Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 21, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 | 387,263,169 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000051434 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Net Sales | [1] | $ 5,714 | $ 5,123 | $ 16,693 | $ 15,341 |
Costs and Expenses | |||||
Cost of products sold | 3,924 | 3,541 | 11,684 | 10,714 | |
Selling and administrative expenses | 434 | 360 | 1,255 | 1,110 | |
Depreciation, amortization and cost of timber harvested | 318 | 320 | 933 | 955 | |
Distribution expenses | 446 | 377 | 1,272 | 1,149 | |
Taxes other than payroll and income taxes | 42 | 44 | 131 | 129 | |
Restructuring and other charges, net | 39 | 105 | 243 | 131 | |
Net (gains) losses on sales and impairments of businesses | (360) | (5) | (367) | 347 | |
Net (gains) losses on sales of equity method investments | (1) | (2) | (205) | (35) | |
Net (gains) losses on sales of fixed assets | (86) | 0 | (86) | 0 | |
Interest expense, net | 93 | 112 | 242 | 345 | |
Non-operating pension expense (income) | (51) | (11) | (156) | (31) | |
Earnings (loss) before income taxes and equity earnings | 916 | 282 | 1,747 | 527 | |
Income tax provision (benefit) | 146 | 50 | 347 | 211 | |
Equity earnings (loss), net of taxes | 94 | (28) | 247 | 13 | |
Net earnings (loss) | 864 | 204 | 1,647 | 329 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 2 | 0 | |
Net Earnings (Loss) Attributable to International Paper Company | $ 864 | $ 204 | $ 1,645 | $ 329 | |
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | |||||
Basic earnings (loss) per share attributable to International Paper Company Common Shareholders | $ 2.22 | $ 0.52 | $ 4.21 | $ 0.84 | |
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | |||||
Diluted earnings (loss) per share attributable to International Paper Company Common Shareholders | $ 2.20 | $ 0.52 | $ 4.16 | $ 0.83 | |
Average Shares of Common Stock Outstanding – assuming dilution | 392.6 | 394.6 | 395.3 | 394.5 | |
[1] | Net sales are attributed to countries based on the location of the seller. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net income (loss) | $ 864 | $ 204 | $ 1,647 | $ 329 |
Change in cumulative foreign currency translation adjustment | (70) | (28) | 99 | (515) |
Net gains (losses) arising during the period | (4) | (4) | 3 | (34) |
Reclassification adjustment for (gains) losses included in net earnings (loss) | (8) | 6 | (9) | 26 |
Total Other Comprehensive Income (Loss), Net of Tax | 780 | 17 | 1,026 | (395) |
Comprehensive Income (Loss) | 1,644 | 221 | 2,673 | (66) |
Less: Net earnings (loss) attributable to noncontrolling interests | 0 | 0 | (2) | 0 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 2 | 2 |
Comprehensive Income (Loss) Attributable to International Paper Company | 1,644 | 221 | 2,673 | (64) |
U.S. plans | ||||
Amortization of pension and post-retirement prior service costs and net loss: | 31 | 42 | 101 | 127 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 826 | 0 | 826 | 0 |
Foreign Plan | ||||
Amortization of pension and post-retirement prior service costs and net loss: | 0 | 1 | 0 | 1 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 5 | $ 0 | $ 6 | $ 0 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and temporary investments | $ 2,122 | $ 595 |
Restricted Cash, Current | 1,499 | |
Accounts and notes receivable, net | 3,549 | 3,064 |
Contract assets | 427 | 355 |
Inventories | 2,053 | 2,050 |
Current financial assets of variable interest entities (Note 16) | 0 | 4,850 |
Assets held for sale | 0 | 138 |
Other current assets | 246 | 184 |
Total Current Assets | 9,896 | 11,236 |
Plants, Properties and Equipment, net | 11,360 | 12,217 |
Forestlands | 303 | 311 |
Investments | 713 | 1,178 |
Long-Term Financial Assets of Variable Interest Entities (Note 16) | 2,270 | 2,257 |
Goodwill | 3,274 | 3,315 |
Pension Assets | 545 | 5 |
Right of Use Assets | 405 | 459 |
Deferred Charges and Other Assets | 705 | 740 |
Total Assets | 29,471 | 31,718 |
Current Liabilities | ||
Notes payable and current maturities of long-term debt | 233 | 29 |
Current nonrecourse financial liabilities of variable interest entities (Note 16) | 0 | 4,220 |
Accounts payable | 2,704 | 2,320 |
Accrued payroll and benefits | 489 | 466 |
Liabilities held for sale | 0 | 181 |
Other current liabilities | 1,272 | 1,068 |
Total Current Liabilities | 4,698 | 8,284 |
Long-Term Debt | 8,241 | 8,064 |
Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities (Note 16) | 2,098 | 2,092 |
Deferred Income Taxes | 2,728 | 2,743 |
Pension Benefit Obligation | 418 | 1,055 |
Postretirement and Postemployment Benefit Obligation | 235 | 251 |
Long-Term Lease Obligations | 263 | 315 |
Other Liabilities | 1,167 | 1,046 |
Equity | ||
Common stock, $1 par value, 2021 – 448.9 shares and 2020 – 448.9 shares | 449 | 449 |
Paid-in capital | 6,371 | 6,325 |
Retained earnings | 9,103 | 8,070 |
Accumulated other comprehensive loss | (3,314) | (4,342) |
Shareholders' Equity before Treasury Stock, Total | 12,609 | 10,502 |
Less: Common stock held in treasury, at cost, 2021 – 61.7 shares and 2020 – 55.8 shares | 2,987 | 2,648 |
Total International Paper Shareholders’ Equity | 9,622 | 7,854 |
Noncontrolling interests | 1 | 14 |
Total Equity | 9,623 | 7,868 |
Total Liabilities and Equity | $ 29,471 | $ 31,718 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares | 448,900 | 448,900 |
Common stock held in treasury, shares | 61,700 | 55,800 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities | ||
Net earnings (loss) | $ 1,647 | $ 329 |
Depreciation, amortization and cost of timber harvested | 933 | 955 |
Deferred income tax provision (benefit), net | (151) | (5) |
Restructuring and other charges, net | 243 | 131 |
Net (gains) losses on sales of equity method investments | (205) | (35) |
Net (gains) losses on sales and impairments of businesses | (367) | 347 |
Net (gains) losses on sales of fixed assets | (86) | 0 |
Equity method dividends received | 149 | 158 |
Equity (earnings) losses, net | (247) | (13) |
Periodic pension (income) expense, net | (84) | 24 |
Other, net | 129 | 212 |
Changes in current assets and liabilities | ||
Accounts and notes receivable | (510) | 96 |
Contract assets | (74) | 2 |
Inventories | (133) | 74 |
Accounts payable and accrued liabilities | 716 | 0 |
Interest payable | 9 | (26) |
Other | (46) | 25 |
Cash Provided By (Used For) Operations | 1,923 | 2,274 |
Investment Activities | ||
Invested in capital projects, net of insurance recoveries | (348) | (657) |
Acquisitions, net of cash acquired | (80) | (64) |
Proceeds from sales of equity method investments | 843 | 500 |
Proceeds from sales of businesses, net of cash divested | 827 | 0 |
Proceeds from settlement of Variable Interest Entity installment notes | 4,850 | 0 |
Proceeds from sale of fixed assets | 95 | 3 |
Other | (3) | 18 |
Cash Provided By (Used For) Investment Activities | 6,184 | (200) |
Financing Activities | ||
Repurchases of common stock and payments of restricted stock tax withholding | (425) | (42) |
Issuance of debt | 1,511 | 692 |
Reduction of debt | (1,132) | (1,795) |
Change in book overdrafts | 29 | 16 |
Dividends paid | (602) | (605) |
Reduction of Variable Interest Entity loans | (4,220) | 0 |
Net debt tender premiums paid | (221) | (124) |
Other | (14) | (1) |
Cash Provided By (Used For) Financing Activities | (5,074) | (1,859) |
Cash Included in Assets Held for Sale | 0 | (11) |
Effect of Exchange Rate Changes on Cash and Temporary Investments and Restricted Cash | (7) | (37) |
Change in Cash and Temporary Investments and Restricted Cash | 3,026 | 167 |
Cash and Temporary Investments and Restricted Cash | ||
Beginning of period | 595 | 511 |
End of period | $ 3,621 | $ 678 |
BASIS OF PRESENTATION (Note)
BASIS OF PRESENTATION (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | 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 nine months of the year may not necessarily be indicative of full year results. It is suggested that these condensed financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, which have previously been filed with the Securities and Exchange Commission. On March 11, 2020 the World Health Organization (WHO) declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. During the third quarter of 2021, the number of COVID-19 cases and deaths increased in the United States and numerous other countries, and restrictive measures, including mask and vaccine requirements, have been implemented or reinstituted by various governmental authorities and private businesses. Economic recovery in the United States has continued but may be threatened by the resurgence of COVID-19 cases and other factors. Most of our manufacturing and converting facilities have remained open and operational during the pandemic and at the current time our manufacturing and converting facilities are generally operational. The pandemic has had a mixed impact on demand for our products. Initially, demand for printing papers products was significantly impacted by the pandemic, but has seen a steady increase over the first nine months of 2021. Demand for our pulp, containerboard and corrugated box products has not been negatively impacted and in some cases has been positively impacted by COVID-19 to date. However, all of our operations continue to experience higher supply chain costs and a constrained transportation environment due in part to the impacts of COVID-19. There continue to be significant uncertainties associated with the COVID-19 pandemic, including with respect to the resurgence of new variants of the virus in many areas globally; the additional actions taken by governmental authorities and private businesses, including mask and vaccine requirements, to attempt to contain the COVID-19 outbreak or to mitigate its impact; the efficacy, acceptance and availability of various vaccines and booster shots, as well as the possibility that strains of the virus may be resistant to current available vaccines; and the impact of COVID-19 on economic conditions, including with respect to labor market conditions, economic activity, consumer behavior, supply shortages and disruptions and inflationary pressures. COVID-19 has had a significant adverse effect on portions of our business, and could have a material adverse effect on our financial condition, results of operations and cash flows if public health and/or global economic conditions deteriorate. Printing Papers Spinoff On October 1, 2021, the Company completed the previously announced spin-off of its Printing Papers segment along with certain mixed-use coated paperboard and pulp businesses in North America, France and Russia into a standalone, publicly-traded company, Sylvamo Corporation. The transaction was implemented through the distribution of shares of the standalone company to International Paper's shareholders (the "Distribution"). As a result of the Distribution, Sylvamo Corporation is an independent public company that trades on the New York Stock Exchange under the symbol "SLVM". The Distribution was made to the Company's stockholders of record as of the close of business on September 15, 2021 (the "Record Date"), and such stockholders received one share of Sylvamo Corporation common stock for every 11 shares of International Paper common stock held as of the close of business on the Record Date. The Company retained 19.9% of the shares of Sylvamo at the time of the separation, with the intent to monetize its investment and to provide additional proceeds to the Company. The Company is accounting for its ownership interest in Sylvamo at fair value as an investment in equity securities. In the third quarter of 2021, Sylvamo incurred $1.5 billion in debt in anticipation of a net cash distribution of $1.4 billion to be made to the Company as part of the spin-off. See Note 17 – Debt for further details regarding the Sylvamo debt. All current and historical operating results of the Sylvamo Corporation businesses will be presented as Discontinued Operations, net of tax, in the consolidated statement of operations in the fourth quarter of 2021. The spin-off was tax-free for the Company and its shareholders for U.S. federal income tax purposes. In connection with the Distribution, on September 29, 2021, the Company and Sylvamo Corporation entered into a separation and distribution agreement as well as various other agreements that govern the relationships between the parties following the Distribution, including a transition services agreement, a tax matters agreement and an employee matters agreement. These |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Developments [Note Text Block] | NOTE 2 - RECENT ACCOUNTING DEVELOPMENTS 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. |
REVENUE RECOGNITION (Note)
REVENUE RECOGNITION (Note) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 3,514 $ 623 $ 425 $ 50 $ 4,612 EMEA 383 69 232 (1) 683 Pacific Rim and Asia 12 37 8 3 60 Americas, other than U.S. 178 — 181 — 359 Total $ 4,087 $ 729 $ 846 $ 52 $ 5,714 Operating Segments North American Industrial Packaging $ 3,738 $ — $ — $ — $ 3,738 EMEA Industrial Packaging 331 — — — 331 European Coated Paperboard 52 — — — 52 Global Cellulose Fibers — 729 — — 729 North American Printing Papers — — 425 — 425 Brazilian Papers — — 200 — 200 European Papers — — 218 — 218 Intra-segment Eliminations (34) — 3 — (31) Corporate & Inter-segment Sales — — — 52 52 Total $ 4,087 $ 729 $ 846 $ 52 $ 5,714 (a) Net sales are attributed to countries based on the location of the seller. Nine Months Ended September 30, 2021 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 10,125 $ 1,682 $ 1,195 $ 139 $ 13,141 EMEA 1,371 209 765 (6) 2,339 Pacific Rim and Asia 44 90 25 10 169 Americas, other than U.S. 556 — 488 — 1,044 Total $ 12,096 $ 1,981 $ 2,473 $ 143 $ 16,693 Operating Segments North American Industrial Packaging $ 10,810 $ — $ — $ — $ 10,810 EMEA Industrial Packaging 1,121 — — — 1,121 European Coated Paperboard 252 — — — 252 Global Cellulose Fibers — 1,981 — — 1,981 North American Printing Papers — — 1,201 — 1,201 Brazilian Papers — — 557 — 557 European Papers — — 723 — 723 Intra-segment Eliminations (87) — (8) — (95) Corporate & Inter-segment Sales — — — 143 143 Total $ 12,096 $ 1,981 $ 2,473 $ 143 $ 16,693 (a) Net sales are attributed to countries based on the location of the seller. Three Months Ended September 30, 2020 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 3,169 $ 479 $ 362 $ 44 $ 4,054 EMEA 394 59 244 (3) 694 Pacific Rim and Asia 15 26 6 10 57 Americas, other than U.S. 190 — 131 (3) 318 Total $ 3,768 $ 564 $ 743 $ 48 $ 5,123 Operating Segments North American Industrial Packaging $ 3,351 $ — $ — $ — $ 3,351 EMEA Industrial Packaging 306 — — — 306 Brazilian Industrial Packaging 52 — — — 52 European Coated Paperboard 90 — — — 90 Global Cellulose Fibers — 564 — — 564 North American Printing Papers — — 362 — 362 Brazilian Papers — — 150 — 150 European Papers — — 232 — 232 Intra-segment Eliminations (31) — (1) — (32) Corporate & Inter-segment Sales — — — 48 48 Total $ 3,768 $ 564 $ 743 $ 48 $ 5,123 (a) Net sales are attributed to countries based on the location of the seller. Nine Months Ended September 30, 2020 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 9,364 $ 1,507 $ 1,069 $ 146 $ 12,086 EMEA 1,213 175 765 (11) 2,142 Pacific Rim and Asia 43 55 20 20 138 Americas, other than U.S. 600 — 380 (5) 975 Total $ 11,220 $ 1,737 $ 2,234 $ 150 $ 15,341 Operating Segments North American Industrial Packaging $ 9,947 $ — $ — $ — $ 9,947 EMEA Industrial Packaging 953 — — — 953 Brazilian Industrial Packaging 148 — — — 148 European Coated Paperboard 266 — — — 266 Global Cellulose Fibers — 1,737 — — 1,737 North American Printing Papers — — 1,073 — 1,073 Brazilian Papers — — 434 — 434 European Papers — — 728 — 728 Intra-segment Eliminations (94) — (1) — (95) Corporate & Inter-segment Sales — — — 150 150 Total $ 11,220 $ 1,737 $ 2,234 $ 150 $ 15,341 (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 $25 million and $31 million are included in Other current liabilities in the accompanying condensed consolidated balance sheet as of September 30, 2021 and December 31, 2020, respectively. During the second quarter of 2021, the Company also recorded a contract liability of $115 million related to the April 2021 acquisition disclosed in Note 8 . 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 prepayment from the customer, respectively. |
EQUITY (Note)
EQUITY (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity [Note Text Block] | NOTE 4 - EQUITY A summary of the changes in equity for the three months and nine months ended September 30, 2021 and 2020 is provided below: Three Months Ended September 30, 2021 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 Noncontrolling Total Balance, July 1 $ 449 $ 6,330 $ 8,442 $ (4,094) $ 2,775 $ 8,352 $ 2 $ 8,354 Issuance of stock for various plans, net — 41 — — — 41 — 41 Repurchase of stock — — — — 212 (212) — (212) Common stock dividends ($0.5125 per share) — — (203) — — (203) — (203) Divestiture of noncontrolling interests — — — — — — (1) (1) Comprehensive income (loss) — — 864 780 — 1,644 — 1,644 Ending Balance, September 30 $ 449 $ 6,371 $ 9,103 $ (3,314) $ 2,987 $ 9,622 $ 1 $ 9,623 Nine Months Ended September 30, 2021 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 Noncontrolling Total Balance, January 1 $ 449 $ 6,325 $ 8,070 $ (4,342) $ 2,648 $ 7,854 $ 14 $ 7,868 Issuance of stock for various plans, net — 27 — — (86) 113 — 113 Repurchase of stock — — — — 425 (425) — (425) Common stock dividends ($1.5375 per share) — — (612) — — (612) — (612) Transactions of equity method investees — 19 — — — 19 — 19 Divestiture of noncontrolling interests — — — — — — (13) (13) Comprehensive income (loss) — — 1,645 1,028 — 2,673 — 2,673 Ending Balance, September 30 $ 449 $ 6,371 $ 9,103 $ (3,314) $ 2,987 $ 9,622 $ 1 $ 9,623 Three Months Ended September 30, 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 Noncontrolling Total Balance, July 1 $ 449 $ 6,283 $ 8,123 $ (5,149) $ 2,649 $ 7,057 $ 3 $ 7,060 Issuance of stock for various plans, net — 18 — — (2) 20 — 20 Repurchase of stock — — — — 1 (1) — (1) Common stock dividends ($0.5125 per share) — — (205) — — (205) — (205) Transactions of equity method investees — 1 — — — 1 — 1 Comprehensive income (loss) — — 204 17 — 221 — 221 Ending Balance, September 30 $ 449 $ 6,302 $ 8,122 $ (5,132) $ 2,648 $ 7,093 $ 3 $ 7,096 Nine Months Ended September 30, 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 Noncontrolling Total 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 — (31) — — (96) 65 — 65 Repurchase of stock — — — — 42 (42) — (42) Common stock dividends ($1.5375 per share) — — (613) — — (613) — (613) Transactions of equity method investees — 36 — — — 36 — 36 Comprehensive income (loss) — — 329 (393) — (64) (2) (66) Ending Balance, September 30 $ 449 $ 6,302 $ 8,122 $ (5,132) $ 2,648 $ 7,093 $ 3 $ 7,096 |
OTHER COMPREHENSIVE INCOME (Not
OTHER COMPREHENSIVE INCOME (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Other Comprehensive Income [Note Text Block] | The following table presents changes in accumulated other comprehensive income (AOCI) for the three months and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (1,809) $ (2,192) $ (1,880) $ (2,277) Other comprehensive income (loss) before reclassifications 831 — 832 — Amounts reclassified from accumulated other comprehensive income 31 43 101 128 Balance at end of period (947) (2,149) (947) (2,149) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (2,286) (2,950) (2,457) (2,465) Other comprehensive income (loss) before reclassifications (114) (28) (85) (515) Amounts reclassified from accumulated other comprehensive income 44 — 184 — Other comprehensive income (loss) attributable to noncontrolling interest — — 2 2 Balance at end of period (2,356) (2,978) (2,356) (2,978) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period 1 (7) (5) 3 Other comprehensive income (loss) before reclassifications (4) (4) 3 (34) Amounts reclassified from accumulated other comprehensive income (8) 6 (9) 26 Balance at end of period (11) (5) (11) (5) Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (3,314) $ (5,132) $ (3,314) $ (5,132) The following table presents details of the reclassifications out of AOCI for the three months and nine months ended September 30, 2021 and 2020: In millions: Amount Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI Three Months Ended Nine Months Ended 2021 2020 2021 2020 Defined benefit pension and postretirement items: Prior-service costs $ (5) $ (5) $ (17) $ (15) (a) Non-operating pension expense Actuarial gains (losses) (36) (52) (118) (155) (a) Non-operating pension expense Total pre-tax amount (41) (57) (135) (170) Tax (expense) benefit 10 14 34 42 Total, net of tax (31) (43) (101) (128) Change in cumulative foreign currency translation adjustments: Business acquisitions/divestitures (44) — (184) — Net (gains) losses on sales and impairments of businesses and Cost of products sold Tax (expense) benefit — — — — Net of tax (44) — (184) — Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts 10 (8) 12 (39) (b) Cost of products sold Total pre-tax amount 10 (8) 12 (39) Tax (expense)/benefit (2) 2 (3) 13 Net of tax 8 (6) 9 (26) Total reclassifications for the period $ (67) $ (49) $ (276) $ (154) (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 (Note) | 9 Months Ended |
Sep. 30, 2021 | |
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 Nine Months Ended In millions, except per share amounts 2021 2020 2021 2020 Earnings (loss) attributable to International Paper Company common shareholders $ 864 $ 204 $ 1,645 $ 329 Weighted average common shares outstanding 388.8 393.1 391.0 392.9 Effect of dilutive securities Restricted performance share plan 3.8 1.5 4.3 1.6 Weighted average common shares outstanding – assuming dilution 392.6 394.6 395.3 394.5 Basic earnings (loss) per share attributable to International Paper Company Common Shareholders $ 2.22 $ 0.52 $ 4.21 $ 0.84 Diluted earnings (loss) per share attributable to International Paper Company Common Shareholders $ 2.20 $ 0.52 $ 4.16 $ 0.83 |
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities [Note Text Block] | NOTE 7 - RESTRUCTURING AND OTHER CHARGES, NET 2021: During the three months ended September 30, 2021, the Company recorded a $35 million pre-tax charge in Corporate related to early debt extinguishment costs and a $4 million pre-tax charge in Corporate for severance. The majority of the severance is expected to be paid over the next twelve months. During the three months ended June 30, 2021, the Company recorded a $170 million pre-tax charge in Corporate related to early debt extinguishment costs and a $4 million pre-tax charge in Corporate for severance. The majority of the severance is expected to be paid over the next twelve months. During the three months ended March 31, 2021, the Company recorded an $18 million pre-tax charge in Corporate related to early debt extinguishment costs and a $12 million pre-tax charge in the Industrial Packaging segment for severance related to the optimization of our EMEA Packaging business. The majority of the severance is expected to be paid over the next twelve months. In connection with our Building a Better IP initiative, we expect to incur additional restructuring charges over the course of the initiative, which could be material. At this time, the plans have not been finalized. 2020: During the three months ended September 30, 2020, the Company recorded a $105 million pre-tax charge in Corporate related to early debt extinguishment costs. During the three months ended June 30, 2020, the Company recorded an $18 million pre-tax charge in Corporate related to early debt extinguishment costs. 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. |
ACQUISITIONS (Note)
ACQUISITIONS (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 8 - ACQUISITIONS 2021: On April 1, 2021, the Company closed on the previously announced acquisition of two box plants located in Spain. The total purchase consideration, inclusive of working capital adjustments, was approximately €71 million (approximately $83 million based on the April 1, 2021 exchange rate), subject to post-closing adjustments. The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of April 1, 2021: In millions Cash and temporary investments $ 5 Accounts and notes receivable 10 Inventories 3 Plants, properties and equipment 38 Goodwill 30 Intangible assets 14 Total assets acquired $ 100 Short-term debt 3 Accounts payable and accrued liabilities 4 Other current liabilities 1 Deferred income taxes 9 Total liabilities assumed 17 Net assets acquired $ 83 Since the date of acquisition, Net sales of $9 million and $18 million and Earnings from continuing operations before income taxes and equity earnings of $0 and $1 million have been included in the Company's consolidated statement of operations for the three months and year to date ended September 30, 2021, respectively. The purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding assets acquired and liabilities assumed, and revisions of provisional estimates of fair values, including, but not limited to, the completion of independent appraisals and valuations related to inventory, property, plant and equipment and acquired intangible assets. Adjustments to provisional amounts will be finalized as new information becomes available, but within the adjustment period of up to one year from the acquisition date. Pro forma information has not been included as it is impracticable to obtain the information due to the lack of availability of historical U.S. GAAP financial data. The results of the operations of these businesses do not have a material effect on the Company's consolidated results of operations. The Company has accounted for the above acquisition under ASC 805, "Business Combinations" and the results of operations have been included in International Paper's financial statements beginning with the date of acquisition. In April 2021, the Company received a noncontrolling interest in a U.S-based corrugated packaging producer. In the second quarter, the Company recorded its investment of $115 million based on the fair value of the noncontrolling interest, and a corresponding contract liability that is amortized over 15 years. The Company is party to various agreements with the entity which includes a containerboard supply agreement. The Company is accounting for its interest as an equity method investment. 2020: In May 2020, the Company increased its noncontrolling interest in an entity that produces corrugated sheets. The equity purchase price was $56 million. The Company is party to various agreements with the entity which includes a containerboard supply agreement. The Company is accounting for its interest as an equity method investment. |
DIVESTITURES (Note)
DIVESTITURES (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Note Text Block] | NOTE 9 - DIVESTITURES AND IMPAIRMENTS Kwidzyn Mill 2021: On August 6, 2021, the Company completed the sale of its Kwidzyn, Poland mill for €669 million (approximately $794 million using the July 31, 2021 exchange rate) in cash, subject to final working capital and net debt adjustments. The business includes the pulp and paper mill in Kwidzyn and supporting functions. During the third quarter of 2021, the Company recorded a net gain of $360 million ($350 million after taxes) including a gain of $404 million ($394 million after taxes) related to the sale of net assets and a loss of $44 million (before and after taxes) related to the cumulative foreign currency translation loss. These charges are included in the Net (gains) losses on sales and impairments of businesses in the accompanying consolidated statement of operations and are included in the results of the Printing Papers segment. All current year and historical operating results for Kwidzyn will be presented as Discontinued Operations, net of tax, in the consolidated statement of operations in the fourth quarter of 2021. Olmuksan International Paper 2021: On May 31, 2021, the Company completed the sale of its 90.38% ownership interest in Olmuksan International Paper, a corrugated packaging business in Turkey, to Mondi Group for €66 million (approximately $81 million using the May 31, 2021 exchange rate). During the second quarter of 2021, the Company recorded a gain of $6 million ($0 after taxes) related to the business working capital adjustment. This charge is included in the Net (gains) losses on sales and impairments of businesses in the accompanying consolidated statement of operations and is included in the results for the Industrial Packaging segment. In conjunction with the announced agreement in the fourth quarter of 2020, a determination was made that the current book value of the Olmuksan International Paper disposal group exceeded its estimated fair value of $79 million which was based on the agreed upon transaction price. As a result, a preliminary charge of $123 million (before and after taxes) was recorded during the fourth quarter of 2020. During the first quarter of 2021, the Company recorded an additional charge of $2 million (before and after taxes) related to the cumulative foreign currency translation loss. This charge is included in the Net (gains) losses on sales and impairments of businesses in the accompanying consolidated statement of operations and is included in the results for the Industrial Packaging segment. Brazil Industrial Packaging 2020: On October 14, 2020, the Company closed the previously announced sale of its Brazilian Industrial Packaging business for R$330 million ($58.5 million U.S. dollars), with R$280 million ($49.6 million U.S. dollars) paid at closing and R$50 million ($8.9 million U.S. dollars) to be paid one year from closing. 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. |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Note) | 9 Months Ended |
Sep. 30, 2021 | |
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. Temporary investments totaled $3.2 billion and $358 million at September 30, 2021 and December 31, 2020, respectively. Restricted Cash A reconciliation of cash and temporary investments and restricted cash in the consolidated balance sheet to cash and temporary investments and restricted cash in the consolidated statement of cash flows for the nine months ended September 30, 2021 and 2020 is as follows: Nine Months Ended September 30, In millions 2021 2020 Cash and Temporary Investments $ 2,122 $ 678 Restricted Cash 1,499 — Total Cash and Temporary Investments and Restricted Cash $ 3,621 $ 678 The Company's restricted cash consists of the cash proceeds from the debt incurred by Sylvamo Corporation as part of the Printing Papers segment spin-off that was completed on October 1, 2021. Of this amount, approximately $1.4 billion was remitted to the Company in the form of a cash distribution. See Note 17 - Debt for further details regarding the Sylvamo debt and the use of the cash proceeds from the debt issuances. Accounts and Notes Receivable In millions September 30, 2021 December 31, 2020 Accounts and notes receivable, net: Trade $ 3,222 $ 2,776 Other 327 288 Total $ 3,549 $ 3,064 The allowance for expected credit losses was $64 million and $76 million at September 30, 2021 and December 31, 2020, respectively. 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. Inventories In millions September 30, 2021 December 31, 2020 Raw materials $ 241 $ 268 Finished pulp, paper and packaging 1,156 1,091 Operating supplies 569 627 Other 87 64 Total $ 2,053 $ 2,050 Plants, Properties and Equipment Accumulated depreciation was $21.2 billion and $21.4 billion at September 30, 2021 and December 31, 2020, respectively. Depreciation expense was $302 million and $300 million for the three months ended September 30, 2021 and 2020, respectively, and $888 million and $902 million for the nine months ended September 30, 2021 and 2020, respectively. Non-cash additions to plants, property and equipment included within accounts payable were $61 million and $41 million at September 30, 2021 and December 31, 2020, respectively. Amounts invested in capital projects in the accompanying condensed consolidated statement of cash flows are presented net of insurance recoveries of $6 million received during the nine months ended September 30, 2021 and $40 million received during the nine months ended September 30, 2020. Interest Interest payments made during the nine months ended September 30, 2021 and 2020 were $357 million and $520 million, respectively. Amounts related to interest were as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Interest expense $ 117 $ 148 $ 358 $ 467 Interest income 24 36 116 122 Capitalized interest costs 3 9 8 27 Asset Retirement Obligations The Company had recorded liabilities of $135 million and $116 million related to asset retirement obligations at September 30, 2021 and December 31, 2020, respectively. |
LEASES (Note)
LEASES (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases | 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 a remaining lease term of up to 32 years. Total lease cost was $73 million and $68 million for the three months ended September 30, 2021 and 2020, respectively, and $216 million and $202 million for the nine months ended September 30, 2021 and 2020, respectively. Supplemental Balance Sheet Information Related to Leases In millions Classification September 30, 2021 December 31, 2020 Assets Operating lease assets Right-of-use assets $ 405 $ 459 Finance lease assets Plants, properties and equipment, net (a) 87 95 Total leased assets $ 492 $ 554 Liabilities Current Operating Other current liabilities $ 146 $ 148 Finance Notes payable and current maturities of long-term debt 12 13 Noncurrent Operating Long-term lease obligations 263 315 Finance Long-term debt 75 82 Total lease liabilities $ 496 $ 558 (a) Finance leases are recorded net of accumulated amortization of $62 million and $53 million as of September 30, 2021 and December 31, 2020, respectively. |
Lessee, Finance Leases | 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 a remaining lease term of up to 32 years. Total lease cost was $73 million and $68 million for the three months ended September 30, 2021 and 2020, respectively, and $216 million and $202 million for the nine months ended September 30, 2021 and 2020, respectively. Supplemental Balance Sheet Information Related to Leases In millions Classification September 30, 2021 December 31, 2020 Assets Operating lease assets Right-of-use assets $ 405 $ 459 Finance lease assets Plants, properties and equipment, net (a) 87 95 Total leased assets $ 492 $ 554 Liabilities Current Operating Other current liabilities $ 146 $ 148 Finance Notes payable and current maturities of long-term debt 12 13 Noncurrent Operating Long-term lease obligations 263 315 Finance Long-term debt 75 82 Total lease liabilities $ 496 $ 558 (a) Finance leases are recorded net of accumulated amortization of $62 million and $53 million as of September 30, 2021 and December 31, 2020, respectively. |
EQUITY METHOD INVESTMENTS (Note
EQUITY METHOD INVESTMENTS (Note) | 9 Months Ended |
Sep. 30, 2021 | |
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 (79,911,591 units) in Graphic Packaging International Partners, LLC (GPIP) in 2018. The Company has since fully monetized its investment in GPIP with transactions beginning in the first quarter 2020 through the second quarter 2021. GPIP Monetization Transactions Date Transaction Type Units Proceeds Pre-tax Gain After-Tax Gain In millions except units 2020 First Quarter Units exchange 15,150,784 $ 250 $ 33 $ 25 2020 Third Quarter Units exchange 17,399,414 250 — — 2021 First Quarter Units exchange and open market sale 24,588,316 397 33 25 2021 First Quarter TRA 41 31 2021 Second Quarter Units exchange and open market sale 22,773,077 402 64 48 2021 Second Quarter TRA (a) 66 50 (a) The TRA entitles the Company to 50% of the amount of any tax benefits projected to be realized by GPIP upon the Company's exchange of its units. This amount is recorded in other receivables and is expected to be received within the next 12 months. As of June 30, 2021, the Company no longer had an ownership interest in GPIP. The Company recorded equity earnings of $11 million for the three months ended September 30, 2020 and $4 million and $29 million for the nine months ended September 30, 2021 and 2020, respectively. There were no equity earnings recorded for the three months ended September 30, 2021. The Company received cash dividends from GPIP of $5 million and $16 million during the first nine months of 2021 and 2020, respectively. 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 $95 million and $(33) million for the three months ended September 30, 2021 and 2020, respectively, and $245 million and $(5) million for the nine months ended September 30, 2021 and 2020, respectively. Foreign exchange gains (losses) included in equity earnings for the three months and nine months ended September 30, 2021, were not material and JSC Ilim Group had no U.S. dollar-denominated debt outstanding as of September 30, 2021. Equity earnings (losses) for the three months and nine months ended September 30, 2020, included after-tax foreign exchange losses of $55 million and $72 million, respectively, primarily on the remeasurement of U.S. dollar-denominated net debt. The Company received cash dividends from the joint venture of $144 million and $141 million during the first nine months of 2021 and 2020, respectively. At September 30, 2021 and December 31, 2020, the Company's investment in Ilim was $517 million and $393 million, respectively, which was $131 million and $127 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. Prior to the spin-off of the Printing Papers segment on October 1, 2021, the Company was party to a joint marketing agreement with JSC Ilim Group, a subsidiary of Ilim, under which the Company purchased, marketed and sold paper produced by JSC Ilim Group. Purchases under this agreement were $42 million and $41 million for the three months ended September 30, 2021 and 2020, respectively, and $125 million and $131 million for the nine months ended September 30, 2021 and 2020, respectively. The joint marketing agreement was conveyed to Sylvamo Corporation as part of the spin-off transaction on October 1, 2021. Summarized financial information for Ilim is presented in the following tables: Balance Sheet In millions September 30, 2021 December 31, 2020 Current assets $ 935 $ 739 Noncurrent assets 3,069 2,733 Current liabilities 711 674 Noncurrent liabilities 2,487 2,249 Noncontrolling interests 34 17 Income Statement Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Net sales $ 729 $ 498 $ 1,993 $ 1,474 Gross profit 393 191 1,051 597 Income (loss) from continuing operations 190 (62) 498 7 Net income (loss) 182 (60) 481 7 The Company's remaining equity method investments are not material. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Note) | 9 Months Ended |
Sep. 30, 2021 | |
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 nine-months ended September 30, 2021: In millions Industrial Global Cellulose Fibers Printing Total Balance as of January 1, 2021 Goodwill $ 3,410 $ 52 $ 1,966 $ 5,428 Accumulated impairment losses (296) (52) (1,765) (2,113) 3,114 — 201 3,315 Currency translation and other (a) (5) — (8) (13) Goodwill additions/reductions 29 (b) — (57) (c) (28) Accumulated impairment loss additions / reductions — — — — Balance as of September 30, 2021 Goodwill 3,434 52 1,901 5,387 Accumulated impairment losses (296) (52) (1,765) (2,113) Total $ 3,138 $ — $ 136 $ 3,274 (a) Represents the effects of foreign currency translations. (b) Reflects the box plant acquisitions in EMEA. (c) Reflects the Kwidzyn sale. Other Intangibles Identifiable intangible assets comprised the following: September 30, 2021 December 31, 2020 In millions Gross Accumulated Net Intangible Assets Gross Accumulated Net Intangible Assets Customer relationships and lists $ 552 $ 314 $ 238 $ 542 $ 294 $ 248 Tradenames, patents and trademarks, and developed technology 170 128 42 170 117 53 Land and water rights 8 2 6 8 2 6 Software 17 17 — 25 24 1 Other 14 10 4 19 10 9 Total $ 761 $ 471 $ 290 $ 764 $ 447 $ 317 The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Amortization expense related to intangible assets $ 12 $ 17 $ 35 $ 43 |
INCOME TAXES (Note)
INCOME TAXES (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Note Text Block] | NOTE 14 - INCOME TAXES International Paper made income tax payments, net of refunds, of $389 million and $203 million for the nine months ended September 30, 2021 and 2020, 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 $11 million during the next 12 months. The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by Sylvamo do Brasil Ltda., a wholly-owned subsidiary of the Company. The Company received assessments for the tax years 2007-2015 totaling approximately $107 million in tax, and $351 million in interest, penalties, and fees as of September 30, 2021 (adjusted for variation in currency exchange rates). After a previous favorable ruling challenging the basis for these assessments, we received other subsequent unfavorable decisions 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. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Note Text Block] | NOTE 15 - COMMITMENTS AND CONTINGENCIES Environmental The Company 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. The Company has estimated the probable liability associated with these environmental remediation matters, including those described herein, to be approximately $187 million ($195 million undiscounted) in the aggregate as of September 30, 2021. 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-treatment 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. 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 applicable reserve referenced 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. The Company responded to the special notice letter. In December 2016, the EPA issued a unilateral administrative order to the Company and other PRPs to perform the remedy. The Company responded to the unilateral administrative order, agreeing to comply with the order subject to its sufficient cause defenses. • Operable Unit 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. 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 in Operable Unit 5, Areas 2, 3, and 4 at an estimated cost of $135.7 million. In December 2020, the Federal District Court approved the proposed consent decree. The Company’s CERCLA liability has not been finally determined with respect to these or any other portions of the site, and except as noted above, the Company has declined to perform any work or reimburse the EPA at this time. As noted below, the Company is involved in allocation/apportionment litigation with regard to the site. Accordingly, it is premature to predict the outcome or estimate our maximum reasonably possible loss 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. The Company was named as a defendant by Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC in a contribution and cost recovery action for alleged pollution at the site. NCR Corporation and Weyerhaeuser Company are also named as defendants in the suit. The suit seeks contribution under CERCLA for costs purportedly expended by plaintiffs ($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 Company appeal is pending. 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 for the northern impoundment. That remedial design work is ongoing. 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, the Company reserved the following amounts in relation to remediation at this site: (a) $10 million for the southern impoundment; 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. We have submitted the Final Design Package for the southern impoundment to the EPA, and the EPA approved this plan May 7, 2021. With respect to the northern impoundment, although several key technical issues have been resolved, we still face significant challenges remediating this area 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. Asbestos-Related Matters We have been named as a defendant in various asbestos-related personal injury litigation, in both state and federal court, primarily in relation to the prior operations of certain companies previously acquired by the Company. As of September 30, 2021, the Company's total recorded liability with respect to pending and future asbestos-related claims was $112 million, net of estimated insurance recoveries. While it is reasonably possible that the Company may incur losses in excess of its recorded liability with respect to asbestos-related matters, we do not believe additional material losses are probable. Antitrust 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. We appealed the ICA decision and our appeal was denied on May 25, 2021. However, we continue to believe we have numerous and strong bases to challenge the ICA decision, and we have further appealed the decision to the Italian Council of State. Taxes Other Than Payroll 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. Based upon the best information available to us at that time, we determined an estimated refund was probable of being realized. As of March 31, 2021, we had recognized a receivable of $11 million based upon the authorities narrow interpretation. On May 13, 2021, the Brazilian Federal Supreme Court ruled again on the case. This ruling provides a much broader definition of the state VAT, which increased the exclusion amount from the Federal VAT calculations. Therefore, we recognized an additional receivable of $70 million during the three months ended June 30, 2021, which brought the total receivable to $81 million as of June 30, 2021. The $70 million of income recognized during the second quarter of 2021 included income of $42 million in Cost of Products sold and income of $28 million in Interest expense, net in the accompanying condensed consolidated statement of operations. A portion of this receivable has been consumed by offsetting various taxes payable. After giving effect to this offset, the ending balance of the total receivable is $48 million as of September 30, 2021. The issue is now considered fully resolved, and no further ruling by either the Brazilian Supreme Court or the Brazilian tax authorities is expected. This receivable pertains to a business that was conveyed to Sylvamo Corporation as of October 1, 2021, as part of our spin-off transaction. 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 |
VARIABLE INTEREST ENTITIES (Not
VARIABLE INTEREST ENTITIES (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosure | NOTE 16 - VARIABLE INTEREST ENTITIES Variable Interest Entities In August 2021, the Timber Notes of $4.8 billion and the Extension Loans of $4.2 billion related to the 2015 Financing Entities both matured. We settled the Extension Loans at their maturity with the proceeds from the Timber Notes. This resulted in cash proceeds of approximately $630 million representing our equity in the variable interest entities. Maturity of the installment notes and termination of the monetization structure also resulted in a $72 million tax liability that is expected to be paid in the fourth quarter of 2021. As of September 30, 2021, the Company's remaining deferred tax liability associated with the 2015 Financing Entities was $815 million. The nature and timing of the income tax due related to these transactions is currently under review by the Internal Revenue Service. Activity between the Company and the 2015 Financing Entities was as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Revenue (a) $ 14 $ 24 $ 61 $ 71 Expense (a) 8 32 34 96 Cash receipts (b) 48 48 95 95 Cash payments (c) 24 64 38 128 (a) The revenue and expense are included in Interest expense, net in the accompanying statement of operations. (b) The cash receipts are interest received on the Financial assets of special purpose entities. (c) The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. As of September 30, 2021, the fair value of the Timber Notes and Extension Loans for the 2007 Financing Entities was $2.3 billion and $2.1 billion, respectively. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 17 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The Timber Notes of $2.3 billion and the Extension Loans of $2.1 billion both mature in 2027 and are shown in Long-term nonrecourse financial assets of variable interest entities and Long-term nonrecourse financial liabilities of variable interest entities, respectively, on the accompanying balance sheet. Activity between the Company and the 2007 Financing Entities was as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Revenue (a) $ 5 $ 7 $ 18 $ 35 Expense (b) 6 8 18 36 Cash receipts (c) 1 5 4 28 Cash payments (d) 4 8 12 34 (a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for the three months and nine months ended September 30, 2021 and 2020, respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities. (b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three months and nine months ended September 30, 2021 and 2020, respectively, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities. (c) The cash receipts are interest received on the Financial assets of special purpose entities. (d) The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
DEBT (Note)
DEBT (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt [Note Text Block] | NOTE 17 - DEBT The borrowing capacity of the Company'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 September 30, 2021, the Company had no borrowings outstanding under the program. At September 30, 2021, International Paper’s credit facilities totaled $2.1 billion. The Agreements generally provide for interest rates at a floating rate index plus a pre-determined margin dependent upon International Paper’s credit rating. The Agreements include a $1.5 billion contractually committed bank facility. In June 2021, the Company extended the maturity date of the $1.5 billion credit facility from December 2022 to June 2026. The liquidity facilities also include up to $550 million of uncommitted financings based on eligible receivables balances under a receivables securitization program. In February of 2021, after considering the Company’s liquidity position in relation to the macroeconomic environment at such time, the Company amended the receivable securitization program from a committed financing arrangement to an uncommitted financing arrangement. In August of 2021, the Company amended the receivable securitization program to remove receivable balances related to Sylvamo. The borrowing limit of up to $550 million based on eligible receivables balances and the expiration date in April 2022 were unchanged by the February 2021 and August 2021 amendments. At September 30, 2021, there were no borrowings under either the bank facility or receivables securitization program. In March 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 augmented the Company's access to liquidity due to the macroeconomic conditions related to COVID-19 and supplemented the Company's $1.5 billion credit agreement. After considering the Company’s liquidity position in relation to the macroeconomic environment at such time, the Company determined not to extend the $750 million credit agreement after its expiration on March 24, 2021. In anticipation of the spin-off, Sylvamo incurred $1.5 billion in debt during the third quarter of 2021 with the proceeds to be used for a distribution to the Company and other expenses associated with the transaction. The Company was an obligor of the debt prior to the spin-off as Sylvamo was a wholly-owned subsidiary. Subsequent to the distribution of the net assets, the Company was no longer an obligor of the Sylvamo debt. The $1.5 billion of borrowings is comprised of $450 million of 7.00% senior unsecured notes due 2029 issued in September 2021. It is also comprised of the senior secured credit facility that Sylvamo entered into in September 2021 which consisted of $450 million of borrowings related to its term loan “B” facility, $520 million of borrowings related to its term loan “F” facility, and the $100 million draw on its revolving credit facility which has a capacity of $450 million. The Company's early debt reductions in the third quarter of 2021 were a debt tender in August 2021 of approximately $200 million related to debt with an interest rate of 3.55% and a maturity date of 2029. The Company’s early debt reductions in the second quarter of 2021 were a debt tender in June 2021 of approximately $558 million related to debt with interest rates ranging from 4.35% to 4.40% and maturity dates ranging from 2047 to 2048 and open market repurchases of approximately $232 million related to debt with interest rates ranging from 3.00% to 5.15% and maturity dates ranging from 2027 to 2046. The Company’s early debt reductions in the first quarter of 2021 were open market repurchases of approximately $107 million related to debt with interest rates ranging from 3.00% to 4.80% and maturities dates from 2027 to 2048. 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 September 30, 2021, we were in compliance with our debt covenants. At September 30, 2021, the fair value of International Paper’s $8.5 billion of debt was approximately $10.2 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 17 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES (Note) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 December 31, 2020 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts (USD) $ 108 $ 85 Foreign exchange contracts (EUR) — 187 Derivatives Not Designated as Hedging Instruments: Electricity contract (MWh) 0.3 0.2 The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (4) $ (4) $ 3 $ (34) Total $ (4) $ (4) $ 3 $ (34) Derivatives in Net Investment Hedging Relationships: Foreign exchange contracts $ 6 $ — $ 18 $ — Interest rate contracts — — — 24 Total $ 6 $ — $ 18 $ 24 During the next 12 months, the amount of the September 30, 2021 AOCI balance, after tax, that is expected to be reclassified to earnings is a loss of $2 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 Into Income (Effective Portion) Location of Gain (Loss) Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 8 $ (6) $ 9 $ (26) Cost of products sold Total $ 8 $ (6) $ 9 $ (26) Gain (Loss) Recognized in Income Location of Gain (Loss) Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ — $ — $ — $ 38 Interest expense, net Debt — — — (38) Interest expense, net Total $ — $ — $ — $ — Derivatives in Net Investment Hedging Relationships: Foreign exchange contracts — 1 — 2 Net (gain) losses on sales and impairments of businesses Total $ — $ 1 $ — $ 2 Derivatives Not Designated as Hedging Instruments: Electricity contract $ 6 $ 1 $ 13 $ (2) Cost of products sold Foreign exchange contracts 5 — (1) — Cost of products sold Total $ 11 $ 1 $ 12 $ (2) Fair Value Measurements The Company has not changed its valuation techniques for measuring the fair value of any financial assets or liabilities during the year. Transfers between levels, if any, are recognized at the end of the reporting period. The following table provides a summary of the impact of our derivative instruments in the balance sheet: Fair Value Measurements Level 2 – Significant Other Observable Inputs Assets Liabilities In millions September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 3 $ 5 $ 5 $ 8 Total derivatives designated as hedging instruments 3 5 5 8 Derivatives not designated as hedging instruments Electricity contract 11 — — 1 Total derivatives not designated as hedging instruments 11 — — 1 Total derivatives $ 14 (a) $ 5 (b) $ 5 (c) $ 9 (d) (a) Includes $13 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (b) Included in Other current assets in the accompanying consolidated balance sheet. (c) Includes $4 million recorded in Other current liabilities and $1 million recorded in Other liabilities in the accompanying consolidated balance sheet. (d) Includes $7 million recorded in Other current liabilities and $2 million recorded in Other liabilities in the accompanying consolidated balance sheet. The above contracts are subject to enforceable master netting arrangements that provide rights of offset with each counterparty when amounts are payable on the same date in the same currency or in the case of certain specified defaults. Management has made an accounting policy election to not offset the fair value of recognized derivative assets and derivative liabilities in the balance sheet. The amounts owed to the counterparties and owed to the Company are considered immaterial with respect to each counterparty and in the aggregate with all counterparties. |
RETIREMENT PLANS (Note)
RETIREMENT PLANS (Note) | 9 Months Ended |
Sep. 30, 2021 | |
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 and 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. In advance of the spin-off of the Printing Papers segment into a standalone, publicly-traded company, Sylvamo, a legally separate Sylvamo Pension Plan was established to transfer both pension liabilities and qualified pension assets for the approximately 900 active qualified pension participants who transitioned to Sylvamo. Effective September 1, 2021, the Retirement Plan of International Paper (“IP Pension Plan”) and the Sylvamo Pension Plan were legally separated and remeasured as of that date. The remeasurement resulted in a net asset balance of $520 million for the IP Pension Plan, which has been classified as part of the Pension Assets balance on the Consolidated Balance Sheet. Based on the September 1, 2021 remeasurement, the IP Pension Plan completed the transfer of approximately $286 million in projected benefit obligation and approximately $263 million in qualified pension assets to the Sylvamo Pension Plan. Net periodic pension (income) expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Service cost $ 26 $ 21 $ 78 $ 64 Interest cost 84 98 251 294 Expected return on plan assets (177) (167) (543) (501) Actuarial loss 35 51 114 152 Amortization of prior service cost 5 5 16 15 Net periodic pension (income) expense $ (27) $ 8 $ (84) $ 24 The components of net periodic pension (income) expense other than the Service cost component are included in Non-operating pension (income) expense in the Consolidated Statement of Operations. The Company’s funding policy for our pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that the Company may determine to be appropriate considering the funded status of the plan, tax deductibility, the cash flows generated by the Company, and other factors. The Company made no voluntary cash contributions to the qualified pension plan in the first nine months of 2021 or 2020. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $16 million for the nine months ended September 30, 2021. |
STOCK-BASED COMPENSATION (Note)
STOCK-BASED COMPENSATION (Note) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement | 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 September 30, 2021, 7.6 million shares were available for grant under the ICP. Stock-based compensation expense and related income tax benefits were as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Total stock-based compensation expense (selling and administrative) $ 42 $ 17 $ 103 $ 48 Income tax benefits related to stock-based compensation (2) 1 13 18 At September 30, 2021, $107 million, net of estimated forfeitures, of compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future service had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 1.9 years. Performance Share Plan During the first nine months of 2021, the Company granted 2.0 million performance units at an average grant date fair value of $53.15. |
INDUSTRY SEGMENT INFORMATION (N
INDUSTRY SEGMENT INFORMATION (Note) | 9 Months Ended |
Sep. 30, 2021 | |
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. On October 1, 2021, the Company completed the previously announced spin-off of its Printing Papers segment into a standalone, publicly-traded company, Sylvamo Corporation. As a result of the spin-off, the Company no longer operated this Printing Papers segment effective October 1, 2021, and all current and historical financial results will be adjusted to reflect the Printing Papers segment as a discontinued operation in the fourth quarter of 2021. In addition, certain limited historical and ongoing business activities will be included in our Industrial Packaging and Global Cellulose Fibers segments. 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 noncontrolling interests, and excluding interest expense, net, corporate expenses, net, corporate net special items, business net special items and non-operating pension expense. Net sales by business segment for the three months and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Industrial Packaging $ 4,087 $ 3,768 $ 12,096 $ 11,220 Global Cellulose Fibers 729 564 1,981 1,737 Printing Papers 846 743 2,473 2,234 Corporate and Intersegment Sales 52 48 143 150 Net Sales $ 5,714 $ 5,123 $ 16,693 $ 15,341 Operating profit (loss) by business segment for the three months and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Industrial Packaging $ 429 $ 469 $ 1,284 $ 1,388 Global Cellulose Fibers 96 (59) 24 (123) Printing Papers 106 63 262 148 Business Segment Operating Profits $ 631 473 $ 1,570 $ 1,413 Earnings (loss) before income taxes and equity earnings $ 916 $ 282 $ 1,747 $ 527 Interest expense, net 93 112 242 345 Noncontrolling interests adjustment (1) — (3) — Corporate expenses, net 12 (20) 44 9 Corporate net special items 11 108 81 195 Business net special items (349) 2 (385) 368 Non-operating pension expense (income) (51) (11) (156) (31) Business Segment Operating Profits $ 631 $ 473 $ 1,570 $ 1,413 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | A geographic disaggregation of revenues across our company segmentation in the following tables provides information to assist in evaluating the nature, timing and uncertainty of revenue and cash flows and how they may be impacted by economic factors. Three Months Ended September 30, 2021 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 3,514 $ 623 $ 425 $ 50 $ 4,612 EMEA 383 69 232 (1) 683 Pacific Rim and Asia 12 37 8 3 60 Americas, other than U.S. 178 — 181 — 359 Total $ 4,087 $ 729 $ 846 $ 52 $ 5,714 Operating Segments North American Industrial Packaging $ 3,738 $ — $ — $ — $ 3,738 EMEA Industrial Packaging 331 — — — 331 European Coated Paperboard 52 — — — 52 Global Cellulose Fibers — 729 — — 729 North American Printing Papers — — 425 — 425 Brazilian Papers — — 200 — 200 European Papers — — 218 — 218 Intra-segment Eliminations (34) — 3 — (31) Corporate & Inter-segment Sales — — — 52 52 Total $ 4,087 $ 729 $ 846 $ 52 $ 5,714 (a) Net sales are attributed to countries based on the location of the seller. Nine Months Ended September 30, 2021 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate and Inter-segment Sales Total Primary Geographical Markets (a) United States $ 10,125 $ 1,682 $ 1,195 $ 139 $ 13,141 EMEA 1,371 209 765 (6) 2,339 Pacific Rim and Asia 44 90 25 10 169 Americas, other than U.S. 556 — 488 — 1,044 Total $ 12,096 $ 1,981 $ 2,473 $ 143 $ 16,693 Operating Segments North American Industrial Packaging $ 10,810 $ — $ — $ — $ 10,810 EMEA Industrial Packaging 1,121 — — — 1,121 European Coated Paperboard 252 — — — 252 Global Cellulose Fibers — 1,981 — — 1,981 North American Printing Papers — — 1,201 — 1,201 Brazilian Papers — — 557 — 557 European Papers — — 723 — 723 Intra-segment Eliminations (87) — (8) — (95) Corporate & Inter-segment Sales — — — 143 143 Total $ 12,096 $ 1,981 $ 2,473 $ 143 $ 16,693 (a) Net sales are attributed to countries based on the location of the seller. Three Months Ended September 30, 2020 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 3,169 $ 479 $ 362 $ 44 $ 4,054 EMEA 394 59 244 (3) 694 Pacific Rim and Asia 15 26 6 10 57 Americas, other than U.S. 190 — 131 (3) 318 Total $ 3,768 $ 564 $ 743 $ 48 $ 5,123 Operating Segments North American Industrial Packaging $ 3,351 $ — $ — $ — $ 3,351 EMEA Industrial Packaging 306 — — — 306 Brazilian Industrial Packaging 52 — — — 52 European Coated Paperboard 90 — — — 90 Global Cellulose Fibers — 564 — — 564 North American Printing Papers — — 362 — 362 Brazilian Papers — — 150 — 150 European Papers — — 232 — 232 Intra-segment Eliminations (31) — (1) — (32) Corporate & Inter-segment Sales — — — 48 48 Total $ 3,768 $ 564 $ 743 $ 48 $ 5,123 (a) Net sales are attributed to countries based on the location of the seller. Nine Months Ended September 30, 2020 In millions Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 9,364 $ 1,507 $ 1,069 $ 146 $ 12,086 EMEA 1,213 175 765 (11) 2,142 Pacific Rim and Asia 43 55 20 20 138 Americas, other than U.S. 600 — 380 (5) 975 Total $ 11,220 $ 1,737 $ 2,234 $ 150 $ 15,341 Operating Segments North American Industrial Packaging $ 9,947 $ — $ — $ — $ 9,947 EMEA Industrial Packaging 953 — — — 953 Brazilian Industrial Packaging 148 — — — 148 European Coated Paperboard 266 — — — 266 Global Cellulose Fibers — 1,737 — — 1,737 North American Printing Papers — — 1,073 — 1,073 Brazilian Papers — — 434 — 434 European Papers — — 728 — 728 Intra-segment Eliminations (94) — (1) — (95) Corporate & Inter-segment Sales — — — 150 150 Total $ 11,220 $ 1,737 $ 2,234 $ 150 $ 15,341 (a) Net sales are attributed to countries based on the location of the seller. |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity [Table Text Block] | A summary of the changes in equity for the three months and nine months ended September 30, 2021 and 2020 is provided below: Three Months Ended September 30, 2021 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 Noncontrolling Total Balance, July 1 $ 449 $ 6,330 $ 8,442 $ (4,094) $ 2,775 $ 8,352 $ 2 $ 8,354 Issuance of stock for various plans, net — 41 — — — 41 — 41 Repurchase of stock — — — — 212 (212) — (212) Common stock dividends ($0.5125 per share) — — (203) — — (203) — (203) Divestiture of noncontrolling interests — — — — — — (1) (1) Comprehensive income (loss) — — 864 780 — 1,644 — 1,644 Ending Balance, September 30 $ 449 $ 6,371 $ 9,103 $ (3,314) $ 2,987 $ 9,622 $ 1 $ 9,623 Nine Months Ended September 30, 2021 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 Noncontrolling Total Balance, January 1 $ 449 $ 6,325 $ 8,070 $ (4,342) $ 2,648 $ 7,854 $ 14 $ 7,868 Issuance of stock for various plans, net — 27 — — (86) 113 — 113 Repurchase of stock — — — — 425 (425) — (425) Common stock dividends ($1.5375 per share) — — (612) — — (612) — (612) Transactions of equity method investees — 19 — — — 19 — 19 Divestiture of noncontrolling interests — — — — — — (13) (13) Comprehensive income (loss) — — 1,645 1,028 — 2,673 — 2,673 Ending Balance, September 30 $ 449 $ 6,371 $ 9,103 $ (3,314) $ 2,987 $ 9,622 $ 1 $ 9,623 Three Months Ended September 30, 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 Noncontrolling Total Balance, July 1 $ 449 $ 6,283 $ 8,123 $ (5,149) $ 2,649 $ 7,057 $ 3 $ 7,060 Issuance of stock for various plans, net — 18 — — (2) 20 — 20 Repurchase of stock — — — — 1 (1) — (1) Common stock dividends ($0.5125 per share) — — (205) — — (205) — (205) Transactions of equity method investees — 1 — — — 1 — 1 Comprehensive income (loss) — — 204 17 — 221 — 221 Ending Balance, September 30 $ 449 $ 6,302 $ 8,122 $ (5,132) $ 2,648 $ 7,093 $ 3 $ 7,096 Nine Months Ended September 30, 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 Noncontrolling Total 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 — (31) — — (96) 65 — 65 Repurchase of stock — — — — 42 (42) — (42) Common stock dividends ($1.5375 per share) — — (613) — — (613) — (613) Transactions of equity method investees — 36 — — — 36 — 36 Comprehensive income (loss) — — 329 (393) — (64) (2) (66) Ending Balance, September 30 $ 449 $ 6,302 $ 8,122 $ (5,132) $ 2,648 $ 7,093 $ 3 $ 7,096 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in accumulated other comprehensive income (AOCI) for the three months and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (1,809) $ (2,192) $ (1,880) $ (2,277) Other comprehensive income (loss) before reclassifications 831 — 832 — Amounts reclassified from accumulated other comprehensive income 31 43 101 128 Balance at end of period (947) (2,149) (947) (2,149) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (2,286) (2,950) (2,457) (2,465) Other comprehensive income (loss) before reclassifications (114) (28) (85) (515) Amounts reclassified from accumulated other comprehensive income 44 — 184 — Other comprehensive income (loss) attributable to noncontrolling interest — — 2 2 Balance at end of period (2,356) (2,978) (2,356) (2,978) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period 1 (7) (5) 3 Other comprehensive income (loss) before reclassifications (4) (4) 3 (34) Amounts reclassified from accumulated other comprehensive income (8) 6 (9) 26 Balance at end of period (11) (5) (11) (5) Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (3,314) $ (5,132) $ (3,314) $ (5,132) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents details of the reclassifications out of AOCI for the three months and nine months ended September 30, 2021 and 2020: In millions: Amount Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI Three Months Ended Nine Months Ended 2021 2020 2021 2020 Defined benefit pension and postretirement items: Prior-service costs $ (5) $ (5) $ (17) $ (15) (a) Non-operating pension expense Actuarial gains (losses) (36) (52) (118) (155) (a) Non-operating pension expense Total pre-tax amount (41) (57) (135) (170) Tax (expense) benefit 10 14 34 42 Total, net of tax (31) (43) (101) (128) Change in cumulative foreign currency translation adjustments: Business acquisitions/divestitures (44) — (184) — Net (gains) losses on sales and impairments of businesses and Cost of products sold Tax (expense) benefit — — — — Net of tax (44) — (184) — Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts 10 (8) 12 (39) (b) Cost of products sold Total pre-tax amount 10 (8) 12 (39) Tax (expense)/benefit (2) 2 (3) 13 Net of tax 8 (6) 9 (26) Total reclassifications for the period $ (67) $ (49) $ (276) $ (154) (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) | 9 Months Ended |
Sep. 30, 2021 | |
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 Nine Months Ended In millions, except per share amounts 2021 2020 2021 2020 Earnings (loss) attributable to International Paper Company common shareholders $ 864 $ 204 $ 1,645 $ 329 Weighted average common shares outstanding 388.8 393.1 391.0 392.9 Effect of dilutive securities Restricted performance share plan 3.8 1.5 4.3 1.6 Weighted average common shares outstanding – assuming dilution 392.6 394.6 395.3 394.5 Basic earnings (loss) per share attributable to International Paper Company Common Shareholders $ 2.22 $ 0.52 $ 4.21 $ 0.84 Diluted earnings (loss) per share attributable to International Paper Company Common Shareholders $ 2.20 $ 0.52 $ 4.16 $ 0.83 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the provisional fair value assigned to assets and liabilities acquired as of April 1, 2021: In millions Cash and temporary investments $ 5 Accounts and notes receivable 10 Inventories 3 Plants, properties and equipment 38 Goodwill 30 Intangible assets 14 Total assets acquired $ 100 Short-term debt 3 Accounts payable and accrued liabilities 4 Other current liabilities 1 Deferred income taxes 9 Total liabilities assumed 17 Net assets acquired $ 83 |
SUPPLEMENTAL FINANCIAL STATEM_2
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Restrictions on Cash and Cash Equivalents | A reconciliation of cash and temporary investments and restricted cash in the consolidated balance sheet to cash and temporary investments and restricted cash in the consolidated statement of cash flows for the nine months ended September 30, 2021 and 2020 is as follows: Nine Months Ended September 30, In millions 2021 2020 Cash and Temporary Investments $ 2,122 $ 678 Restricted Cash 1,499 — Total Cash and Temporary Investments and Restricted Cash $ 3,621 $ 678 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts and Notes Receivable In millions September 30, 2021 December 31, 2020 Accounts and notes receivable, net: Trade $ 3,222 $ 2,776 Other 327 288 Total $ 3,549 $ 3,064 |
Inventories [Table Text Block] | Inventories In millions September 30, 2021 December 31, 2020 Raw materials $ 241 $ 268 Finished pulp, paper and packaging 1,156 1,091 Operating supplies 569 627 Other 87 64 Total $ 2,053 $ 2,050 |
Interest Income and Interest Expense Disclosure [Table Text Block] | Amounts related to interest were as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Interest expense $ 117 $ 148 $ 358 $ 467 Interest income 24 36 116 122 Capitalized interest costs 3 9 8 27 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases [Table Text Block] | Supplemental Balance Sheet Information Related to Leases In millions Classification September 30, 2021 December 31, 2020 Assets Operating lease assets Right-of-use assets $ 405 $ 459 Finance lease assets Plants, properties and equipment, net (a) 87 95 Total leased assets $ 492 $ 554 Liabilities Current Operating Other current liabilities $ 146 $ 148 Finance Notes payable and current maturities of long-term debt 12 13 Noncurrent Operating Long-term lease obligations 263 315 Finance Long-term debt 75 82 Total lease liabilities $ 496 $ 558 (a) Finance leases are recorded net of accumulated amortization of $62 million and $53 million as of September 30, 2021 and December 31, 2020, respectively. |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | |
GPI Transactions table text block | Date Transaction Type Units Proceeds Pre-tax Gain After-Tax Gain In millions except units 2020 First Quarter Units exchange 15,150,784 $ 250 $ 33 $ 25 2020 Third Quarter Units exchange 17,399,414 250 — — 2021 First Quarter Units exchange and open market sale 24,588,316 397 33 25 2021 First Quarter TRA 41 31 2021 Second Quarter Units exchange and open market sale 22,773,077 402 64 48 2021 Second Quarter TRA (a) 66 50 (a) The TRA entitles the Company to 50% of the amount of any tax benefits projected to be realized by GPIP upon the Company's exchange of its units. This amount is recorded in other receivables and is expected to be received within the next 12 months. |
Ilim Holding | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | Summarized financial information for Ilim is presented in the following tables: Balance Sheet In millions September 30, 2021 December 31, 2020 Current assets $ 935 $ 739 Noncurrent assets 3,069 2,733 Current liabilities 711 674 Noncurrent liabilities 2,487 2,249 Noncontrolling interests 34 17 Income Statement Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Net sales $ 729 $ 498 $ 1,993 $ 1,474 Gross profit 393 191 1,051 597 Income (loss) from continuing operations 190 (62) 498 7 Net income (loss) 182 (60) 481 7 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill Balances [Table Text Block] | The following table presents changes in goodwill balances as allocated to each business segment for the nine-months ended September 30, 2021: In millions Industrial Global Cellulose Fibers Printing Total Balance as of January 1, 2021 Goodwill $ 3,410 $ 52 $ 1,966 $ 5,428 Accumulated impairment losses (296) (52) (1,765) (2,113) 3,114 — 201 3,315 Currency translation and other (a) (5) — (8) (13) Goodwill additions/reductions 29 (b) — (57) (c) (28) Accumulated impairment loss additions / reductions — — — — Balance as of September 30, 2021 Goodwill 3,434 52 1,901 5,387 Accumulated impairment losses (296) (52) (1,765) (2,113) Total $ 3,138 $ — $ 136 $ 3,274 (a) Represents the effects of foreign currency translations. (b) Reflects the box plant acquisitions in EMEA. (c) Reflects the Kwidzyn sale. |
Finite and Indefinite-Lived Intangible Assets [Table Text Block] | Identifiable intangible assets comprised the following: September 30, 2021 December 31, 2020 In millions Gross Accumulated Net Intangible Assets Gross Accumulated Net Intangible Assets Customer relationships and lists $ 552 $ 314 $ 238 $ 542 $ 294 $ 248 Tradenames, patents and trademarks, and developed technology 170 128 42 170 117 53 Land and water rights 8 2 6 8 2 6 Software 17 17 — 25 24 1 Other 14 10 4 19 10 9 Total $ 761 $ 471 $ 290 $ 764 $ 447 $ 317 |
Amortization Expense of Intangible Assets [Table Text Block] | The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Amortization expense related to intangible assets $ 12 $ 17 $ 35 $ 43 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entities [Abstract] | |
Activity Between Company And Entities [Table Text Block] | Activity between the Company and the 2015 Financing Entities was as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Revenue (a) $ 14 $ 24 $ 61 $ 71 Expense (a) 8 32 34 96 Cash receipts (b) 48 48 95 95 Cash payments (c) 24 64 38 128 (a) The revenue and expense are included in Interest expense, net in the accompanying statement of operations. (b) The cash receipts are interest received on the Financial assets of special purpose entities. (c) The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. Activity between the Company and the 2007 Financing Entities was as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Revenue (a) $ 5 $ 7 $ 18 $ 35 Expense (b) 6 8 18 36 Cash receipts (c) 1 5 4 28 Cash payments (d) 4 8 12 34 (a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for the three months and nine months ended September 30, 2021 and 2020, respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities. (b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three months and nine months ended September 30, 2021 and 2020, respectively, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities. (c) The cash receipts are interest received on the Financial assets of special purpose entities. |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Financial Instruments [Table Text Block] | The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows: In millions September 30, 2021 December 31, 2020 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts (USD) $ 108 $ 85 Foreign exchange contracts (EUR) — 187 Derivatives Not Designated as Hedging Instruments: Electricity contract (MWh) 0.3 0.2 |
Gains Or Losses Recognized In Accumulated Other Comprehensive Income (AOCI), Net Of Tax, Related To Derivative Instruments [Table Text Block] | The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (4) $ (4) $ 3 $ (34) Total $ (4) $ (4) $ 3 $ (34) Derivatives in Net Investment Hedging Relationships: Foreign exchange contracts $ 6 $ — $ 18 $ — Interest rate contracts — — — 24 Total $ 6 $ — $ 18 $ 24 |
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 Into Income (Effective Portion) Location of Gain (Loss) Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 8 $ (6) $ 9 $ (26) Cost of products sold Total $ 8 $ (6) $ 9 $ (26) Gain (Loss) Recognized in Income Location of Gain (Loss) Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ — $ — $ — $ 38 Interest expense, net Debt — — — (38) Interest expense, net Total $ — $ — $ — $ — Derivatives in Net Investment Hedging Relationships: Foreign exchange contracts — 1 — 2 Net (gain) losses on sales and impairments of businesses Total $ — $ 1 $ — $ 2 Derivatives Not Designated as Hedging Instruments: Electricity contract $ 6 $ 1 $ 13 $ (2) Cost of products sold Foreign exchange contracts 5 — (1) — Cost of products sold Total $ 11 $ 1 $ 12 $ (2) |
Impact Of Derivative Instruments In Consolidated Balance Sheet [Table Text Block] | The following table provides a summary of the impact of our derivative instruments in the balance sheet: Fair Value Measurements Level 2 – Significant Other Observable Inputs Assets Liabilities In millions September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 3 $ 5 $ 5 $ 8 Total derivatives designated as hedging instruments 3 5 5 8 Derivatives not designated as hedging instruments Electricity contract 11 — — 1 Total derivatives not designated as hedging instruments 11 — — 1 Total derivatives $ 14 (a) $ 5 (b) $ 5 (c) $ 9 (d) (a) Includes $13 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (b) Included in Other current assets in the accompanying consolidated balance sheet. (c) Includes $4 million recorded in Other current liabilities and $1 million recorded in Other liabilities in the accompanying consolidated balance sheet. (d) Includes $7 million recorded in Other current liabilities and $2 million recorded in Other liabilities in the accompanying consolidated balance sheet. |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans [Table Text Block] | Net periodic pension (income) expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Service cost $ 26 $ 21 $ 78 $ 64 Interest cost 84 98 251 294 Expected return on plan assets (177) (167) (543) (501) Actuarial loss 35 51 114 152 Amortization of prior service cost 5 5 16 15 Net periodic pension (income) expense $ (27) $ 8 $ (84) $ 24 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits [Table Text Block] | Stock-based compensation expense and related income tax benefits were as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Total stock-based compensation expense (selling and administrative) $ 42 $ 17 $ 103 $ 48 Income tax benefits related to stock-based compensation (2) 1 13 18 |
INDUSTRY SEGMENT INFORMATION (T
INDUSTRY SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment [Table Text Block] | Net sales by business segment for the three months and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Industrial Packaging $ 4,087 $ 3,768 $ 12,096 $ 11,220 Global Cellulose Fibers 729 564 1,981 1,737 Printing Papers 846 743 2,473 2,234 Corporate and Intersegment Sales 52 48 143 150 Net Sales $ 5,714 $ 5,123 $ 16,693 $ 15,341 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating profit (loss) by business segment for the three months and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended In millions 2021 2020 2021 2020 Industrial Packaging $ 429 $ 469 $ 1,284 $ 1,388 Global Cellulose Fibers 96 (59) 24 (123) Printing Papers 106 63 262 148 Business Segment Operating Profits $ 631 473 $ 1,570 $ 1,413 Earnings (loss) before income taxes and equity earnings $ 916 $ 282 $ 1,747 $ 527 Interest expense, net 93 112 242 345 Noncontrolling interests adjustment (1) — (3) — Corporate expenses, net 12 (20) 44 9 Corporate net special items 11 108 81 195 Business net special items (349) 2 (385) 368 Non-operating pension expense (income) (51) (11) (156) (31) Business Segment Operating Profits $ 631 $ 473 $ 1,570 $ 1,413 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Sale of Stock, Percentage of Ownership after Transaction | 19.90% | |
Proceeds from issuance of debt | $ 1,500 | |
Future net cash distribution | $ 1,400 |
REVENUE RECOGNITION Disaggregat
REVENUE RECOGNITION Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | $ 5,714 | $ 5,123 | $ 16,693 | $ 15,341 |
Consolidation, Eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 52 | 48 | 143 | 150 |
Intersegment Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | (31) | (32) | (95) | (95) | |
North American Industrial Packaging | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 3,738 | 3,351 | 10,810 | 9,947 | |
EMEA Industrial Packaging | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 331 | 306 | 1,121 | 953 | |
Brazilian Industrial Packaging | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 52 | 148 | |||
European Coated Paperboard | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 52 | 90 | 252 | 266 | |
Global Cellulose Fibers | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 729 | 564 | 1,981 | 1,737 | |
North American Printing Papers | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 425 | 362 | 1,201 | 1,073 | |
Brazilian Papers | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 200 | 150 | 557 | 434 | |
European Papers | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 218 | 232 | 723 | 728 | |
United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 4,612 | 4,054 | 13,141 | 12,086 |
United States | Consolidation, Eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 50 | 44 | 139 | 146 |
EMEA | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 683 | 694 | 2,339 | 2,142 |
EMEA | Consolidation, Eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | (1) | (3) | (6) | (11) |
Pacific Rim and Asia | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 60 | 57 | 169 | 138 |
Pacific Rim and Asia | Consolidation, Eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 3 | 10 | 10 | 20 |
Americas, other than U.S. | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 359 | 318 | 1,044 | 975 |
Americas, other than U.S. | Consolidation, Eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 0 | (3) | 0 | (5) |
Industrial Packaging | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 4,087 | 3,768 | 12,096 | 11,220 | |
Industrial Packaging | Geography Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 4,087 | 3,768 | 12,096 | 11,220 |
Industrial Packaging | Operating Segments [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 4,087 | 3,768 | 12,096 | 11,220 | |
Industrial Packaging | Intersegment Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | (34) | (31) | (87) | (94) | |
Industrial Packaging | North American Industrial Packaging | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 3,738 | 3,351 | 10,810 | 9,947 | |
Industrial Packaging | EMEA Industrial Packaging | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 331 | 306 | 1,121 | 953 | |
Industrial Packaging | Brazilian Industrial Packaging | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 52 | 148 | |||
Industrial Packaging | European Coated Paperboard | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 52 | 90 | 252 | 266 | |
Industrial Packaging | United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 3,514 | 3,169 | 10,125 | 9,364 |
Industrial Packaging | EMEA | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 383 | 394 | 1,371 | 1,213 |
Industrial Packaging | Pacific Rim and Asia | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 12 | 15 | 44 | 43 |
Industrial Packaging | Americas, other than U.S. | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 178 | 190 | 556 | 600 |
Global Cellulose Fibers | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 729 | 564 | 1,981 | 1,737 | |
Global Cellulose Fibers | Geography Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 729 | 564 | 1,981 | 1,737 |
Global Cellulose Fibers | Operating Segments [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 729 | 564 | 1,981 | 1,737 | |
Global Cellulose Fibers | Global Cellulose Fibers | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 729 | 564 | 1,981 | 1,737 | |
Global Cellulose Fibers | United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 623 | 479 | 1,682 | 1,507 |
Global Cellulose Fibers | EMEA | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 69 | 59 | 209 | 175 |
Global Cellulose Fibers | Pacific Rim and Asia | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 37 | 26 | 90 | 55 |
Global Cellulose Fibers | Americas, other than U.S. | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 0 | 0 | 0 | 0 |
Printing Papers | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 846 | 743 | 2,473 | 2,234 | |
Printing Papers | Geography Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 846 | 743 | 2,473 | 2,234 |
Printing Papers | Operating Segments [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 846 | 743 | 2,473 | 2,234 | |
Printing Papers | Intersegment Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 3 | (1) | (8) | (1) | |
Printing Papers | North American Printing Papers | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 425 | 362 | 1,201 | 1,073 | |
Printing Papers | Brazilian Papers | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 200 | 150 | 557 | 434 | |
Printing Papers | European Papers | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 218 | 232 | 723 | 728 | |
Printing Papers | United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 425 | 362 | 1,195 | 1,069 |
Printing Papers | EMEA | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 232 | 244 | 765 | 765 |
Printing Papers | Pacific Rim and Asia | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 8 | 6 | 25 | 20 |
Printing Papers | Americas, other than U.S. | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | $ 181 | $ 131 | $ 488 | $ 380 |
[1] | Net sales are attributed to countries based on the location of the seller. |
REVENUE RECOGNITION Contract As
REVENUE RECOGNITION Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Apr. 01, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Contract with Customer, Liability, Current | $ 25 | $ 31 | |
Contract with Customer, Liability | $ 115 |
EQUITY (Details)
EQUITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Beginning Balance | $ 8,354,000,000 | $ 7,060,000,000 | $ 7,868,000,000 | $ 7,718,000,000 | ||||
Stockholders' Equity Attributable to Parent | 9,622,000,000 | 9,622,000,000 | $ 7,854,000,000 | |||||
Issuance of stock for various plans, net | 41,000,000 | 20,000,000 | 113,000,000 | 65,000,000 | ||||
Repurchase of stock | (212,000,000) | (1,000,000) | (425,000,000) | (42,000,000) | ||||
Common stock dividends | (203,000,000) | (205,000,000) | (612,000,000) | (613,000,000) | ||||
Transactions of equity method investees | 1,000,000 | 19,000,000 | 36,000,000 | |||||
Noncontrolling Interest, Period Increase (Decrease) | (1,000,000) | (13,000,000) | ||||||
Comprehensive income (loss), portion attributable to noncontrolling interest | 0 | 0 | (2,000,000) | (2,000,000) | ||||
Comprehensive Income (Loss) | 1,644,000,000 | 221,000,000 | 2,673,000,000 | (66,000,000) | ||||
Stockholders' equity attributable to noncontrolling interest | 1,000,000 | 1,000,000 | 14,000,000 | |||||
Ending Balance | 9,623,000,000 | 7,096,000,000 | 9,623,000,000 | 7,096,000,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-05 | ||||||||
Beginning Balance | (2,000,000) | |||||||
Common Stock Issued | ||||||||
Stockholders' Equity Attributable to Parent | 449,000,000 | 449,000,000 | 449,000,000 | 449,000,000 | $ 449,000,000 | 449,000,000 | $ 449,000,000 | $ 449,000,000 |
Paid-in Capital | ||||||||
Stockholders' Equity Attributable to Parent | 6,371,000,000 | 6,302,000,000 | 6,371,000,000 | 6,302,000,000 | 6,330,000,000 | 6,325,000,000 | 6,283,000,000 | 6,297,000,000 |
Issuance of stock for various plans, net | 41,000,000 | 18,000,000 | 27,000,000 | (31,000,000) | ||||
Transactions of equity method investees | 1,000,000 | 19,000,000 | 36,000,000 | |||||
Retained Earnings | ||||||||
Stockholders' Equity Attributable to Parent | 9,103,000,000 | 8,122,000,000 | 9,103,000,000 | 8,122,000,000 | 8,442,000,000 | 8,070,000,000 | 8,123,000,000 | 8,408,000,000 |
Common stock dividends | (203,000,000) | (205,000,000) | (612,000,000) | (613,000,000) | ||||
Comprehensive income (loss) | 864,000,000 | 204,000,000 | 1,645,000,000 | 329,000,000 | ||||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-05 | ||||||||
Beginning Balance | (2,000,000) | |||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Stockholders' Equity Attributable to Parent | (3,314,000,000) | (5,132,000,000) | (3,314,000,000) | (5,132,000,000) | (4,094,000,000) | (4,342,000,000) | (5,149,000,000) | (4,739,000,000) |
Comprehensive income (loss) | 780,000,000 | 17,000,000 | 1,028,000,000 | (393,000,000) | ||||
Common Stock Held In Treasury, At Cost | ||||||||
Stockholders' Equity Attributable to Parent | 2,987,000,000 | 2,648,000,000 | 2,987,000,000 | 2,648,000,000 | 2,775,000,000 | 2,648,000,000 | 2,649,000,000 | 2,702,000,000 |
Issuance of stock for various plans, net | 0 | (2,000,000) | (86,000,000) | (96,000,000) | ||||
Repurchase of stock | 212,000,000 | 1,000,000 | 425,000,000 | 42,000,000 | ||||
Total International Paper Shareholders’ Equity | ||||||||
Stockholders' Equity Attributable to Parent | 9,622,000,000 | 7,093,000,000 | 9,622,000,000 | 7,093,000,000 | 8,352,000,000 | 7,854,000,000 | 7,057,000,000 | 7,713,000,000 |
Issuance of stock for various plans, net | 41,000,000 | 20,000,000 | 113,000,000 | 65,000,000 | ||||
Repurchase of stock | (212,000,000) | (1,000,000) | (425,000,000) | (42,000,000) | ||||
Common stock dividends | (203,000,000) | (205,000,000) | (612,000,000) | (613,000,000) | ||||
Transactions of equity method investees | 1,000,000 | 19,000,000 | 36,000,000 | |||||
Noncontrolling Interest, Period Increase (Decrease) | 0 | 0 | ||||||
Comprehensive income (loss) | 1,644,000,000 | 221,000,000 | 2,673,000,000 | (64,000,000) | ||||
Total International Paper Shareholders’ Equity | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-05 | ||||||||
Beginning Balance | (2,000,000) | |||||||
Noncontrolling Interests | ||||||||
Noncontrolling Interest, Period Increase (Decrease) | (1,000,000) | (13,000,000) | ||||||
Comprehensive income (loss), portion attributable to noncontrolling interest | 0 | 0 | 0 | (2,000,000) | ||||
Stockholders' equity attributable to noncontrolling interest | $ 1,000,000 | $ 3,000,000 | $ 1,000,000 | $ 3,000,000 | $ 2,000,000 | $ 14,000,000 | $ 3,000,000 | $ 5,000,000 |
EQUITY Phantom (Details)
EQUITY Phantom (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Common Stock, Dividends, Per Share, Declared | $ 0.5125 | $ 0.5125 | $ 1.5375 | $ 1.5375 |
OTHER COMPREHENSIVE INCOME Sche
OTHER COMPREHENSIVE INCOME Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | $ (4,342) | |||
Amounts reclassified from accumulated other comprehensive income | $ 67 | $ 49 | 276 | $ 154 |
Balance at end of period | (3,314) | (5,132) | (3,314) | (5,132) |
Defined Benefit Pension and Postretirement Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (1,809) | (2,192) | (1,880) | (2,277) |
Other comprehensive income (loss) before reclassifications | 831 | 0 | 832 | |
Amounts reclassified from accumulated other comprehensive income | 31 | 43 | 101 | 128 |
Balance at end of period | (947) | (2,149) | (947) | (2,149) |
Change in Cumulative Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (2,286) | (2,950) | (2,457) | (2,465) |
Other comprehensive income (loss) before reclassifications | (114) | (28) | (85) | (515) |
Amounts reclassified from accumulated other comprehensive income | 44 | 0 | 184 | 0 |
Other comprehensive income (loss) attributable to noncontrolling interest | 0 | 0 | 2 | 2 |
Balance at end of period | (2,356) | (2,978) | (2,356) | (2,978) |
Net Gains and Losses on Cash Flow Hedging Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | 1 | (7) | (5) | 3 |
Other comprehensive income (loss) before reclassifications | (4) | (4) | 3 | (34) |
Amounts reclassified from accumulated other comprehensive income | (8) | 6 | (9) | 26 |
Balance at end of period | $ (11) | $ (5) | $ (11) | $ (5) |
OTHER COMPREHENSIVE INCOME Sc_2
OTHER COMPREHENSIVE INCOME Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Tax (expense)/benefit | $ (146) | $ (50) | $ (347) | $ (211) | |
Total reclassifications for the period | (67) | (49) | (276) | (154) | |
Prior-service costs | Net periodic defined benefits expense (reversal of expense), excluding service cost component | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from accumulated other comprehensive income, current period, before tax | [1] | (5) | (5) | (17) | (15) |
Actuarial gains (losses) | Net periodic defined benefits expense (reversal of expense), excluding service cost component | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from accumulated other comprehensive income, current period, before tax | [1] | (36) | (52) | (118) | (155) |
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 | (41) | (57) | (135) | (170) | |
Tax (expense)/benefit | 10 | 14 | 34 | 42 | |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (31) | (43) | (101) | (128) | |
Accumulated foreign currency adjustment including portion attributable to noncontrolling interest | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Tax (expense)/benefit | 0 | 0 | 0 | 0 | |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (44) | 0 | (184) | 0 | |
Accumulated foreign currency adjustment including portion attributable to noncontrolling interest | Net (gains) losses on sales and impairments of businesses | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from accumulated other comprehensive income, current period, before tax | (44) | 0 | (184) | 0 | |
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 | 10 | (8) | 12 | (39) | |
Tax (expense)/benefit | (2) | 2 | (3) | 13 | |
Accumulated net gain (loss) from cash flow hedges including portion attributable to noncontrolling interest | Cost of Products Sold | Foreign Exchange Contract | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from accumulated other comprehensive income, current period, before tax | [2] | 10 | (8) | 12 | (39) |
Net Gains and Losses on Cash Flow Hedging Derivatives | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 8 | (6) | 9 | (26) | |
Total reclassifications for the period | $ 8 | $ (6) | $ 9 | $ (26) | |
[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 (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Earnings (Loss) Attributable to International Paper Company | $ 864 | $ 204 | $ 1,645 | $ 329 |
Weighted average common shares outstanding | 388.8 | 393.1 | 391 | 392.9 |
Restricted performance share plan | 3.8 | 1.5 | 4.3 | 1.6 |
Weighted average common shares outstanding – assuming dilution | 392.6 | 394.6 | 395.3 | 394.5 |
Basic earnings (loss) per share attributable to International Paper Company Common Shareholders | $ 2.22 | $ 0.52 | $ 4.21 | $ 0.84 |
Diluted earnings (loss) per share attributable to International Paper Company Common Shareholders | $ 2.20 | $ 0.52 | $ 4.16 | $ 0.83 |
RESTRUCTURING AND OTHER CHARG_2
RESTRUCTURING AND OTHER CHARGES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges, net | $ 39 | $ 105 | $ 243 | $ 131 | ||||
Corporate and Other [Member] | Early Debt Extinguishment Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges, net | 35 | $ 170 | $ 18 | $ 105 | $ 18 | $ 8 | ||
Corporate and Other [Member] | Reimagine IP | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges, net | $ 4 | $ 4 | ||||||
EMEA Packaging | EMEA Restructuring | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges, net | $ 12 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Apr. 01, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,274 | $ 3,315 | |
Spain Box Plants | |||
Business Acquisition [Line Items] | |||
Cash and temporary investments | $ 5 | ||
Accounts and notes receivable | 10 | ||
Inventories | 3 | ||
Plants, properties and equipment | 38 | ||
Goodwill | 30 | ||
Intangible Assets, Gross (Excluding Goodwill) | 14 | ||
Total assets acquired | 100 | ||
Short-term debt | 3 | ||
Accounts payable and accrued liabilities | 4 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 1 | ||
Deferred income taxes | 9 | ||
Total liabilities assumed | 17 | ||
Net assets acquired | $ 83 |
ACQUISITIONS Narrative (Details
ACQUISITIONS Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021USD ($) | Sep. 30, 2021EUR (€) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Apr. 01, 2021USD ($) | |
Business Acquisition [Line Items] | |||||||
Contract with Customer, Liability | $ 115 | ||||||
Acquisitions, net of cash acquired | $ 80 | $ 64 | |||||
Spain Box Plants | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, aggregate purchase price | $ 83 | € 71 | |||||
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | 9 | 18 | |||||
Business combination, pro forma information, earnings or loss of scquiree since scquisition fate, sctual | $ 0 | $ 1 | |||||
Corrugated Packaging Business | |||||||
Business Acquisition [Line Items] | |||||||
Contract with Customer, Liability | $ 115 | ||||||
Noncontrolling Interest, Increase from Business Combination | $ 115 | ||||||
Acquisition costs, amortization period | 15 years | 15 years | |||||
Freedom [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisitions, net of cash acquired | $ 56 |
DIVESTITURES Narrative (Details
DIVESTITURES Narrative (Details) € in Millions, R$ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2021USD ($) | Sep. 30, 2021EUR (€) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020BRL (R$) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021EUR (€) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Net (gains) losses on sales and impairments of businesses | $ 360 | $ 5 | $ 367 | $ (347) | ||||||
Change in cumulative foreign currency translation adjustment | 70 | $ 28 | (99) | $ 515 | ||||||
Kwidzyn Mill | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from Divestiture of Businesses | 794 | € 669 | ||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Kwidzyn Mill | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Net (gains) losses on sales and impairments of businesses | 404 | |||||||||
Net (gains) losses on sales and impairments of businesses, net of tax | 350 | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 44 | |||||||||
Net (gains) losses on sales and impairments of businesses | 360 | |||||||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges, net of tax | (394) | |||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Olmuksan | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from Divestiture of Businesses | $ 81 | € 66 | ||||||||
Net (gains) losses on sales and impairments of businesses | (6) | $ 123 | ||||||||
Net (gains) losses on sales and impairments of businesses, net of tax | $ 0 | 123 | ||||||||
Assets, Fair Value Disclosure | 79 | $ 79 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | $ 2 | |||||||||
Change in cumulative foreign currency translation adjustment | $ 2 | |||||||||
Sale of stock, percentage of ownership before transaction | 90.38% | 90.38% | ||||||||
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] | ||||||||||
Proceeds from Divestiture of Businesses | 58.5 | R$ 330 | ||||||||
Net (gains) losses on sales and impairments of businesses | 347 | |||||||||
Net (gains) losses on sales and impairments of businesses, net of tax | 340 | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 327 | |||||||||
Proceeds to be received at closing | 49.6 | 280 | ||||||||
Deferred proceeds on disposal of business | $ 8.9 | R$ 50 | ||||||||
Number of containerboard mill to be sold | 3 | 3 | ||||||||
Impairment of Long-Lived Assets to be Disposed of | $ 20 | |||||||||
Number of box plants to be sold | 4 | 4 |
SUPPLEMENTAL FINANCIAL STATEM_3
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and temporary investments | $ 2,122 | $ 595 | $ 678 | |
Restricted Cash, Current | 1,499 | 0 | ||
End of period | $ 3,621 | $ 595 | $ 678 | $ 511 |
SUPPLEMENTAL FINANCIAL STATEM_4
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Accounts and Notes Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | $ 3,549 | $ 3,064 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | 3,222 | 2,776 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | $ 327 | $ 288 |
SUPPLEMENTAL FINANCIAL STATEM_5
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Inventories by Major Category (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Raw materials | $ 241 | $ 268 |
Finished pulp, paper and packaging | 1,156 | 1,091 |
Operating supplies | 569 | 627 |
Other | 87 | 64 |
Total | $ 2,053 | $ 2,050 |
SUPPLEMENTAL FINANCIAL STATEM_6
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Interest Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Income Statement Elements [Abstract] | ||||
Interest expense | $ 117 | $ 148 | $ 358 | $ 467 |
Interest income | 24 | 36 | 116 | 122 |
Capitalized interest costs | $ 3 | $ 9 | $ 8 | $ 27 |
SUPPLEMENTAL FINANCIAL STATEM_7
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |||||
Temporary investments | $ 3,200 | $ 3,200 | $ 358 | ||
Future net cash distribution | 1,400 | ||||
Allowance for doubtful accounts | 64 | 64 | 76 | ||
Accumulated depreciation | 21,200 | 21,200 | 21,400 | ||
Depreciation expense | 302 | $ 300 | 888 | $ 902 | |
Accounts Payable, Other | 61 | 61 | 41 | ||
Insurance Recoveries | 6 | 40 | |||
Interest payments | 357 | $ 520 | |||
Asset retirement obligation | $ 135 | $ 135 | $ 116 |
LEASES Schedule of Supplemental
LEASES Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease, right-of-use asset | $ 405 | $ 459 | |
Finance lease, right-of-use asset | [1] | 87 | 95 |
Lease asset, total | 492 | 554 | |
Operating lease, liability, current | 146 | 148 | |
Finance lease, liability, current | 12 | 13 | |
Operating lease, liability, noncurrent | 263 | 315 | |
Finance lease, liability, noncurrent | 75 | 82 | |
Lease liability, total | $ 496 | $ 558 | |
[1] | Finance leases are recorded net of accumulated amortization of $62 million and $53 million as of September 30, 2021 and December 31, 2020, respectively. |
LEASES Schedule of Supplement_2
LEASES Schedule of Supplemental Balance Sheet Information Footnotes (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 62 | $ 53 |
LEASES Narrative (Details)
LEASES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lease, Cost | $ 73 | $ 68 | $ 216 | $ 202 |
Maximum [Member] | ||||
Lessee, operating and financing leases, remaining lease term | 32 years |
EQUITY METHOD INVESTMENTS GPI T
EQUITY METHOD INVESTMENTS GPI Transactions (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2018 | ||
EQUITY METHOD INVESTMENTS GPI Transactions (Details) [Line Items] | |||||||||
Proceeds from sales of equity method investments | $ 843 | $ 500 | |||||||
Net (gains) losses on sales of equity method investments | $ 1 | $ 2 | $ 205 | $ 35 | |||||
Graphic Packaging LLC [Member] | Reportable Subsegments | |||||||||
EQUITY METHOD INVESTMENTS GPI Transactions (Details) [Line Items] | |||||||||
Proceeds from sales of equity method investments | $ 402 | $ 397 | $ 250 | $ 250 | |||||
Graphic Packaging LLC [Member] | Reportable Subsegments | |||||||||
EQUITY METHOD INVESTMENTS GPI Transactions (Details) [Line Items] | |||||||||
Equity method investments, aggregate units exchanged | 17,399,414 | 15,150,784 | 79,911,591 | ||||||
Equity method investments, aggregate units exchanged and sold on open market | 22,773,077 | 24,588,316 | |||||||
Net (gains) losses on sales of equity method investments | $ 64 | $ 33 | $ 0 | $ 33 | |||||
Gain (loss) on disposition of stock in subsidiary or equity method investee, net of tax | 48 | 25 | $ 0 | $ 25 | |||||
Gain related to tax receivable agreement | [1] | 66 | 41 | ||||||
Gain related to tax receivable agreement, net of tax | [1] | $ 50 | $ 31 | ||||||
[1] | The TRA entitles the Company to 50% of the amount of any tax benefits projected to be realized by GPIP upon the Company's exchange of its units. This amount is recorded in other receivables and is expected to be received within the next 12 months. |
EQUITY METHOD INVESTMENTS GPI_2
EQUITY METHOD INVESTMENTS GPI Transactions Footnotes (Details) - Graphic Packaging LLC [Member] - Reportable Subsegments | 9 Months Ended |
Sep. 30, 2021 | |
EQUITY METHOD INVESTMENTS GPI Transactions (Details) [Line Items] | |
Percentage share of expected tax benefits to be realized | 0.50 |
Period over which tax benefits will be recognized | 12 months |
EQUITY METHOD INVESTMENTS Summa
EQUITY METHOD INVESTMENTS Summarized Financial Information of Equity Method Investees (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Assets, Current | $ 9,896 | $ 9,896 | $ 11,236 | ||
Current liabilities | 4,698 | 4,698 | 8,284 | ||
Net income (loss) | 864 | $ 204 | 1,647 | $ 329 | |
Reportable Subsegments | Ilim Holding | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets, Current | 935 | 935 | 739 | ||
Noncurrent assets | 3,069 | 3,069 | 2,733 | ||
Current liabilities | 711 | 711 | 674 | ||
Noncurrent liabilities | 2,487 | 2,487 | 2,249 | ||
Net sales | 729 | 498 | 1,993 | 1,474 | |
Gross profit | 393 | 191 | 1,051 | 597 | |
Income (loss) from continuing operations | 190 | (62) | 498 | 7 | |
Net income (loss) | 182 | $ (60) | 481 | $ 7 | |
Noncontrolling interests | $ 34 | $ 34 | $ 17 |
EQUITY METHOD INVESTMENTS Narra
EQUITY METHOD INVESTMENTS Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020 | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2018 | Dec. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity earnings (loss), net of taxes | $ 94 | $ (28) | $ 247 | $ 13 | |||
Equity method dividends received | 149 | 158 | |||||
Reportable Subsegments | Graphic Packaging LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of equity interest | 20.50% | ||||||
Equity method investments, aggregate units exchanged | 17,399,414 | 15,150,784 | 79,911,591 | ||||
Equity earnings (loss), net of taxes | $ 0 | $ 11 | 4 | 29 | |||
Equity method dividends received | $ 5 | 16 | |||||
Reportable Subsegments | Ilim Holding | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of equity interest | 50.00% | 50.00% | |||||
Equity earnings (loss), net of taxes | $ 95 | (33) | $ 245 | (5) | |||
Equity method dividends received | 144 | 141 | |||||
Foreign currency transaction gain (loss), net of tax | 55 | 72 | |||||
Equity method investments | 517 | 517 | $ 393 | ||||
Equity method investment, difference between carrying amount and underlying equity | 131 | 131 | $ 127 | ||||
Related party transaction, purchases from related party | $ 42 | $ 41 | $ 125 | $ 131 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES Changes in Goodwill Balances (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | ||
Goodwill [Line Items] | |||
Beginning balance | $ 5,428 | ||
Accumulated impairment losses | (2,113) | ||
Goodwill | 3,274 | $ 3,315 | |
Currency translation and other (a) | [1] | (13) | |
Goodwill additions/reductions | (28) | ||
Accumulated impairment loss additions / reductions | 0 | ||
Accumulated impairment losses | (2,113) | ||
Ending balance | 5,387 | ||
Industrial Packaging | |||
Goodwill [Line Items] | |||
Beginning balance | 3,410 | ||
Accumulated impairment losses | (296) | ||
Goodwill | 3,138 | 3,114 | |
Currency translation and other (a) | [1] | (5) | |
Goodwill additions/reductions | [2] | 29 | |
Accumulated impairment loss additions / reductions | 0 | ||
Accumulated impairment losses | (296) | ||
Ending balance | 3,434 | ||
Global Cellulose Fibers | |||
Goodwill [Line Items] | |||
Beginning balance | 52 | ||
Accumulated impairment losses | (52) | ||
Goodwill | 0 | 0 | |
Currency translation and other (a) | [1] | 0 | |
Goodwill additions/reductions | 0 | ||
Accumulated impairment loss additions / reductions | 0 | ||
Accumulated impairment losses | (52) | ||
Ending balance | 52 | ||
Printing Papers | |||
Goodwill [Line Items] | |||
Beginning balance | 1,966 | ||
Accumulated impairment losses | (1,765) | ||
Goodwill | 136 | $ 201 | |
Currency translation and other (a) | [1] | (8) | |
Goodwill additions/reductions | [3] | (57) | |
Accumulated impairment loss additions / reductions | 0 | ||
Accumulated impairment losses | (1,765) | ||
Ending balance | $ 1,901 | ||
[1] | Represents the effects of foreign currency translations | ||
[2] | Reflects the box plant acquisitions in EMEA. | ||
[3] | Reflects the Kwidzyn sale |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 761 | $ 764 |
Accumulated Amortization | 471 | 447 |
Net Intangible Assets | 290 | 317 |
Customer relationships and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 552 | 542 |
Accumulated Amortization | 314 | 294 |
Net Intangible Assets | 238 | 248 |
Tradenames, patents and trademarks, and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 170 | 170 |
Accumulated Amortization | 128 | 117 |
Net Intangible Assets | 42 | 53 |
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 | 17 | 25 |
Accumulated Amortization | 17 | 24 |
Net Intangible Assets | 0 | 1 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14 | 19 |
Accumulated Amortization | 10 | 10 |
Net Intangible Assets | $ 4 | $ 9 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to intangible assets | $ 12 | $ 17 | $ 35 | $ 43 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income tax payments, net of refunds | $ 389 | $ 203 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 11 | |
Secretariat of the Federal Revenue Bureau of Brazil [Member] | ||
Income tax examination, estimate of possible loss | 107 | |
Income tax examination, penalties and interest expense | 351 | |
Shared Tax Assessment Payment | $ 300 | |
Responsible party percentage | 60.00% | |
Responsible party percentage-Sylvamo | 40.00% | |
Income Tax Examination [Line Items] | ||
Income tax examination, estimate of possible loss | $ 107 |
COMMITMENTS AND CONTINGENCIES E
COMMITMENTS AND CONTINGENCIES Environmental Remediation Obligations (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 187,000,000 | |||
Accrual for environmental loss contingencies, gross | 195,000,000 | |||
Liability for Asbestos and Environmental Claims, Net | 112,000,000 | |||
Cass Lake, Minnesota | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | 46,000,000 | |||
Kalamazoo River Superfund Site | ||||
Loss Contingencies [Line Items] | ||||
Proposed consent decree, value of remediation payments | $ 100,000,000 | |||
Proposed consent decree, value of labor performed | $ 135,700,000 | |||
Kalamazoo River Superfund Site | Time Critical Removal Action | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | $ 19,000,000 | $ 37,000,000 | ||
Kalamazoo River Superfund Site | Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC Cost Recovery Action | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | $ 79,000,000 | |||
Responsible party percentage | 15.00% | |||
Loss Contingency, damages awarded, value | $ 50,000,000 | |||
San Jacinto River Superfund Site | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | $ 115,000,000 | |||
Responsible party percentage | 50.00% | |||
San Jacinto River Superfund Site | Northern impoundment [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | $ 105,000,000 | |||
Liability for Asbestos and Environmental Claims, Net | 55,000,000 | |||
San Jacinto River Superfund Site | Southern Impoundment [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | 10,000,000 | |||
Liability for Asbestos and Environmental Claims, Net | $ 10,000,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) € in Millions | 3 Months Ended | |||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2021EUR (€) | Mar. 31, 2021USD ($) | |
Loss Contingencies [Line Items] | ||||
Value Added Tax Receivable | $ 81,000,000 | $ 11,000,000 | ||
Liability for Asbestos and Environmental Claims, Net | $ 112,000,000 | |||
Increase (Decrease) in Income Taxes Receivable | 70,000,000 | |||
Income Taxes Receivable | $ 48,000,000 | |||
Cost of Products Sold | ||||
Loss Contingencies [Line Items] | ||||
Other Income | 42,000,000 | |||
Interest Expense [Member] | ||||
Loss Contingencies [Line Items] | ||||
Other Income | $ 28,000,000 | |||
Italian Competition Authority [Member] | ||||
Loss Contingencies [Line Items] | ||||
Potentially Responsible Parties | 30 | |||
Loss Contingency Accrual | $ 32,000,000 | € 29 |
VARIABLE INTEREST ENTITIES Acti
VARIABLE INTEREST ENTITIES Activity Between Company and Entities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
2015 Financing Entities | |||||
Variable Interest Entity [Line Items] | |||||
Revenue | [1] | $ 14 | $ 24 | $ 61 | $ 71 |
Expense | [1] | 8 | 32 | 34 | 96 |
Cash receipts | [2] | 48 | 48 | 95 | 95 |
Cash payments | [3] | 24 | 64 | 38 | 128 |
2007 Financing Entities | |||||
Variable Interest Entity [Line Items] | |||||
Revenue | [4] | 5 | 7 | 18 | 35 |
Expense | [5] | 6 | 8 | 18 | 36 |
Cash receipts | [6] | 1 | 5 | 4 | 28 |
Cash payments | [7] | $ 4 | $ 8 | $ 12 | $ 34 |
[1] | The revenue and expense are included in Interest expense, net in the accompanying statement of operations. | ||||
[2] | The cash receipts are interest received on the Financial assets of special purpose entities. | ||||
[3] | The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. | ||||
[4] | The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million and $14 million for the three months and nine months ended September 30, 2021 and 2020, respectively, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities. | ||||
[5] | The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million and $5 million for the three months and nine months ended September 30, 2021 and 2020, respectively, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities. | ||||
[6] | The cash receipts are interest received on the Financial assets of special purpose entities. | ||||
[7] | The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
VARIABLE INTEREST ENTITIES Ac_2
VARIABLE INTEREST ENTITIES Activity Between Company and Entities Footnotes (Details) - 2007 Financing Entities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Variable Interest Entity [Line Items] | ||||
Accretion income for amortization of purchase accounting adjustment, financial assets | $ 5 | $ 5 | $ 14 | $ 14 |
Accretion expense for amortization of purchase accounting adjustment, financial liabiities | $ 2 | $ 2 | $ 5 | $ 5 |
VARIABLE INTEREST ENTITIES Narr
VARIABLE INTEREST ENTITIES Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | ||
Assets, Current | $ 9,896 | $ 11,236 |
Other Liabilities, Current | 1,272 | $ 1,068 |
2015 Financing Entities | ||
Variable Interest Entity [Line Items] | ||
Assets, Current | 4,800 | |
Other Liabilities, Current | 4,200 | |
equity in variable interest entities attributable to parent | 630 | |
Expected cash tax payment | 72 | |
Deferred Tax Liabilities, Other | 815 | |
2007 Financing Entities | ||
Variable Interest Entity [Line Items] | ||
Notes receivable, fair value disclosure | 2,300 | |
Long-term debt, fair value | 2,100 | |
Assets, Current | 2,300 | |
Other Liabilities, Current | $ 2,100 |
DEBT Narrative (Details)
DEBT Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 2,100 | ||
Minimum Net Worth Required for Compliance | 9,000 | ||
Debt and capital lease obligations | 8,500 | ||
Debt fair value | 10,200 | ||
Proceeds from issuance of debt | $ 1,500 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Ratio of Indebtedness to Net Capital | 0.60 | ||
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 450 | ||
Proceeds from Lines of Credit | 100 | ||
Revolving Credit Facility [Member] | Committed Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 1,500 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||
Receivables Securitization Program [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||
Receivables Securitization Program [Member] | Uncommitted Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 550 | ||
364-Day Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 750 | ||
Debt with Interest Rate of 3.55% | |||
Debt Instrument [Line Items] | |||
Notes Reduction | $ 200 | ||
Debt with Interest Rate of 3.55% | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | ||
Debt With Interest Rates Ranging from 4.35% to 4.40% | |||
Debt Instrument [Line Items] | |||
Notes Reduction | $ 558 | ||
Debt With Interest Rates Ranging from 4.35% to 4.40% | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | ||
Debt With Interest Rates Ranging from 4.35% to 4.40% | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | ||
Debt With Interest Rates Ranging from 3.00% to 5.15% | |||
Debt Instrument [Line Items] | |||
Notes Reduction | $ 232 | ||
Debt With Interest Rates Ranging from 3.00% to 5.15% | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||
Debt With Interest Rates Ranging from 3.00% to 5.15% | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | ||
Debt With Interest Rates Ranging from 3.00% to 4.80% | |||
Debt Instrument [Line Items] | |||
Notes Reduction | $ 107 | ||
Debt With Interest Rates Ranging from 3.00% to 4.80% | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||
Debt With Interest Rates Ranging from 3.00% to 4.80% | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | ||
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of debt | $ 450 | ||
Unsecured Debt | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||
Term Loan "B" Facility | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of debt | $ 450 | ||
Term Loan "F" Facility | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of debt | $ 520 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES Schedule of Notional Amounts of Financial Instruments (Details) € in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)MWh | Dec. 31, 2020USD ($)MWh | Sep. 30, 2021EUR (€) | Dec. 31, 2020EUR (€) | |
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 108 | $ 85 | € 0 | € 187 |
Energy Commodities and Service | Energy Related Derivative | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Underlying, Derivative Energy Measure | 300,000 | 200,000 |
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) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) arising during the period | $ (4) | $ (4) | $ 3 | $ (34) |
Cash Flow Hedging | Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) arising during the period | (4) | (4) | 3 | (34) |
Cash Flow Hedging | Foreign Exchange Contract | Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) arising during the period | (4) | (4) | 3 | (34) |
Net Investment Hedging [Member] | Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 6 | 0 | 18 | 24 |
Net Investment Hedging [Member] | Foreign Exchange Contract | Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 6 | 0 | 18 | |
Net Investment Hedging [Member] | Interest Rate Contract [Member] | Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | $ 0 | $ 0 | $ 0 | $ 24 |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES Gains and Losses Recognized in Consolidated Statement of Operations on Qualifying and Non-Qualifying Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 11 | $ 1 | $ 12 | $ (2) |
Foreign Exchange Contract | Cost of Products Sold | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 5 | 0 | (1) | 0 |
Energy Related Derivative | Cost of Products Sold | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 6 | 1 | 13 | (2) |
Cash Flow Hedging | Cost of Products Sold | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 8 | (6) | 9 | (26) |
Cash Flow Hedging | Foreign Exchange Contract | Cost of Products Sold | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 8 | (6) | 9 | (26) |
Fair Value Hedging [Member] | Interest Expense [Member] | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 |
Fair Value Hedging [Member] | Net (gains) losses on sales and impairments of businesses | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 1 | 0 | 2 |
Fair Value Hedging [Member] | Foreign Exchange Contract | Net (gains) losses on sales and impairments of businesses | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 1 | 0 | 2 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Interest Expense [Member] | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 38 |
Fair Value Hedging [Member] | Debt [Member] | Interest Expense [Member] | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 0 | $ 0 | $ (38) |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | $ 14 | [1] | $ 5 | [2] |
Derivative Liabilities | 5 | [3] | 9 | [4] |
Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 3 | 5 | ||
Derivative Liabilities | 5 | 8 | ||
Designated as Hedging Instrument | Foreign Exchange Contract | Cash Flow Hedging | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 3 | 5 | ||
Derivative Liabilities | 5 | 8 | ||
Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 11 | 0 | ||
Derivative Liabilities | 0 | 1 | ||
Not Designated as Hedging Instrument | Energy Related Derivative | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 11 | 0 | ||
Derivative Liabilities | $ 0 | $ 1 | ||
[1] | Includes $13 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||
[2] | Included in Other current assets in the accompanying consolidated balance sheet. | |||
[3] | Includes $4 million recorded in Other current liabilities and $1 million recorded in Other liabilities in the accompanying consolidated balance sheet. | |||
[4] | Includes $7 million recorded in Other current liabilities and $2 million recorded in Other liabilities in the accompanying consolidated balance sheet. |
DERIVATIVES AND HEDGING ACTIV_7
DERIVATIVES AND HEDGING ACTIVITIES Impact of Derivative Instruments in Consolidated Balance Sheet Other (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivative Liabilities | $ 5 | [1] | $ 9 | [2] |
Other Current Liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Liabilities | 4 | 7 | ||
Other Liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Liabilities | $ 1 | $ 2 | ||
[1] | Includes $4 million recorded in Other current liabilities and $1 million recorded in Other liabilities in the accompanying consolidated balance sheet. | |||
[2] | Includes $7 million recorded in Other current liabilities and $2 million recorded in Other liabilities in the accompanying consolidated balance sheet. |
DERIVATIVES AND HEDGING ACTIV_8
DERIVATIVES AND HEDGING ACTIVITIES Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain / (Loss) Recorded to AOCI After Tax, That Is Expected to be Reclassified to Earnings | $ 2 |
RETIREMENT PLANS Net Periodic P
RETIREMENT PLANS Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans (Details) - U.S. plans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 26 | $ 21 | $ 78 | $ 64 |
Interest cost | 84 | 98 | 251 | 294 |
Expected return on plan assets | (177) | (167) | (543) | (501) |
Actuarial loss | 35 | 51 | 114 | 152 |
Amortization of prior service cost | 5 | 5 | 16 | 15 |
Net periodic pension (income) expense | $ (27) | $ 8 | $ (84) | $ 24 |
RETIREMENT PLANS Narrative (Det
RETIREMENT PLANS Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021USD ($)employees | Sep. 30, 2021USD ($)employees | Sep. 30, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan contributions | $ 0 | $ 0 | |
Liability, Defined Benefit Pension Plan | $ 286 | $ 286 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | $ 263 | ||
Defined Contribution Plan, Number of Employees | employees | 900 | 900 | |
Defined Benefit Plan, Plan Assets, Amount | $ 520 | $ 520 | |
Non Qualified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits paid | $ 16 |
STOCK-BASED COMPENSATION Schedu
STOCK-BASED COMPENSATION Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Income tax benefits related to stock-based compensation | $ (2,000,000) | $ 1,000,000 | $ 13,000,000 | $ 18,000,000 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense (selling and administrative) | $ 42,000,000 | $ 17,000,000 | $ 103,000,000 | $ 48,000,000 |
STOCK-BASED COMPENSATION Narrat
STOCK-BASED COMPENSATION Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)$ / 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 | $ | $ 107 |
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures, weighted-average period (in years) | 1 year 10 months 24 days |
Granted, nonvested shares / units | 2 |
Granted, nonvested, weighted average grant date fair value | $ / shares | $ 53.15 |
Stock Compensation Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant under ICP | 7.6 |
INDUSTRY SEGMENT INFORMATION Sa
INDUSTRY SEGMENT INFORMATION Sales by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Segment Reporting Information [Line Items] | |||||
Net sales | [1] | $ 5,714 | $ 5,123 | $ 16,693 | $ 15,341 |
Consolidation, Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | [1] | 52 | 48 | 143 | 150 |
Industrial Packaging | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 4,087 | 3,768 | 12,096 | 11,220 | |
Global Cellulose Fibers | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 729 | 564 | 1,981 | 1,737 | |
Printing Papers | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 846 | $ 743 | $ 2,473 | $ 2,234 | |
[1] | Net sales are attributed to countries based on the location of the seller. |
INDUSTRY SEGMENT INFORMATION Op
INDUSTRY SEGMENT INFORMATION Operating Profit by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | $ 631 | $ 473 | $ 1,570 | $ 1,413 |
Earnings (loss) before income taxes and equity earnings | 916 | 282 | 1,747 | 527 |
Interest expense, net | 93 | 112 | 242 | 345 |
Noncontrolling interests adjustment | (1) | 0 | (3) | 0 |
Corporate expenses, net | 12 | (20) | 44 | 9 |
Corporate net special items | 11 | 108 | 81 | 195 |
Business net special items | (349) | 2 | (385) | 368 |
Non-operating pension expense (income) | (51) | (11) | (156) | (31) |
Industrial Packaging | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | 429 | 469 | 1,284 | 1,388 |
Global Cellulose Fibers | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | 96 | (59) | 24 | (123) |
Printing Papers | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating profit | $ 106 | $ 63 | $ 262 | $ 148 |