded tax effects — (527 ) Amounts reclassified from accumulated other comprehensive income 46 41 Balance at end of period (2,231 ) (2,402 ) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (2,465 ) (2,581 ) Other comprehensive income (loss) before reclassifications (544 ) 8 Amounts reclassified from accumulated other comprehensive income — 4 Other comprehensive income (loss) attributable to noncontrolling interest 1 — Balance at end of period (3,008 ) (2,569 ) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period 3 (3 ) Other comprehensive income (loss) before reclassifications (30 ) — Reclassification of stranded tax effects — (2 ) Amounts reclassified from accumulated other comprehensive income 11 1 Balance at end of period (16 ) (4 ) Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (5,255 ) $ (4,975 ) The following table presents details of the reclassifications out of AOCI for the three months ended March 31, 2020 and 2019 : In millions: Amounts Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI Three Months Ended 2020 2019 Defined benefit pension and postretirement items: Prior-service costs $ (5 ) $ (3 ) (a) Non-operating pension expense Actuarial gains (losses) (56 ) (52 ) (a) Non-operating pension expense Total pre-tax amount (61 ) (55 ) Tax (expense) benefit 15 14 Net of tax (46 ) (41 ) Reclassification of stranded tax effects — 527 Retained Earnings Total, net of tax (46 ) 486 Change in cumulative foreign currency translation adjustments: Business acquisitions/divestitures — (4 ) Cost of products sold Tax (expense) benefit — — Net of tax — (4 ) Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts (17 ) (1 ) (b) Cost of products sold Total pre-tax amount (17 ) (1 ) Tax (expense)/benefit 6 — Net of tax (11 ) (1 ) Reclassification of stranded tax effects — 2 Retained Earnings Total, net of tax (11 ) 1 Total reclassifications for the period $ (57 ) $ 483 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details). (b) 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 | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Note Text Block] | NOTE 6 - EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS 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 and diluted earnings (loss) per share is as follows: Three Months Ended In millions, except per share amounts 2020 2019 Earnings (loss) attributable to International Paper Company common shareholders $ (141 ) $ 424 Weighted average common shares outstanding 392.6 400.5 Effect of dilutive securities (a) Restricted performance share plan — 2.7 Weighted average common shares outstanding – assuming dilution 392.6 403.2 Basic earnings (loss) per share attributable to International Paper Company Common Shareholders $ (0.36 ) $ 1.06 Diluted earnings (loss) per share attributable to International Paper Company Common Shareholders $ (0.36 ) $ 1.05 (a) Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities [Note Text Block] | NOTE 7 - RESTRUCTURING AND OTHER CHARGES, NET 2020: During the three months ended March 31, 2020, the Company recorded an $8 million pre-tax charge in Corporate related to early debt extinguishment costs. 2019: There were no restructuring and other charges recorded during the three months ended March 31, 2019. |
ACQUISITIONS (Notes)
ACQUISITIONS (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 8 - ACQUISITIONS 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 €71 million (approximately $81 million at June 30, 2019 exchange rates). 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 $ 2 Accounts and notes receivable 22 Inventory 8 Plants, properties and equipment 40 Goodwill 26 Intangible assets 15 Right of use assets 3 Deferred charges and other assets 2 Total assets acquired 118 Short-term debt 2 Accounts payable and accrued liabilities 20 Other current liabilities 3 Deferred income taxes 5 Other liabilities 1 Postretirement and postemployment benefit obligation 3 Long-term lease obligations 3 Total liabilities assumed 37 Net assets acquired $ 81 The allocation of the consideration paid is preliminary and could be revised as a result of 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 condensed consolidated results of operations. |
DIVESTITURES Footnote
DIVESTITURES Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Note Text Block] | NOTE 9 - DIVESTITURES AND IMPAIRMENTS 2020: On March 29, 2020, the Company announced that it had entered into an agreement to sell its Brazilian Industrial Packaging business for R$330 million (approximately $63.5 million using the March 31, 2020 exchange rate), with R$280 million to be paid at closing and R$50 million one year thereafter, subject to final working capital adjustments. This business includes three containerboard mills and four box plants and the agreement follows International Paper's previously announced strategic review of the Brazilian Industrial Packaging business. This transaction is expected to close in the second half of 2020, subject to certain closing conditions and regulatory approvals. In conjunction with the announced agreement, a preliminary pre-tax charge of $344 million ( $337 million after taxes) was recorded during the first quarter of 2020. This charge included a $20 million loss ( $13 million after taxes) related to the write down of the long-lived assets of the Brazilian Industrial Packaging business to their estimated fair value and a $324 million loss related to the cumulative foreign currency translation adjustment. This charge is included in the Net (gains) losses on sales and impairments of businesses in the accompanying condensed consolidated statement of operations and is included in the results for the Industrial Packaging segment. At March 31, 2020, all assets and liabilities related to the Brazilian Industrial Packaging business are classified as current assets held for sale and current liabilities held for sale in the accompanying condensed consolidated balance sheet. The following summarizes the major classes of assets and liabilities of this business reconciled to total Assets held for sale and total Liabilities held for sale in the accompanying condensed consolidated balance sheet: In millions March 31, 2020 Cash and temporary investments $ 9 Accounts and notes receivable 38 Inventories 23 Other current assets 2 Plants, properties and equipment (net of impairment) 29 Deferred charges and other assets 11 Total Assets Held for Sale $ 112 Accounts payable and accrued liabilities $ 27 Deferred income taxes 3 Other liabilities 10 Impairment reserve (cumulative foreign currency translation) 324 Total Liabilities Held for Sale $ 364 2019: On October 30, 2019, the Company closed the previously announced sale of its controlling interest in International Paper APPM Limited (APPM) to West Coast Paper Mills (WCPM). International Paper remains a passive investor retaining a 20% interest in APPM until such time that IP sells its remaining shares. The Company is accounting for its retained investment at fair value and recorded a loss of $17 million during the first quarter of 2020. The fair value of the Company's retained investment in APPM was $15 million at March 31, 2020. |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Statement Information [Note Text Block] | NOTE 10 - SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Temporary Investments Temporary investments with an original maturity of three months or less and money market funds with greater than three month maturities but with the right to redeem without notices are treated as cash equivalents and are stated at cost, which approximates market value. Temporary investments totaled $954 million and $335 million at March 31, 2020 and December 31, 2019 , respectively. Accounts and Notes Receivable In millions March 31, 2020 December 31, 2019 Accounts and notes receivable, net: Trade $ 2,959 $ 3,020 Other 267 260 Total $ 3,226 $ 3,280 The allowance for expected credit losses was $90 million at March 31, 2020 and the allowance for doubtful accounts was $73 million at December 31, 2019 . Based on the Company's accounting estimates and the facts and circumstances available as of the reporting date, we believe our allowance for expected credit losses is adequate. While we have taken into account certain impacts of COVID-19 in connection with our estimate of the allowance for expected credit losses, it is reasonably possible that additional expected credit losses in excess of such allowance will occur in the coming months as the full extent of the COVID-19 impact becomes more apparent; however, currently, we are unable to reasonably estimate our loss or range of loss in excess of such allowance. Inventories In millions March 31, 2020 December 31, 2019 Raw materials $ 254 $ 298 Finished pulp, paper and packaging 1,081 1,192 Operating supplies 615 659 Other 52 59 Total $ 2,002 $ 2,208 Plants, Properties and Equipment Accumulated depreciation was $20.4 billion and $20.5 billion at March 31, 2020 and December 31, 2019 , respectively. Depreciation expense was $309 million and $297 million for the three months ended March 31, 2020 and 2019 , respectively. Non-cash additions to plants, property and equipment included within accounts payable were $119 million and $164 million at March 31, 2020 and December 31, 2019 , respectively. Amounts invested in capital projects in the accompanying condensed consolidated statement of cash flows are presented net of insurance recoveries of $30 million received during the three months ended March 31, 2020 . There were no insurance recoveries received during the three months ended March 31, 2019 . Interest Interest payments made during the three months ended March 31, 2020 and 2019 were $184 million and $214 million , respectively. Amounts related to interest were as follows: Three Months Ended In millions 2020 2019 Interest expense $ 163 $ 184 Interest income 46 51 Capitalized interest costs 9 5 Asset Retirement Obligations The Company had recorded liabilities of $98 million and $96 million related to asset retirement obligations at March 31, 2020 and December 31, 2019 , respectively. |
LEASES (Notes)
LEASES (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | NOTE 11 - LEASES 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 less than one year to 96 years . Total lease cost for the three months ended March 31, 2020 and 2019 was $67 million and $75 million , respectively. Supplemental Balance Sheet Information Related to Leases In millions Classification March 31, 2020 December 31, 2019 Assets Operating lease assets Right-of-use assets $ 422 $ 434 Finance lease assets Plants, properties and equipment, net (a) 100 103 Total leased assets $ 522 $ 537 Liabilities Current Operating Other current liabilities $ 132 $ 134 Finance Notes payable and current maturities of long-term debt 12 12 Noncurrent Operating Long-term lease obligations 293 304 Finance Long-term debt 85 88 Total lease liabilities $ 522 $ 538 (a) Finance leases are recorded net of accumulated amortization of $43 million and $40 million as of March 31, 2020 and December 31, 2019. |
EQUITY METHOD INVESTMENTS Footn
EQUITY METHOD INVESTMENTS Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 12 - EQUITY METHOD INVESTMENTS The Company accounts for the following investments under the equity method of accounting. Graphic Packaging International Partners, LLC The Company completed the transfer of its North American Consumer Packaging business in exchange for an initial 20.5% ownership interest ( 79,911,511 units) in Graphic Packaging International Partners, LLC (GPIP) in 2018. 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. On January 29, 2020, the Company exchanged 15,150,784 units of the aggregate units owned by the Company for an aggregated price of $250 million , resulting in a pre-tax gain of $33 million ( $25 million after taxes) which was recorded in the first quarter of 2020. As of March 31, 2020, the Company's ownership interest in GPIP was 18.7% . The Company recorded equity earnings of $7 million and $13 million for the three months ended March 31, 2020 and 2019 , respectively. The Company received cash dividends from GPIP of $5 million and $6 million during the first three months of 2020 and 2019, respectively. The Company's investment in GPIP was $920 million and $1.1 billion at March 31, 2020 and December 31, 2019 , respectively, which was $440 million and $529 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 $70 million and $69 million for the three months ended March 31, 2020 and 2019 , respectively. The Company continues to evaluate its investment in GPI relative to options available to further monetize this investment. We currently do not have near-term plans to further liquidate our investment. Summarized financial information for GPIP is presented in the following tables: Balance Sheet In millions March 31, 2020 December 31, 2019 Current assets $ 1,932 $ 1,796 Noncurrent assets 5,507 5,482 Current liabilities 1,020 1,178 Noncurrent liabilities 3,848 3,244 Income Statement Three Months Ended In millions 2020 2019 Net sales $ 1,599 $ 1,506 Gross profit 321 266 Income (loss) from continuing operations (24 ) 95 Net income (loss) (24 ) 95 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 (losses), net of taxes, of $(35) million and $101 million for the three months ended March 31, 2020 and 2019 , respectively. At March 31, 2020 and December 31, 2019 , the Company's investment in Ilim was $401 million and $508 million , respectively, which was $130 million and $136 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 $53 million for the three months ended March 31, 2020 and 2019 , respectively. Summarized financial information for Ilim is presented in the following tables: Balance Sheet In millions March 31, 2020 December 31, 2019 Current assets $ 922 $ 804 Noncurrent assets 2,333 2,813 Current liabilities 840 1,015 Noncurrent liabilities 1,861 1,844 Noncontrolling interests 11 16 Income Statement Three Months Ended In millions 2020 2019 Net sales $ 482 $ 620 Gross profit 195 336 Income (loss) from continuing operations (61 ) 205 Net income (loss) (58 ) 199 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles [Note Text Block] | NOTE 13 - GOODWILL AND OTHER INTANGIBLES Goodwill The following table presents changes in goodwill balances as allocated to each business segment for the three months ended March 31, 2020 : In millions Industrial Packaging Global Cellulose Fibers Printing Papers Total Balance as of January 1, 2020 Goodwill $ 3,410 $ 52 $ 1,998 $ 5,460 Accumulated impairment losses (296 ) (52 ) (1,765 ) (2,113 ) 3,114 — 233 3,347 Currency translation and other (a) (5 ) — (41 ) (46 ) Goodwill additions/reductions 3 (b) — — 3 Balance as of March 31, 2020 Goodwill 3,408 52 1,957 5,417 Accumulated impairment losses (296 ) (52 ) (1,765 ) (2,113 ) Total $ 3,112 $ — $ 192 $ 3,304 (a) Represents the effects of foreign currency translations. (b) Reflects the changes to provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA. Other Intangibles Identifiable intangible assets comprised the following: March 31, 2020 December 31, 2019 In millions Gross Carrying Amount Accumulated Amortization Net Intangible Assets Gross Carrying Amount Accumulated Amortization Net Intangible Assets Customer relationships and lists $ 537 $ 266 $ 271 $ 560 $ 275 $ 285 Tradenames, patents and trademarks, and developed technology 170 105 65 170 102 68 Land and water rights 8 2 6 8 2 6 Software 25 24 1 26 25 1 Other 17 10 7 18 10 8 Total $ 757 $ 407 $ 350 $ 782 $ 414 $ 368 The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended In millions 2020 2019 Amortization expense related to intangible assets $ 10 $ 12 |
INCOME TAXES Footnote
INCOME TAXES Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Note Text Block] | NOTE 14 - INCOME TAXES International Paper made income tax payments, net of refunds, of $16 million and received a net income tax refund of $51 million for the three months ended March 31, 2020 and 2019 , 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 $67 million during the next 12 months. 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 $115 million in tax, and $365 million in interest, penalties, and fees as of March 31, 2020 (adjusted for variation in currency exchange rates). After a previous favorable ruling challenging the basis for these assessments, we received unfavorable decisions in October 2018 and November 2019 from the Brazilian Administrative Council of Tax Appeals. The Company has appealed and intends to further appeal these and any future unfavorable administrative judgments 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. On March 27th, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act ("the CARES Act."). The CARES Act provides various types of economic relief for individuals and businesses due to the COVID-19 pandemic, including temporary corporate tax relief. We currently do not believe there to be a material impact to the income tax provision resulting from the CARES Act. |
COMMITMENTS AND CONTINGENCIES F
COMMITMENTS AND CONTINGENCIES Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Note Text Block] | NOTE 15 - COMMITMENTS AND CONTINGENCIES 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 environmental remediation matters, including those described herein, to be approximately $196 million ( $204 million undiscounted) in the aggregate as of March 31, 2020 . 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 as of March 31, 2020. In April 2020, the EPA issued a final 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, in excess of the liability noted above 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. 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 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. As noted below, the Company is involved in allocation/ apportionment litigation with regard to the site. In addition, in December 2019, the United States published notice in the Federal Register of a proposed consent decree with NCR Corporation (one of the parties to the allocation/apportionment litigation described below), the State of Michigan and natural resource trustees under which NCR would make payments of more than $100 million and perform work at the Site at an estimated cost of $135.7 million . The public comment period with respect to the proposed consent decree closed in February 2020 and we are awaiting the court's final decision. The Company’s CERCLA liability has not been finally determined with respect to 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 or range of loss with respect to this site. We have recorded a liability for future remediation costs at the site that are probable and reasonably estimable, and it remains reasonably possible that additional losses in excess of this recorded liability could be material. $79 million as of the filing of the complaint) and for future remediation costs. 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. The proposed consent decree with NCR described above, if entered, would result in the termination of NCR’s involvement in the appeal. 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 October 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. The EPA’s selected remedy was accompanied by a cost estimate of approximately $115 million ( $105 million for the northern impoundment, and $10 million for the southern impoundment). 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. During the first quarter of 2020, through a series of meetings among the Company, MIMC/WMI, our consultants, the EPA and the Texas Commission on Environmental Quality (TCEQ), progress was made to resolve key technical issues previously preventing the Company from determining the manner in which the selected remedy for the northern impoundment would be feasibly implemented. As a result of these developments, as of March 31, 2020, the Company has reserved the following amounts in relation to remediation at this site: (a) $10 million for the southern impoundment (this reserve was established in the quarter ended December 31, 2019); and (b) $55 million for the northern impoundment, which represents the Company's 50% share of our estimate of the low end of the range of probable remediation costs ( $41 million of this reserve was established in the quarter ended March 31, 2020). Although key technical issues have been resolved, we still face significant challenges remediating the northern impoundment in a cost-efficient manner and without a release to the environment and therefore our discussions with the EPA on the best approach to remediation will continue. Because of ongoing questions regarding cost effectiveness, timing and gathering other technical data, additional losses in excess of our recorded liability are possible. We are currently unable to reasonably estimate any further adjustment to our recorded liability or any loss or range of loss in excess of such liability; however, we believe it is unlikely any adjustment would be material. Antitrust 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. 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 appealed this judgment and, on April 30, 2020, the Court of Appeals for the Thirteenth District of Texas issued a decision affirming in part and reversing and rendering judgment in favor of the Company in part. The Court affirmed approximately $14.8 million of the judgment. Otherwise, the Court rendered judgment in favor of the Company on the remainder of the jury’s verdict. The Company continues to have strong bases by which to challenge the affirmed portions of the award and plans to present those arguments on appeal to the Supreme Court of Texas. The plaintiffs may also appeal the decision of the appellate court. We do not expect that potential losses, if any, related to this lawsuit will be material, and any potential future payments in connection with this lawsuit will be recorded as a liability at such time that we determine that any such losses are probable and reasonably estimable. Taxes Other Than Payroll and Income Taxes In 2017, the Brazilian Federal Supreme Court decided that the state value-added tax (VAT) should not be included in the basis of federal VAT calculations. In 2018 and 2019, the Brazilian tax authorities published both an internal consultation and a normative ruling with a narrow interpretation of the effects of the case. We have determined that any related federal VAT refunds should be recognized when they are both probable and reasonably estimable. Based upon the best information available to us, we have determined that the amount of refund that is probable of being realized is limited to that determined by the tax authorities’ narrow interpretation, for which we have recognized a receivable of $9 million as of March 31, 2020. Upcoming court decisions and guidance from the tax authorities could expand the scope of the federal VAT refunds. General The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, personal injury, product liability, labor and employment, contracts, sales of property, intellectual property, tax and other matters, some of which allege substantial monetary damages. See Note 14 for details regarding a tax matter. Assessments of lawsuits and claims can involve a series of complex judgments about future events, can rely heavily on estimates and assumptions, and are otherwise subject to significant uncertainties. As a result, there can be no certainty that the Company will not ultimately incur charges in excess of presently recorded liabilities. The Company believes that loss contingencies arising from pending matters, including the matters described herein, will not have a material effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in pending or threatened legal matters, some of which are beyond the Company’s control, and the large or indeterminate damages sought in some of these matters, a future adverse ruling, settlement, unfavorable development, or increase in accruals with respect to these matters could result in future charges that could be material to the Company’s results of operations or cash flows in any particular reporting period. |
VARIABLE INTEREST ENTITIES AND
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities and Preferred Securities of Subsidiaries [Note Text Block] | NOTE 16 - VARIABLE INTEREST ENTITIES Variable Interest Entities As of March 31, 2020 , the fair value of the Timber Notes and Extension Loans is $4.89 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 15 in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. Activity between the Company and the 2015 Financing Entities was as follows: Three Months Ended In millions 2020 2019 Revenue (a) $ 24 $ 24 Expense (a) 32 32 Cash receipts (b) 47 47 Cash payments (c) 64 64 (a) The revenue and expense are included in Interest expense, net in the accompanying condensed consolidated statement of operations. (b) The cash receipts are interest received on the Financial assets of variable interest entities. (c) The cash payments represent interest paid on Nonrecourse financial liabilities of variable interest entities. As of March 31, 2020 , the fair value of the Timber Notes and Extension Loans is $2.15 billion and $1.98 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 15 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Activity between the Company and the 2007 Financing Entities was as follows: Three Months Ended In millions 2020 2019 Revenue (a) $ 16 $ 21 Expense (b) 16 21 Cash receipts (c) 12 16 Cash payments (d) 15 18 (a) The revenue is included in Interest expense, net in the accompanying condensed consolidated statement of operations and includes approximately $5 million for both of the three months ended March 31, 2020 and 2019 of accretion income for the amortization of the basis difference adjustment on the Financial assets of variable interest entities. (b) The expense is included in Interest expense, net in the accompanying condensed consolidated statement of operations and includes approximately $2 million for both of the three months ended March 31, 2020 and 2019 of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of variable interest entities. (c) The cash receipts are interest received on the Financial assets of variable interest entities. (d) The cash payments are interest paid on Nonrecourse financial liabilities of variable interest entities. |
DEBT Footnote
DEBT Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt [Note Text Block] | NOTE 17 - DEBT On March 25, 2020, the Company entered into a $750 million contractually committed 364-day revolving credit agreement with a syndicate of banks and other financial institutions which augments the Company's access to liquidity due to current macroeconomic conditions and supplements the Company's $1.5 billion five-year credit agreement expiring in December 2021. The borrowing capacity of International Paper's commercial paper program is $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 March 31, 2020 , the Company had no borrowings outstanding under the program. International Paper has up to $600 million of uncommitted financings based on eligible receivable balances under a receivables securitization program that expires in March 2021. At March 31, 2020, $557 million was outstanding at a weighted-average interest rate of 1.65% which represented the maximum borrowing based on eligible receivables under the receivables securitization program at that time. The remaining capacity of $43 million is subject to additional eligible receivables in the program. On April 28, 2020, the receivable securitization program was amended from an uncommitted financing arrangement to a committed financing arrangement with a borrowing limit up to $550 million based on eligible receivable balances, and the maturity date of the program was extended for two years until April 2022. Also, subsequent to March 31, 2020, we repaid the $557 million outstanding under the receivables securitization program. The Company’s financial covenants require the maintenance of a minimum net worth, as defined in our debt agreements, of $9 billion and a total debt-to-capital ratio of less than 60% . Net worth is defined as the sum of common stock, paid-in capital and retained earnings, less treasury stock plus any cumulative goodwill impairment charges. The calculation also excludes accumulated other comprehensive income/loss and both the current and long-term Nonrecourse Financial Liabilities of Variable Interest Entities. The total debt-to-capital ratio is defined as total debt divided by the sum of total debt plus net worth. As of March 31, 2020 , we were in compliance with our debt covenants. At March 31, 2020 , the fair value of International Paper’s $10.2 billion of debt was approximately $11.0 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, 2019 . |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities [Note Text Block] | NOTE 18 - DERIVATIVES AND HEDGING ACTIVITIES 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 March 31, 2020 December 31, 2019 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 337 $ 407 Derivatives in Fair Value Hedging Relationships: Interest rate contracts — 700 Derivatives in Net Investment Hedging Relationships: Interest rate contracts 340 475 Derivatives Not Designated as Hedging Instruments: Electricity contract 8 16 Foreign exchange contracts — 7 During the first quarter of 2020, International Paper terminated its interest rate contracts in fair value hedging relationships. These contracts had a notional value of $700 million and an approximate fair value of $85 million at the time of termination. Subsequent to the termination of the interest rate swaps, the fair value basis adjustment is accounted for as a debt premium for the previously hedged debt. International Paper also terminated interest rate contracts in net investment hedging relationships with a notional value of $135 million during the first quarter of 2020. These contracts had an approximate fair value of $8 million at the time of termination. Subsequent to March 31, 2020, International Paper terminated the remaining interest rate contracts in net investment hedging relationships. These contracts had an approximate fair value $25 million at the time of termination. Subsequent to the termination of the net investment hedges, the fair value is accounted for in other comprehensive income as cumulative translation adjustment for the previously hedged net investments. 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 In millions 2020 2019 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (30 ) $ — Total $ (30 ) $ — Derivatives in Net Investment Hedging Relationships: Interest rate contracts $ 20 $ — Total $ 20 $ — During the next 12 months, the amount of the March 31, 2020 AOCI balance, after tax, that is expected to be reclassified to earnings is a loss of $13 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 In millions 2020 2019 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (11 ) $ (1 ) Cost of products sold Total $ (11 ) $ (1 ) Gain (Loss) Recognized Location of Gain (Loss) In Statement of Operations Three Months Ended In millions 2020 2019 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ 38 $ 12 Interest expense, net Debt (38 ) (12 ) Interest expense, net Total $ — $ — Derivatives Not Designated as Hedging Instruments: Electricity contract $ (3 ) $ 4 Cost of products sold Total $ (3 ) $ 4 Fair Value Measurements The Company has not changed its valuation techniques for measuring the fair value of any financial assets or liabilities during the quarter. 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 March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 2 $ 10 $ 33 $ 4 Interest rate contracts - net investment 27 11 — — Interest rate contracts - fair value — 47 — — Total derivatives designated as hedging instruments 29 68 33 4 Derivatives not designated as hedging instruments Electricity contract — — 3 2 Foreign exchange contracts — — — 1 Total derivatives not designated as hedging instruments — — 3 3 Total derivatives $ 29 (a) $ 68 (b) $ 36 (c) $ 7 (d) (a) Includes $10 million recorded in Other current assets and $19 million recorded in Deferred charges and other assets in the accompanying condensed consolidated balance sheet. (b) Includes $14 million recorded in Other current assets and $54 million recorded in Deferred charges and other assets in the accompanying condensed consolidated balance sheet. (c) Includes $33 million recorded in Other accrued liabilities and $3 million recorded in Other liabilities in the accompanying condensed consolidated balance sheet. (d) Included in Other current liabilities in the accompanying condensed 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 | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Plans [Note Text Block] | NOTE 19 - RETIREMENT PLANS 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, hourly and union employees who work at a participating business unit. 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 In millions 2020 2019 Service cost $ 20 $ 18 Interest cost 98 110 Expected return on plan assets (167 ) (157 ) Actuarial loss 55 51 Amortization of prior service cost 5 4 Net periodic pension expense $ 11 $ 26 The components of net periodic pension expense other than the service cost component are included in Non-operating pension expense in the accompanying condensed 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 three months of 2020 or 2019. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $5 million for the three months ended March 31, 2020 . |
STOCK-BASED COMPENSATION Footno
STOCK-BASED COMPENSATION Footnote | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation [Note Text Block] | NOTE 20 - STOCK-BASED COMPENSATION 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 March 31, 2020 , 8.4 million shares were available for grant under the ICP. Stock-based compensation expense and related income tax benefits were as follows: Three Months Ended In millions 2020 2019 Total stock-based compensation expense (selling and administrative) $ 26 $ 27 Income tax benefits related to stock-based compensation 17 34 At March 31, 2020 , $144 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 2.0 years. Performance Share Plan During the first three months of 2020 , the Company granted 2.2 million performance units at an average grant date fair value of $49.15 . |
INDUSTRY SEGMENT INFORMATION
INDUSTRY SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 21 - BUSINESS SEGMENT INFORMATION 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) before income taxes and equity earnings, but including the impact of equity earnings and noncontrolling interests, excluding interest expense, net, corporate items, net, corporate special items, net, business special items, net, and non-operating pension expense. In the fourth quarter of 2019, the Company changed its measure of business segment operating profits to exclude items considered by management to be unusual (business special items, net) from the normal operations of the business segment. As a result, all prior periods have been restated to reflect the current measure. Sales by business segment for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended In millions 2020 2019 Industrial Packaging $ 3,819 $ 3,832 Global Cellulose Fibers 568 689 Printing Papers 908 1,065 Corporate and Intersegment Sales 57 57 Net Sales $ 5,352 $ 5,643 Operating profit by business segment for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended In millions 2020 2019 Industrial Packaging $ 470 $ 421 Global Cellulose Fibers (54 ) 35 Printing Papers 96 144 Business Segment Operating Profits $ 512 $ 600 Earnings (loss) before income taxes and equity earnings $ (16 ) $ 418 Interest expense, net 117 133 Noncontrolling interests/equity earnings adjustment — (3 ) Corporate expenses, net 32 21 Corporate special items, net 33 — Business special items, net 352 21 Non-operating pension expense (income) (6 ) 10 Business Segment Operating Profits $ 512 $ 600 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, 2019 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 3,146 $ 570 $ 488 $ 60 $ 4,264 EMEA 428 81 330 (2 ) 837 Pacific Rim and Asia 18 38 59 4 119 Americas, other than U.S. 240 — 188 (5 ) 423 Total $ 3,832 $ 689 $ 1,065 $ 57 $ 5,643 Operating Segments North American Industrial Packaging $ 3,376 $ — $ — $ — $ 3,376 EMEA Industrial Packaging 339 — — — 339 Brazilian Industrial Packaging 57 — — — 57 European Coated Paperboard 91 — — — 91 Global Cellulose Fibers — 689 — — 689 North American Printing Papers — — 496 — 496 Brazilian Papers — — 215 — 215 European Papers — — 309 — 309 Indian Papers — — 53 — 53 Intra-segment Eliminations (31 ) — (8 ) — (39 ) Corporate & Inter-segment Sales — — — 57 57 Total $ 3,832 $ 689 $ 1,065 $ 57 $ 5,643 (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 March 31, 2020 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 3,130 $ 494 $ 444 $ 58 $ 4,126 EMEA 440 56 302 (2 ) 796 Pacific Rim and Asia 12 18 8 3 41 Americas, other than U.S. 237 — 154 (2 ) 389 Total $ 3,819 $ 568 $ 908 $ 57 $ 5,352 Operating Segments North American Industrial Packaging $ 3,355 $ — $ — $ — $ 3,355 EMEA Industrial Packaging 350 — — — 350 Brazilian Industrial Packaging 54 — — — 54 European Coated Paperboard 92 — — — 92 Global Cellulose Fibers — 568 — — 568 North American Printing Papers — — 446 — 446 Brazilian Papers — — 176 — 176 European Papers — — 287 — 287 Indian Papers — — — — — Intra-segment Eliminations (32 ) — (1 ) — (33 ) Corporate & Inter-segment Sales — — 57 57 Total $ 3,819 $ 568 $ 908 $ 57 $ 5,352 (a) Net sales are attributed to countries based on the location of the seller. |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity [Table Text Block] | A summary of the changes in equity for the three months ended March 31, 2020 and 2019 is provided below: Three Months Ended March 31, 2020 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Held In Treasury, At Cost Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, January 1 $ 449 $ 6,297 $ 8,408 $ (4,739 ) $ 2,702 $ 7,713 $ 5 $ 7,718 Adoption of ASU 2016-13 measurement of credit losses on financial instruments — — (2 ) — — (2 ) — (2 ) Issuance of stock for various plans, net — (51 ) — — (92 ) 41 — 41 Repurchase of stock — — — — 41 (41 ) — (41 ) Common stock dividends ($0.5125 per share) — — (203 ) — — (203 ) — (203 ) Transactions of equity method investees — 6 — — — 6 — 6 Comprehensive income (loss) — — (141 ) (516 ) — (657 ) (1 ) (658 ) Ending Balance, March 31 $ 449 $ 6,252 $ 8,062 $ (5,255 ) $ 2,651 $ 6,857 $ 4 $ 6,861 Three Months Ended March 31, 2019 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Held In Treasury, At Cost 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 — (118 ) — — (163 ) 45 — 45 Repurchase of stock — — — — 229 (229 ) — (229 ) Common stock dividends ($0.5000 per share) — — (207 ) — — (207 ) — (207 ) Transactions of equity method investees — (3 ) — — — (3 ) — (3 ) Comprehensive income (loss) — — 424 54 — 478 2 480 Ending Balance, March 31 $ 449 $ 6,159 $ 8,211 $ (4,975 ) $ 2,398 $ 7,446 $ 23 $ 7,469 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 ended March 31, 2020 and 2019 : Three Months Ended In millions 2020 2019 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (2,277 ) $ (1,916 ) Reclassification of stranded tax effects — (527 ) Amounts reclassified from accumulated other comprehensive income 46 41 Balance at end of period (2,231 ) (2,402 ) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (2,465 ) (2,581 ) Other comprehensive income (loss) before reclassifications (544 ) 8 Amounts reclassified from accumulated other comprehensive income — 4 Other comprehensive income (loss) attributable to noncontrolling interest 1 — Balance at end of period (3,008 ) (2,569 ) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period 3 (3 ) Other comprehensive income (loss) before reclassifications (30 ) — Reclassification of stranded tax effects — (2 ) Amounts reclassified from accumulated other comprehensive income 11 1 Balance at end of period (16 ) (4 ) Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (5,255 ) $ (4,975 ) |
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 ended March 31, 2020 and 2019 : In millions: Amounts Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI Three Months Ended 2020 2019 Defined benefit pension and postretirement items: Prior-service costs $ (5 ) $ (3 ) (a) Non-operating pension expense Actuarial gains (losses) (56 ) (52 ) (a) Non-operating pension expense Total pre-tax amount (61 ) (55 ) Tax (expense) benefit 15 14 Net of tax (46 ) (41 ) Reclassification of stranded tax effects — 527 Retained Earnings Total, net of tax (46 ) 486 Change in cumulative foreign currency translation adjustments: Business acquisitions/divestitures — (4 ) Cost of products sold Tax (expense) benefit — — Net of tax — (4 ) Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts (17 ) (1 ) (b) Cost of products sold Total pre-tax amount (17 ) (1 ) Tax (expense)/benefit 6 — Net of tax (11 ) (1 ) Reclassification of stranded tax effects — 2 Retained Earnings Total, net of tax (11 ) 1 Total reclassifications for the period $ (57 ) $ 483 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details). (b) 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) | 3 Months Ended |
Mar. 31, 2020 | |
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 and diluted earnings (loss) per share is as follows: Three Months Ended In millions, except per share amounts 2020 2019 Earnings (loss) attributable to International Paper Company common shareholders $ (141 ) $ 424 Weighted average common shares outstanding 392.6 400.5 Effect of dilutive securities (a) Restricted performance share plan — 2.7 Weighted average common shares outstanding – assuming dilution 392.6 403.2 Basic earnings (loss) per share attributable to International Paper Company Common Shareholders $ (0.36 ) $ 1.06 Diluted earnings (loss) per share attributable to International Paper Company Common Shareholders $ (0.36 ) $ 1.05 (a) Securities are not included in the table in periods when antidilutive. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 $ 2 Accounts and notes receivable 22 Inventory 8 Plants, properties and equipment 40 Goodwill 26 Intangible assets 15 Right of use assets 3 Deferred charges and other assets 2 Total assets acquired 118 Short-term debt 2 Accounts payable and accrued liabilities 20 Other current liabilities 3 Deferred income taxes 5 Other liabilities 1 Postretirement and postemployment benefit obligation 3 Long-term lease obligations 3 Total liabilities assumed 37 Net assets acquired $ 81 |
DIVESTITURES (Tables)
DIVESTITURES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | The following summarizes the major classes of assets and liabilities of this business reconciled to total Assets held for sale and total Liabilities held for sale in the accompanying condensed consolidated balance sheet: In millions March 31, 2020 Cash and temporary investments $ 9 Accounts and notes receivable 38 Inventories 23 Other current assets 2 Plants, properties and equipment (net of impairment) 29 Deferred charges and other assets 11 Total Assets Held for Sale $ 112 Accounts payable and accrued liabilities $ 27 Deferred income taxes 3 Other liabilities 10 Impairment reserve (cumulative foreign currency translation) 324 Total Liabilities Held for Sale $ 364 |
SUPPLEMENTAL FINANCIAL STATEM_2
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts and Notes Receivable In millions March 31, 2020 December 31, 2019 Accounts and notes receivable, net: Trade $ 2,959 $ 3,020 Other 267 260 Total $ 3,226 $ 3,280 |
Inventories [Table Text Block] | Inventories In millions March 31, 2020 December 31, 2019 Raw materials $ 254 $ 298 Finished pulp, paper and packaging 1,081 1,192 Operating supplies 615 659 Other 52 59 Total $ 2,002 $ 2,208 |
Interest Income and Interest Expense Disclosure [Table Text Block] | Amounts related to interest were as follows: Three Months Ended In millions 2020 2019 Interest expense $ 163 $ 184 Interest income 46 51 Capitalized interest costs 9 5 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases [Table Text Block] | Supplemental Balance Sheet Information Related to Leases In millions Classification March 31, 2020 December 31, 2019 Assets Operating lease assets Right-of-use assets $ 422 $ 434 Finance lease assets Plants, properties and equipment, net (a) 100 103 Total leased assets $ 522 $ 537 Liabilities Current Operating Other current liabilities $ 132 $ 134 Finance Notes payable and current maturities of long-term debt 12 12 Noncurrent Operating Long-term lease obligations 293 304 Finance Long-term debt 85 88 Total lease liabilities $ 522 $ 538 (a) Finance leases are recorded net of accumulated amortization of $43 million |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 December 31, 2019 Current assets $ 1,932 $ 1,796 Noncurrent assets 5,507 5,482 Current liabilities 1,020 1,178 Noncurrent liabilities 3,848 3,244 Income Statement Three Months Ended In millions 2020 2019 Net sales $ 1,599 $ 1,506 Gross profit 321 266 Income (loss) from continuing operations (24 ) 95 Net income (loss) (24 ) 95 |
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 March 31, 2020 December 31, 2019 Current assets $ 922 $ 804 Noncurrent assets 2,333 2,813 Current liabilities 840 1,015 Noncurrent liabilities 1,861 1,844 Noncontrolling interests 11 16 Income Statement Three Months Ended In millions 2020 2019 Net sales $ 482 $ 620 Gross profit 195 336 Income (loss) from continuing operations (61 ) 205 Net income (loss) (58 ) 199 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020 : In millions Industrial Packaging Global Cellulose Fibers Printing Papers Total Balance as of January 1, 2020 Goodwill $ 3,410 $ 52 $ 1,998 $ 5,460 Accumulated impairment losses (296 ) (52 ) (1,765 ) (2,113 ) 3,114 — 233 3,347 Currency translation and other (a) (5 ) — (41 ) (46 ) Goodwill additions/reductions 3 (b) — — 3 Balance as of March 31, 2020 Goodwill 3,408 52 1,957 5,417 Accumulated impairment losses (296 ) (52 ) (1,765 ) (2,113 ) Total $ 3,112 $ — $ 192 $ 3,304 (a) Represents the effects of foreign currency translations. (b) Reflects the changes to provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA. |
Finite and Indefinite-Lived Intangible Assets [Table Text Block] | Identifiable intangible assets comprised the following: March 31, 2020 December 31, 2019 In millions Gross Carrying Amount Accumulated Amortization Net Intangible Assets Gross Carrying Amount Accumulated Amortization Net Intangible Assets Customer relationships and lists $ 537 $ 266 $ 271 $ 560 $ 275 $ 285 Tradenames, patents and trademarks, and developed technology 170 105 65 170 102 68 Land and water rights 8 2 6 8 2 6 Software 25 24 1 26 25 1 Other 17 10 7 18 10 8 Total $ 757 $ 407 $ 350 $ 782 $ 414 $ 368 |
Amortization Expense of Intangible Assets [Table Text Block] | The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended In millions 2020 2019 Amortization expense related to intangible assets $ 10 $ 12 |
VARIABLE INTEREST ENTITIES AN_2
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
2015 Financing Entities | |
Activity Between Company And Entities [Table Text Block] | ctivity between the Company and the 2015 Financing Entities was as follows: Three Months Ended In millions 2020 2019 Revenue (a) $ 24 $ 24 Expense (a) 32 32 Cash receipts (b) 47 47 Cash payments (c) 64 64 (a) The revenue and expense are included in Interest expense, net in the accompanying condensed consolidated statement of operations. (b) The cash receipts are interest received on the Financial assets of variable interest entities. (c) The cash payments represent interest paid on Nonrecourse financial liabilities of variable interest 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 In millions 2020 2019 Revenue (a) $ 16 $ 21 Expense (b) 16 21 Cash receipts (c) 12 16 Cash payments (d) 15 18 (a) The revenue is included in Interest expense, net in the accompanying condensed consolidated statement of operations and includes approximately $5 million for both of the three months ended March 31, 2020 and 2019 of accretion income for the amortization of the basis difference adjustment on the Financial assets of variable interest entities. (b) The expense is included in Interest expense, net in the accompanying condensed consolidated statement of operations and includes approximately $2 million for both of the three months ended March 31, 2020 and 2019 of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of variable interest entities. (c) The cash receipts are interest received on the Financial assets of variable interest entities. (d) The cash payments are interest paid on Nonrecourse financial liabilities of variable interest entities. |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 December 31, 2019 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 337 $ 407 Derivatives in Fair Value Hedging Relationships: Interest rate contracts — 700 Derivatives in Net Investment Hedging Relationships: Interest rate contracts 340 475 Derivatives Not Designated as Hedging Instruments: Electricity contract 8 16 Foreign exchange contracts — 7 |
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 In millions 2020 2019 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (30 ) $ — Total $ (30 ) $ — Derivatives in Net Investment Hedging Relationships: Interest rate contracts $ 20 $ — Total $ 20 $ — |
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 In millions 2020 2019 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (11 ) $ (1 ) Cost of products sold Total $ (11 ) $ (1 ) Gain (Loss) Recognized Location of Gain (Loss) In Statement of Operations Three Months Ended In millions 2020 2019 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ 38 $ 12 Interest expense, net Debt (38 ) (12 ) Interest expense, net Total $ — $ — Derivatives Not Designated as Hedging Instruments: Electricity contract $ (3 ) $ 4 Cost of products sold Total $ (3 ) $ 4 |
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 March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 2 $ 10 $ 33 $ 4 Interest rate contracts - net investment 27 11 — — Interest rate contracts - fair value — 47 — — Total derivatives designated as hedging instruments 29 68 33 4 Derivatives not designated as hedging instruments Electricity contract — — 3 2 Foreign exchange contracts — — — 1 Total derivatives not designated as hedging instruments — — 3 3 Total derivatives $ 29 (a) $ 68 (b) $ 36 (c) $ 7 (d) (a) Includes $10 million recorded in Other current assets and $19 million recorded in Deferred charges and other assets in the accompanying condensed consolidated balance sheet. (b) Includes $14 million recorded in Other current assets and $54 million recorded in Deferred charges and other assets in the accompanying condensed consolidated balance sheet. (c) Includes $33 million recorded in Other accrued liabilities and $3 million recorded in Other liabilities in the accompanying condensed consolidated balance sheet. (d) Included in Other current liabilities in the accompanying condensed consolidated balance sheet. |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 In millions 2020 2019 Service cost $ 20 $ 18 Interest cost 98 110 Expected return on plan assets (167 ) (157 ) Actuarial loss 55 51 Amortization of prior service cost 5 4 Net periodic pension expense $ 11 $ 26 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 In millions 2020 2019 Total stock-based compensation expense (selling and administrative) $ 26 $ 27 Income tax benefits related to stock-based compensation 17 34 |
INDUSTRY SEGMENT INFORMATION (T
INDUSTRY SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment [Table Text Block] | Sales by business segment for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended In millions 2020 2019 Industrial Packaging $ 3,819 $ 3,832 Global Cellulose Fibers 568 689 Printing Papers 908 1,065 Corporate and Intersegment Sales 57 57 Net Sales $ 5,352 $ 5,643 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating profit by business segment for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended In millions 2020 2019 Industrial Packaging $ 470 $ 421 Global Cellulose Fibers (54 ) 35 Printing Papers 96 144 Business Segment Operating Profits $ 512 $ 600 Earnings (loss) before income taxes and equity earnings $ (16 ) $ 418 Interest expense, net 117 133 Noncontrolling interests/equity earnings adjustment — (3 ) Corporate expenses, net 32 21 Corporate special items, net 33 — Business special items, net 352 21 Non-operating pension expense (income) (6 ) 10 Business Segment Operating Profits $ 512 $ 600 |
RECENT ACCOUNTING DEVELOPMENT_2
RECENT ACCOUNTING DEVELOPMENTS Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Cumulative effect of new accounting principle in period of adoption | $ 8,062 | $ 8,408 |
Accounting Standards Update 2016-13 [Member] | ||
Cumulative effect of new accounting principle in period of adoption | (2) | |
Accounting Standards Update 2016-13 [Member] | Retained Earnings | ||
Cumulative effect of new accounting principle in period of adoption | $ (2) |
REVENUE RECOGNITION Disaggregat
REVENUE RECOGNITION Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 5,352 | $ 5,643 |
North American Industrial Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,355 | 3,376 |
EMEA Industrial Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 350 | 339 |
Brazilian Industrial Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 54 | 57 |
European Coated Paperboard | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 92 | 91 |
Global Cellulose Fibers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 568 | 689 |
North American Printing Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 446 | 496 |
Brazilian Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 176 | 215 |
European Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 287 | 309 |
Indian Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 53 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,126 | 4,264 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 796 | 837 |
Pacific Rim and Asia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 41 | 119 |
Americas, other than U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 389 | 423 |
Industrial Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,819 | 3,832 |
Industrial Packaging | North American Industrial Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,355 | 3,376 |
Industrial Packaging | EMEA Industrial Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 350 | 339 |
Industrial Packaging | Brazilian Industrial Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 54 | 57 |
Industrial Packaging | European Coated Paperboard | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 92 | 91 |
Industrial Packaging | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,130 | 3,146 |
Industrial Packaging | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 440 | 428 |
Industrial Packaging | Pacific Rim and Asia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 12 | 18 |
Industrial Packaging | Americas, other than U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 237 | 240 |
Global Cellulose Fibers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 568 | 689 |
Global Cellulose Fibers | Global Cellulose Fibers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 568 | 689 |
Global Cellulose Fibers | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 494 | 570 |
Global Cellulose Fibers | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 56 | 81 |
Global Cellulose Fibers | Pacific Rim and Asia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 18 | 38 |
Global Cellulose Fibers | Americas, other than U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Printing Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 908 | 1,065 |
Printing Papers | North American Printing Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 446 | 496 |
Printing Papers | Brazilian Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 176 | 215 |
Printing Papers | European Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 287 | 309 |
Printing Papers | Indian Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 53 |
Printing Papers | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 444 | 488 |
Printing Papers | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 302 | 330 |
Printing Papers | Pacific Rim and Asia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8 | 59 |
Printing Papers | Americas, other than U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 154 | 188 |
Operating Segments [Member] | Industrial Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,819 | 3,832 |
Operating Segments [Member] | Global Cellulose Fibers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 568 | 689 |
Operating Segments [Member] | Printing Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 908 | 1,065 |
Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 57 | 57 |
Intersegment Eliminations [Member] | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 58 | 60 |
Intersegment Eliminations [Member] | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (2) | (2) |
Intersegment Eliminations [Member] | Pacific Rim and Asia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3 | 4 |
Intersegment Eliminations [Member] | Americas, other than U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (2) | (5) |
Geography Eliminations [Member] | Industrial Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,819 | 3,832 |
Geography Eliminations [Member] | Global Cellulose Fibers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 568 | 689 |
Geography Eliminations [Member] | Printing Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 908 | 1,065 |
Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (33) | (39) |
Intersegment Eliminations [Member] | Industrial Packaging | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (32) | (31) |
Intersegment Eliminations [Member] | Printing Papers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ (1) | $ (8) |
REVENUE RECOGNITION Narrative (
REVENUE RECOGNITION Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Contract liability | $ 44 | $ 56 |
EQUITY Table (Details)
EQUITY Table (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning Balance | $ 7,718,000,000 | $ 7,383,000,000 | ||
Stockholders' Equity Attributable to Parent | 6,857,000,000 | $ 7,713,000,000 | ||
Cumulative effect of new accounting principle in period of adoption | 8,062,000,000 | 8,408,000,000 | ||
Issuance of stock for various plans, net | 41,000,000 | 45,000,000 | ||
Repurchase of stock | (41,000,000) | (229,000,000) | ||
Common stock dividends | (203,000,000) | (207,000,000) | ||
Transactions of equity method investees | 6,000,000 | (3,000,000) | ||
Comprehensive income (loss) | (658,000,000) | 480,000,000 | ||
Stockholders' equity attributable to noncontrolling interest | 4,000,000 | 5,000,000 | ||
Ending Balance | 6,861,000,000 | 7,469,000,000 | ||
Common Stock Issued | ||||
Stockholders' Equity Attributable to Parent | 449,000,000 | 449,000,000 | 449,000,000 | $ 449,000,000 |
Paid-in Capital | ||||
Stockholders' Equity Attributable to Parent | 6,252,000,000 | 6,159,000,000 | 6,297,000,000 | 6,280,000,000 |
Issuance of stock for various plans, net | (51,000,000) | (118,000,000) | ||
Transactions of equity method investees | 6,000,000 | (3,000,000) | ||
Retained Earnings | ||||
Stockholders' Equity Attributable to Parent | 8,062,000,000 | 8,211,000,000 | 8,408,000,000 | 7,465,000,000 |
Common stock dividends | (203,000,000) | (207,000,000) | ||
Comprehensive income (loss) | (141,000,000) | 424,000,000 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Stockholders' Equity Attributable to Parent | (5,255,000,000) | (4,975,000,000) | (4,739,000,000) | (4,500,000,000) |
Comprehensive income (loss) | (516,000,000) | 54,000,000 | ||
Treasury Stock | ||||
Stockholders' Equity Attributable to Parent | 2,651,000,000 | 2,398,000,000 | 2,702,000,000 | 2,332,000,000 |
Issuance of stock for various plans, net | (92,000,000) | (163,000,000) | ||
Repurchase of stock | 41,000,000 | 229,000,000 | ||
Total International Paper Shareholders’ Equity | ||||
Stockholders' Equity Attributable to Parent | 6,857,000,000 | 7,446,000,000 | 7,713,000,000 | 7,362,000,000 |
Issuance of stock for various plans, net | 41,000,000 | 45,000,000 | ||
Repurchase of stock | (41,000,000) | (229,000,000) | ||
Common stock dividends | (203,000,000) | (207,000,000) | ||
Transactions of equity method investees | 6,000,000 | (3,000,000) | ||
Comprehensive income (loss) | (657,000,000) | 478,000,000 | ||
Noncontrolling Interests | ||||
Comprehensive income (loss), portion attributable to noncontrolling interest | (1,000,000) | 2,000,000 | ||
Stockholders' equity attributable to noncontrolling interest | 4,000,000 | 23,000,000 | $ 5,000,000 | $ 21,000,000 |
Accounting Standards Update 2016-13 [Member] | ||||
Cumulative effect of new accounting principle in period of adoption | (2,000,000) | |||
Accounting Standards Update 2016-13 [Member] | Retained Earnings | ||||
Cumulative effect of new accounting principle in period of adoption | (2,000,000) | |||
Accounting Standards Update 2016-13 [Member] | Total International Paper Shareholders’ Equity | ||||
Cumulative effect of new accounting principle in period of adoption | $ (2,000,000) | |||
Accounting Standards Update 2016-13 [Member] | ||||
Cumulative effect of new accounting principle in period of adoption | 0 | |||
Accounting Standards Update 2016-13 [Member] | Retained Earnings | ||||
Cumulative effect of new accounting principle in period of adoption | 529,000,000 | |||
Accounting Standards Update 2016-13 [Member] | Accumulated Other Comprehensive Income (Loss) | ||||
Cumulative effect of new accounting principle in period of adoption | (529,000,000) | |||
Accounting Standards Update 2016-13 [Member] | Total International Paper Shareholders’ Equity | ||||
Cumulative effect of new accounting principle in period of adoption | $ 0 |
EQUITY Phantom (Details)
EQUITY Phantom (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Common stock dividends, per share | $ 0.5125 | $ 0.5000 |
Total International Paper Shareholders’ Equity | ||
Common stock dividends, per share | 0.5125 | 0.5000 |
Noncontrolling Interests | ||
Common stock dividends, per share | $ 0.5125 | $ 0.5000 |
OTHER COMPREHENSIVE INCOME Sche
OTHER COMPREHENSIVE INCOME Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (4,739) | |
Amounts reclassified from accumulated other comprehensive income | 57 | $ (483) |
Other comprehensive income (loss) attributable to noncontrolling interest | (1) | 0 |
Ending Balance | (5,255) | (4,975) |
Defined Benefit Pension and Postretirement Items (a) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (2,277) | (1,916) |
Reclassification of stranded tax effects | 0 | (527) |
Amounts reclassified from accumulated other comprehensive income | 46 | 41 |
Ending Balance | (2,231) | (2,402) |
Change in Cumulative Foreign Currency Translation Adjustments (a) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (2,465) | (2,581) |
Other comprehensive income (loss) before reclassifications | (544) | 8 |
Amounts reclassified from accumulated other comprehensive income | 0 | 4 |
Other comprehensive income (loss) attributable to noncontrolling interest | 1 | 0 |
Ending Balance | (3,008) | (2,569) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 3 | (3) |
Reclassification of stranded tax effects | 0 | (2) |
Other comprehensive income (loss) before reclassifications | (30) | 0 |
Amounts reclassified from accumulated other comprehensive income | 11 | 1 |
Ending Balance | $ (16) | $ (4) |
OTHER COMPREHENSIVE INCOME Sc_2
OTHER COMPREHENSIVE INCOME Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Tax (expense)/benefit | $ (94) | $ (106) | |
Total reclassifications for the period | (57) | 483 | |
Prior-service costs | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from accumulated other comprehensive income, current period, before tax | [1] | (5) | (3) |
Actuarial gains (losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from accumulated other comprehensive income, current period, before tax | [1] | (56) | (52) |
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 | (61) | (55) | |
Tax (expense)/benefit | 15 | 14 | |
Earnings (Loss) From Continuing Operations | (46) | (41) | |
Income (Loss) from Continuing Operations, Total, Net of Tax | (46) | 486 | |
Reclassification of stranded tax effects | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification of stranded tax effects | 0 | 527 | |
Total reclassifications for the period | (46) | (41) | |
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 | 0 | (4) | |
Tax (expense)/benefit | 0 | 0 | |
Earnings (Loss) From Continuing Operations | 0 | 4 | |
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 | (17) | (1) | |
Tax (expense)/benefit | 6 | 0 | |
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 | [2] | (17) | (1) |
Net gains and loses on cash flow hedging derivatives | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Earnings (Loss) From Continuing Operations | (11) | (1) | |
Reclassification of stranded tax effects | 0 | 2 | |
Income (Loss) from Continuing Operations, Total, Net of Tax | (11) | 1 | |
Total reclassifications for the period | $ (11) | $ (1) | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details). | ||
[2] | 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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Earnings (loss) from continuing operations attributable to International Paper Company common shareholders | $ (141) | $ 424 | |
Weighted average common shares outstanding | 392.6 | 400.5 | |
Weighted average common shares outstanding – assuming dilution | 392.6 | 403.2 | |
Basic earnings (loss) per share from continuing operations | $ (0.36) | $ 1.06 | |
Diluted earnings (loss) per share from continuing operations | $ (0.36) | $ 1.05 | |
Restricted performance share plan | |||
Restricted performance share plan | 0 | [1] | 2.7 |
[1] | Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING AND OTHER CHARG_2
RESTRUCTURING AND OTHER CHARGES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | $ 8 | $ 0 |
Early debt extinguishment costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | $ 8 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - DS Smith Packaging [Member] $ in Millions | Jun. 30, 2019USD ($) |
Business Acquisition [Line Items] | |
Cash and temporary investments | $ 2 |
Accounts and notes receivable | 22 |
Inventory | 8 |
Plants, properties and equipment | 40 |
Goodwill | 26 |
Intangible assets | 15 |
Right of use assets | 3 |
Deferred charges and other assets | 2 |
Total assets acquired | 118 |
Short-term debt | 2 |
Accounts payable and accrued liabilities | 20 |
Other current liabilities | 3 |
Deferred income taxes | 5 |
Other liabilities | 1 |
Postretirement and postemployment benefit obligation | 3 |
Long-term lease obligations | 3 |
Total liabilities assumed | 37 |
Net assets acquired | $ 81 |
ACQUISITIONS Narrative (Details
ACQUISITIONS Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | |
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 17 | ||
DS Smith Packaging [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 81 | € 71 |
DIVESTITURES Disposal Group Inc
DIVESTITURES Disposal Group Including Discontinued Operations Table (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total Assets Held for Sale | $ 112 | $ 0 |
Liabilities held for sale | 364 | $ 0 |
Brazilian Industrial Packaging | 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 | 9 | |
Accounts and notes receivable | 38 | |
Inventories | 23 | |
Other current assets | 2 | |
Plants, properties and equipment (net of impairment) | 29 | |
Deferred charges and other assets | 11 | |
Total Assets Held for Sale | 112 | |
Accounts payable and accrued liabilities | 27 | |
Deferred income taxes | 3 | |
Other liabilities | 10 | |
Impairment reserve (cumulative foreign currency translation) | 324 | |
Liabilities held for sale | $ 364 |
DIVESTITURES Narrative (Details
DIVESTITURES Narrative (Details) R$ in Millions | 3 Months Ended | |||
Mar. 31, 2020BRL (R$) | Mar. 31, 2020USD ($) | Dec. 31, 2019 | Mar. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net (gains) losses on sales and impairments of businesses | $ 344,000,000 | $ (7,000,000) | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Brazilian Industrial Packaging | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Estimated proceeds from divestiture of business | R$ 330 | $ 63,500,000 | ||
Proceeds to be received at closing | R$ | 280 | |||
Deferred proceeds on disposal of business | R$ | R$ 50 | |||
Number of containerboard mills sold | 3 | 3 | ||
Number of box plants sold | 4 | 4 | ||
Net (gains) losses on sales and impairments of businesses | $ 344,000,000 | |||
Net (gains) losses on sales of assets and asset impairment charges, net of tax | 337,000,000 | |||
Impairment of long-lived assets to be disposed of | 20,000,000 | |||
Impairment of long-lived assets to be disposed of, net of tax | 13,000,000 | |||
Foreign currency transaction and translation adjustment, before tax | 324,000,000 | |||
APPM [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity method investee, cumulative percentage ownership | 20.00% | |||
Cost-method investments, other than temporary impairment | 17,000,000 | |||
Cost method investments, fair value disclosure | $ 15,000,000 |
SUPPLEMENTAL FINANCIAL STATEM_3
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Accounts and Notes Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | $ 3,226 | $ 3,280 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | 2,959 | 3,020 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | $ 267 | $ 260 |
SUPPLEMENTAL FINANCIAL STATEM_4
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Inventories by Major Category (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Raw materials | $ 254 | $ 298 |
Finished pulp, paper and packaging | 1,081 | 1,192 |
Operating supplies | 615 | 659 |
Other | 52 | 59 |
Total | $ 2,002 | $ 2,208 |
SUPPLEMENTAL FINANCIAL STATEM_5
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Interest Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Income Statement Elements [Abstract] | ||
Interest expense | $ 163 | $ 184 |
Interest income | 46 | 51 |
Capitalized interest costs | $ 9 | $ 5 |
SUPPLEMENTAL FINANCIAL STATEM_6
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |||
Temporary investments | $ 954 | $ 335 | |
Allowance for credit loss | 90 | 73 | |
Accumulated depreciation | 20,400 | 20,500 | |
Depreciation expense | 309 | $ 297 | |
Capital expenditures incurred but not yet paid | 119 | 164 | |
Insurance recoveries | 30 | 0 | |
Interest payments | 184 | $ 214 | |
Asset retirement obligation | $ 98 | $ 96 |
LEASES Schedule of Supplemental
LEASES Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease, right-of-use asset | $ 422 | $ 434 | |
Finance lease, right-of-use asset | [1] | 100 | 103 |
Leased assets, total | 522 | 537 | |
Operating lease, liability, current | 132 | 134 | |
Finance lease, liability, current | 12 | 12 | |
Operating lease, liability, noncurrent | 293 | 304 | |
Finance lease, liability, noncurrent | 85 | 88 | |
Lease liability, total | $ 522 | $ 538 | |
[1] | Finance leases are recorded net of accumulated amortization of $43 million and $40 million as of March 31, 2020 and December 31, 2019. |
LEASES Schedule of Supplement_2
LEASES Schedule of Supplemental Balance Sheet Information Footnotes (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Finance lease, right-of-use asset, accumulated amortization | $ 43 | $ 40 |
LEASES Narrative (Details)
LEASES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lease, cost | $ 67 | $ 75 |
Minimum [Member] | ||
Lessee, operating and financing leases, remaining lease term | 1 year | |
Maximum [Member] | ||
Lessee, operating and financing leases, remaining lease term | 96 years |
EQUITY METHOD INVESTMENTS Summa
EQUITY METHOD INVESTMENTS Summarized Financial Information of Equity Method Investees (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Current assets | $ 7,215 | $ 6,639 | |
Current liabilities | 9,342 | 8,646 | |
Noncontrolling interests | 0 | $ 2 | |
Income from continuing operations | (141) | 424 | |
Net income (loss) | (141) | 424 | |
Graphic Packaging LLC [Member] | Reportable Subsegments | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 1,932 | 1,796 | |
Noncurrent assets | 5,507 | 5,482 | |
Current liabilities | 1,020 | 1,178 | |
Noncurrent liabilities | 3,848 | 3,244 | |
Net sales | 1,599 | 1,506 | |
Gross profit | 321 | 266 | |
Income from continuing operations | (24) | 95 | |
Net income (loss) | (24) | 95 | |
Ilim Holding | Reportable Subsegments | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 922 | 804 | |
Noncurrent assets | 2,333 | 2,813 | |
Current liabilities | 840 | 1,015 | |
Noncurrent liabilities | 1,861 | $ 1,844 | |
Noncontrolling interests | 11 | 16 | |
Net sales | 482 | 620 | |
Gross profit | 195 | 336 | |
Income from continuing operations | (61) | 205 | |
Net income (loss) | $ (58) | $ 199 |
EQUITY METHOD INVESTMENTS Narra
EQUITY METHOD INVESTMENTS Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018 | Dec. 31, 2019USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Net (gains) losses on sales of equity method investments | $ (33,000,000) | $ 0 | ||
Equity earnings (loss), net of taxes | (31,000,000) | 114,000,000 | ||
Equity method dividends received | $ 5,000,000 | 6,000,000 | ||
Reportable Subsegments | Graphic Packaging LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of equity interest | 18.70% | 20.50% | ||
Equity method investment, aggregate units exchanged | 15,150,784 | 79,911,511 | ||
Proceeds from exchange of aggregate units owned in an equity method investment | $ 250,000,000 | |||
Net (gains) losses on sales of equity method investments | (33,000,000) | |||
Net (gains) losses on sales of equity method investment, net of tax | (25,000,000) | |||
Equity earnings (loss), net of taxes | 7,000,000 | 13,000,000 | ||
Equity method dividends received | 5,000,000 | 6,000,000 | ||
Equity method investments | 920,000,000 | $ 1,100,000,000 | ||
Equity method investment, difference between carrying amount and underlying equity | 440,000,000 | 529,000,000 | ||
Revenue from related parties | $ 70,000,000 | 69,000,000 | ||
Reportable Subsegments | Ilim Holding | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of equity interest | 50.00% | |||
Equity earnings (loss), net of taxes | $ (35,000,000) | 101,000,000 | ||
Equity method investments | 401,000,000 | 508,000,000 | ||
Equity method investment, difference between carrying amount and underlying equity | 130,000,000 | $ 136,000,000 | ||
Related party transaction, purchases from related party | $ 51,000,000 | $ 53,000,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES Changes in Goodwill Balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | ||
Goodwill [Line Items] | |||
Beginning balance | $ 5,460 | ||
Accumulated impairment losses | (2,113) | ||
Total | 3,304 | $ 3,347 | |
Currency translation and other (a) | [1] | (46) | |
Goodwill additions/reductions | 3 | ||
Accumulated impairment losses | (2,113) | ||
Ending balance | 5,417 | ||
Industrial Packaging | |||
Goodwill [Line Items] | |||
Beginning balance | 3,410 | ||
Accumulated impairment losses | (296) | ||
Total | 3,112 | 3,114 | |
Currency translation and other (a) | [1] | (5) | |
Goodwill additions/reductions | [2] | 3 | |
Accumulated impairment losses | (296) | ||
Ending balance | 3,408 | ||
Global Cellulose Fibers | |||
Goodwill [Line Items] | |||
Beginning balance | 52 | ||
Accumulated impairment losses | (52) | ||
Total | 0 | 0 | |
Currency translation and other (a) | [1] | 0 | |
Goodwill additions/reductions | 0 | ||
Accumulated impairment losses | (52) | ||
Ending balance | 52 | ||
Printing Papers | |||
Goodwill [Line Items] | |||
Beginning balance | 1,998 | ||
Accumulated impairment losses | (1,765) | ||
Total | 192 | $ 233 | |
Currency translation and other (a) | [1] | (41) | |
Goodwill additions/reductions | 0 | ||
Accumulated impairment losses | (1,765) | ||
Ending balance | $ 1,957 | ||
[1] | Represents the effects of foreign currency translations. | ||
[2] | Reflects the changes to provisional goodwill for the acquisitions of Industrial Packaging box plants in EMEA. |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 757 | $ 782 |
Accumulated Amortization | 407 | 414 |
Net Intangible Assets | 350 | 368 |
Customer relationships and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 537 | 560 |
Accumulated Amortization | 266 | 275 |
Net Intangible Assets | 271 | 285 |
Tradenames, patents and trademarks, and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 170 | 170 |
Accumulated Amortization | 105 | 102 |
Net Intangible Assets | 65 | 68 |
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 | 25 | 26 |
Accumulated Amortization | 24 | 25 |
Net Intangible Assets | 1 | 1 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 17 | 18 |
Accumulated Amortization | 10 | 10 |
Net Intangible Assets | $ 7 | $ 8 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 10 | $ 12 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income taxes, net of refunds | $ 16 | $ (51) |
Decrease in unrecognized tax benefits is reasonably possible | 67 | |
Secretariat of the Federal Revenue Bureau of Brazil [Member] | ||
Income tax examination, estimate of possible loss | 115 | |
Income tax examination, penalties and interest expense | $ 365 |
COMMITMENTS AND CONTINGENCIES E
COMMITMENTS AND CONTINGENCIES Environmental Remediation Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 196 | |||
Accrual for environmental loss contingencies, gross | 204 | |||
Cass Lake, Minnesota | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | 46 | |||
Kalamazoo River Superfund Site [Member] | ||||
Loss Contingencies [Line Items] | ||||
Proposed consent decree, value of remediation payments | $ 100 | |||
Proposed consent decree, value of labor performed | $ 135.7 | |||
San Jacinto River Superfund Site [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | $ 115 | |||
Remediation design period | 29 months | |||
Responsible party percentage | 50.00% | |||
Time Critical Removal Action [Member] | Kalamazoo River Superfund Site [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | $ 37 | $ 19 | ||
Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC Cost Recovery Action [Member] | Kalamazoo River Superfund Site [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | $ 79 | |||
Loss contingency, damages awarded, value | $ 50 | |||
Responsible party percentage | 15.00% | |||
Northern Impoundment [Member] | San Jacinto River Superfund Site [Member] | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 55 | |||
Loss contingency, damages sought, value | 105 | |||
Accrual for Environmental Loss Contingencies, Period Increase (Decrease) | 41 | |||
Southern Impoundment [Member] [Member] | San Jacinto River Superfund Site [Member] | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | 10 | |||
Loss contingency, damages sought, value | $ 10 |
COMMITMENTS AND CONTINGENCIES L
COMMITMENTS AND CONTINGENCIES Litigation (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2014USD ($) | |
Loss Contingencies [Line Items] | |||||
Value added tax receivable | $ 9 | ||||
Signature Industrial Services LLC et al. v. International Paper [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages awarded, value | 14.8 | $ 125 | $ 137 | ||
Disputed invoices, value | $ 1 | ||||
San Jacinto River Superfund Site [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought, value | $ 115 | ||||
Italian Competition Authority [Member] | |||||
Loss Contingencies [Line Items] | |||||
Potentially responsible parties | 30 | 30 | |||
Loss contingency, damages sought, value | $ 32 | € 29 |
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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
2015 Financing Entities | |||
Variable Interest Entity [Line Items] | |||
Revenue | [1] | $ 24 | $ 24 |
Expense | [1] | 32 | 32 |
Cash receipts | [2] | 47 | 47 |
Cash payments | [3] | 64 | 64 |
2007 Financing Entities | |||
Variable Interest Entity [Line Items] | |||
Revenue | [4] | 16 | 21 |
Expense | [5] | 16 | 21 |
Cash receipts | [6] | 12 | 16 |
Cash payments | [7] | $ 15 | $ 18 |
[1] | The revenue and expense are included in Interest expense, net in the accompanying condensed consolidated statement of operations. | ||
[2] | The cash receipts are interest received on the Financial assets of variable interest entities. | ||
[3] | The cash payments represent interest paid on Nonrecourse financial liabilities of variable interest entities. | ||
[4] | The revenue is included in Interest expense, net in the accompanying condensed consolidated statement of operations and includes approximately $5 million for both of the three months ended March 31, 2020 and 2019 of accretion income for the amortization of the basis difference adjustment on the Financial assets of variable interest entities. | ||
[5] | The expense is included in Interest expense, net in the accompanying condensed consolidated statement of operations and includes approximately $2 million for both of the three months ended March 31, 2020 and 2019 of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of variable interest entities. | ||
[6] | The cash receipts are interest received on the Financial assets of variable interest entities. | ||
[7] | The cash payments are interest paid on Nonrecourse financial liabilities of variable interest entities. |
VARIABLE INTEREST ENTITIES AN_4
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Activity Between Company and Entities Footnotes (Details) - 2007 Financing Entities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Accretion income for amortization of purchase accounting adjustment, financial assets | $ 5 | $ 5 |
Accretion expense for amortization of purchase accounting adjustment, financial liabiities | $ 2 | $ 2 |
VARIABLE INTEREST ENTITIES AN_5
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES Narrative (Details) $ in Millions | Mar. 31, 2020USD ($) |
2015 Financing Entities | |
Variable Interest Entity [Line Items] | |
Notes receivable, fair value disclosure | $ 4,890 |
Long-term debt, fair value | 4,270 |
2007 Financing Entities | |
Variable Interest Entity [Line Items] | |
Notes receivable, fair value disclosure | 2,150 |
Long-term debt, fair value | $ 1,980 |
DEBT Narrative (Details)
DEBT Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | $ 10,200 | |
Debt fair value | 11,000 | |
Debt covenant compliance, minimum net worth | $ 9,000 | |
Debt covenant compliance, minimum debt to capital ratio | 60.00% | |
364-Day Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 750 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 1,500 | |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 1,000 | |
Receivables Securitization Program [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized agreements | $ 550 | 600 |
Repayments of Secured Debt | $ 557 | |
Collateralized assets, value of amount outstanding | $ 557 | |
Debt, weighted average interest rate | 1.65% | |
Line of credit facility, remaining borrowing capacity | $ 43 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES Schedule of Notional Amounts of Financial Instruments (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 0 | $ 7,000,000 |
Energy Related Derivative | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 8,000,000 | 16,000,000 |
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 337,000,000 | 407,000,000 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 0 | 700,000,000 |
Net Investment Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 340,000,000 | $ 475,000,000 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (30) | $ 0 |
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 | (30) | 0 |
Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 20 | 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 | $ 20 | $ 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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (11) | $ (1) |
Designated as Hedging Instrument | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 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 | 38 | 12 |
Designated as Hedging Instrument | Interest Expense [Member] | Debt [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (38) | (12) |
Designated as Hedging Instrument | Cost of Products Sold | Cash Flow Hedging | Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (11) | (1) |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (3) | 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 | $ (3) | $ 4 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | $ 29 | [1] | $ 68 | [2] |
Derivative Liabilities | 36 | [3] | 7 | [4] |
Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 29 | 68 | ||
Derivative Liabilities | 33 | 4 | ||
Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 0 | 0 | ||
Derivative Liabilities | 3 | 3 | ||
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 0 | 0 | ||
Derivative Liabilities | 0 | 1 | ||
Energy Related Derivative | Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 0 | 0 | ||
Derivative Liabilities | 3 | 2 | ||
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 2 | 10 | ||
Derivative Liabilities | 33 | 4 | ||
Net Investment Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 27 | 11 | ||
Derivative Liabilities | 0 | 0 | ||
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 0 | 47 | ||
Derivative Liabilities | $ 0 | $ 0 | ||
[1] | Includes $10 million recorded in Other current assets and $19 million recorded in Deferred charges and other assets in the accompanying condensed consolidated balance sheet. | |||
[2] | Includes $14 million recorded in Other current assets and $54 million recorded in Deferred charges and other assets in the accompanying condensed consolidated balance sheet. | |||
[3] | (c) Includes $33 million recorded in Other accrued liabilities and $3 million recorded in Other liabilities in the accompanying condensed consolidated balance sheet. | |||
[4] | Included in Other current liabilities in the accompanying condensed consolidated balance sheet. |
DERIVATIVES AND HEDGING ACTIV_7
DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet Other (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | $ 29 | [1] | $ 68 | [2] | |
Derivative Liabilities | 36 | [3] | 7 | [4] | |
Other Current Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | [1] | 10 | 14 | ||
Deferred charges and other assets [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | [1] | 19 | 54 | ||
Accrued Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liabilities | 33 | ||||
Other Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liabilities | 3 | ||||
Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 29 | 68 | |||
Derivative Liabilities | 33 | 4 | |||
Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 0 | 0 | |||
Derivative Liabilities | $ 3 | $ 3 | |||
[1] | Includes $10 million recorded in Other current assets and $19 million recorded in Deferred charges and other assets in the accompanying condensed consolidated balance sheet. | ||||
[2] | Includes $14 million recorded in Other current assets and $54 million recorded in Deferred charges and other assets in the accompanying condensed consolidated balance sheet. | ||||
[3] | (c) Includes $33 million recorded in Other accrued liabilities and $3 million recorded in Other liabilities in the accompanying condensed consolidated balance sheet. | ||||
[4] | Included in Other current liabilities in the accompanying condensed consolidated balance sheet. |
DERIVATIVES AND HEDGING ACTIV_8
DERIVATIVES AND HEDGING ACTIVITIES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2020 | |
Gain / (Loss) Recorded to AOCI After Tax, That Is Expected to be Reclassified to Earnings | $ 13 | |
Designated as Hedging Instrument | Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||
Terminated derivative, notional amount | 700 | |
Terminated derivative, fair value, net | 85 | |
Designated as Hedging Instrument | Net Investment Hedging [Member] | Interest Rate Contract [Member] | ||
Terminated derivative, notional amount | 135 | |
Terminated derivative, fair value, net | $ 8 | |
Designated as Hedging Instrument | Net Investment Hedging [Member] | Interest Rate Contract [Member] | Subsequent Event [Member] | ||
Terminated derivative, fair value, net | $ 25 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 20 | $ 18 |
Interest cost | 98 | 110 |
Expected return on plan assets | (167) | (157) |
Actuarial loss | 55 | 51 |
Amortization of prior service cost | 5 | 4 |
Net periodic pension expense | $ 11 | $ 26 |
RETIREMENT PLANS Narrative (Det
RETIREMENT PLANS Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Non Qualified | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefits paid | $ 5 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Income tax benefits related to stock-based compensation | $ 17 | $ 34 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense (selling and administrative) | $ 26 | $ 27 |
STOCK-BASED COMPENSATION Narrat
STOCK-BASED COMPENSATION Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / 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 | $ | $ 144 |
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) | 2 years |
Granted, nonvested shares / units | 2.2 |
Granted, nonvested, weighted average grant date fair value | $ / shares | $ 49.15 |
Stock Compensation Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant under ICP | 8.4 |
INDUSTRY SEGMENT INFORMATION Sa
INDUSTRY SEGMENT INFORMATION Sales by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 5,352 | $ 5,643 |
Industrial Packaging | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,819 | 3,832 |
Global Cellulose Fibers | ||
Segment Reporting Information [Line Items] | ||
Net sales | 568 | 689 |
Printing Papers | ||
Segment Reporting Information [Line Items] | ||
Net sales | 908 | 1,065 |
Corporate and Intersegment Sales | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 57 | $ 57 |
INDUSTRY SEGMENT INFORMATION Op
INDUSTRY SEGMENT INFORMATION Operating Profit by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Business Segment Operating Profits | $ 512 | $ 600 |
Earnings (loss) from continuing operations before income taxes and equity earnings | (16) | 418 |
Interest expense, net | 117 | 133 |
Noncontrolling interests/equity earnings adjustment | 0 | (3) |
Corporate expenses, net | 32 | 21 |
Corporate special items, net | 33 | 0 |
Business special items, net | 352 | 21 |
Non-operating pension expense | (6) | 10 |
Industrial Packaging | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Business Segment Operating Profits | 470 | 421 |
Global Cellulose Fibers | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Business Segment Operating Profits | (54) | 35 |
Printing Papers | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Business Segment Operating Profits | $ 96 | $ 144 |