Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-3157 | ||
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 | 419-9000 | ||
Title of 12(b) Security | Common Shares | ||
Trading Symbol | IP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
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 Public Float | $ 17,018,195,033 | ||
Entity Common Stock, Shares Outstanding | 392,124,684 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000051434 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Voluntary Filers | No |
Consolidated Statement Of Opera
Consolidated Statement Of Operations - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
NET SALES | [1] | $ 22,376 | $ 23,306 | $ 21,743 | ||
COSTS AND EXPENSES | ||||||
Cost of products sold | 15,268 | 15,555 | 14,802 | |||
Selling and administrative expenses | 1,647 | 1,723 | 1,621 | |||
Depreciation, amortization and cost of timber harvested | 1,306 | 1,328 | 1,343 | |||
Distribution expenses | 1,560 | 1,567 | 1,434 | |||
Taxes other than payroll and income taxes | 170 | 171 | 169 | |||
Restructuring and other charges, net | 57 | 29 | 67 | |||
Net (gains) losses on sales and impairments of businesses | 205 | 122 | 9 | |||
Antitrust fines and settlements | 32 | 0 | 354 | |||
Net bargain purchase gain on acquisition of business | 0 | 0 | (6) | |||
Interest expense, net | 491 | 536 | 572 | |||
Non-operating pension expense | 36 | 494 | 530 | |||
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY EARNINGS (LOSSES) | 1,604 | [2] | 1,781 | [3] | 848 | |
Income tax provision (benefit) | 634 | 445 | (1,085) | |||
Equity earnings (loss), net of taxes | 250 | 336 | 177 | |||
EARNINGS (LOSS) FROM CONTINUING OPERATIONS | 1,220 | 1,672 | 2,110 | |||
Discontinued operations, net of taxes | 0 | 345 | [4] | 34 | ||
NET EARNINGS (LOSS) | 1,220 | 2,017 | 2,144 | |||
Less: Net earnings (loss) attributable to noncontrolling interests | (5) | 5 | 0 | |||
Net earnings (loss) attributable to International Paper Company | $ 1,225 | [2],[5],[6] | $ 2,012 | [3],[4],[7] | $ 2,144 | |
BASIC EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS | ||||||
Earnings (loss) from continuing operations | $ 3.10 | [2] | $ 4.07 | [3] | $ 5.11 | |
Discontinued operations, net of taxes | 0 | [6] | 0.84 | [4] | 0.08 | |
Net earnings (loss) | 3.10 | [2],[5],[6] | 4.91 | [3],[4],[7] | 5.19 | |
DILUTED EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS | ||||||
Earnings (loss) from continuing operations | 3.07 | [2] | 4.02 | [3] | 5.05 | |
Discontinued operations, net of taxes | 0 | [6] | 0.83 | [4] | 0.08 | |
Net earnings (loss) | $ 3.07 | [2],[5],[6] | $ 4.85 | [3],[4],[7] | $ 5.13 | |
[1] | Net sales are attributed to countries based on the location of the seller. | |||||
[2] | Includes the following pre-tax charges (gains): 2019 In millions Q1 Q2 Q3 Q4 India impairment $ — $ 152 $ 8 $ (1 ) India divestiture transaction costs — — — 3 Global Cellulose Fibers goodwill impairment — — — 52 Litigation reserves — — 22 19 Italian antitrust fine — — 32 — Environmental remediation reserve adjustment — — 15 10 (Gain) loss on sale of EMEA Packaging box plant (7 ) — — 1 EMEA Packaging business optimization — — — 17 Multi-employer pension plan exit liability 16 — (7 ) — Abandoned property removal 11 11 13 15 Riverdale mill conversion costs 1 1 1 2 Foreign VAT refund accrual including interest — — — (6 ) Debt extinguishment costs — — — 21 Gain on sale of previously closed Oregon mill site — — (9 ) — Overhead cost reduction initiative — — 21 — Other items — 1 — 3 Non-operating pension expense 10 8 9 9 Total $ 31 $ 173 $ 105 $ 145 | |||||
[3] | Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 Smurfit-Kappa acquisition proposal costs $ — $ 12 $ — $ — Legal settlement 9 — — — Litigation settlement recovery — — — (5 ) Environmental remediation reserve adjustment — — 9 — EMEA Packaging business optimization 22 26 — (1 ) Abandoned property removal 9 9 6 8 Riverdale mill conversion costs — — 5 4 Brazil Packaging impairment — — 122 — Debt extinguishment costs — — — 10 Gain on sale of investment in Liaison Technologies — — — (31 ) Non-operating pension expense 4 36 25 429 Total $ 44 $ 83 $ 167 $ 414 | |||||
[4] | Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 North American Consumer Packaging transaction costs $ 23 $ 2 $ — $ — North American Consumer Packaging gain on transfer (516 ) 28 — — Total $ (493 ) $ 30 $ — $ — | |||||
[5] | Includes allocation of loss to noncontrolling interest of $7 million and $2 million for the three months ended June 30, 2019 and September 30, 2019, respectively, associated with the impairment of the net assets of our India Papers business. | |||||
[6] | Includes the following tax expenses (benefits): 2019 In millions Q1 Q2 Q3 Q4 Luxembourg statutory tax rate change $ — $ 9 $ — $ — State income tax legislative changes — (3 ) — — Foreign tax audits — 3 — — Internal investment restructuring — — — (53 ) Foreign deferred tax valuation allowance — — — 203 Tax impact of other special items (6 ) (5 ) (14 ) (28 ) Tax impact of non-operating pension expense (2 ) (2 ) (2 ) (2 ) Total $ (8 ) $ 2 $ (16 ) $ 120 | |||||
[7] | 2018 In millions Q1 Q2 Q3 Q4 State income tax legislative changes $ — $ 9 $ — $ — Tax benefit of Tax Cuts and Jobs Act — — (36 ) — Internal investment restructuring — — — 19 Foreign tax audits — — — 25 Tax impact of other special items (9 ) (13 ) (46 ) 3 Tax impact of non-operating pension expense (1 ) (9 ) (6 ) (107 ) Total $ (10 ) $ (13 ) $ (88 ) $ (60 ) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
NET EARNINGS (LOSS) | $ 1,220 | $ 2,017 | $ 2,144 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | |||
Change in cumulative foreign currency translation adjustment (less tax of $1, $1 and $0) | 116 | (473) | 177 |
Net gains/losses on cash flow hedging derivatives: | |||
Net gains (losses) arising during the period (less tax of $2, $5 and $4) | 4 | (10) | 15 |
Reclassification adjustment for (gains) losses included in net earnings (less tax of $2, $1 and $2) | 4 | 2 | (7) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 290 | 130 | 730 |
Comprehensive Income (Loss) | 1,510 | 2,147 | 2,874 |
Net (Earnings) Loss Attributable to Noncontrolling Interests | 5 | (5) | 0 |
Other Comprehensive (Income) Loss Attributable to Noncontrolling Interests | 0 | 3 | (1) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY | 1,515 | 2,145 | 2,873 |
Domestic Plan [Member] | |||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | |||
Amortization of pension and postretirement prior service costs and net loss: | 163 | 588 | 486 |
Pension and postretirement liability adjustments: | 22 | 18 | 56 |
Non-U.S. Plans | |||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | |||
Amortization of pension and postretirement prior service costs and net loss: | 1 | 1 | 0 |
Pension and postretirement liability adjustments: | $ (20) | $ 4 | $ 3 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in cumulative foreign currency translation adjustment, tax | $ 1 | $ (1) | $ 0 |
Net gains (losses) on cash flow hedging derivatives arising during the period, tax (expense) benefit | 2 | (5) | 4 |
Reclassification adjustment for (gains) losses included in net earnings, tax (expense) benefit | 2 | 1 | (2) |
U.S. Plans | |||
Amortization of pension and postretirement prior service costs and net loss: | 54 | 196 | 280 |
Pension and postretirement liability adjustments, tax | 7 | 6 | 69 |
Non-U.S. Plans | |||
Amortization of pension and postretirement prior service costs and net loss: | 0 | 0 | 0 |
Pension and postretirement liability adjustments, tax | $ (3) | $ 1 | $ 1 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and temporary investments | $ 511 | $ 589 |
Accounts and notes receivable (less allowances of $73 in 2019 and $81 in 2018) | 3,280 | 3,521 |
Contract assets | 393 | 395 |
Inventories | 2,208 | 2,241 |
Other current assets | 247 | 250 |
Total Current Assets | 6,639 | 6,996 |
Plants, Properties and Equipment, net | 13,004 | 13,067 |
Forestlands | 391 | 402 |
Investments | 1,721 | 1,648 |
Financial Assets of Variable Interest Entities (Note 15) | 7,088 | 7,070 |
Goodwill | 3,347 | 3,374 |
Right of Use Assets | 434 | 0 |
Deferred Charges and Other Assets | 847 | 1,019 |
TOTAL ASSETS | 33,471 | 33,576 |
Current Liabilities | ||
Notes payable and current maturities of long-term debt | 168 | 639 |
Current nonrecourse financial liabilities of variable interest entities (Note 15) | 4,220 | 0 |
Accounts payable | 2,423 | 2,413 |
Accrued payroll and benefits | 466 | 535 |
Other current liabilities | 1,369 | 1,107 |
Total Current Liabilities | 8,646 | 4,694 |
Long-Term Debt | 9,597 | 10,015 |
Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities (Note 15) | 2,085 | 6,298 |
Deferred Income Taxes | 2,633 | 2,600 |
Pension Benefit Obligation | 1,578 | 1,762 |
Postretirement and Postemployment Benefit Obligation | 270 | 264 |
Long-Term Lease Obligations | 304 | 0 |
Other Liabilities | 640 | 560 |
Commitments and Contingent Liabilities (Note 14) | ||
Equity | ||
Common stock $1 par value, 2019 - 448.9 shares and 2018 - 448.9 shares | 449 | 449 |
Paid-in capital | 6,297 | 6,280 |
Retained earnings | 8,408 | 7,465 |
Accumulated other comprehensive loss | (4,739) | (4,500) |
Total Shareholders' Equity Before Treasury Stock | 10,415 | 9,694 |
Less: Common stock held in treasury, at cost, 2019 – 56.800 shares and 2018 – 48.310 shares | 2,702 | 2,332 |
Total International Paper Shareholders’ Equity | 7,713 | 7,362 |
Noncontrolling interests | 5 | 21 |
Total Equity | 7,718 | 7,383 |
TOTAL LIABILITIES AND EQUITY | $ 33,471 | $ 33,576 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, allowances | $ 73 | $ 81 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares | 448,916 | 448,916 |
Common stock held in treasury, shares | 56,800 | 48,310 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net earnings (loss) | $ 1,220 | $ 2,017 | $ 2,144 |
Depreciation, amortization, and cost of timber harvested | 1,306 | 1,328 | 1,423 |
Deferred income tax provision (benefit), net | 212 | 133 | (1,113) |
Restructuring and other charges, net | 57 | 29 | 67 |
Pension plan contributions | 0 | 0 | (1,250) |
Periodic pension expense, net | 93 | 632 | 717 |
Net gain on transfer of North American Consumer Packaging business | 0 | (488) | 0 |
Net bargain purchase gain on acquisition of business | 0 | 0 | (6) |
Net (gains) losses on sales and impairments of businesses | 205 | 122 | 9 |
Antitrust fines | 32 | 0 | 0 |
Equity method dividends received | 273 | 153 | 133 |
Equity (earnings) losses, net | (250) | (336) | (177) |
Other, net | 120 | 75 | 212 |
Changes in current assets and liabilities | |||
Accounts and notes receivable | 246 | (342) | (370) |
Contract assets | 2 | (32) | 0 |
Inventories | (1) | (236) | (87) |
Accounts payable and accrued liabilities | 139 | 151 | 114 |
Interest payable | (19) | (8) | 1 |
Other | (25) | 28 | (60) |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 3,610 | 3,226 | 1,757 |
INVESTMENT ACTIVITIES | |||
Invested in capital projects | (1,276) | (1,572) | (1,391) |
Acquisitions, net of cash acquired | (103) | (8) | (45) |
Net settlement on transfer of North American Consumer Packaging business | 0 | (40) | 0 |
Proceeds from divestitures, net of cash divested | 81 | 0 | 4 |
Proceeds from sale of fixed assets | 18 | 23 | 26 |
Other | (20) | 28 | 15 |
CASH PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES | (1,300) | (1,569) | (1,391) |
FINANCING ACTIVITIES | |||
Repurchases of common stock and payments of restricted stock tax withholding | (535) | (732) | (47) |
Issuance of debt | 534 | 490 | 1,907 |
Reduction of debt | (1,507) | (1,008) | (1,424) |
Change in book overdrafts | (66) | (1) | 26 |
Dividends paid | (796) | (789) | (769) |
Net debt tender premiums paid | (18) | (6) | (84) |
Other | (1) | 0 | (8) |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | (2,389) | (2,046) | (399) |
Effect of Exchange Rate Changes on Cash | 1 | (40) | 18 |
Change in Cash and Temporary Investments | (78) | (429) | (15) |
Cash and Temporary Investments | |||
Beginning of the period | 589 | 1,018 | 1,033 |
End of the period | $ 511 | $ 589 | $ 1,018 |
Consolidated Statement Of Chang
Consolidated Statement Of Changes In Equity - USD ($) | Total | Common Stock Issued | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock Held In Treasury, At Cost | Total International Paper Shareholders’ Equity | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2016 | $ 4,359,000,000 | $ 449,000,000 | $ 6,189,000,000 | $ 4,818,000,000 | $ (5,362,000,000) | $ 1,753,000,000 | $ 4,341,000,000 | $ 18,000,000 |
Issuance of stock for various plans, net | 162,000,000 | 42,000,000 | (120,000,000) | 162,000,000 | ||||
Repurchase of stock | (47,000,000) | 47,000,000 | (47,000,000) | |||||
Dividends | (782,000,000) | (782,000,000) | (782,000,000) | |||||
Transactions of equity method investees | (25,000,000) | (25,000,000) | (25,000,000) | 0 | ||||
Comprehensive income (loss) | 2,874,000,000 | 0 | 0 | 2,144,000,000 | 729,000,000 | 0 | 2,873,000,000 | 1,000,000 |
Ending Balance at Dec. 31, 2017 | 6,541,000,000 | 449,000,000 | 6,206,000,000 | 6,180,000,000 | (4,633,000,000) | 1,680,000,000 | 6,522,000,000 | 19,000,000 |
Cumulative effect of new accounting principle in year of adoption | 73,000,000 | 73,000,000 | 73,000,000 | |||||
Issuance of stock for various plans, net | 142,000,000 | 62,000,000 | (80,000,000) | 142,000,000 | ||||
Repurchase of stock | (732,000,000) | 732,000,000 | (732,000,000) | |||||
Dividends | (800,000,000) | (800,000,000) | (800,000,000) | |||||
Transactions of equity method investees | 12,000,000 | 12,000,000 | 12,000,000 | 0 | ||||
Comprehensive income (loss) | 2,147,000,000 | 0 | 0 | 2,012,000,000 | 133,000,000 | 0 | 2,145,000,000 | 2,000,000 |
Ending Balance at Dec. 31, 2018 | 7,383,000,000 | 449,000,000 | 6,280,000,000 | 7,465,000,000 | (4,500,000,000) | 2,332,000,000 | 7,362,000,000 | 21,000,000 |
Cumulative effect of new accounting principle in year of adoption | 0 | 529,000,000 | (529,000,000) | 0 | ||||
Issuance of stock for various plans, net | 147,000,000 | (18,000,000) | (165,000,000) | 147,000,000 | ||||
Repurchase of stock | (535,000,000) | 535,000,000 | (535,000,000) | |||||
Dividends | (811,000,000) | (811,000,000) | (811,000,000) | |||||
Transactions of equity method investees | 35,000,000 | 35,000,000 | 35,000,000 | 0 | ||||
Divestiture of noncontrolling interests | (11,000,000) | (11,000,000) | ||||||
Comprehensive income (loss) | 1,510,000,000 | 0 | 0 | 1,225,000,000 | 290,000,000 | 0 | 1,515,000,000 | (5,000,000) |
Ending Balance at Dec. 31, 2019 | $ 7,718,000,000 | $ 449,000,000 | $ 6,297,000,000 | $ 8,408,000,000 | $ (4,739,000,000) | $ 2,702,000,000 | $ 7,713,000,000 | $ 5,000,000 |
Consolidated Statement Of Cha_2
Consolidated Statement Of Changes In Equity (Consolidated Statement of Changes in Equity Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.5125 | $ 0.5000 | $ 0.5000 | $ 0.5000 | $ 0.5000 | $ 0.4750 | $ 0.4750 | $ 0.4750 | $ 2.0125 | $ 1.9250 | $ 1.863 |
Summary Of Business And Signifi
Summary Of Business And Significant Accounting Policies (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary Of Business And Significant Accounting Policies | NOTE 1 SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES NATURE OF BUSINESS International Paper (the Company) is a global paper and packaging company with primary markets and manufacturing operations in North America, Europe, Latin America, North Africa and Russia. Substantially all of our businesses have experienced, and are likely to continue to experience, cycles relating to available industry capacity and general economic conditions. FINANCIAL STATEMENTS These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States that require the use of management’s estimates. Actual results could differ from management’s estimates. On January 1, 2018, the Company completed the previously announced transfer of its North American Consumer Packaging business and received a 20.5% ownership interest in a subsidiary of Graphic Packaging Holding Company that holds the assets of the combined business. See Note 8 for further details. CONSOLIDATION The consolidated financial statements include the accounts of International Paper and subsidiaries for which we have a controlling financial interest, including variable interest entities for which we are the primary beneficiary. All significant intercompany balances and transactions are eliminated. EQUITY METHOD INVESTMENTS The equity method of accounting is applied for investments when the Company has significant influence over the investee’s operations, or when the investee is structured with separate capital accounts and our investment is considered more than minor. Our material equity method investments are described in Note 11 . BUSINESS COMBINATIONS The Company allocates the total consideration of the assets acquired and liabilities assumed based on their estimated fair value as of the business combination date. In developing estimates of fair values for long-lived assets, including identifiable intangible assets, the Company utilizes a variety of inputs including forecasted cash flows, anticipated growth rates, discount rates, estimated replacement costs and depreciation and obsolescence factors. Determining the fair value for specifically identified intangible assets such as customer lists and developed technology involves judgment. We may refine our estimates and make adjustments to the assets acquired and liabilities assumed over a measurement period, not to exceed one year. Upon the conclusion of the measurement period or the final determination of the values of asset acquired and liabilities assumed, whichever comes first, any subsequent adjustments are charged to the consolidated statement of earnings. Subsequent actual results of the underlying business activity supporting the specifically identified intangible assets could change, requiring us to record impairment charges or adjust their economic lives in future periods. See Note 7 for further details. DISCONTINUED OPERATIONS A discontinued operation may include a component or a group of components of the Company's operations. A disposal of a component or a group of components is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results when the following occurs: (1) a component (or group of components) meets the criteria to be classified as held for sale; (2) the component or group of components is disposed of by sale; or (3) the component or group of components is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). For any component classified as held for sale or disposed of by sale or other than by sale, qualifying for presentation as a discontinued operation, the Company reports the results of operations of the discontinued operations (including any gain or loss recognized on the disposal or loss recognized on classification as held for sale of a discontinued operation), less applicable income taxes (benefit), as a separate component in the consolidated statement of operations for current and all prior periods presented. See Note 8 for further details. RESTRUCTURING LIABILITIES AND COSTS For operations to be closed or restructured, a liability and related expense is recorded in the period when operations cease. For termination costs associated with employees covered by a written or substantive plan, a liability is recorded when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. For termination costs associated with employees not covered by a written and broadly communicated policy covering involuntary termination benefits (severance plan), a liability is recorded for costs to terminate employees (one-time termination benefits) when the termination plan has been approved and committed to by management, the employees to be terminated have been identified, the termination plan benefit terms are communicated, the employees identified in the plan have been notified and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The timing and amount of an accrual is dependent upon the type of benefits granted, the timing of communication and other provisions that may be provided in the benefit plan. The accounting for each termination is evaluated individually. See Note 6 for further details. 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. The Company’s revenue is primarily derived from fixed consideration; however, we do have contract terms that give rise to variable consideration, primarily cash discounts and volume rebates. International Paper offers early payment discounts to customers across the Company’s businesses. The Company estimates the expected cash discounts and other customer refunds based on the historical experience across the Company’s portfolio of customers to record reductions in revenue which is consistent with the most likely amount method outlined in ASC 606. Management has concluded that this method is the best estimate of the consideration the Company will be entitled to from its customers. The Company has elected to present all sales taxes on a net basis, account for shipping and handling activities as fulfillment activities, recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period of the asset the Company would recognize is one year or less, and not record interest income or interest expense when the difference in timing of control or transfer and customer payment is one year or less. See Note 3 for further details. 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 notice are treated as cash equivalents and are stated at cost, which approximates market value. See Note 9 for further details. INVENTORIES Inventories are valued at the lower of cost or market value and include all costs directly associated with manufacturing products: materials, labor and manufacturing overhead. In the United States, costs of raw materials and finished pulp and paper products, are generally determined using the last-in, first-out method. Other inventories are valued using the first-in, first-out or average cost methods. See Note 9 for further details. LEASED ASSETS Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company's leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases primarily related to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles, and leases within supply agreements primarily related to usage, repairs and maintenance. As the implicit rate is not readily determinable for most of the Company's leases, the Company applies a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities. Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases. See Note 10 for further details. PLANTS, PROPERTIES AND EQUIPMENT Plants, properties and equipment are stated at cost, less accumulated depreciation. Expenditures for betterments are capitalized, whereas normal repairs and maintenance are expensed as incurred. The units-of-production method of depreciation is used for pulp and paper mills, and the straight-line method is used for other plants and equipment. See Note 9 for further details. GOODWILL Annual evaluation for possible goodwill impairment is performed as of the beginning of the fourth quarter of each year, with additional interim evaluation performed when management believes that it is more likely than not, that events or circumstances have occurred that would result in the impairment of a reporting unit’s goodwill. The Company has the option to evaluate goodwill for impairment by first performing a qualitative assessment of events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amounts, then the quantitative goodwill impairment test is not required to be performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company does not elect the option to perform an initial qualitative assessment, the Company is required to perform the quantitative goodwill impairment test. In performing this evaluation, the Company estimates the fair value of its reporting unit using a probability-weighted approach based on discounted future cash flows, market multiples and transaction multiples. Key assumptions in the quantitative goodwill impairment test considered by management include the discount rate, long-term growth rate, tax rate, inflation rate, and business forecast. For reporting units whose carrying amount is in excess of their estimated fair value, the reporting unit will record an impairment charge by the amount that the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. See Note 12 for further discussion. IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable. A recoverability test is performed based on undiscounted cash flows, requiring judgments as to whether assets are held and used or held for sale, the weighting of operational alternatives being considered by management and estimates of the amount and timing of expected future cash flows from the use of the long-lived assets generated by their use. Impaired assets are recorded at their estimated fair value. See Note 8 for further discussion. INCOME TAXES International Paper uses the asset and liability method of accounting for income taxes whereby deferred income taxes are recorded for the future tax consequences attributable to differences between the financial statement and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are remeasured to reflect new tax rates in the periods rate changes are enacted. International Paper records its worldwide tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. Where the Company believes that a tax position is supportable for income tax purposes, the item is included in its income tax returns. Where treatment of a position is uncertain, liabilities are recorded based upon the Company’s evaluation of the “more likely than not” outcome considering the technical merits of the position based on specific tax regulations and the facts of each matter. Changes to recorded liabilities are made only when an identifiable event occurs that changes the likely outcome, such as settlement with the relevant tax authority, the expiration of statutes of limitation for the subject tax year, a change in tax laws, or a recent court case that addresses the matter. While the judgments and estimates made by the Company are based on management’s evaluation of the technical merits of a matter, assisted as necessary by consultation with outside consultants, historical experience and other assumptions that management believes are appropriate and reasonable under current circumstances, actual resolution of these matters may differ from recorded estimated amounts, resulting in adjustments that could materially affect future financial statements. See Note 13 for further details. International Paper uses the flow-through method to account for investment tax credits earned on eligible open-loop biomass facilities and combined heat and power system expenditures. Under this method, the investment tax credits are recognized as a reduction to income tax expense in the year they are earned rather than a reduction in the asset basis. ENVIRONMENTAL REMEDIATION COSTS Costs associated with environmental remediation obligations are accrued when such costs are probable and reasonably estimable. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable. See Note 14 for further details. TRANSLATION OF FINANCIAL STATEMENTS Balance sheets of international operations are translated into U.S. dollars at year-end exchange rates, while statements of operations are translated at average rates. Adjustments resulting from financial statement translations are included as cumulative translation adjustments in Accumulated other comprehensive loss. |
Recent Accounting Developments
Recent Accounting Developments (Note) | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Developments | NOTE 2 RECENT ACCOUNTING DEVELOPMENTS Other than as described below, no new accounting pronouncement issued or effective during the fiscal year has had or is expected to have a material impact on the consolidated financial statements. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Intangibles In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." This guidance eliminates the requirement to calculate the implied fair value of goodwill under Step 2 of the previous goodwill impairment test approach to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. This guidance should be applied prospectively. The Company early adopted the provision of this guidance in the fourth quarter of 2019 in conjunction with our annual evaluation for possible goodwill impairment which resulted in the recognition of a goodwill impairment charge of $52 million for the Global Cellulose Fibers reporting unit. See Note 12 . Pension Plan Disclosures In July 2018, the FASB issued ASU 2018-09, "Codification Improvements," which included amendments to Subtopic 962-325. This disclosure guidance pertains to the presentation of certain types of investments . The Company adopted the provisions of this guidance in the fourth quarter of 2019 in conjunction with the preparation of our 2019 annual Form 10-K disclosures and presentation related to pension plan assets. Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842): Leases." The Company adopted the provisions of this guidance effective January 1, 2019, using the modified retrospective optional transition method. Therefore, the standard was applied beginning January 1, 2019, and prior periods were not restated. The adoption of the standard did not result in a cumulative effect adjustment to the opening balance of Retained earnings. The Company elected the package of practical expedients and implemented internal controls and system functionality to enable the preparation of financial information upon adoption. The adoption of the new standard resulted in the recognition of a right of use asset and short-term and long-term liabilities recorded on the Company's consolidated balance sheet related to operating leases. Accounting for finance leases remained substantially unchanged. In addition, the adoption of the standard did not have a material impact on the Company's results of operations or cash flows. See Note 10 . Comprehensive Income In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This guidance provided entities the option to reclassify stranded tax effects caused by the newly-enacted U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. As a result, the Company adopted this guidance effective January 1, 2019, and recorded a net increase to opening Retained earnings and a decrease to opening Accumulated other comprehensive income of $529 million , due to the cumulative impact of adopting the new guidance. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED Income Taxes In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This guidance removes certain exceptions from recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance is effective for annual reporting periods beginning after December 15, 2020, and interim periods within those years. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. The Company is currently evaluating the provisions of this guidance. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This guidance replaces the current incurred loss impairment method with a method that reflects expected credit losses. This guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company has substantially completed its evaluation of the provisions of this guidance and determined it will not have a material impact on the consolidated statement of position, results of operations or cash flows. The Company will adopt this guidance using the modified retrospective approach on its effective date of January 1, 2020. As a result of using this approach, the Company will recognize the cumulative effect adjustment to the opening balance of retained earnings for initial application of the guidance. |
Revenue Recognition (Note)
Revenue Recognition (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 3 - REVENUE RECOGNITION 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. 2019 Reportable Segments Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 12,668 $ 2,148 $ 1,912 $ 220 $ 16,948 EMEA 1,692 254 1,323 (11 ) 3,258 Pacific Rim and Asia 65 149 189 12 415 Americas, other than U.S. 901 — 867 (13 ) 1,755 Total $ 15,326 $ 2,551 $ 4,291 $ 208 $ 22,376 Operating Segments North American Industrial Packaging $ 13,509 $ — $ — $ — $ 13,509 EMEA Industrial Packaging 1,335 — — — 1,335 Brazilian Industrial Packaging 235 — — — 235 European Coated Paperboard 365 — — — 365 Global Cellulose Fibers — 2,551 — — 2,551 North American Printing Papers — — 1,956 — 1,956 Brazilian Papers — — 967 — 967 European Papers — — 1,250 — 1,250 Indian Papers — — 160 — 160 Intra-segment Eliminations (118 ) — (42 ) — (160 ) Corporate & Inter-segment Sales — — — 208 208 Total $ 15,326 $ 2,551 $ 4,291 $ 208 $ 22,376 (a) Net sales are attributed to countries based on the location of the reportable segment making the sale. 2018 Reportable Segments Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 13,167 $ 2,336 $ 1,903 $ 203 $ 17,609 EMEA 1,704 304 1,330 (17 ) 3,321 Pacific Rim and Asia 142 179 245 39 605 Americas, other than U.S. 887 — 897 (13 ) 1,771 Total $ 15,900 $ 2,819 $ 4,375 $ 212 $ 23,306 Operating Segments North American Industrial Packaging $ 14,187 $ — $ — $ — $ 14,187 EMEA Industrial Packaging 1,355 — — — 1,355 Brazilian Industrial Packaging 232 — — — 232 European Coated Paperboard 359 — — — 359 Global Cellulose Fibers — 2,819 — — 2,819 North American Printing Papers — — 1,956 — 1,956 Brazilian Papers — — 978 — 978 European Papers — — 1,252 — 1,252 Indian Papers — — 202 — 202 Intra-segment Eliminations (233 ) — (13 ) — (246 ) Corporate & Inter-segment Sales — — — 212 212 Total $ 15,900 $ 2,819 $ 4,375 $ 212 $ 23,306 (a) Net sales are attributed to countries based on the location of the reportable segment making the sale. REVENUE CONTRACT BALANCES The opening and closing balances of the Company's contract assets and current contract liabilities are as follows: In millions Contract Assets (Short-Term) Contract Liabilities (Short-Term) Beginning Balance - January 1, 2019 $ 395 $ 56 Ending Balance - December 31, 2019 393 56 Increase / (Decrease) $ (2 ) $ — A contract asset is created when the Company recognizes revenue on its customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes to the customer. A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months. The difference between the opening and closing balances of the Company's contract assets and contract liabilities primarily results from the difference between the price and quantity at comparable points in time for goods which we have an unconditional right to payment or receive pre-payment from the customer, respectively. PERFORMANCE OBLIGATIONS AND SIGNIFICANT JUDGEMENTS International Paper's principal business is to manufacture and sell fiber-based packaging, pulp and paper goods. As a general rule, none of our businesses provide equipment installation or other ancillary services outside of producing and shipping packaging, pulp and paper goods to customers. The nature of the Company's contracts can vary based on the business, customer type and region; however, in all instances it is International Paper's customary business practice to receive a valid order from the customer, in which each parties' rights and related payment terms are clearly identifiable. Contracts or purchase orders with customers could include a single type of product or it could include multiple types/grades of products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contracts or purchase orders. The Company does not bundle prices; however, we do negotiate with customers on pricing and rebates for the same products based on a variety of factors (e.g. level of contractual volume, geographical location, etc.). Management has concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product. |
Earnings Per Share Attributable
Earnings Per Share Attributable To International Paper Company Common Shareholders (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Earnings Per Share Attributable To International Paper Company Common Shareholders | NOTE 4 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 EPS. A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing operations, and diluted earnings (loss) per share from continuing operations is as follows: In millions, except per share amounts 2019 2018 2017 Earnings (loss) from continuing operations attributable to International Paper common shareholders $ 1,225 $ 1,667 $ 2,110 Weighted average common shares outstanding 395.3 409.1 412.7 Effect of dilutive securities: Restricted performance share plan 3.5 5.1 5.0 Weighted average common shares outstanding – assuming dilution 398.8 414.2 417.7 Basic earnings (loss) per share from continuing operations $ 3.10 $ 4.07 $ 5.11 Diluted earnings (loss) per share from continuing operations $ 3.07 $ 4.02 $ 5.05 |
Other Comprehensive Income (Not
Other Comprehensive Income (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income [Note Text Block] | NOTE 5 OTHER COMPREHENSIVE INCOME The following table presents changes in AOCI, net of tax, reported in the consolidated financial statements for the years ended December 31: In millions 2019 2018 2017 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (1,916 ) $ (2,527 ) $ (3,072 ) Other comprehensive income (loss) before reclassifications 2 22 59 Reclassification of stranded tax effects (527 ) — — Amounts reclassified from accumulated other comprehensive income 164 589 486 Balance at end of period (2,277 ) (1,916 ) (2,527 ) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (2,581 ) (2,111 ) (2,287 ) Other comprehensive income (loss) before reclassifications 14 (475 ) 178 Amounts reclassified from accumulated other comprehensive income 102 2 (1 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 3 (1 ) Balance at end of period (2,465 ) (2,581 ) (2,111 ) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period (3 ) 5 (3 ) Other comprehensive income (loss) before reclassifications 4 (10 ) 15 Reclassification of stranded tax effects (2 ) — — Amounts reclassified from accumulated other comprehensive income 4 2 (7 ) Balance at end of period 3 (3 ) 5 Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (4,739 ) $ (4,500 ) $ (4,633 ) Reclassifications out of AOCI for the three years ended December 31 were as follows: Amount Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI 2019 2018 2017 In millions Defined benefit pension and postretirement items: Prior-service costs $ (10 ) $ (11 ) $ (33 ) (a) Non-operating pension expense Actuarial gains/(losses) (208 ) (774 ) (733 ) (a) Non-operating pension expense Total pre-tax amount (218 ) (785 ) (766 ) Tax (expense)/benefit 54 196 280 Net of tax (164 ) (589 ) (486 ) Reclassification of stranded tax effects 527 — — Retained Earnings Total, net of tax 363 (589 ) (486 ) Change in cumulative foreign currency translation adjustments: Business acquisitions/divestiture (102 ) (2 ) 1 (b) Net (gains) losses on sales and impairment of businesses and Cost of products sold Tax (expense)/benefit — — — Net of tax (102 ) (2 ) 1 Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts (6 ) (3 ) 9 (c) Cost of products sold Total pre-tax amount (6 ) (3 ) 9 Tax (expense)/benefit 2 1 (2 ) Net of tax (4 ) (2 ) 7 Reclassification of stranded tax effects 2 — — Retained Earnings Total, net of tax (2 ) (2 ) 7 Total reclassifications for the period, net of tax $ 259 $ (593 ) $ (478 ) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details). (b) Amounts for 2018 were reclassed to Discontinued operations, net of taxes. (c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 17 for additional details). |
Restructuring Charges and Other
Restructuring Charges and Other Items (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities | NOTE 6 RESTRUCTURING CHARGES AND OTHER ITEMS 2019: During 2019, restructuring and other charges, net, totaling $57 million before taxes were recorded. These charges included: In millions 2019 Overhead cost reduction initiative (a) $ 21 EMEA packaging restructuring (b) 15 Early debt extinguishment costs (see Note 16) 21 Total $ 57 (a) Includes pre-tax charges of $11 million , $6 million and $4 million in Corporate, the Printing Papers segment and the Global Cellulose Fibers segment, respectively, for severance related to an overhead cost reduction initiative. The majority of the severance charges will be paid in 2020. (b) Includes $14 million of severance and $1 million in other charges in conjunction with the restructuring of our EMEA Packaging business. The majority of the severance charges will be paid in 2020. 2018: During 2018, restructuring and other charges, net, totaling $29 million before taxes were recorded. These charges included: In millions 2018 EMEA packaging restructuring (a) $ 47 Gain on sale of investment in Liaison Technologies Inc. (31 ) Early debt extinguishment costs (see Note 16) 10 Riverdale mill conversion severance 3 Total $ 29 (a) Includes $33 million of severance, $6 million in accelerated depreciation, $2 million in accelerated amortization and $6 million in other charges in conjunction with the optimization of our EMEA Packaging business. The majority of the severance charges recorded were paid throughout the year. 2017: During 2017, restructuring and other charges, net, totaling $67 million before taxes were recorded. These charges included: In millions 2017 Early debt extinguishment costs (see Note 16) $ 83 Gain on sale of investment in ArborGen (14 ) Other (2 ) Total $ 67 |
Acquisitions (Note)
Acquisitions (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions And Joint Ventures | NOTE 7 ACQUISITIONS EMEA PACKAGING BUSINESSES 2019: On June 28, 2019, the Company completed the acquisition of two packaging businesses located in Portugal (Ovar) and France (Torigni and Cabourg) from DS Smith Packaging. The total purchase consideration, inclusive of working capital adjustments, was approximately €71 million (approximately $81 million at current exchange rates). The following table summarizes the consideration paid and the amounts of the assets and liabilities assumed as of June 28, 2019: In millions June 28, 2019 Cash and temporary investments $ 2 Accounts and notes receivable 22 Inventory 8 Plants, properties and equipment 40 Goodwill 23 Intangible assets 16 Right of use assets 3 Deferred charges and other assets 1 Total assets acquired 115 Short-term debt 2 Accounts payable and accrued liabilities 21 Other current liabilities 4 Deferred income taxes 3 Long-term lease obligations 3 Other Liabilities 1 Total liabilities assumed 34 Net assets acquired $ 81 Since the date of acquisition, Net sales of $50 million and Earnings (loss) from continuing operations before income taxes and equity earnings of $4 million from the acquired businesses have been included in the Company's consolidated statement of operations for the year ended December 31, 2019. The allocation of the consideration paid is preliminary and could be revised as a result of additional information obtained regarding assets acquired and liabilities assumed, and revisions to provisional estimates of fair values, including, but not limited to, the completion of independent appraisals and valuations related to 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. TANGIER, MOROCCO FACILITY 2017: On June 30, 2017, the Company completed the acquisition of Europac's Tangier, Morocco facility, a corrugated packaging facility, for €40 million (approximately $46 million using the June 30, 2017 exchange rate). After working capital and other post-close adjustments, final consideration exchanged was €33 million (approximately $38 million using the June 30, 2017 exchange rate). The following table summarizes the final fair value assigned to assets and liabilities acquired as of June 30, 2017: In millions June 30, 2017 Cash and temporary investments $ 1 Accounts and notes receivable 7 Inventory 3 Plants, properties and equipment 31 Goodwill 4 Other intangible assets 5 Deferred charges and other assets 4 Total assets acquired 55 Accounts payable and accrued liabilities 4 Long-term debt 11 Other long-term liabilities 2 Total liabilities assumed 17 Net assets acquired $ 38 |
Divestitures and Impairments of
Divestitures and Impairments of Businesses (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 8 DIVESTITURES AND IMPAIRMENTS OF BUSINESSES 2019: On October 30, 2019, the Company closed the previously announced sale of its controlling interest in International Paper APPM Limited (APPM) to West Coast Paper Mills Limited (WCPM). The net proceeds received for the sale totaled $82 million . International Paper remains a passive investor retaining a 20% interest in APPM until such time that IP sells its remaining shares. The Company will account for its retained investment at fair value. As a result of the transaction, a net pre-tax impairment charge of $159 million ( $157 million after taxes) was recorded during 2019. This charge included $97 million related to a loss for the write-off of the cumulative foreign currency translation of APPM and a $62 million loss related to the write-off of the long-lived assets of APPM. 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 Printing Papers segment. A loss of $9 million (before and after taxes) has been allocated to the noncontrolling interest related to the impairment of the long-lived assets of APPM. The fair value of the Company's retained investment in APPM was $32 million at December 31, 2019. 2018: During 2018, a determination was made that the current carrying value of the long-lived assets of the Brazil Packaging business exceeded their estimated fair value due to a change in the outlook for the business. Management engaged a third party to assist with determining the fair value of the business and the fixed assets. The fair value of the business was calculated using a probability-weighted approach based on discounted future cash flows, market multiples, and transaction multiples and the fair value of the fixed assets was determined using a market approach. As a result, a pre-tax charge of $122 million ( $81 million , net of tax) was recorded related to the impairment of an intangible asset and fixed assets. This charge is included in 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 the fourth quarter of 2018, the Company announced that it was exploring strategic options for its Brazil Packaging business. 2017: On September 7, 2017, the Company completed the sale of its foodservice business in China to Huhtamaki Hong Kong Limited. Proceeds received totaled approximately RMB 129 million ( $18 million using the September 30, 2017 exchange rate). Under the terms of the transaction, and after post-closing adjustments, International Paper received approximately RMB 49 million in exchange for its ownership interest in two China foodservice entities and RMB 80 million for the sale of notes receivable from the acquired entities. Subsequent to the announced agreement in June 2017, a determination was made that the current book value of the asset group exceeded its estimated fair value of $7 million , which was the agreed upon selling price. As a result, a pre-tax charge of $9 million was recorded during the second quarter of 2017, to write down the long-lived assets of this business to their estimated fair value. Amounts related to this business included in the Company's statement of operations were immaterial for all periods presented. DISCONTINUED OPERATIONS 2017: On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which included its North American Coated Paperboard and Foodservice businesses, to Graphic Packaging International Partners, LLC (GPIP), a subsidiary of Graphic Packaging Holding Company, in exchange for a 20.5% ownership interest in GPIP. GPIP subsequently transferred the North American Consumer Packaging business to Graphic Packaging International, LLC (GPI), a wholly-owned subsidiary of GPIP. International Paper is accounting for its ownership interest in the combined business under the equity method. The Company determined the fair value of its investment in the combined business to be $1.1 billion and recorded a pre-tax gain of $488 million ( $364 million , net of tax) in 2018. The fair value was calculated using a market approach using inputs classified as Level 2 and Level 3 within the fair value hierarchy, which is further defined in Note 17 . All current and historical operating results for North American Consumer Packaging are included in Discontinued operations, net of tax, in the accompanying consolidated statement of operations. The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued Operations, net of tax, related to the transfer of the North American Consumer Packaging business for all prior periods presented in the consolidated statement of operations: In millions 2018 2017 Net Sales $ — $ 1,559 Costs and Expenses Cost of products sold — 1,179 Selling and administrative expenses 25 110 Depreciation, amortization and cost of timber harvested — 80 Distribution expenses — 126 Taxes other than payroll and income taxes — 11 (Gain) loss on transfer of business (488 ) — Interest expense, net — 1 Earnings (Loss) Before Income Taxes and Equity Earnings 463 52 Income tax provision (benefit) 118 18 Discontinued Operations, Net of Taxes $ 345 $ 34 Total cash provided by (used for) operations related to the North American Consumer Packaging business of $(25) million and $207 million for 2018 and 2017 is included in Cash Provided By (Used For) Operations in the consolidated statement of cash flows. Total cash used for investing activities related to the North American Consumer Packaging business of $40 million and $111 million for 2018 and 2017 is included in Cash Provided By (Used For) Investing Activities in the consolidated statement of cash flows. |
Supplementary Financial Stateme
Supplementary Financial Statement Information (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Supplementary Financial Statement Information | NOTE 9 SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION TEMPORARY INVESTMENTS Temporary investments with an original maturity of three months or less are treated as cash equivalents and are stated at cost. Temporary investments totaled $335 million and $402 million at December 31, 2019 and 2018 , respectively. ACCOUNTS AND NOTES RECEIVABLE Accounts and notes receivable, net, by classification were: In millions at December 31 2019 2018 Accounts and notes receivable: Trade $ 3,020 $ 3,249 Other 260 272 Total $ 3,280 $ 3,521 INVENTORIES In millions at December 31 2019 2018 Raw materials $ 298 $ 260 Finished pulp, paper and packaging products 1,192 1,241 Operating supplies 659 641 Other 59 99 Inventories $ 2,208 $ 2,241 The last-in, first-out inventory method is used to value most of International Paper’s U.S. inventories. Approximately 71% of total raw materials and finished products inventories were valued using this method. The last-in, first-out inventory reserve was $295 million and $329 million at December 31, 2019 and 2018 , respectively. PLANTS, PROPERTIES AND EQUIPMENT In millions at December 31 2019 2018 Pulp, paper and packaging facilities $ 32,292 $ 32,329 Other properties and equipment 1,224 1,232 Gross cost 33,516 33,561 Less: Accumulated depreciation 20,512 20,494 Plants, properties and equipment, net $ 13,004 $ 13,067 Non-cash additions to plants, property and equipment included within accounts payable were $ 164 million , $135 million and $275 million at December 31, 2019 , 2018 and 2017 , respectively. Annual straight-line depreciable lives generally are, for buildings - 20 to 40 years, and for machinery and equipment - 3 to 20 years. Depreciation expense was $1.2 billion for the each of the years ended December 31, 2019 , 2018 and 2017 , respectively. Cost of products sold excludes depreciation and amortization expense. INTEREST Interest payments of $754 million , $772 million and $782 million were made during the years ended December 31, 2019 , 2018 and 2017 , respectively. Amounts related to interest were as follows: In millions 2019 2018 2017 Interest expense $ 706 $ 734 $ 758 Interest income 215 198 186 Capitalized interest costs 29 30 25 ASSET RETIREMENT OBLIGATIONS At December 31, 2019 and 2018 , we had recorded liabilities of $96 million and $86 million , respectively, related to asset retirement obligations. |
Leases (Note)
Leases (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | NOTE 10 LEASES International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have remaining lease terms of one year to 97 years . COMPONENTS OF LEASE EXPENSE In millions December 31, 2019 Operating lease costs, net $ 132 Variable lease costs 70 Short-term lease costs, net 59 Finance lease cost Amortization of lease assets 12 Interest on lease liabilities 5 Total lease cost, net $ 278 SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES In millions Classification December 31, 2019 Assets Operating lease assets Right of use assets $ 434 Finance lease assets Plants, properties and equipment, net (a) 103 Total leased assets $ 537 Liabilities Current Operating Other current liabilities $ 134 Finance Notes payable and current maturities of long-term debt 12 Noncurrent Operating Long-term lease obligations 304 Finance Long-term debt 88 Total lease liabilities $ 538 (a) Finance leases are recorded net of accumulated amortization of $40 million . LEASE TERM AND DISCOUNT RATE In millions December 31, 2019 Weighted average remaining lease term (years) Operating leases 9.8 years Finance leases 10.9 years Weighted average discount rate Operating leases 3.06 % Finance leases 4.69 % SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES In millions December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 147 Operating cash flows related to financing leases 5 Financing cash flows related to finance leases 9 Right of use assets obtained in exchange for lease liabilities Operating leases 162 Finance leases 11 MATURITY OF LEASE LIABILITIES In millions Operating Leases Financing Leases Total 2020 $ 147 $ 16 $ 163 2021 110 15 125 2022 75 14 89 2023 42 13 55 2024 24 10 34 Thereafter 103 66 169 Total lease payments 501 134 635 Less imputed interest 63 34 97 Present value of lease liabilities $ 438 $ 100 $ 538 |
Equity Method Investments (Note
Equity Method Investments (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 11 EQUITY METHOD INVESTMENTS The Company accounts for the following investments under the equity method of accounting. GRAPHIC PACKAGING INTERNATIONAL PARTNERS, LLC On January 1, 2018, the Company completed the transfer of its North American Consumer Packaging business, which includes its North American Coated Paperboard and Foodservice businesses, to Graphic Packaging International Partners, LLC (GPIP), a subsidiary of Graphic Packaging Holding Company, in exchange for a 20.5% ownership interest in GPIP. GPIP subsequently transferred the North American Consumer Packaging business to Graphic Packaging International, LLC (GPI), a wholly-owned subsidiary of GPIP that holds the assets of the combined business. As of December 31, 2019, the Company's ownership percentage in GPIP was 21.6% . The Company recorded equity earnings, net of taxes, of $46 million for each of the years ended December 31, 2019 and 2018 . The Company received cash dividends from GPIP of $27 million and $25 million in 2019 and 2018 , respectively. At both December 31, 2019 and 2018 , the Company's investment in GPIP was $1.1 billion , which was $529 million and $562 million more than the Company's proportionate share of the entity's underlying net assets at December 31, 2019 and 2018 , respectively. The difference primarily relates to the basis difference between the fair value of our investment and the underlying net assets and is generally amortized in equity earnings over a period consistent with the underlying long-lived assets. Management engaged a third party to assist with determining the fair value of the intangible assets and the fixed assets. The fair value of the intangible assets were calculated using income and market approaches and the fair value of the fixed assets was calculated using a cost approach. The fair values were determined using inputs classified as Level 2 and Level 3 within the fair value hierarchy, which is further defined in Note 17 . The Company is party to various agreements with GPI under which it sells fiber and other products to GPI. Sales under these agreements were $274 million and $240 million for the years ended December 31, 2019 and 2018 , respectively. On January 29, 2020, the Company exchanged approximately 19.0% of the aggregate units owned by the Company for an aggregated price of $250 million . After this transaction, the Company's ownership percentage in GPIP is approximately 18.3% . The Company expects to record a gain on the exchange in the first quarter of 2020. Summarized financial information for GPIP is presented in the following tables: Balance Sheet In millions 2019 2018 Current assets $ 1,796 $ 1,757 Noncurrent assets 5,482 5,292 Current liabilities 1,178 1,148 Noncurrent liabilities 3,244 3,156 Income Statement In millions 2019 2018 Net sales $ 6,160 $ 6,023 Gross profit 1,093 946 Income from continuing operations 333 336 Net income 334 337 ILIM S.A. (Ilim) The Company also holds a 50% equity interest in Ilim, which has subsidiaries whose primary operations are in Russia. The Company recorded equity earnings, net of taxes, of $207 million , $290 million , and $183 million in 2019 , 2018 , and 2017 , respectively, for Ilim. Equity earnings (losses) includes an after-tax foreign exchange (loss) gain of $32 million , $(82) million , and $15 million in 2019 , 2018 and 2017 , respectively, primarily on the remeasurement of U.S. dollar-denominated net debt. The Company received cash dividends from the joint venture of $246 million and $128 million in 2019 and 2018 , respectively. At December 31, 2019 and 2018 , the Company's investment in Ilim, which is recorded in Investments in the consolidated balance sheet, was $508 million and $478 million , respectively, which was $136 million and $145 million , respectively, more than the Company's proportionate share of the joint venture's underlying net assets. The differences primarily relate to currency translation adjustments and the basis difference between the fair value of our investment at acquisition and the underlying net assets. The Company is party to a joint marketing agreement with JSC Ilim Group, a subsidiary of Ilim, under which the Company purchases, markets and sells paper produced by JSC Ilim Group. Purchases under this agreement were $215 million , $214 million and $205 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Summarized financial information for Ilim is presented in the following tables: Balance Sheet In millions 2019 2018 Current assets $ 804 $ 981 Noncurrent assets 2,813 1,710 Current liabilities 1,015 545 Noncurrent liabilities 1,844 1,470 Noncontrolling interests 16 11 Income Statement In millions 2019 2018 2017 Net sales $ 2,189 $ 2,713 $ 2,150 Gross profit 1,025 1,549 1,047 Income from continuing operations 438 592 379 Net income 424 571 362 The audited U.S. GAAP financial statements for Ilim are included in Exhibit 99.1 to this Form 10-K. |
Goodwill And Other Intangibles
Goodwill And Other Intangibles (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangibles | NOTE 12 GOODWILL AND OTHER INTANGIBLES GOODWILL The following table presents changes in the goodwill balances as allocated to each business segment for the years ended December 31, 2019 and 2018 : In millions Industrial Packaging Global Cellulose Fibers Printing Papers Total Balance as of December 31, 2017 Goodwill $ 3,382 $ 52 $ 2,150 $ 5,584 Accumulated impairment losses (296 ) — (1,877 ) (2,173 ) 3,086 52 273 3,411 Currency translation and other (a) (1 ) — (34 ) (35 ) Goodwill additions/reductions (2 ) (b) — — (2 ) Balance as of December 31, 2018 Goodwill 3,379 52 2,116 5,547 Accumulated impairment losses (296 ) — (1,877 ) (2,173 ) 3,083 52 239 3,374 Currency translation and other (a) — — (6 ) (6 ) Goodwill additions/reductions 31 (b)(c) — (112 ) (d) (81 ) Accumulated impairment loss additions/reductions — (52 ) (e) 112 (d) 60 Balance as of December 31, 2019 Goodwill 3,410 52 1,998 5,460 Accumulated impairment losses (296 ) (52 ) (1,765 ) (2,113 ) Total $ 3,114 $ — $ 233 $ 3,347 (a) Represents the effects of foreign currency translations and reclassifications. (b) Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in the U.S. (c) Reflects the goodwill for the acquisitions of Industrial Packaging box plants in EMEA of which $28 million is considered provisional. (d) Reflects the reclassification of India goodwill and related impairment losses to held for sale prior to the sale of the business. (e) Reflects the impairment of the Global Cellulose Fibers reporting unit. The Company performed its annual testing of its reporting units for possible goodwill impairments by applying the qualitative assessment to its North America Industrial Packaging, European Papers, Russian Papers, and Brazilian Papers reporting units and the quantitative goodwill impairment test to its Global Cellulose Fibers and EMEA Industrial Packaging reporting units as of October 1, 2019. For the current year evaluation, the Company assessed various assumptions, events and circumstances that would have affected the estimated fair value of the reporting units under the qualitative assessment for the reporting units listed above and the results of the qualitative assessments indicated that it is not more likely than not that the fair values of its North America Industrial Packaging, European Papers, Russian Papers, and Brazilian Papers reporting units were less than their carrying values. The company also performed the quantitative goodwill impairment test which included comparing the carrying amount of the Global Cellulose Fibers and EMEA Industrial Packaging reporting units to their estimated fair value. The Company performed the quantitative goodwill impairment test for Global Cellulose Fibers due to the reporting unit's outlook and for EMEA Industrial Packaging due to the changes in the reporting unit's asset base as a result of strategic capital projects and acquisitions since the previous quantitative goodwill impairment test. The Company calculated the estimated fair value of its Global Cellulose Fibers and EMEA Industrial Packaging reporting units using a probability-weighted approach based on discounted future cash flows, market multiples and transaction multiples. The carrying amount did not exceed the estimated fair value of the EMEA Industrial Packaging reporting unit. The carrying amount did exceed the estimated fair value of the Global Cellulose Fibers reporting unit, and it was determined that all of the goodwill in the reporting unit, totaling $52 million , was impaired. This charge is included in Net (gains) losses on sales and impairments of businesses in the accompanying consolidated statement of operations. The decline in the fair value of Global Cellulose Fibers and resulting impairment charge was due to a change in the outlook of the Global Cellulose Fibers reporting unit's operations. In addition, the Company considered whether there were any events or circumstances outside of the annual evaluation that would reduce the fair value of its reporting units below their carrying amounts and necessitate a goodwill impairment evaluation. In consideration of all relevant factors, there were no indicators that would require goodwill impairment subsequent to October 1, 2019. OTHER INTANGIBLES Identifiable intangible assets comprised the following: 2019 2018 In millions at December 31 Gross Carrying Amount Accumulated Amortization Net Intangible Assets Gross Carrying Amount Accumulated Amortization Net Intangible Assets Customer relationships and lists $ 560 $ 275 $ 285 $ 542 $ 247 $ 295 Non-compete agreements — — — 67 67 — Tradenames, patents and trademarks, and developed technology 170 102 68 174 90 84 Land and water rights 8 2 6 8 2 6 Software 26 25 1 26 25 1 Other 18 10 8 30 23 7 Total $ 782 $ 414 $ 368 $ 847 $ 454 $ 393 The Company recognized the following amounts as amortization expense related to intangible assets: In millions 2019 2018 2017 Amortization expense related to intangible assets $ 58 $ 59 $ 77 Based on current intangibles subject to amortization, estimated amortization expense for each of the succeeding years is as follows: 2020 – $50 million , 2021 – $48 million , 2022 – $46 million , 2023 – $41 million , 2024 – $41 million , and cumulatively thereafter – $136 million . |
Income Taxes (Note)
Income Taxes (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13 INCOME TAXES The components of International Paper’s earnings from continuing operations before income taxes and equity earnings by taxing jurisdiction were as follows: In millions 2019 2018 2017 Earnings (loss) U.S. $ 1,342 $ 1,450 $ 297 Non-U.S. 262 331 551 Earnings (loss) from continuing operations before income taxes and equity earnings $ 1,604 $ 1,781 $ 848 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the Tax Act). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35% to 21% ; (2) requiring companies to pay a one-time deemed repatriation transition tax (the Transition Tax) on certain earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax (AMT) and changing how AMT credits can be realized; (6) capital expensing; (7) eliminating the deduction on U.S. manufacturing activities; and (8) creating new limitations on deductible interest expense and executive compensation. In connection with our initial analysis of the impact of the Tax Act, we recorded a provisional net tax benefit of $1.22 billion in the period ending December 31, 2017. The net tax benefit primarily consisted of a net tax benefit for the re-measurement of U.S. deferred taxes of $1.454 billion and an expense for the Transition Tax of $231 million . During the period ended December 31, 2018, we recorded an additional net tax benefit of $36 million associated with the one-time effects of the Tax Act. The provision (benefit) for income taxes from continuing operations (excluding noncontrolling interests) by taxing jurisdiction was as follows: In millions 2019 2018 2017 Current tax provision (benefit) U.S. federal $ 271 $ 227 $ (73 ) U.S. state and local 29 37 (23 ) Non-U.S. 122 165 112 $ 422 $ 429 $ 16 Deferred tax provision (benefit) U.S. federal $ 44 $ 12 $ (1,150 ) U.S. state and local (23 ) 50 9 Non-U.S. 191 (46 ) 40 $ 212 $ 16 $ (1,101 ) Income tax provision (benefit) $ 634 $ 445 $ (1,085 ) The Company’s deferred income tax provision (benefit) includes a $44 million benefit, a $13 million benefit and a $1.459 billion benefit for 2019 , 2018 and 2017 , respectively, for the effect of various changes in non-U.S. and U.S. federal and state tax rates. International Paper made income tax payments, net of refunds, of $349 million , $388 million and $7 million in 2019 , 2018 and 2017 , respectively. A reconciliation of income tax expense using the statutory U.S. income tax rate compared with the actual income tax provision follows: In millions 2019 2018 2017 Earnings (loss) from continuing $ 1,604 $ 1,781 $ 848 Statutory U.S. income tax rate 21 % 21 % 35 % Tax expense (benefit) using statutory U.S. income tax rate 337 374 297 State and local income taxes 6 72 (7 ) Impact of rate differential on non-U.S. permanent differences and earnings 31 35 (36 ) Foreign valuation allowance 203 — — Tax expense (benefit) on manufacturing activities — (1 ) 23 Non-deductible business expenses 20 27 7 Non-deductible impairments 31 — — Tax audits — 28 — Deemed repatriation, net of foreign tax credits 1 (25 ) 231 U.S. federal tax rate change — (13 ) (1,451 ) Foreign derived intangible income deduction 2 (25 ) — US tax on non-U.S. earnings (GILTI and Subpart F) 36 19 44 Foreign tax credits (2 ) (15 ) (96 ) General business and other tax credits (33 ) (26 ) (86 ) Other, net 2 (5 ) (11 ) Income tax provision (benefit) $ 634 $ 445 $ (1,085 ) Effective income tax rate 40 % 25 % (128 )% The tax effects of significant temporary differences, representing deferred income tax assets and liabilities at December 31, 2019 and 2018 , were as follows: In millions 2019 2018 Deferred income tax assets: Postretirement benefit accruals $ 90 $ 89 Pension obligations 421 465 Tax credits 290 291 Net operating and capital loss carryforwards 621 594 Compensation reserves 181 191 Lease obligations 106 — Environmental reserves 93 78 Other 126 86 Gross deferred income tax assets $ 1,928 $ 1,794 Less: valuation allowance (a) (691 ) (441 ) Net deferred income tax asset $ 1,237 $ 1,353 Deferred income tax liabilities: Intangibles $ (152 ) $ (152 ) Investments (265 ) (255 ) Right of use assets (106 ) — Plants, properties and equipment (1,866 ) (1,826 ) Forestlands, related installment sales, and investment in subsidiary (1,407 ) (1,453 ) Gross deferred income tax liabilities $ (3,796 ) $ (3,686 ) Net deferred income tax liability $ (2,559 ) $ (2,333 ) (a) The net change in the total valuation allowance for the years ended December 31, 2019 and 2018 was an increase of $250 million and an increase of $12 million , respectively. The net change in the current year is primarily due to tax law changes in foreign jurisdictions impacting future utilization of deferred tax assets of $203 million . Deferred income tax assets and liabilities are recorded in the accompanying consolidated balance sheet under the captions Deferred charges and other assets and Deferred income taxes. Of the $1.4 billion of deferred tax liabilities for forestlands, related installment sales, and investment in subsidiary, $884 million is attributable to an investment in subsidiary and relates to a 2006 International Paper installment sale of forestlands and $485 million is attributable to a 2007 Temple-Inland installment sale of forestlands (see Note 15 ). A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 is as follows: In millions 2019 2018 2017 Balance at January 1 $ (220 ) $ (188 ) $ (98 ) (Additions) reductions for tax positions related to current year (5 ) (7 ) (54 ) (Additions) for tax positions related to prior years (6 ) (37 ) (40 ) Reductions for tax positions related to prior years 5 5 4 Settlements 31 2 6 Expiration of statutes of 3 2 1 Currency translation adjustment 3 3 (7 ) Balance at December 31 $ (189 ) $ (220 ) $ (188 ) If the Company were to prevail on the unrecognized tax benefits recorded, substantially all of the balances at December 31, 2019 , 2018 and 2017 would benefit the effective tax rate. The Company accrues interest on unrecognized tax benefits as a component of interest expense. Penalties, if incurred, are recognized as a component of income tax expense. The Company had approximately $21 million accrued for the payment of estimated interest and penalties associated with unrecognized tax benefits at both December 31, 2019 and 2018 , respectively. The major jurisdictions where the Company files income tax returns are the United States, Brazil, France, Poland and Russia. Generally, tax years 2006 through 2018 remain open and subject to examination by the relevant tax authorities. The Company frequently faces challenges regarding the amount of taxes due. These challenges include positions taken by the Company related to the timing, nature, and amount of deductions and the allocation of income among various tax jurisdictions. Pending audit settlements and the expiration of statute of limitations could reduce the uncertain tax positions by $53 million during the next twelve months. The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by International Paper do Brasil Ltda., a wholly-owned subsidiary of the Company. The Company received assessments for the tax years 2007-2015 totaling approximately $146 million in tax, and $387 million in interest and penalties as of December 31, 2019 (adjusted for variation in currency exchange rates). After a previous favorable ruling challenging the basis for these assessments, we received unfavorable decisions in October 2018 and November 2019 from the Brazilian Administrative Council of Tax Appeals. The Company has appealed and intends to further appeal these and any future unfavorable administrative judgments to the Brazilian federal courts; however, this tax litigation matter may take many years to resolve. The Company believes that it has appropriately evaluated the transaction underlying these assessments, and has concluded based on Brazilian tax law, that its tax position would be sustained. The Company intends to vigorously defend its position against the current assessments and any similar assessments that may be issued for tax years subsequent to 2015. The Company provides for foreign withholding taxes and any applicable U.S. state income taxes on earnings intended to be repatriated from non-U.S. subsidiaries, which we believe will be limited in the future to each year's current earnings. No provision for these taxes on approximately $2.2 billion of undistributed earnings of non-U.S. subsidiaries as of December 31, 2019 has been made, as these earnings are considered indefinitely invested. Determination of the amount of taxes that might be paid on these undistributed earnings if eventually remitted in a taxable manner is not practicable. If management decided to monetize the Company’s foreign investments, we would recognize the tax cost related to the excess of the book value over the tax basis of those investments. This would include foreign withholding taxes and any applicable U.S. Federal and state income taxes. Determination of the tax cost that that would be incurred upon monetization of the Company’s foreign investments is not practicable; however, we do not believe it would be material. The following details the scheduled expiration dates of the Company’s net operating loss and income tax credit carryforwards: In millions 2020 2030 Indefinite Total U.S. federal and non-U.S. NOLs $ 55 $ 48 $ 424 $ 527 State taxing jurisdiction NOLs (a) 76 18 — 94 U.S. federal, non- 160 12 118 290 U.S. federal and state capital loss carryforwards (a) — — — — Total $ 291 $ 78 $ 542 $ 911 Less: valuation allowance (a) (198 ) (44 ) (393 ) (635 ) Total, net $ 93 $ 34 $ 149 $ 276 (a) State amounts are presented net of federal benefit. |
Commitments And Contingent Liab
Commitments And Contingent Liabilities (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingent Liabilities | NOTE 14 COMMITMENTS AND CONTINGENT LIABILITIES GUARANTEES In connection with sales of businesses, property, equipment, forestlands and other assets, International Paper commonly makes representations and warranties relating to such businesses or assets, and may agree to indemnify buyers with respect to tax and environmental liabilities, breaches of representations and warranties, and other matters. Where liabilities for such matters are determined to be probable and reasonably estimable, accrued liabilities are recorded at the time of sale as a cost of the transaction. ENVIRONMENTAL AND LEGAL PROCEEDINGS Environmental International Paper has been named as a potentially responsible party (PRP) in environmental remediation actions under various federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Many of these proceedings involve the cleanup of hazardous substances at large commercial landfills that received waste from many different sources. While joint and several liability is authorized under CERCLA and equivalent state laws, as a practical matter, liability for CERCLA cleanups is typically allocated among the many PRPs. There are other remediation costs typically associated with the cleanup of hazardous substances at the Company’s current, closed or formerly-owned facilities, and recorded as liabilities in the balance sheet. Remediation costs are recorded in the consolidated financial statements when they become probable and reasonably estimable. International Paper has estimated the probable liability associated with these environmental remediation matters, including those described herein, to be approximately $157 million ( $166 million undiscounted) in the aggregate as of December 31, 2019 . Other than as described below, completion of required environmental remedial actions is not expected to have a material effect on our consolidated financial statements. Cass Lake: One of the matters included above arises out of a closed wood-treating facility located in Cass Lake, Minnesota. In June 2011, the United States Environmental Protection Agency (EPA) selected and published a proposed soil remedy at the site, the estimated cost of which is reflected in the overall remediation reserve for the site of $46 million as of December 31, 2019 . In October 2011, the EPA released a public statement indicating that the final soil remedy decision would be delayed. In June 2019, the EPA issued a revised proposed plan concerning clean-up standards at a portion of the site, the estimated cost of which is included within the reserve referenced above. In October 2012, the Natural Resource Trustees for this site provided notice to International Paper and other PRPs of their intent to perform a Natural Resource Damage Assessment. It is premature to predict the outcome of the assessment or to estimate a loss or range of loss, if any, in excess of the liability noted above which may be incurred. Kalamazoo River: The Company is a PRP with respect to the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund Site in Michigan. The EPA asserts that the site is contaminated by polychlorinated biphenyls (PCBs) primarily as a result of discharges from various paper mills located along the Kalamazoo River, including a paper mill (the Allied Paper Mill) formerly owned by St. Regis Paper Company (St. Regis). The Company is a successor in interest to St. Regis. • Operable Unit 5, Area 1: In March 2016, the Company and other PRPs received a special notice letter from the EPA (i) inviting participation in implementing a remedy for a portion of the site known as Operable Unit 5, Area 1, and (ii) demanding reimbursement of EPA past costs totaling $37 million , including $19 million in past costs previously demanded by the EPA. In December 2016, the EPA issued a unilateral administrative order to the Company and other PRPs to perform the remedy. The Company responded to the unilateral administrative order, agreeing to comply with the order subject to its sufficient cause defenses. • Operable Unit 5, Area 2: In September 2017, the EPA issued a Record of Decision selecting the final remedy for a portion of the site known as Operable Unit 5, Area 2, but has not yet issued a special notice letter for implementing the remedy. • Operable Unit 1: In October 2016, the Company and another PRP received a special notice letter from the EPA inviting participation in the remedial design component of the landfill remedy for the Allied Paper Mill, which is also known as Operable Unit 1. The Record of Decision establishing the final landfill remedy for the Allied Paper Mill was issued by the EPA in September 2016. In February 2017, the EPA informed the Company that it would make other arrangements for the performance of the remedial design. As noted below, the Company is involved in allocation/apportionment litigation with regard to the site. In addition, in December 2019, the United States published notice in the Federal Register of a proposed consent decree with NCR Corporation (one of the parties to the allocation/apportionment litigation described below), the State of Michigan and natural resource trustees under which NCR would make payments of more than $100 million and perform work at the Site at an estimated cost of $135.7 million . The public comment period with respect to the proposed consent decree closes in February 2020. The Company’s CERCLA liability has not been finally determined with respect to any portions of the site, and except as noted above, the Company has declined to perform any work or reimburse the EPA at this time. 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 a recorded 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 proposed consent decree with NCR described above, if entered, would result in the termination of NCR’s involvement in the appeal. Harris County: International Paper and McGinnis Industrial Maintenance Corporation (MIMC), a subsidiary of Waste Management, Inc. (WMI), are PRPs at the San Jacinto River Waste Pits Superfund Site in Harris County, Texas. The PRPs have been actively participating in the activities at the site and share the costs of these activities. In September 2016, the EPA issued a proposed remedial action plan (PRAP) for the site, which identified the preferred remedy as the removal of the contaminated material currently protected by an armored cap. In addition, the EPA selected a preferred remedy for the separate southern impoundment that requires offsite disposal. In January 2017, the PRPs submitted comments on the PRAP. On October 11, 2017, the EPA issued a Record of Decision (ROD) selecting the final remedy for the site: removal and relocation of the waste material from both the northern and southern impoundments. The EPA did not specify the methods or practices needed to perform this work. While the EPA’s selected remedy was accompanied by a cost estimate of approximately $115 million ( $105 million for the northern impoundment , and $10 million for the southern impoundment), we do not believe that estimate provides a reasonable basis for accrual under GAAP because the estimate was based on a technological method for performing the work that we believe is not feasible with respect to the northern impoundment. Subsequent to the issuance of the ROD, there have been numerous meetings between the EPA and the PRPs, and the Company continues to work with the EPA and MIMC/WMI to develop the remedial design. To this end, in April 2018, the PRPs entered into an Administrative Order on Consent (AOC) with the EPA, agreeing to work together to develop the remedial design over the subsequent 29 months. The AOC does not include any agreement to perform waste removal or other construction activity at the site. Rather, it involves adaptive management techniques and a pre-design investigation, the objectives of which include filling data gaps (including but not limited to post-Hurricane Harvey technical data generated prior to the ROD and not incorporated into the selected remedy), refining areas and volumes of materials to be addressed, determining if an excavation remedy is able to be implemented in a manner protective of human health and the environment, and investigating potential impacts of remediation activities to infrastructure in the vicinity. In October 2019, the PRPs received a special notice letter from the EPA (i) inviting participation in implementing the remedy described in the ROD, and (ii) demanding reimbursement of EPA’s past costs, for which we have accrued our portion as of December 31, 2019. In December 2019, the PRPs each responded to the special notice letter. In its response, the Company took the position that the special notice letter was premature and should be withdrawn, given concerns and uncertainties regarding the implementability and constructability of the remedy described in the ROD. The Company’s response to the special notice letter was consistent with concerns and uncertainties it has raised since the ROD was issued regarding the remedy described in the ROD and regarding the EPA’s estimates for the costs and time required to implement the selected remedy for the northern impoundment. The Company has determined, however, that even if the ROD cannot be implemented, a sheet pile "engineered barrier" can be constructed, which would enhance the existing remedy for the northern impoundment and could also be used should the ROD be determined to be feasible and implementable. In the third quarter of 2018, we increased our recorded liability accordingly to reflect the estimated cost of constructing this barrier. In December 2019, certain pre-design investigation results indicated that dry excavation of the southern impoundment as required by the ROD is feasible, and we increased our recorded liability accordingly to reflect the estimated cost of implementing this remedy for the southern impoundment. Because of ongoing questions regarding cost effectiveness, technical feasibility, timing and other technical data, however, it continues to be uncertain how the ROD will be implemented for the northern impoundment. Consequently, while additional losses in excess of our recorded liability are probable as a result of the selected remedy, 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. It remains reasonably possible that additional losses could be material as the remedial design process with the EPA continues over the coming quarters. International Paper and MIMC/WMI are also defending a lawsuit related to the site brought by approximately 600 individuals who allege property damage and personal injury. In the first quarter of 2020, the Company resolved a significant number of these plaintiffs’ claims, and we do not believe a material loss is reasonably possible with respect to the remaining plaintiffs’ claims, whether they are settled or litigated to verdict. Antitrust Containerboard: In January 2011, International Paper was named as a defendant in a lawsuit filed in state court in Cocke County, Tennessee alleging that International Paper violated Tennessee law by conspiring to limit the supply and fix the prices of containerboard from mid-2005 to the present. This lawsuit has been dismissed for failure to prosecute and is no longer pending. Italy: In March 2017, the Italian Competition Authority (ICA) commenced an investigation into the Italian packaging industry to determine whether producers of corrugated sheets and boxes violated the applicable European competition law. In April 2019, the ICA concluded its investigation and issued initial findings alleging that over 30 producers, including our Italian packaging subsidiary (IP Italy), improperly coordinated the production and sale of corrugated sheets and boxes. On August 6, 2019, the ICA issued its decision and assessed IP Italy a fine of €29 million (approximately $32 million at current exchange rates) which was recorded in the third quarter of 2019. This charge is included in the Antitrust fines and settlements line item in the accompanying consolidated statement of operations. However, we are vigorously appealing this decision of the ICA to the Italian courts and have numerous and strong bases for our appeal. Contract Signature: In August 2014, a lawsuit captioned Signature Industrial Services LLC et al. v. International Paper Company was filed in state court in Texas. The Signature lawsuit arises out of approximately $1 million in disputed invoices related to the installation of new equipment at the Company's Orange, Texas mill. In addition to the invoices in dispute, Signature and its president allege consequential damages arising from the Company's nonpayment of those invoices. The lawsuit was tried before a jury in Beaumont, Texas, in May 2017. On June 1, 2017, the jury returned a verdict awarding approximately $125 million in damages to the plaintiffs. The Court issued a judgment on December 14, 2017, awarding the plaintiffs a total of approximately $137 million in actual and consequential damages, fees, costs and pre-judgment interest, and awarding post-judgment interest. The Company has appealed this judgment. The Company has presented in its briefing numerous and strong bases for appeal, and we believe we will prevail on appeal. Because the appellate proceedings are ongoing, we are unable to estimate a range of reasonably possible loss, but we expect the amount of any loss to be immaterial. Taxes Other Than Payroll and Income Taxes In 2017, the Brazilian Federal Supreme Court decided that the state value-added tax (VAT) should not be included in the basis of federal VAT calculations. In 2018 and 2019, the Brazilian tax authorities published both an internal consultation and a normative ruling with a narrow interpretation of the effects of the case. We have determined that any related federal VAT refunds should be recognized when they are both probable and reasonably estimable. Based upon the best information available to us, we have determined that the amount of refund that is probable of being realized is limited to that determined by the tax authorities’ narrow interpretation, for which we have recognized a receivable of $6 million as of December 31, 2019. Upcoming court decisions and guidance from the tax authorities could expand the scope of the federal VAT refunds. General The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, personal injury, product liability, labor and employment, contracts, sales of property, intellectual property, tax and other matters, some of which allege substantial monetary damages. See Note 13 for details regarding a tax matter. Assessments of lawsuits and claims can involve a series of complex judgments about future events, can rely heavily on estimates and assumptions, and are otherwise subject to significant uncertainties. As a result, there can be no certainty that the Company will not ultimately incur charges in excess of presently recorded liabilities. The Company believes that loss contingencies arising from pending matters, including the matters described herein, will not have a material effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in pending or threatened legal matters, some of which are beyond the Company’s control, and the large or indeterminate damages sought in some of these matters, a future adverse ruling, settlement, unfavorable development, or increase in accruals with respect to these matters could result in future charges that could be material to the Company’s results of operations or cash flows in any particular reporting period. |
Variable Interest Entities (Not
Variable Interest Entities (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities And Preferred Securities Of Subsidiaries | NOTE 15 VARIABLE INTEREST ENTITIES In connection with the 2006 sale of approximately 5.6 million acres of forestlands, International Paper received installment notes (the Timber Notes) totaling approximately $4.8 billion . The Timber Notes were used as collateral for borrowings from third party lenders, which effectively monetized the Timber Notes through the creation of newly formed special purposes entities (the Entities). The monetization structure preserved the tax deferral that resulted from the 2006 forestlands sales. As of December 31, 2019, this deferred tax liability was $884 million . During 2015, International Paper initiated a series of actions in order to extend the 2006 monetization structure and maintain the long-term nature of the deferred tax liability. The Entities, with assets and liabilities primarily consisting of the Timber Notes and third-party bank loans (the Extension Loans), were restructured which resulted in the formation of wholly-owned, bankruptcy-remote special purpose entities (the 2015 Financing Entities). The Timber Notes are shown in Financial assets of variable interest entities on the accompanying consolidated balance sheet and mature in August 2021 unless extended for an additional five years . These notes, which do not require principal payments prior to their maturity, are supported by approximately $4.8 billion of irrevocable letters of credit. The Extension Loans are shown in Current nonrecourse financial liabilities of variable interest entities on the accompanying consolidated balance sheet and mature in the fourth quarter of 2020. These bank loans, totaling approximately $4.2 billion , are nonrecourse to the Company, and are secured by approximately $4.8 billion of Timber Notes, the irrevocable letters of credit supporting the Timber Notes and approximately $150 million of International Paper debt obligations. The $150 million of International Paper debt obligations are eliminated in the consolidation of the 2015 Financing Entities and are not reflected in the Company’s consolidated balance sheet. Provisions of loan agreements related to approximately $1.1 billion of the Extension Loans require the bank issuing letters of credit supporting the Timber Notes pledged as collateral to maintain a credit rating at or above a specified threshold. In the event the credit rating of the letter of credit bank is downgraded below the specified threshold, the letters of credit must be replaced within 60 days with letters of credit from a qualifying financial institution. As of December 31, 2019 and 2018, the fair value of the Timber Notes was $4.9 billion and $4.7 billion , respectively, and the fair value of the Extension Loans was $4.3 billion and $4.2 billion for the years ended 2019 and 2018. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 17 . Activity between the Company and the 2015 Financing Entities was as follows: In millions 2019 2018 2017 Revenue (a) $ 95 $ 95 $ 95 Expense (a) 128 128 128 Cash receipts (b) 95 95 95 Cash payments (c) 128 128 128 (a) The revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations. (b) The cash receipts are interest received on the Financial assets of variable interest entities. (c) The cash payments represent interest paid on Current nonrecourse financial liabilities of variable interest entities. In connection with the acquisition of Temple-Inland in February 2012, two special purpose entities became wholly-owned subsidiaries of International Paper. The use of the two wholly-owned special purpose entities discussed below preserved the tax deferral that resulted from the 2007 Temple-Inland timberlands sales. As of December 31, 2019, this deferred tax liability was $485 million , which will be settled with the maturity of the notes in 2027 . In October 2007, Temple-Inland sold 1.55 million acres of timberland for $2.4 billion . The total consideration consisted almost entirely of notes due in 2027 issued by the buyer of the timberland, which Temple-Inland contributed to two wholly-owned, bankruptcy-remote special purpose entities. The notes are shown in Financial assets of variable interest entities in the accompanying consolidated balance sheet and are supported by $2.4 billion of irrevocable letters of credit issued by three banks, which are required to maintain minimum credit ratings on their long-term debt. As of December 31, 2019 and 2018, the fair value of the notes was $2.3 billion and $2.2 billion , respectively. These notes are classified as Level 2 within the fair value hierarchy, which is further defined in Note 17 . In December 2007, Temple-Inland's two wholly-owned special purpose entities borrowed $2.1 billion which is shown in Long-term nonrecourse financial liabilities of variable interest entities. The loans are repayable in 2027 and are secured by the $2.4 billion of notes and the irrevocable letters of credit securing the notes, and are nonrecourse to us. The loan agreements provide that if a credit rating of any of the banks issuing the letters of credit is downgraded below the specified threshold, the letters of credit issued by that bank must be replaced within 30 days with letters of credit from another qualifying financial institution. As of December 31, 2019 and 2018, the fair value of this debt was $2.1 billion and $2.0 billion , respectively. This debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 17 . Activity between the Company and the 2007 financing entities was as follows: In millions 2019 2018 2017 Revenue (a) $ 79 $ 72 $ 49 Expense (b) 76 67 48 Cash receipts (c) 62 48 28 Cash payments (d) 69 57 39 (a) The revenue is included in Interest expense, net, in the accompanying consolidated statement of operations and includes approximately $19 million for the years ended December 31, 2019, 2018 and 2017, respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of variable interest entities. (b) The expense is included in Interest expense, net, in the accompanying consolidated statement of operations and includes approximately $7 million for the years ended December 31, 2019, 2018 and 2017, respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Long-term nonrecourse financial liabilities of variable interest 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 And Lines Of Credit (Note)
Debt And Lines Of Credit (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instruments [Abstract] | |
Debt And Lines Of Credit [Note Text Block] | NOTE 16 DEBT AND LINES OF CREDIT Amounts related to early debt extinguishment during the years ended December 31, 2019 , 2018 and 2017 were as follows: In millions 2019 2018 2017 Early debt reductions (a) $ 614 $ 780 $ 993 Pre-tax early debt extinguishment costs (b) 21 10 83 (a) Reductions related to notes with interest rates ranging from 1.57% to 9.50% with original maturities from 2018 to 2048 for the years ended December 31, 2019 , 2018 and 2017 . (b) Amounts are included in Restructuring and other charges in the accompanying consolidated statements of operations. In June 2018, the borrowing capacity of the commercial paper program was increased from $750 million to $1.0 billion . Under the terms of the program, individual maturities on borrowings may vary, but not exceed one year from the date of issue. Interest bearing notes may be issued either as fixed notes or floating rate notes. As of December 31, 2019 and 2018 , the Company had $30 million and $465 million , respectively, outstanding under this program. A summary of long-term debt follows: In millions at December 31 2019 2018 7.500% notes – due 2021 $ 406 $ 406 4.750% notes – due 2022 — 355 6.875% notes – due 2023 94 94 3.650% notes – due 2024 658 676 7.350% notes – due 2025 44 44 7.750% notes – due 2025 31 31 3.800% notes – due 2026 645 669 7.200% notes – due 2026 58 58 6.400% notes – due 2026 5 5 3.000% notes – due 2027 803 939 7.150% notes – due 2027 7 7 3.550% notes – due 2029 200 — 6.875% notes – due 2029 37 37 5.000% notes – due 2035 600 600 6.650% notes – due 2037 4 4 8.700% notes – due 2038 265 265 7.300% notes – due 2039 722 722 6.000% notes – due 2041 585 585 4.800% notes – due 2044 800 800 5.150% notes – due 2046 700 700 4.400% notes – due 2047 1,158 1,200 4.350% notes – due 2048 986 1,000 Floating rate notes – due 2019 – 2024 (a) 339 908 Environmental and industrial development bonds – due 2019 – 2035 (b) 552 556 Total principal 9,699 10,661 Capitalized leases 100 63 Premiums, discounts, and debt issuance costs (88 ) (98 ) Interest rate swaps 46 16 Other (c) 8 12 Total (d) 9,765 10,654 Less: current maturities 168 639 Long-term debt $ 9,597 $ 10,015 (a) The weighted average interest rate on these notes was 3.1% in 2019 and 3.5% in 2018 . (b) The weighted average interest rate on these bonds was 4.4% in 2019 and 5.5% in 2018 . (c) Includes $7 million and $10 million of fair market value adjustments as of December 31, 2019 and 2018, respectively. (d) The fair market value was approximately $10.9 billion at December 31, 2019 and $10.6 billion at December 31, 2018 . Total maturities of long-term debt over the next five years are 2020 – $168 million ; 2021 – $431 million ; 2022 – $136 million ; 2023 – $355 million ; and 2024 – $803 million . At December 31, 2019 , International Paper’s credit facilities (the Agreements) 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 that expires in December 2021 , and has a facility fee of 0.15% payable annually. The liquidity facilities also include up to $600 million of uncommitted financings based on eligible receivables balances under a receivables securitization program that expires in December 2020 . At December 31, 2019 , there were no borrowings under either the bank facility or receivables securitization program. The Company’s financial covenants require the maintenance of a minimum net worth, as defined in our debt agreements, of $9 billion and a total debt-to-capital ratio of less than 60% . Net worth is defined as the sum of common stock, paid-in capital and retained earnings, less treasury stock plus any cumulative goodwill impairment charges. The calculation also excludes accumulated other comprehensive income/loss and both the current and long-term Nonrecourse Financial Liabilities of Variable Interest Entities. The total debt-to-capital ratio is defined as total debt divided by the sum of total debt plus net worth. As of December 31, 2019 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives And Hedging Activities [Note Text Block] | NOTE 17 DERIVATIVES AND HEDGING ACTIVITIES International Paper periodically uses derivatives and other financial instruments to hedge exposures to interest rate, commodity and currency risks. International Paper does not hold or issue financial instruments for trading purposes. For hedges that meet the hedge accounting criteria, International Paper, at inception, formally designates and documents the instrument as a fair value hedge, a cash flow hedge or a net investment hedge of a specific underlying exposure. INTEREST RATE RISK MANAGEMENT Our policy is to manage interest cost using a mixture of fixed-rate and variable-rate debt. To manage this risk in a cost-efficient manner, we enter into interest rate swaps whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to a notional amount. Interest rate swaps that meet specific accounting criteria are accounted for as fair value or cash flow hedges. For fair value hedges, the changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in interest expense. For cash flow hedges, the effective portion of the changes in the fair value of the hedging instrument is reported in Accumulated other comprehensive income (AOCI) and reclassified into interest expense over the life of the underlying debt. The ineffective portion for both cash flow and fair value hedges, which is not material for any year presented, is immediately recognized in earnings. FOREIGN CURRENCY RISK MANAGEMENT We manufacture and sell our products and finance operations in a number of countries throughout the world and, as a result, are exposed to movements in foreign currency exchange rates. The purpose of our foreign currency hedging program is to manage the volatility associated with the changes in exchange rates. To manage this exchange rate risk, we have historically utilized a combination of forward contracts, options and currency swaps. Contracts that qualify are designated as cash flow hedges of certain forecasted transactions denominated in foreign currencies or net investment hedges of foreign denominated subsidiaries. For cash flow hedges, the effective portion of the changes in fair value of these instruments is reported in AOCI and reclassified into earnings in the same financial statement line item and in the same period or periods during which the related hedged transactions affect earnings. The ineffective portion, which is not material for any year presented, is immediately recognized in earnings. For net investment hedges, all changes in the fair value of these instruments are recorded in AOCI, offsetting the currency translation adjustment of the related investment that is also recorded in AOCI. The change in value of certain non-qualifying instruments used to manage foreign exchange exposure of intercompany financing transactions and certain balance sheet items subject to revaluation is immediately recognized in earnings, substantially offsetting the foreign currency mark-to-market impact of the related exposure. COMMODITY RISK MANAGEMENT Certain raw materials used in our production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. To manage the volatility in earnings due to price fluctuations, we may utilize swap contracts or forward purchase contracts. Derivative instruments are reported in the consolidated balance sheets at their fair values, unless the derivative instruments qualify for the normal purchase normal sale (NPNS) exception under GAAP and such exception has been elected. If the NPNS exception is elected, the fair values of such contracts are not recognized on the balance sheet. Contracts that qualify are designated as cash flow hedges of forecasted commodity purchases. The effective portion of the changes in fair value for these instruments is reported in AOCI and reclassified into earnings in the same financial statement line item and in the same period or periods during which the hedged transactions affect earnings. The ineffective and non-qualifying portions, which are not material for any year presented, are immediately recognized in earnings. The change in the fair value of certain non-qualifying instruments used to reduce commodity price volatility is immediately recognized in earnings. The notional amounts of qualifying and non-qualifying instruments used in hedging transactions were as follows: In millions December 31, 2019 December 31, 2018 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts (a) 407 407 Derivatives in Fair Value Hedging Relationships: Interest rate contracts 700 700 Derivatives in Net Investment Hedging Relationships: Interest rate contracts 475 — Derivatives Not Designated as Hedging Instruments: Electricity contract 16 8 Foreign exchange contracts 7 19 (a) These contracts had maturities of two years or less as of December 31, 2019 . 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) In millions 2019 2018 2017 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 4 $ (10 ) $ 15 Derivatives in Net Investment Hedging Relationships: Interest rate contracts $ 7 $ — $ — During the next 12 months , the amount of the December 31, 2019 AOCI balance, after tax, that is expected to be reclassified to earnings is a gain of $3 million . The amounts of gains and losses recognized in the consolidated statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows: Gain (Loss) Location of Gain In millions 2019 2018 2017 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (3 ) $ (1 ) $ 8 Cost of products sold Interest rate contracts (1 ) (1 ) (1 ) Interest expense, net Total $ (4 ) $ (2 ) $ 7 Gain (Loss) Recognized in Income Location of Gain (Loss) in Consolidated Statement of Operations In millions 2019 2018 2017 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ 30 $ 16 $ — Interest expense, net Debt (30 ) (16 ) — Interest expense, net Total $ — $ — $ — Derivatives Not Designated as Hedging Instruments: Electricity Contracts $ 3 $ 2 $ (10 ) Cost of products sold Foreign exchange contracts (2 ) 1 — Cost of products sold Interest rate contracts — — 1 (a) Interest expense, net Total $ 1 $ 3 $ (9 ) (a) Excluding gain of $1 million related to debt reduction recorded to Restructuring and other charges. Fair Value Measurements International Paper’s financial assets and liabilities that are recorded at fair value consist of derivative contracts, including interest rate swaps, foreign currency forward contracts, options and other financial instruments that are used to hedge exposures to interest rate, commodity and currency risks. For these financial instruments, fair value is determined at each balance sheet date using an income approach. The guidance for fair value measurements and disclosures sets out a fair value hierarchy that groups fair value measurement inputs into the following three classifications: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability reflecting the reporting entity’s own assumptions or external inputs from inactive markets. Transfers between levels are recognized at the end of the reporting period. All of International Paper’s derivative fair value measurements use Level 2 inputs. Below is a description of the valuation calculation and the inputs used for each class of contract: Interest Rate Contracts Interest rate contracts are valued using swap curves obtained from an independent market data provider. The market value of each contract is the sum of the fair value of all future interest payments between the contract counterparties, discounted to present value. The fair value of the future interest payments is determined by comparing the contract rate to the derived forward interest rate and present valued using the appropriate derived interest rate curve. Foreign Exchange Contracts Foreign currency forward and option contracts are valued using standard valuation models. Significant inputs used in these standard valuation models are foreign currency forward and interest rate curves and a volatility measurement. The fair value of each contract is present valued using the applicable interest rate. All significant inputs are readily available in public markets, or can be derived from observable market transactions. Electricity Contract The Company is party to an electricity contract used to manage market fluctuations in energy pricing. The Company's electricity contract is valued using the Mid-C index forward curve obtained from the Intercontinental Exchange. The market value of the contract is the sum of the fair value of all future purchase payments between the contract counterparties, discounted to present value. The fair value of the future purchase payments is determined by comparing the contract price to the forward price and present valued using International Paper's cost of capital. Since the volume and level of activity of the markets that each of the above contracts are traded in has been normal, the fair value calculations have not been adjusted for inactive markets or disorderly transactions. The following table provides a summary of the impact of our derivative instruments in the consolidated balance sheet: Fair Value Measurements Level 2 – Significant Other Observable Inputs Assets Liabilities In millions December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 10 $ 3 $ 4 $ 10 Interest rate contracts - net investment 11 — — — Interest rate contracts – fair value 47 16 — — Total derivatives designated as hedging instruments 68 19 4 10 Derivatives not designated as hedging instruments Electricity contract — — 2 4 Foreign exchange contracts — — 1 1 Total derivatives not designated as hedging instruments — — 3 5 Total derivatives $ 68 (a) $ 19 (b) $ 7 (c) $ 15 (d) (a) Includes $14 million recorded in Other current assets and $54 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (b) Included $2 million recorded in Other current assets and $17 million Deferred charges recorded in the accompanying consolidated balance sheet. (c) Included $6 million recorded in Other accrued liabilities and $1 million recorded in Other liabilities the accompanying consolidated balance sheet. (d) Included in Other accrued 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 consolidated 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. Credit-Risk-Related Contingent Features International Paper evaluates credit risk by monitoring its exposure with each counterparty to ensure that exposure stays within acceptable policy limits. Credit risk is also mitigated by contractual provisions with the majority of our banks. Certain of the contracts include a credit support annex that requires the posting of collateral by the counterparty or International Paper based on each party’s rating and level of exposure. Based on the Company’s current credit rating, the collateral threshold is generally $15 million . If the lower of the Company’s credit rating by Moody’s or S&P were to drop below investment grade, the Company would be required to post collateral for all of its derivatives in a net liability position, although no derivatives would terminate. The fair value of derivative instruments containing credit-risk-related contingent features in a net liability position was $1 million as of December 31, 2019 . As of December 31, 2018 , there were no derivative instruments containing credit-risk- related contingent features in a net liability position. The Company was not required to post any collateral as of December 31, 2019 or 2018 |
Capital Stock (Note)
Capital Stock (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | NOTE 18 CAPITAL STOCK The authorized capital stock at both December 31, 2019 and 2018 , consisted of 990,850,000 shares of common stock, $1 par value; 400,000 shares of cumulative $4 preferred stock, without par value (stated value $100 per share); and 8,750,000 shares of serial preferred stock, $1 par value. The serial preferred stock is issuable in one or more series by the Board of Directors without further shareholder action. The following is a rollforward of shares of common stock for the three years ended December 31, 2019 , 2018 and 2017 : Common Stock In thousands Issued Treasury Balance at January 1, 2017 448,916 37,671 Issuance of stock for various plans, net — (2,577 ) Repurchase of stock — 881 Balance at December 31, 2017 448,916 35,975 Issuance of stock for various plans, net — (1,721 ) Repurchase of stock — 14,056 Balance at December 31, 2018 448,916 48,310 Issuance of stock for various plans, net — (3,416 ) Repurchase of stock — 11,906 Balance at December 31, 2019 448,916 56,800 |
Retirement Plans (Note)
Retirement Plans (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
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 employees and hourly employees (receiving salaried benefits) hired prior to July 1, 2004, and substantially all other U.S. hourly union and non-union employees who work at a participating business unit regardless of hire date. These employees generally are eligible to participate in the Pension Plan upon attaining 21 years of age and completing one year of eligibility service. U.S. salaried employees and hourly employees (receiving salaried benefits) hired after June 30, 2004 are not eligible to participate in the Pension Plan, but receive a company contribution to their individual savings plan accounts (see Other U.S. Plans); however, salaried employees hired by Temple Inland prior to March 1, 2007 or Weyerhaeuser Company's Cellulose Fibers division prior to December 1, 2011 also participate in the Pension Plan. The Pension Plan provides defined pension benefits based on years of credited service and either final average earnings (salaried employees and hourly employees receiving salaried benefits), hourly job rates or specified benefit rates (hourly and union employees). The Company also has two unfunded nonqualified defined benefit pension plans: a Pension Restoration Plan available to employees hired prior to July 1, 2004 that provides retirement benefits based on eligible compensation in excess of limits set by the Internal Revenue Service, and a supplemental retirement plan for senior managers (SERP), which is an alternative retirement plan for salaried employees who are senior vice presidents and above or who are designated by the chief executive officer as participants. These nonqualified plans are only funded to the extent of benefits paid, which totaled $26 million , $29 million and $40 million in 2019 , 2018 and 2017 , respectively, and which are expected to be $28 million in 2020 . 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 as described later in this Note 19 . Many non-U.S. employees are covered by various retirement benefit arrangements, some of which are considered to be defined benefit pension plans for accounting purposes. OBLIGATIONS AND FUNDED STATUS The following table shows the changes in the benefit obligation and plan assets for 2019 and 2018 , and the plans’ funded status. 2019 2018 In millions U.S. Non- U.S. Non- Change in projected benefit obligation: Benefit obligation, January 1 $ 10,467 $ 215 $ 13,264 $ 247 Service cost 68 5 153 5 Interest cost 440 8 467 8 Curtailment — (1 ) — — Settlements — (6 ) (1,653 ) (2 ) Actuarial loss (gain) 1,230 33 (1,089 ) (17 ) Acquisitions — 3 — — Divestitures — (1 ) — — Plan amendments 40 — 2 — Benefits paid (546 ) (8 ) (677 ) (9 ) Effect of foreign currency exchange rate movements — 5 — (17 ) Benefit obligation, December 31 $ 11,699 $ 253 $ 10,467 $ 215 Change in plan assets: Fair value of plan assets, January 1 $ 8,735 $ 161 $ 11,368 $ 176 Actual return on plan assets 1,950 23 (332 ) (2 ) Company contributions 26 10 29 10 Benefits paid (546 ) (8 ) (677 ) (9 ) Settlements — (6 ) (1,653 ) (2 ) Effect of foreign currency exchange rate movements — 3 — (12 ) Fair value of plan assets, December 31 $ 10,165 $ 183 $ 8,735 $ 161 Funded status, December 31 $ (1,534 ) $ (70 ) $ (1,732 ) $ (54 ) Amounts recognized in the consolidated balance sheet: Non-current asset $ — $ 6 $ — $ 5 Current liability (28 ) (3 ) (27 ) (2 ) Non-current liability (1,506 ) (73 ) (1,705 ) (57 ) $ (1,534 ) $ (70 ) $ (1,732 ) $ (54 ) Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax): Prior service cost (credit) $ 98 $ (1 ) $ 74 $ (1 ) Net actuarial loss 2,851 75 3,140 57 $ 2,949 $ 74 $ 3,214 $ 56 The largest contributor to the actuarial loss affecting the benefit obligation was the decrease in the discount rate from 4.30% at December 31, 2018 to 3.40% at December 31, 2019. However positive asset returns offset the higher obligation for a slightly improved funded position. The components of the $(265) million and $18 million related to U.S. plans and non-U.S. plans, respectively, in the amounts recognized in OCI during 2019 consisted of: In millions U.S. Non- Current year actuarial (gain) loss $ (89 ) $ 19 Amortization of actuarial loss (200 ) (2 ) Current year prior service cost 40 — Amortization of prior service cost (16 ) — Settlements/curtailments — (1 ) Effect of foreign currency exchange rate movements — 2 $ (265 ) $ 18 The portion of the change in the funded status that was recognized in net periodic benefit cost and OCI for the U.S. plans was $(172) million , $(134) million and $(184) million in 2019 , 2018 and 2017 , respectively. The portion of the change in funded status for the non-U.S. plans was $24 million , $(6) million , and $10 million in 2019 , 2018 and 2017 , respectively. The accumulated benefit obligation at December 31, 2019 and 2018 was $11.7 billion and $10.4 billion , respectively, for our U.S. defined benefit plans and $236 million and $200 million , respectively, at December 31, 2019 and 2018 for our non-U.S. defined benefit plans. The following table summarizes information for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2019 and 2018 : 2019 2018 In millions U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 11,699 $ 225 $ 10,467 $ 187 Accumulated benefit obligation 11,672 208 10,440 175 Fair value of plan assets 10,165 149 8,735 128 ASC 715, “Compensation – Retirement Benefits” provides for delayed recognition of actuarial gains and losses, including amounts arising from changes in the estimated projected plan benefit obligation due to changes in the assumed discount rate, differences between the actual and expected return on plan assets and other assumption changes. These net gains and losses are recognized prospectively over a period that approximates the average remaining service period of active employees expected to receive benefits under the plans to the extent that they are not offset by gains in subsequent years. NET PERIODIC PENSION EXPENSE Service cost is the actuarial present value of benefits attributed by the plans’ benefit formula to services rendered by employees during the year. Interest cost represents the increase in the projected benefit obligation, which is a discounted amount, due to the passage of time. The expected return on plan assets reflects the computed amount of current-year earnings from the investment of plan assets using an estimated long-term rate of return. Net periodic pension expense for qualified and nonqualified U.S. and non-U.S. defined benefit plans comprised the following: 2019 2018 2017 In millions U.S. Non- U.S. Non- U.S. Non- Service cost $ 68 $ 5 $ 153 $ 5 $ 160 $ 4 Interest cost 440 8 467 8 536 9 Expected return on plan assets (631 ) (10 ) (765 ) (11 ) (774 ) (11 ) Actuarial loss (gain) 200 2 337 2 339 2 Amortization of prior service cost 16 — 16 — 28 — Curtailment loss (gain) (a) — (1 ) — — 23 — Settlement loss — 2 424 — 383 1 Special termination benefits (a) — — — — 22 — Net periodic pension expense $ 93 $ 6 $ 632 $ 4 $ 717 $ 5 (a) 2017 amounts were recorded in Discontinued operations in the consolidated statement of operations. The components of net periodic pension expense other than the Service cost component are included in Non-operating pension expense in the Consolidated Statement of Operations. The decrease in 2019 pension expense primarily reflects lower service cost due to the salaried pension freeze, lower amortization and the current year absence of a settlement loss related to the October 2018 annuity purchase transaction slightly offset by lower asset returns due to the 2018 annuity purchase. On September 25, 2018, the Company entered into an agreement with The Prudential Insurance Company of America to purchase a group annuity contract and transfer approximately $1.6 billion of International Paper's U.S. qualified pension plan projected benefit obligations, subject to customary closing conditions. The transaction closed on October 2, 2018 and was funded with pension plan assets. Under the transaction, at the end of 2018, Prudential assumed responsibility for pension benefits and annuity administration for approximately 23,000 retirees or their beneficiaries receiving less than $1,000 in monthly benefit payments from the plan. Settlement accounting rules required a remeasurement of the qualified plan as of October 2, 2018 and the Company recognized a non-cash pension settlement charge of $424 million before tax in the fourth quarter of 2018. On September 26, 2017, the Company entered into an agreement with The Prudential Insurance Company of America to purchase a group annuity contract and transfer approximately $1.3 billion of International Paper's U.S. qualified pension plan projected benefit obligations, subject to customary closing conditions. The transaction closed on October 3, 2017 and was funded with pension plan assets. Under the transaction, at the end of 2017, Prudential assumed responsibility for pension benefits and annuity administration for approximately 45,000 retirees or their beneficiaries receiving less than $450 in monthly benefit payments from the plan. Settlement accounting rules required a remeasurement of the qualified plan as of October 3, 2017 and the Company recognized a non-cash pension settlement charge of $376 million before tax in the fourth quarter of 2017. In addition, large payments from the non-qualified pension plan also required a remeasurement as of October 2, 2017 and a non-cash settlement charge of $7 million was also recognized in the fourth quarter of 2017. ASSUMPTIONS International Paper evaluates its actuarial assumptions annually as of December 31 (the measurement date) and considers changes in these long-term factors based upon market conditions and the requirements for employers’ accounting for pensions. These assumptions are used to calculate benefit obligations as of December 31 of the current year and pension expense to be recorded in the following year (i.e., the discount rate used to determine the benefit obligation as of December 31, 2019 is also the discount rate used to determine net pension expense for the 2020 year). Major actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit plans are presented in the following table: 2019 2018 2017 U.S. Non- U.S. Non- U.S. Non- Actuarial assumptions used to determine benefit obligations as of December 31: Discount rate 3.40 % 2.70 % 4.30 % 3.97 % 3.60 % 3.59 % Rate of compensation increase 2.25 % 3.62 % 2.25 % 4.05 % 3.75 % 4.06 % Actuarial assumptions used to determine net periodic pension cost for years ended December 31: Discount rate (a) 4.30 % 3.97 % 3.80 % 3.59 % 4.03 % 3.88 % Expected long-term rate of return on plan assets 7.25 % 6.20 % 7.50 % 6.52 % 7.50 % 6.73 % Rate of compensation increase 2.25 % 4.05 % 3.38 % 4.06 % 3.75 % 4.20 % (a) Represents the weighted average rate for the U.S. qualified plans in 2018 and 2017 due to the remeasurements. The expected long-term rate of return on plan assets is based on projected rates of return for current asset classes in the plan’s investment portfolio. Projected rates of return are developed through an asset/liability study in which projected returns for each of the plan’s asset classes are determined after analyzing historical experience and future expectations of returns and volatility of the various asset classes. Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolio is developed considering the effects of active portfolio management and expenses paid from plan assets. The discount rate assumption was determined from a universe of high quality corporate bonds. A settlement portfolio is selected and matched to the present value of the plan’s projected benefit payments. To calculate pension expense for 2020, the Company will use an expected long-term rate of return on plan assets of 7.00% for the Retirement Plan of International Paper, a discount rate of 3.40% and an assumed rate of compensation increase of 2.25% . The Company estimates that it will record net pension expense of approximately $46 million for its U.S. defined benefit plans in 2020 , compared to expense of $93 million in 2019 . The estimated decrease in net pension expense in 2020 is primarily due to higher return on assets and lower interest cost partially offset by higher amortization of actuarial losses and higher service cost. For non-U.S. pension plans, assumptions reflect economic assumptions applicable to each country. The following illustrates the effect on pension expense for 2020 of a 25 basis point decrease in the above assumptions: In millions 2020 Expense (Income): Discount rate $ 31 Expected long-term rate of return on plan assets 24 PLAN ASSETS International Paper’s Board of Directors has appointed a Fiduciary Review Committee that is responsible for fiduciary oversight of the U.S. Pension Plan, approving investment policy and reviewing the management and control of plan assets. Pension Plan assets are invested to maximize returns within prudent levels of risk. The Pension Plan maintains a strategic asset allocation policy that designates target allocations by asset class. Investments are diversified across classes and within each class to minimize the risk of large losses. Derivatives, including swaps, forward and futures contracts, may be used as asset class substitutes or for hedging or other risk management purposes. Periodic reviews are made of investment policy objectives and investment manager performance. For non-U.S. plans, assets consist principally of common stock and fixed income securities. International Paper’s U.S. pension allocations by type of fund at December 31, 2019 and 2018 and target allocations were as follows: Asset Class 2019 2018 Target Equity accounts 37 % 32 % 32% - 43% Fixed income accounts 50 % 51 % 44% - 56% Real estate accounts 8 % 11 % 5% - 11% Other 5 % 6 % 3% - 8% Total 100 % 100 % The fair values of International Paper’s pension plan assets at December 31, 2019 and 2018 by asset class are shown below. Hedge funds disclosed in the following table are allocated to fixed income accounts for target allocation purposes. Following our adoption of ASU 2018-09 "Codification Improvements", we have evaluated certain investments and classified them as Level 2 (previously Level 0). Prior year leveling disclosures have been updated for comparability as a result of our retrospective adoption of this disclosure guidance. Fair Value Measurement at December 31, 2019 Asset Class Total Quoted Significant Significant In millions Equities – domestic $ 1,613 $ 965 $ 648 $ — Equities – international 2,181 1,599 582 — Corporate bonds 1,845 — 1,845 — Government securities 2,659 — 2,659 — Mortgage backed securities 1 — 1 — Other fixed income (647 ) — (661 ) 14 Derivatives (19 ) — — (19 ) Cash and cash equivalents 336 336 — — Other investments: Hedge funds 902 Private equity 522 Real estate funds 772 Total Investments $ 10,165 $ 2,900 $ 5,074 $ (5 ) Fair Value Measurement at December 31, 2018 Asset Class Total Quoted Significant Significant In millions Equities – domestic $ 1,200 $ 685 $ 515 $ — Equities – international 1,583 1,141 442 — Corporate bonds 1,493 — 1,493 — Government securities 2,262 — 2,262 — Other fixed income (543 ) — (556 ) 13 Derivatives 98 — — 98 Cash and cash equivalents 294 294 — — Other investments: Hedge funds 886 Private equity 518 Real estate funds 944 Total Investments $ 8,735 $ 2,120 $ 4,156 $ 111 In accordance with accounting standards, certain investments that are measured at NAV and are not classified in the fair value hierarchy. Other Investments at December 31, 2019 Investment Fair Value Unfunded Commitments Redemption Frequency Remediation Notice Period In millions Hedge funds 902 — Daily to annually 1 - 100 days Private equity 522 198 (a) None Real estate funds 772 147 Quarterly 45 - 60 days Total $ 2,196 $ 345 (a) A private equity fund investment ("partnership interest") is contractually locked up for the life of the private equity fund by the partnership agreement. Limited partners do not have the option to redeem partnership interests. Other Investments at December 31, 2018 Investment Fair Value Unfunded Commitments Redemption Frequency Remediation Notice Period In millions Hedge funds 886 — Daily to annually 1 - 100 days Private equity 518 310 (a) None Real estate funds 944 109 Quarterly 45 - 60 days Total $ 2,348 $ 419 (a) A private equity fund investment ("partnership interest") is contractually locked up for the life of the private equity fund by the partnership agreement. Limited partners do not have the option to redeem partnership interests. Equity securities consist primarily of publicly traded U.S. companies and international companies. Publicly traded equities are valued at the closing prices reported in the active market in which the individual securities are traded. Fixed income consists of government securities, mortgage-backed securities, corporate bonds, common collective funds and other fixed income investments. Government securities are valued by third-party pricing sources. Mortgage-backed security holdings consist primarily of agency-rated holdings. The fair value estimates for mortgage securities are calculated by third-party pricing sources chosen by the custodian’s price matrix. Corporate bonds are valued using either the yields currently available on comparable securities of issuers with similar credit ratings or using a discounted cash flows approach that utilizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. Common collective funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. Other fixed income investments of $(647) million and $(543) million at December 31, 2019 and 2018, respectively, primarily include reverse repurchase agreement obligations in which we have sold a security and have an agreement to repurchase the same or substantially the same security at a later date for a price specified in the agreement. Derivative investments such as futures, forward contracts, options and swaps are used to help manage risks. Derivatives are generally employed as asset class substitutes (such as when employed in a portable alpha strategy), for managing asset/liability mismatches, or bona fide hedging or other appropriate risk management purposes. Derivative instruments are generally valued by the investment managers or in certain instances by third-party pricing sources. Hedge funds are investment structures for managing private, loosely-regulated investment pools that can pursue a diverse array of investment strategies with a wide range of different securities and derivative instruments. These investments are made through funds-of-funds (commingled, multi-manager fund structures) and through direct investments in individual hedge funds. Hedge funds are primarily valued by each fund’s third-party administrator based upon the valuation of the underlying securities and instruments and primarily by applying a market or income valuation methodology as appropriate depending on the specific type of security or instrument held. Funds-of-funds are valued based upon the net asset values of the underlying investments in hedge funds. Private equity consists of interests in partnerships that invest in U.S. and non-U.S. debt and equity securities. Partnership interests are valued using the most recent general partner statement of fair value, updated for any subsequent partnership interest cash flows. Real estate funds include commercial properties, land and timberland, and generally include, but are not limited to, retail, office, industrial, multifamily and hotel properties. Real estate fund values are primarily reported by the fund manager and are based on valuation of the underlying investments which include inputs such as cost, discounted cash flows, independent appraisals and market based comparable data. The following is a reconciliation of the assets that are classified using significant unobservable inputs (Level 3) at December 31, 2019 . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) In millions Mortgage backed securities Other Derivatives Total Beginning balance at December 31, 2017 $ 1 $ 12 $ 16 $ 29 Actual return on plan assets: Relating to assets still held at the reporting date — 1 75 76 Relating to assets sold during the period — — (19 ) (19 ) Purchases, sales and settlements (1 ) — 26 25 Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2018 $ — $ 13 $ 98 $ 111 Actual return on plan assets: Relating to assets still held at the reporting date — 1 (127 ) (126 ) Relating to assets sold during the period — — 314 314 Purchases, sales and settlements — — (304 ) (304 ) Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2019 $ — $ 14 $ (19 ) $ (5 ) FUNDING AND CASH FLOWS The Company’s funding policy for the Pension Plan 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 plans, tax deductibility, cash flow generated by the Company, and other factors. The Company continually reassesses the amount and timing of any discretionary contributions. Contributions to the qualified plan totaling $1.25 billion were made by the Company in 2017 . No voluntary contributions were made in 2018 or 2019. Generally, International Paper’s non-U.S. pension plans are funded using the projected benefit as a target, except in certain countries where funding of benefit plans is not required. At December 31, 2019 , projected future pension benefit payments, excluding any termination benefits, were as follows: In millions 2020 $ 569 2021 579 2022 593 2023 607 2024 619 2025-2029 3,217 OTHER U.S. PLANS International Paper sponsors the International Paper Company Salaried Savings Plan and the International Paper Company Hourly Savings Plan, both of which are tax-qualified defined contribution 401(k) savings plans. Substantially all U.S. salaried and certain hourly employees are eligible to participate and may make elective deferrals to such plans to save for retirement. International Paper makes matching contributions to participant accounts on a specified percentage of employee deferrals as determined by the provisions of each plan. The Company makes Retirement Savings Account contributions equal to a percentage of an eligible employee’s pay. Beginning in 2019, as a result of the freeze for salaried employees under the Pension Plan, all salaried employees are eligible for the contribution to the Retirement Savings Account. The Company also sponsors the International Paper Company Deferred Compensation Savings Plan, which is an unfunded nonqualified defined contribution plan. This plan permits eligible employees to continue to make deferrals and receive company matching contributions (and Retirement Savings Account contributions) when their contributions to the International Paper Salaried Savings Plan are stopped due to limitations under U.S. tax law. Participant deferrals and company contributions are not invested in a separate trust, but are paid directly from International Paper’s general assets at the time benefits become due and payable. Company contributions to the plans totaled approximately $172 million , $125 million and $117 million for the plan years ending in 2019 , 2018 and 2017 , respectively. The increase in 2019 reflects increased contributions in connection with the salaried pension plan freeze. |
Postretirement Benefits (Note)
Postretirement Benefits (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Postretirement Benefits | NOTE 20 POSTRETIREMENT BENEFITS U.S. POSTRETIREMENT BENEFITS International Paper provides certain retiree health care and life insurance benefits covering certain U.S. salaried and hourly employees. These employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. International Paper does not fund these benefits prior to payment and has the right to modify or terminate certain of these plans in the future. In addition to the U.S. plan, certain Brazilian and Moroccan employees are eligible for retiree health care and life insurance benefits. The components of postretirement benefit expense in 2019 , 2018 and 2017 were as follows: In millions 2019 2018 2017 U.S. Non- U.S. Non- U.S. Non- Service cost $ — $ 1 $ 1 $ — $ 1 $ — Interest cost 8 1 8 2 11 2 Actuarial loss 4 2 9 2 8 3 Amortization of prior service credits (2 ) (3 ) (2 ) (3 ) (3 ) (4 ) Net postretirement expense $ 10 $ 1 $ 16 $ 1 $ 17 $ 1 International Paper evaluates its actuarial assumptions annually as of December 31 (the measurement date) and considers changes in these long-term factors based upon market conditions and the requirements of employers’ accounting for postretirement benefits other than pensions. The discount rate assumption was determined based on a hypothetical settlement portfolio selected from a universe of high quality corporate bonds. The discount rates used to determine net U.S. and non-U.S. postretirement benefit cost for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 U.S. Non- U.S. Non- U.S. Non- Discount rate 4.20 % 9.10 % 3.50 % 9.38 % 4.00 % 10.53 % The weighted average assumptions used to determine the benefit obligation at December 31, 2019 and 2018 were as follows: 2019 2018 U.S. Non- U.S. Non- Discount rate 3.30 % 7.15 % 4.20 % 9.10 % Health care cost trend rate assumed for next year 6.75 % 9.57 % 7.00 % 10.04 % Rate that the cost trend rate gradually declines to 5.00 % 4.78 % 5.00 % 4.93 % Year that the rate reaches the rate it is assumed to remain 2026 2030 2026 2030 The plans are only funded in an amount equal to benefits paid. The following table presents the changes in benefit obligation and plan assets for 2019 and 2018 : In millions 2019 2018 U.S. Non- U.S. Non- Change in projected benefit obligation: Benefit obligation, January 1 $ 213 $ 24 $ 270 $ 25 Service cost — 1 1 — Interest cost 8 1 8 2 Participants’ contributions 4 — 5 — Actuarial (gain) loss 20 8 (34 ) 2 Benefits paid (32 ) (2 ) (38 ) (1 ) Less: Federal subsidy 1 — 1 — Currency Impact — (1 ) — (4 ) Benefit obligation, December 31 $ 214 $ 31 $ 213 $ 24 Change in plan assets: Fair value of plan assets, January 1 $ — $ — $ — $ — Company contributions 28 2 33 1 Participants’ contributions 4 — 5 — Benefits paid (32 ) (2 ) (38 ) (1 ) Fair value of plan assets, December 31 $ — $ — $ — $ — Funded status, December 31 $ (214 ) $ (31 ) $ (213 ) $ (24 ) Amounts recognized in the consolidated balance sheet under ASC 715: Current liability $ (21 ) $ (1 ) $ (23 ) $ (1 ) Non-current liability (193 ) (30 ) (190 ) (23 ) $ (214 ) $ (31 ) $ (213 ) $ (24 ) Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax): Net actuarial loss (gain) $ 47 $ 19 $ 31 $ 15 Prior service credit (2 ) (18 ) (4 ) (22 ) $ 45 $ 1 $ 27 $ (7 ) The non-current portion of the liability is included with the postemployment liability in the accompanying consolidated balance sheet under Postretirement and postemployment benefit obligation. The components of the $18 million and $8 million change in the amounts recognized in OCI during 2019 for U.S. and non-U.S. plans, respectively, consisted of: In millions U.S. Non- Current year actuarial (gain) loss $ 20 $ 7 Amortization of actuarial (loss) gain (4 ) (2 ) Current year prior service cost — — Amortization of prior service credit 2 3 Currency impact — — $ 18 $ 8 The portion of the change in the funded status that was recognized in net periodic benefit cost and OCI for the U.S. plans was $29 million , $(25) million and $25 million in 2019 , 2018 and 2017 , respectively. The portion of the change in funded status for the non-U.S. plans was $9 million , $5 million , and $3 million in 2019 , 2018 and 2017 , respectively. At December 31, 2019 , estimated total future postretirement benefit payments, net of participant contributions and estimated future Medicare Part D subsidy receipts, were as follows: In millions Benefit Subsidy Receipts Benefit U.S. U.S. Non- 2020 $ 22 $ 1 $ 1 2021 21 1 — 2022 20 1 1 2023 18 1 1 2024 17 1 1 2025 – 2029 73 4 6 |
Incentive Plans (Note)
Incentive Plans (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Incentive Plans | NOTE 21 INCENTIVE PLANS International Paper currently has an Incentive Compensation Plan (ICP). The ICP authorizes 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 Management Development and Compensation Committee of the Board of Directors (the Committee) that administers the ICP. Additionally, restricted stock, which may be deferred into RSU’s, may be awarded under a Restricted Stock and Deferred Compensation Plan for Non-Employee Directors. PERFORMANCE SHARE PLAN Under the Performance Share Plan (PSP), contingent awards of International Paper common stock are granted by the Committee. The PSP awards are earned over a three-year period. PSP awards are earned based on the achievement of defined performance of Return on Invested Capital (ROIC) measured against our internal benchmark and ranking of Total Shareholder Return (TSR) compared to the TSR peer group of companies. The 2017-2019 Award is weighted 75% for ROIC and 25% for TSR for all participants except for officers for whom the awards are weighted 50% for ROIC and 50% for TSR. The 2018-2020 and 2019-2021 Awards are weighted 50% ROIC and 50% TSR for all participants. The ROIC component of the PSP awards is valued at the closing stock price on the day prior to the grant date. As the ROIC component contains a performance condition, compensation expense, net of estimated forfeitures, is recorded over the requisite service period based on the most probable number of awards expected to vest. The TSR component of the PSP awards is valued using a Monte Carlo simulation as the TSR component contains a market condition. The Monte Carlo simulation estimates the fair value of the TSR component based on the expected term of the award, a risk-free rate, expected dividends, and the expected volatility for the Company and its competitors. The expected term is estimated based on the vesting period of the awards, the risk-free rate is based on the yield on U.S. Treasury securities matching the vesting period, and the volatility is based on the Company’s historical volatility over the expected term. PSP grants are made in performance-based restricted stock units. The following table sets forth the assumptions used to determine compensation cost for the market condition component of the PSP plan: Twelve Months Ended December 31, 2019 Expected volatility 22.81%-24.60% Risk-free interest rate 1.47%-2.44% The following summarizes PSP activity for the three years ended December 31, 2019 : Share/Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 5,950,130 $35.89 Granted 2,163,912 51.78 Shares issued (1,876,134 ) 51.00 Forfeited (438,024 ) 45.96 Outstanding at December 31, 2017 5,799,884 36.17 Granted 1,751,235 62.97 Shares issued (1,588,642 ) 53.67 Forfeited (196,000 ) 56.57 Outstanding at December 31, 2018 5,766,477 38.79 Granted 2,353,613 43.49 Shares issued (2,367,135 ) 36.79 Forfeited (238,227 ) 50.64 Outstanding at December 31, 2019 5,514,728 $41.14 RESTRICTED STOCK AWARD PROGRAMS The service-based Restricted Stock Award program (RSA), designed for recruitment, retention and special recognition purposes, provides for awards of restricted stock to key employees. The following summarizes the activity of the RSA program for the three years ended December 31, 2019 : Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 169,331 $45.34 Granted 63,319 57.24 Shares issued (59,650 ) 47.90 Forfeited (6,700 ) 53.53 Outstanding at December 31, 2017 166,300 48.63 Granted 66,100 51.43 Shares issued (100,289 ) 48.44 Forfeited — — Outstanding at December 31, 2018 132,111 50.17 Granted 87,910 43.70 Shares issued (52,021 ) 48.90 Forfeited (7,300 ) 45.10 Outstanding at December 31, 2019 160,700 $47.27 At December 31, 2019 , 2018 and 2017 a total of 9.8 million , 11.9 million and 13.2 million shares, respectively, were available for grant under the ICP. Stock-based compensation expense and related income tax benefits were as follows: In millions 2019 2018 2017 Total stock-based compensation expense (included in selling and administrative expense) $ 130 $ 135 $ 147 Income tax benefits related to stock-based compensation 30 16 45 At December 31, 2019 , $92 million of compensation cost, net of estimated forfeitures, related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 1.6 years. |
Financial Information By Busine
Financial Information By Business Segment And Geographic Area (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Financial Information By Business Segment And Geographic Area | NOTE 22 FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA International Paper’s business segments, Industrial Packaging, Global Cellulose Fibers and Printing Papers, are consistent with the internal structure used to manage these businesses. See the Description of Business Segments in Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for a description of the types of products and services from which each reportable segment derives its revenues. All segments are differentiated on a common product, common customer basis consistent with the business segmentation generally used in the Forest Products industry. Business segment operating profits are used by International Paper’s management to measure the earnings performance of its businesses. Management believes that this measure allows a better understanding of trends in costs, operating efficiencies, prices and volumes. Business segment operating profits are defined as earnings (loss) from continuing operations before income taxes and equity earnings, but including the impact of equity earnings and noncontrolling interests, and excluding interest expense, net, corporate items, net, corporate special items, net, business special items, net, and non-operating pension expense. In 2019, the Company changed its measure of business segment operating profits to exclude items considered by management to be unusual (business special items, net) from the normal operations of the business segment. As a result, all prior periods have been restated to reflect the current measure. External sales by major product is determined by aggregating sales from each segment based on similar products or services. External sales are defined as those that are made to parties outside International Paper’s consolidated group, whereas sales by segment in the Net Sales table are determined using a management approach and include intersegment sales. INFORMATION BY BUSINESS SEGMENT Net Sales In millions 2019 2018 2017 Industrial Packaging $ 15,326 $ 15,900 $ 15,077 Global Cellulose Fibers 2,551 2,819 2,551 Printing Papers 4,291 4,375 4,157 Corporate and Intersegment Sales (a) 208 212 (42 ) Net Sales $ 22,376 $ 23,306 $ 21,743 Operating Profit In millions 2019 2018 2017 Industrial Packaging $ 2,076 $ 2,277 $ 1,919 Global Cellulose Fibers (6 ) 262 116 Printing Papers 529 543 459 Business Segment Operating Profit 2,599 3,082 2,494 Earnings (loss) from continuing operations before income taxes and equity earnings 1,604 1,781 848 Interest expense, net 491 536 572 Noncontrolling interests / equity earnings adjustment (b) 3 (10 ) (2 ) Corporate expenses, net (a) 54 67 91 Corporate special items, net (a) 104 9 76 Business special items, net 307 205 425 Non-operating pension expense 36 494 484 $ 2,599 $ 3,082 $ 2,494 Business Special Items, Net In millions 2019 2018 2017 Industrial Packaging $ 78 $ 184 $ 372 Global Cellulose Fibers 68 11 51 Printing Papers 161 10 2 Business Special Items, Net $ 307 $ 205 $ 425 Assets In millions 2019 2018 Industrial Packaging $ 16,338 $ 15,859 Global Cellulose Fibers 3,733 3,880 Printing Papers 3,476 3,905 Corporate and other (c) 9,924 9,932 Assets $ 33,471 $ 33,576 Capital Spending In millions 2019 2018 2017 Industrial Packaging $ 922 $ 1,061 $ 836 Global Cellulose Fibers 162 183 188 Printing Papers 172 303 235 Subtotal 1,256 1,547 1,259 Corporate and other 20 25 21 Capital Spending $ 1,276 $ 1,572 $ 1,280 Depreciation, Amortization and Cost of Timber Harvested In millions 2019 2018 2017 Industrial Packaging $ 794 $ 803 $ 815 Global Cellulose Fibers 263 262 264 Printing Papers 244 258 254 Corporate (d) 5 5 10 Depreciation and Amortization $ 1,306 $ 1,328 $ 1,343 External Sales By Major Product In millions 2019 2018 2017 Industrial Packaging $ 15,259 $ 15,828 $ 14,946 Global Cellulose Fibers 2,545 2,810 2,524 Printing Papers 4,284 4,359 4,142 Other (e) 288 309 131 Net Sales $ 22,376 $ 23,306 $ 21,743 INFORMATION BY GEOGRAPHIC AREA Net Sales (f) In millions 2019 2018 2017 United States (g) $ 16,948 $ 17,609 $ 16,247 EMEA 3,258 3,321 3,129 Pacific Rim and Asia 415 605 625 Americas, other than U.S. 1,755 1,771 1,742 Net Sales $ 22,376 $ 23,306 $ 21,743 Long-Lived Assets (h) In millions 2019 2018 United States $ 10,706 $ 10,586 EMEA 1,368 1,315 Pacific Rim and Asia — 201 Americas, other than U.S. 1,321 1,367 Long-Lived Assets $ 13,395 $ 13,469 (a) Includes sales of $15 million , operating profits (losses) of $0 million and corporate special items expense of $9 million in 2017 from previously divested businesses. (b) Operating profits for industry segments include each segment’s percentage share of the profits of subsidiaries included in that segment that are less than wholly-owned. The pre-tax noncontrolling interests and equity earnings for these subsidiaries is added here to present consolidated earnings from continuing operations before income taxes and equity earnings. (c) Includes corporate assets and assets of businesses held for sale. (d) Includes $1 million in 2017 from previously divested businesses. (e) Includes $15 million in 2017 from previously divested businesses. (f) Net sales are attributed to countries based on the location of the seller. (g) Export sales to unaffiliated customers were $2.7 billion in 2019 , $3.1 billion in 2018 and $2.9 billion in 2017 . (h) |
Interim Financial Results (Note
Interim Financial Results (Note) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Results (Unaudited) | INTERIM FINANCIAL RESULTS (UNAUDITED) In millions, except per share amounts and stock prices 1st 2nd 3rd 4th Quarter Year 2019 Net sales $ 5,643 $ 5,667 $ 5,568 $ 5,498 $ 22,376 Earnings (loss) from continuing operations before income taxes and equity earnings 418 (a) 334 (a) 452 (a) 400 (a) 1,604 (a) Gain (loss) from discontinued operations — — — — — Net earnings (loss) attributable to International Paper Company 424 (a-b) 292 (a-c) 344 (a-c) 165 (a-b) 1,225 (a-c) Basic earnings (loss) per share attributable to International Paper Company common shareholders: Earnings (loss) from continuing operations $ 1.06 $ 0.74 $ 0.88 $ 0.42 $ 3.10 Gain (loss) from discontinued operations — — — — — Net earnings (loss) 1.06 0.74 0.88 0.42 3.10 Diluted earnings (loss) per share attributable to International Paper Company common shareholders: Earnings (loss) from continuing operations 1.05 0.73 0.87 0.42 3.07 Gain (loss) from discontinued operations — — — — — Net earnings (loss) 1.05 0.73 0.87 0.42 3.07 Dividends per share of common stock 0.5000 0.5000 0.5000 0.5125 2.0125 2018 Net sales $ 5,621 $ 5,833 $ 5,901 $ 5,951 $ 23,306 Earnings (loss) from continuing operations before income taxes and equity earnings 356 (d) 490 (d) 553 (d) 382 (d) 1,781 (d) Gain (loss) from discontinued operations 368 (e) (23 ) (e) — (e) — (e) 345 (e) Net earnings (loss) attributable to International Paper Company 729 (d-f) 405 (d-f) 562 (d-f) 316 (d-f) 2,012 (d-f) Basic earnings (loss) per share attributable to International Paper Company common shareholders: Earnings (loss) from continuing operations $ 0.87 $ 1.03 $ 1.38 $ 0.79 $ 4.07 Gain (loss) from discontinued operations 0.89 (0.05 ) — — 0.84 Net earnings (loss) 1.76 0.98 1.38 0.79 4.91 Diluted earnings (loss) per share attributable to International Paper Company common shareholders: Earnings (loss) from continuing operations 0.86 1.02 1.37 0.78 4.02 Gain (loss) from discontinued operations 0.88 (0.05 ) — — 0.83 Net earnings (loss) 1.74 0.97 1.37 0.78 4.85 Dividends per share of common stock 0.4750 0.4750 0.4750 0.5000 1.9250 Note: International Paper's common shares (symbol: IP) are listed on the New York Stock Exchange. Note: Since basic and diluted earnings per share are computed independently for each period and category, full year per share amounts may not equal the sum of the four quarters. Footnotes to Interim Financial Results (a) Includes the following pre-tax charges (gains): 2019 In millions Q1 Q2 Q3 Q4 India impairment $ — $ 152 $ 8 $ (1 ) India divestiture transaction costs — — — 3 Global Cellulose Fibers goodwill impairment — — — 52 Litigation reserves — — 22 19 Italian antitrust fine — — 32 — Environmental remediation reserve adjustment — — 15 10 (Gain) loss on sale of EMEA Packaging box plant (7 ) — — 1 EMEA Packaging business optimization — — — 17 Multi-employer pension plan exit liability 16 — (7 ) — Abandoned property removal 11 11 13 15 Riverdale mill conversion costs 1 1 1 2 Foreign VAT refund accrual including interest — — — (6 ) Debt extinguishment costs — — — 21 Gain on sale of previously closed Oregon mill site — — (9 ) — Overhead cost reduction initiative — — 21 — Other items — 1 — 3 Non-operating pension expense 10 8 9 9 Total $ 31 $ 173 $ 105 $ 145 (b) Includes the following tax expenses (benefits): 2019 In millions Q1 Q2 Q3 Q4 Luxembourg statutory tax rate change $ — $ 9 $ — $ — State income tax legislative changes — (3 ) — — Foreign tax audits — 3 — — Internal investment restructuring — — — (53 ) Foreign deferred tax valuation allowance — — — 203 Tax impact of other special items (6 ) (5 ) (14 ) (28 ) Tax impact of non-operating pension expense (2 ) (2 ) (2 ) (2 ) Total $ (8 ) $ 2 $ (16 ) $ 120 (c) Includes allocation of loss to noncontrolling interest of $7 million and $2 million for the three months ended June 30, 2019 and September 30, 2019, respectively, associated with the impairment of the net assets of our India Papers business. (d) Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 Smurfit-Kappa acquisition proposal costs $ — $ 12 $ — $ — Legal settlement 9 — — — Litigation settlement recovery — — — (5 ) Environmental remediation reserve adjustment — — 9 — EMEA Packaging business optimization 22 26 — (1 ) Abandoned property removal 9 9 6 8 Riverdale mill conversion costs — — 5 4 Brazil Packaging impairment — — 122 — Debt extinguishment costs — — — 10 Gain on sale of investment in Liaison Technologies — — — (31 ) Non-operating pension expense 4 36 25 429 Total $ 44 $ 83 $ 167 $ 414 (e) Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 North American Consumer Packaging transaction costs $ 23 $ 2 $ — $ — North American Consumer Packaging gain on transfer (516 ) 28 — — Total $ (493 ) $ 30 $ — $ — (f) Includes the following tax expenses (benefits): 2018 In millions Q1 Q2 Q3 Q4 State income tax legislative changes $ — $ 9 $ — $ — Tax benefit of Tax Cuts and Jobs Act — — (36 ) — Internal investment restructuring — — — 19 Foreign tax audits — — — 25 Tax impact of other special items (9 ) (13 ) (46 ) 3 Tax impact of non-operating pension expense (1 ) (9 ) (6 ) (107 ) Total $ (10 ) $ (13 ) $ (88 ) $ (60 ) |
(Accounting Policies)
(Accounting Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature Of Business | NATURE OF BUSINESS International Paper (the Company) is a global paper and packaging company with primary markets and manufacturing operations in North America, Europe, Latin America, North Africa and Russia. Substantially all of our businesses have experienced, and are likely to continue to experience, cycles relating to available industry capacity and general economic conditions. |
Financial Statements | FINANCIAL STATEMENTS These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States that require the use of management’s estimates. Actual results could differ from management’s estimates. On January 1, 2018, the Company completed the previously announced transfer of its North American Consumer Packaging business and received a 20.5% ownership interest in a subsidiary of Graphic Packaging Holding Company that holds the assets of the combined business. See Note 8 for further details. |
Consolidation | CONSOLIDATION The consolidated financial statements include the accounts of International Paper and subsidiaries for which we have a controlling financial interest, including variable interest entities for which we are the primary beneficiary. All significant intercompany balances and transactions are eliminated. |
Equity Method Investments | EQUITY METHOD INVESTMENTS The equity method of accounting is applied for investments when the Company has significant influence over the investee’s operations, or when the investee is structured with separate capital accounts and our investment is considered more than minor. Our material equity method investments are described in Note 11 |
Business Combinations | BUSINESS COMBINATIONS The Company allocates the total consideration of the assets acquired and liabilities assumed based on their estimated fair value as of the business combination date. In developing estimates of fair values for long-lived assets, including identifiable intangible assets, the Company utilizes a variety of inputs including forecasted cash flows, anticipated growth rates, discount rates, estimated replacement costs and depreciation and obsolescence factors. Determining the fair value for specifically identified intangible assets such as customer lists and developed technology involves judgment. We may refine our estimates and make adjustments to the assets acquired and liabilities assumed over a measurement period, not to exceed one year. Upon the conclusion of the measurement period or the final determination of the values of asset acquired and liabilities assumed, whichever comes first, any subsequent adjustments are charged to the consolidated statement of earnings. Subsequent actual results of the underlying business activity supporting the specifically identified intangible assets could change, requiring us to record impairment charges or adjust their economic lives in future periods. See Note 7 for further details. |
Discontinued Operations | DISCONTINUED OPERATIONS A discontinued operation may include a component or a group of components of the Company's operations. A disposal of a component or a group of components is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results when the following occurs: (1) a component (or group of components) meets the criteria to be classified as held for sale; (2) the component or group of components is disposed of by sale; or (3) the component or group of components is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). For any component classified as held for sale or disposed of by sale or other than by sale, qualifying for presentation as a discontinued operation, the Company reports the results of operations of the discontinued operations (including any gain or loss recognized on the disposal or loss recognized on classification as held for sale of a discontinued operation), less applicable income taxes (benefit), as a separate component in the consolidated statement of operations for current and all prior periods presented. See Note 8 for further details. |
Restructuring Liabilities and Costs | RESTRUCTURING LIABILITIES AND COSTS For operations to be closed or restructured, a liability and related expense is recorded in the period when operations cease. For termination costs associated with employees covered by a written or substantive plan, a liability is recorded when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. For termination costs associated with employees not covered by a written and broadly communicated policy covering involuntary termination benefits (severance plan), a liability is recorded for costs to terminate employees (one-time termination benefits) when the termination plan has been approved and committed to by management, the employees to be terminated have been identified, the termination plan benefit terms are communicated, the employees identified in the plan have been notified and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The timing and amount of an accrual is dependent upon the type of benefits granted, the timing of communication and other provisions that may be provided in the benefit plan. The accounting for each termination is evaluated individually. See Note 6 for further details. |
Revenue Recognition | 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. The Company’s revenue is primarily derived from fixed consideration; however, we do have contract terms that give rise to variable consideration, primarily cash discounts and volume rebates. International Paper offers early payment discounts to customers across the Company’s businesses. The Company estimates the expected cash discounts and other customer refunds based on the historical experience across the Company’s portfolio of customers to record reductions in revenue which is consistent with the most likely amount method outlined in ASC 606. Management has concluded that this method is the best estimate of the consideration the Company will be entitled to from its customers. The Company has elected to present all sales taxes on a net basis, account for shipping and handling activities as fulfillment activities, recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period of the asset the Company would recognize is one year or less, and not record interest income or interest expense when the difference in timing of control or transfer and customer payment is one year or less. See Note 3 for further details. |
Temporary Investments | 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 notice are treated as cash equivalents and are stated at cost, which approximates market value. See Note 9 for further details. |
Inventories | INVENTORIES Inventories are valued at the lower of cost or market value and include all costs directly associated with manufacturing products: materials, labor and manufacturing overhead. In the United States, costs of raw materials and finished pulp and paper products, are generally determined using the last-in, first-out method. Other inventories are valued using the first-in, first-out or average cost methods. See Note 9 for further details. |
Leased Assets | LEASED ASSETS Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company's leases may include options to extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases primarily related to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles, and leases within supply agreements primarily related to usage, repairs and maintenance. As the implicit rate is not readily determinable for most of the Company's leases, the Company applies a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities. Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company's leases. See Note 10 for further details. |
Plants, Properties And Equipment | PLANTS, PROPERTIES AND EQUIPMENT Plants, properties and equipment are stated at cost, less accumulated depreciation. Expenditures for betterments are capitalized, whereas normal repairs and maintenance are expensed as incurred. The units-of-production method of depreciation is used for pulp and paper mills, and the straight-line method is used for other plants and equipment. See Note 9 for further details. |
Goodwill | GOODWILL Annual evaluation for possible goodwill impairment is performed as of the beginning of the fourth quarter of each year, with additional interim evaluation performed when management believes that it is more likely than not, that events or circumstances have occurred that would result in the impairment of a reporting unit’s goodwill. The Company has the option to evaluate goodwill for impairment by first performing a qualitative assessment of events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amounts, then the quantitative goodwill impairment test is not required to be performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company does not elect the option to perform an initial qualitative assessment, the Company is required to perform the quantitative goodwill impairment test. In performing this evaluation, the Company estimates the fair value of its reporting unit using a probability-weighted approach based on discounted future cash flows, market multiples and transaction multiples. Key assumptions in the quantitative goodwill impairment test considered by management include the discount rate, long-term growth rate, tax rate, inflation rate, and business forecast. For reporting units whose carrying amount is in excess of their estimated fair value, the reporting unit will record an impairment charge by the amount that the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. See Note 12 for further discussion. |
Impairment Of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable. A recoverability test is performed based on undiscounted cash flows, requiring judgments as to whether assets are held and used or held for sale, the weighting of operational alternatives being considered by management and estimates of the amount and timing of expected future cash flows from the use of the long-lived assets generated by their use. Impaired assets are recorded at their estimated fair value. See Note 8 for further discussion. |
Income Taxes | INCOME TAXES International Paper uses the asset and liability method of accounting for income taxes whereby deferred income taxes are recorded for the future tax consequences attributable to differences between the financial statement and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are remeasured to reflect new tax rates in the periods rate changes are enacted. International Paper records its worldwide tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. Where the Company believes that a tax position is supportable for income tax purposes, the item is included in its income tax returns. Where treatment of a position is uncertain, liabilities are recorded based upon the Company’s evaluation of the “more likely than not” outcome considering the technical merits of the position based on specific tax regulations and the facts of each matter. Changes to recorded liabilities are made only when an identifiable event occurs that changes the likely outcome, such as settlement with the relevant tax authority, the expiration of statutes of limitation for the subject tax year, a change in tax laws, or a recent court case that addresses the matter. While the judgments and estimates made by the Company are based on management’s evaluation of the technical merits of a matter, assisted as necessary by consultation with outside consultants, historical experience and other assumptions that management believes are appropriate and reasonable under current circumstances, actual resolution of these matters may differ from recorded estimated amounts, resulting in adjustments that could materially affect future financial statements. See Note 13 for further details. International Paper uses the flow-through method to account for investment tax credits earned on eligible open-loop biomass facilities and combined heat and power system expenditures. Under this method, the investment tax credits are recognized as a reduction to income tax expense in the year they are earned rather than a reduction in the asset basis. |
Environmental Remediation Costs | ENVIRONMENTAL REMEDIATION COSTS Costs associated with environmental remediation obligations are accrued when such costs are probable and reasonably estimable. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable. See Note 14 for further details. |
Translation Of Financial Statements | TRANSLATION OF FINANCIAL STATEMENTS Balance sheets of international operations are translated into U.S. dollars at year-end exchange rates, while statements of operations are translated at average rates. Adjustments resulting from financial statement translations are included as cumulative translation adjustments in Accumulated other comprehensive loss. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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. 2019 Reportable Segments Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 12,668 $ 2,148 $ 1,912 $ 220 $ 16,948 EMEA 1,692 254 1,323 (11 ) 3,258 Pacific Rim and Asia 65 149 189 12 415 Americas, other than U.S. 901 — 867 (13 ) 1,755 Total $ 15,326 $ 2,551 $ 4,291 $ 208 $ 22,376 Operating Segments North American Industrial Packaging $ 13,509 $ — $ — $ — $ 13,509 EMEA Industrial Packaging 1,335 — — — 1,335 Brazilian Industrial Packaging 235 — — — 235 European Coated Paperboard 365 — — — 365 Global Cellulose Fibers — 2,551 — — 2,551 North American Printing Papers — — 1,956 — 1,956 Brazilian Papers — — 967 — 967 European Papers — — 1,250 — 1,250 Indian Papers — — 160 — 160 Intra-segment Eliminations (118 ) — (42 ) — (160 ) Corporate & Inter-segment Sales — — — 208 208 Total $ 15,326 $ 2,551 $ 4,291 $ 208 $ 22,376 (a) Net sales are attributed to countries based on the location of the reportable segment making the sale. 2018 Reportable Segments Industrial Packaging Global Cellulose Fibers Printing Papers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 13,167 $ 2,336 $ 1,903 $ 203 $ 17,609 EMEA 1,704 304 1,330 (17 ) 3,321 Pacific Rim and Asia 142 179 245 39 605 Americas, other than U.S. 887 — 897 (13 ) 1,771 Total $ 15,900 $ 2,819 $ 4,375 $ 212 $ 23,306 Operating Segments North American Industrial Packaging $ 14,187 $ — $ — $ — $ 14,187 EMEA Industrial Packaging 1,355 — — — 1,355 Brazilian Industrial Packaging 232 — — — 232 European Coated Paperboard 359 — — — 359 Global Cellulose Fibers — 2,819 — — 2,819 North American Printing Papers — — 1,956 — 1,956 Brazilian Papers — — 978 — 978 European Papers — — 1,252 — 1,252 Indian Papers — — 202 — 202 Intra-segment Eliminations (233 ) — (13 ) — (246 ) Corporate & Inter-segment Sales — — — 212 212 Total $ 15,900 $ 2,819 $ 4,375 $ 212 $ 23,306 (a) Net sales are attributed to countries based on the location of the reportable segment making the sale. |
Contract with Customer, Asset and Liability [Table Text Block] | The opening and closing balances of the Company's contract assets and current contract liabilities are as follows: In millions Contract Assets (Short-Term) Contract Liabilities (Short-Term) Beginning Balance - January 1, 2019 $ 395 $ 56 Ending Balance - December 31, 2019 393 56 Increase / (Decrease) $ (2 ) $ — |
Earnings Per Share Attributab_2
Earnings Per Share Attributable To International Paper Company Common Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule Of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing operations, and diluted earnings (loss) per share from continuing operations is as follows: In millions, except per share amounts 2019 2018 2017 Earnings (loss) from continuing operations attributable to International Paper common shareholders $ 1,225 $ 1,667 $ 2,110 Weighted average common shares outstanding 395.3 409.1 412.7 Effect of dilutive securities: Restricted performance share plan 3.5 5.1 5.0 Weighted average common shares outstanding – assuming dilution 398.8 414.2 417.7 Basic earnings (loss) per share from continuing operations $ 3.10 $ 4.07 $ 5.11 Diluted earnings (loss) per share from continuing operations $ 3.07 $ 4.02 $ 5.05 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in AOCI, net of tax, reported in the consolidated financial statements for the years ended December 31: In millions 2019 2018 2017 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (1,916 ) $ (2,527 ) $ (3,072 ) Other comprehensive income (loss) before reclassifications 2 22 59 Reclassification of stranded tax effects (527 ) — — Amounts reclassified from accumulated other comprehensive income 164 589 486 Balance at end of period (2,277 ) (1,916 ) (2,527 ) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (2,581 ) (2,111 ) (2,287 ) Other comprehensive income (loss) before reclassifications 14 (475 ) 178 Amounts reclassified from accumulated other comprehensive income 102 2 (1 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 3 (1 ) Balance at end of period (2,465 ) (2,581 ) (2,111 ) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period (3 ) 5 (3 ) Other comprehensive income (loss) before reclassifications 4 (10 ) 15 Reclassification of stranded tax effects (2 ) — — Amounts reclassified from accumulated other comprehensive income 4 2 (7 ) Balance at end of period 3 (3 ) 5 Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (4,739 ) $ (4,500 ) $ (4,633 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Reclassifications out of AOCI for the three years ended December 31 were as follows: Amount Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI 2019 2018 2017 In millions Defined benefit pension and postretirement items: Prior-service costs $ (10 ) $ (11 ) $ (33 ) (a) Non-operating pension expense Actuarial gains/(losses) (208 ) (774 ) (733 ) (a) Non-operating pension expense Total pre-tax amount (218 ) (785 ) (766 ) Tax (expense)/benefit 54 196 280 Net of tax (164 ) (589 ) (486 ) Reclassification of stranded tax effects 527 — — Retained Earnings Total, net of tax 363 (589 ) (486 ) Change in cumulative foreign currency translation adjustments: Business acquisitions/divestiture (102 ) (2 ) 1 (b) Net (gains) losses on sales and impairment of businesses and Cost of products sold Tax (expense)/benefit — — — Net of tax (102 ) (2 ) 1 Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts (6 ) (3 ) 9 (c) Cost of products sold Total pre-tax amount (6 ) (3 ) 9 Tax (expense)/benefit 2 1 (2 ) Net of tax (4 ) (2 ) 7 Reclassification of stranded tax effects 2 — — Retained Earnings Total, net of tax (2 ) (2 ) 7 Total reclassifications for the period, net of tax $ 259 $ (593 ) $ (478 ) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details). (b) Amounts for 2018 were reclassed to Discontinued operations, net of taxes. (c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 17 for additional details). |
Restructuring Charges and Oth_2
Restructuring Charges and Other Items (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | During 2017, restructuring and other charges, net, totaling $67 million before taxes were recorded. These charges included: In millions 2017 Early debt extinguishment costs (see Note 16) $ 83 Gain on sale of investment in ArborGen (14 ) Other (2 ) Total $ 67 During 2018, restructuring and other charges, net, totaling $29 million before taxes were recorded. These charges included: In millions 2018 EMEA packaging restructuring (a) $ 47 Gain on sale of investment in Liaison Technologies Inc. (31 ) Early debt extinguishment costs (see Note 16) 10 Riverdale mill conversion severance 3 Total $ 29 (a) Includes $33 million of severance, $6 million in accelerated depreciation, $2 million in accelerated amortization and $6 million in other charges in conjunction with the optimization of our EMEA Packaging business. The majority of the severance charges recorded were paid throughout the year. $57 million before taxes were recorded. These charges included: In millions 2019 Overhead cost reduction initiative (a) $ 21 EMEA packaging restructuring (b) 15 Early debt extinguishment costs (see Note 16) 21 Total $ 57 (a) Includes pre-tax charges of $11 million , $6 million and $4 million in Corporate, the Printing Papers segment and the Global Cellulose Fibers segment, respectively, for severance related to an overhead cost reduction initiative. The majority of the severance charges will be paid in 2020. (b) Includes $14 million of severance and $1 million |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DS Smith Packaging [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the consideration paid and the amounts of the assets and liabilities assumed as of June 28, 2019: In millions June 28, 2019 Cash and temporary investments $ 2 Accounts and notes receivable 22 Inventory 8 Plants, properties and equipment 40 Goodwill 23 Intangible assets 16 Right of use assets 3 Deferred charges and other assets 1 Total assets acquired 115 Short-term debt 2 Accounts payable and accrued liabilities 21 Other current liabilities 4 Deferred income taxes 3 Long-term lease obligations 3 Other Liabilities 1 Total liabilities assumed 34 Net assets acquired $ 81 |
Tangier, Morocco Facility [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the final fair value assigned to assets and liabilities acquired as of June 30, 2017: In millions June 30, 2017 Cash and temporary investments $ 1 Accounts and notes receivable 7 Inventory 3 Plants, properties and equipment 31 Goodwill 4 Other intangible assets 5 Deferred charges and other assets 4 Total assets acquired 55 Accounts payable and accrued liabilities 4 Long-term debt 11 Other long-term liabilities 2 Total liabilities assumed 17 Net assets acquired $ 38 |
Divestitures and Impairments _2
Divestitures and Impairments of Businesses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued Operations, net of tax, related to the transfer of the North American Consumer Packaging business for all prior periods presented in the consolidated statement of operations: In millions 2018 2017 Net Sales $ — $ 1,559 Costs and Expenses Cost of products sold — 1,179 Selling and administrative expenses 25 110 Depreciation, amortization and cost of timber harvested — 80 Distribution expenses — 126 Taxes other than payroll and income taxes — 11 (Gain) loss on transfer of business (488 ) — Interest expense, net — 1 Earnings (Loss) Before Income Taxes and Equity Earnings 463 52 Income tax provision (benefit) 118 18 Discontinued Operations, Net of Taxes $ 345 $ 34 |
Supplementary Financial State_2
Supplementary Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Accounts And Notes Receivable [Table Text Block] | Accounts and notes receivable, net, by classification were: In millions at December 31 2019 2018 Accounts and notes receivable: Trade $ 3,020 $ 3,249 Other 260 272 Total $ 3,280 $ 3,521 |
Inventories By Major Category [Table Text Block] | In millions at December 31 2019 2018 Raw materials $ 298 $ 260 Finished pulp, paper and packaging products 1,192 1,241 Operating supplies 659 641 Other 59 99 Inventories $ 2,208 $ 2,241 |
Plants, Properties And Equipment By Major Classification [Table Text Block] | In millions at December 31 2019 2018 Pulp, paper and packaging facilities $ 32,292 $ 32,329 Other properties and equipment 1,224 1,232 Gross cost 33,516 33,561 Less: Accumulated depreciation 20,512 20,494 Plants, properties and equipment, net $ 13,004 $ 13,067 |
Schedule of Other Income and Other Expense [Table Text Block] | Amounts related to interest were as follows: In millions 2019 2018 2017 Interest expense $ 706 $ 734 $ 758 Interest income 215 198 186 Capitalized interest costs 29 30 25 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | COMPONENTS OF LEASE EXPENSE In millions December 31, 2019 Operating lease costs, net $ 132 Variable lease costs 70 Short-term lease costs, net 59 Finance lease cost Amortization of lease assets 12 Interest on lease liabilities 5 Total lease cost, net $ 278 |
Schedule of Supplemental Balance Sheet Information Related to Leases [Table Text Block] | SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES In millions Classification December 31, 2019 Assets Operating lease assets Right of use assets $ 434 Finance lease assets Plants, properties and equipment, net (a) 103 Total leased assets $ 537 Liabilities Current Operating Other current liabilities $ 134 Finance Notes payable and current maturities of long-term debt 12 Noncurrent Operating Long-term lease obligations 304 Finance Long-term debt 88 Total lease liabilities $ 538 (a) Finance leases are recorded net of accumulated amortization of $40 million . |
Schedule of Lease Terms and Discount Rates Related to Leases [Table Text Block] | LEASE TERM AND DISCOUNT RATE In millions December 31, 2019 Weighted average remaining lease term (years) Operating leases 9.8 years Finance leases 10.9 years Weighted average discount rate Operating leases 3.06 % Finance leases 4.69 % |
Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block] | SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES In millions December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 147 Operating cash flows related to financing leases 5 Financing cash flows related to finance leases 9 Right of use assets obtained in exchange for lease liabilities Operating leases 162 Finance leases 11 |
Schedule of Maturities of Operating and Finance Leases Liabilities [Table Text Block] | MATURITY OF LEASE LIABILITIES In millions Operating Leases Financing Leases Total 2020 $ 147 $ 16 $ 163 2021 110 15 125 2022 75 14 89 2023 42 13 55 2024 24 10 34 Thereafter 103 66 169 Total lease payments 501 134 635 Less imputed interest 63 34 97 Present value of lease liabilities $ 438 $ 100 $ 538 |
Contractual Obligation, Fiscal Year Maturity [Table Text Block] | At December 31, 2018, total future minimum commitments under existing non-cancelable operating leases were as follows: In millions 2019 2020 2021 2022 2023 Thereafter Lease obligations 160 125 77 49 28 118 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Graphic Packaging LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | Summarized financial information for GPIP is presented in the following tables: Balance Sheet In millions 2019 2018 Current assets $ 1,796 $ 1,757 Noncurrent assets 5,482 5,292 Current liabilities 1,178 1,148 Noncurrent liabilities 3,244 3,156 Income Statement In millions 2019 2018 Net sales $ 6,160 $ 6,023 Gross profit 1,093 946 Income from continuing operations 333 336 Net income 334 337 |
Ilim Holding [Member] | |
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 2019 2018 Current assets $ 804 $ 981 Noncurrent assets 2,813 1,710 Current liabilities 1,015 545 Noncurrent liabilities 1,844 1,470 Noncontrolling interests 16 11 Income Statement In millions 2019 2018 2017 Net sales $ 2,189 $ 2,713 $ 2,150 Gross profit 1,025 1,549 1,047 Income from continuing operations 438 592 379 Net income 424 571 362 |
Goodwill And Other Intangible_2
Goodwill And Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In Goodwill Balances [Table Text Block] | GOODWILL The following table presents changes in the goodwill balances as allocated to each business segment for the years ended December 31, 2019 and 2018 : In millions Industrial Packaging Global Cellulose Fibers Printing Papers Total Balance as of December 31, 2017 Goodwill $ 3,382 $ 52 $ 2,150 $ 5,584 Accumulated impairment losses (296 ) — (1,877 ) (2,173 ) 3,086 52 273 3,411 Currency translation and other (a) (1 ) — (34 ) (35 ) Goodwill additions/reductions (2 ) (b) — — (2 ) Balance as of December 31, 2018 Goodwill 3,379 52 2,116 5,547 Accumulated impairment losses (296 ) — (1,877 ) (2,173 ) 3,083 52 239 3,374 Currency translation and other (a) — — (6 ) (6 ) Goodwill additions/reductions 31 (b)(c) — (112 ) (d) (81 ) Accumulated impairment loss additions/reductions — (52 ) (e) 112 (d) 60 Balance as of December 31, 2019 Goodwill 3,410 52 1,998 5,460 Accumulated impairment losses (296 ) (52 ) (1,765 ) (2,113 ) Total $ 3,114 $ — $ 233 $ 3,347 (a) Represents the effects of foreign currency translations and reclassifications. (b) Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in the U.S. (c) Reflects the goodwill for the acquisitions of Industrial Packaging box plants in EMEA of which $28 million is considered provisional. (d) Reflects the reclassification of India goodwill and related impairment losses to held for sale prior to the sale of the business. (e) Reflects the impairment of the Global Cellulose Fibers reporting unit. |
Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets comprised the following: 2019 2018 In millions at December 31 Gross Carrying Amount Accumulated Amortization Net Intangible Assets Gross Carrying Amount Accumulated Amortization Net Intangible Assets Customer relationships and lists $ 560 $ 275 $ 285 $ 542 $ 247 $ 295 Non-compete agreements — — — 67 67 — Tradenames, patents and trademarks, and developed technology 170 102 68 174 90 84 Land and water rights 8 2 6 8 2 6 Software 26 25 1 26 25 1 Other 18 10 8 30 23 7 Total $ 782 $ 414 $ 368 $ 847 $ 454 $ 393 |
Amortization Expense Of Intangible Assets [Table Text Block] | The Company recognized the following amounts as amortization expense related to intangible assets: In millions 2019 2018 2017 Amortization expense related to intangible assets $ 58 $ 59 $ 77 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Tax, Domestic and Foreign [Table Text Block] | The components of International Paper’s earnings from continuing operations before income taxes and equity earnings by taxing jurisdiction were as follows: In millions 2019 2018 2017 Earnings (loss) U.S. $ 1,342 $ 1,450 $ 297 Non-U.S. 262 331 551 Earnings (loss) from continuing operations before income taxes and equity earnings $ 1,604 $ 1,781 $ 848 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes from continuing operations (excluding noncontrolling interests) by taxing jurisdiction was as follows: In millions 2019 2018 2017 Current tax provision (benefit) U.S. federal $ 271 $ 227 $ (73 ) U.S. state and local 29 37 (23 ) Non-U.S. 122 165 112 $ 422 $ 429 $ 16 Deferred tax provision (benefit) U.S. federal $ 44 $ 12 $ (1,150 ) U.S. state and local (23 ) 50 9 Non-U.S. 191 (46 ) 40 $ 212 $ 16 $ (1,101 ) Income tax provision (benefit) $ 634 $ 445 $ (1,085 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of income tax expense using the statutory U.S. income tax rate compared with the actual income tax provision follows: In millions 2019 2018 2017 Earnings (loss) from continuing $ 1,604 $ 1,781 $ 848 Statutory U.S. income tax rate 21 % 21 % 35 % Tax expense (benefit) using statutory U.S. income tax rate 337 374 297 State and local income taxes 6 72 (7 ) Impact of rate differential on non-U.S. permanent differences and earnings 31 35 (36 ) Foreign valuation allowance 203 — — Tax expense (benefit) on manufacturing activities — (1 ) 23 Non-deductible business expenses 20 27 7 Non-deductible impairments 31 — — Tax audits — 28 — Deemed repatriation, net of foreign tax credits 1 (25 ) 231 U.S. federal tax rate change — (13 ) (1,451 ) Foreign derived intangible income deduction 2 (25 ) — US tax on non-U.S. earnings (GILTI and Subpart F) 36 19 44 Foreign tax credits (2 ) (15 ) (96 ) General business and other tax credits (33 ) (26 ) (86 ) Other, net 2 (5 ) (11 ) Income tax provision (benefit) $ 634 $ 445 $ (1,085 ) Effective income tax rate 40 % 25 % (128 )% |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of significant temporary differences, representing deferred income tax assets and liabilities at December 31, 2019 and 2018 , were as follows: In millions 2019 2018 Deferred income tax assets: Postretirement benefit accruals $ 90 $ 89 Pension obligations 421 465 Tax credits 290 291 Net operating and capital loss carryforwards 621 594 Compensation reserves 181 191 Lease obligations 106 — Environmental reserves 93 78 Other 126 86 Gross deferred income tax assets $ 1,928 $ 1,794 Less: valuation allowance (a) (691 ) (441 ) Net deferred income tax asset $ 1,237 $ 1,353 Deferred income tax liabilities: Intangibles $ (152 ) $ (152 ) Investments (265 ) (255 ) Right of use assets (106 ) — Plants, properties and equipment (1,866 ) (1,826 ) Forestlands, related installment sales, and investment in subsidiary (1,407 ) (1,453 ) Gross deferred income tax liabilities $ (3,796 ) $ (3,686 ) Net deferred income tax liability $ (2,559 ) $ (2,333 ) (a) The net change in the total valuation allowance for the years ended December 31, 2019 and 2018 was an increase of $250 million and an increase of $12 million , respectively. The net change in the current year is primarily due to tax law changes in foreign jurisdictions impacting future utilization of deferred tax assets of $203 million . |
Schedule of Unrecognized Tax Benefits Rollforward [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 is as follows: In millions 2019 2018 2017 Balance at January 1 $ (220 ) $ (188 ) $ (98 ) (Additions) reductions for tax positions related to current year (5 ) (7 ) (54 ) (Additions) for tax positions related to prior years (6 ) (37 ) (40 ) Reductions for tax positions related to prior years 5 5 4 Settlements 31 2 6 Expiration of statutes of 3 2 1 Currency translation adjustment 3 3 (7 ) Balance at December 31 $ (189 ) $ (220 ) $ (188 ) |
Summary of Operating Loss and Tax Credit Carryforwards [Table Text Block] | The following details the scheduled expiration dates of the Company’s net operating loss and income tax credit carryforwards: In millions 2020 2030 Indefinite Total U.S. federal and non-U.S. NOLs $ 55 $ 48 $ 424 $ 527 State taxing jurisdiction NOLs (a) 76 18 — 94 U.S. federal, non- 160 12 118 290 U.S. federal and state capital loss carryforwards (a) — — — — Total $ 291 $ 78 $ 542 $ 911 Less: valuation allowance (a) (198 ) (44 ) (393 ) (635 ) Total, net $ 93 $ 34 $ 149 $ 276 (a) State amounts are presented net of federal benefit. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Two Thousand And Fifteen Financing Entities [Member] | |
Schedule of Activity Between Company and Financing Entities [Table Text Block] | Activity between the Company and the 2015 Financing Entities was as follows: In millions 2019 2018 2017 Revenue (a) $ 95 $ 95 $ 95 Expense (a) 128 128 128 Cash receipts (b) 95 95 95 Cash payments (c) 128 128 128 (a) The revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations. (b) The cash receipts are interest received on the Financial assets of variable interest entities. (c) The cash payments represent interest paid on Current nonrecourse financial liabilities of variable interest entities. |
Two Thousand Seven Financing Entities [Member] | |
Schedule of Activity Between Company and Financing Entities [Table Text Block] | Activity between the Company and the 2007 financing entities was as follows: In millions 2019 2018 2017 Revenue (a) $ 79 $ 72 $ 49 Expense (b) 76 67 48 Cash receipts (c) 62 48 28 Cash payments (d) 69 57 39 (a) The revenue is included in Interest expense, net, in the accompanying consolidated statement of operations and includes approximately $19 million for the years ended December 31, 2019, 2018 and 2017, respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of variable interest entities. (b) The expense is included in Interest expense, net, in the accompanying consolidated statement of operations and includes approximately $7 million for the years ended December 31, 2019, 2018 and 2017, respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Long-term nonrecourse financial liabilities of variable interest 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 And Lines Of Credit (Table
Debt And Lines Of Credit (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instruments [Abstract] | |
Debt Extinguishment [Table Text Block] | Amounts related to early debt extinguishment during the years ended December 31, 2019 , 2018 and 2017 were as follows: In millions 2019 2018 2017 Early debt reductions (a) $ 614 $ 780 $ 993 Pre-tax early debt extinguishment costs (b) 21 10 83 (a) Reductions related to notes with interest rates ranging from 1.57% to 9.50% with original maturities from 2018 to 2048 for the years ended December 31, 2019 , 2018 and 2017 . (b) Amounts are included in Restructuring and other charges in the accompanying consolidated statements of operations. |
Summary Of Long-Term Debt [Table Text Block] | A summary of long-term debt follows: In millions at December 31 2019 2018 7.500% notes – due 2021 $ 406 $ 406 4.750% notes – due 2022 — 355 6.875% notes – due 2023 94 94 3.650% notes – due 2024 658 676 7.350% notes – due 2025 44 44 7.750% notes – due 2025 31 31 3.800% notes – due 2026 645 669 7.200% notes – due 2026 58 58 6.400% notes – due 2026 5 5 3.000% notes – due 2027 803 939 7.150% notes – due 2027 7 7 3.550% notes – due 2029 200 — 6.875% notes – due 2029 37 37 5.000% notes – due 2035 600 600 6.650% notes – due 2037 4 4 8.700% notes – due 2038 265 265 7.300% notes – due 2039 722 722 6.000% notes – due 2041 585 585 4.800% notes – due 2044 800 800 5.150% notes – due 2046 700 700 4.400% notes – due 2047 1,158 1,200 4.350% notes – due 2048 986 1,000 Floating rate notes – due 2019 – 2024 (a) 339 908 Environmental and industrial development bonds – due 2019 – 2035 (b) 552 556 Total principal 9,699 10,661 Capitalized leases 100 63 Premiums, discounts, and debt issuance costs (88 ) (98 ) Interest rate swaps 46 16 Other (c) 8 12 Total (d) 9,765 10,654 Less: current maturities 168 639 Long-term debt $ 9,597 $ 10,015 (a) The weighted average interest rate on these notes was 3.1% in 2019 and 3.5% in 2018 . (b) The weighted average interest rate on these bonds was 4.4% in 2019 and 5.5% in 2018 . (c) Includes $7 million and $10 million of fair market value adjustments as of December 31, 2019 and 2018, respectively. (d) The fair market value was approximately $10.9 billion at December 31, 2019 and $10.6 billion at December 31, 2018 . |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Financial Instruments [Table Text Block] | The notional amounts of qualifying and non-qualifying instruments used in hedging transactions were as follows: In millions December 31, 2019 December 31, 2018 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts (a) 407 407 Derivatives in Fair Value Hedging Relationships: Interest rate contracts 700 700 Derivatives in Net Investment Hedging Relationships: Interest rate contracts 475 — Derivatives Not Designated as Hedging Instruments: Electricity contract 16 8 Foreign exchange contracts 7 19 (a) These contracts had maturities of two years or less as of December 31, 2019 . |
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) In millions 2019 2018 2017 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 4 $ (10 ) $ 15 Derivatives in Net Investment Hedging Relationships: Interest rate contracts $ 7 $ — $ — |
Gains And Losses Recognized in Consolidated Statement of Operations On Qualifying And Non-Qualiifying Financial Instruments [Table Text Block] | The amounts of gains and losses recognized in the consolidated statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows: Gain (Loss) Location of Gain In millions 2019 2018 2017 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (3 ) $ (1 ) $ 8 Cost of products sold Interest rate contracts (1 ) (1 ) (1 ) Interest expense, net Total $ (4 ) $ (2 ) $ 7 Gain (Loss) Recognized in Income Location of Gain (Loss) in Consolidated Statement of Operations In millions 2019 2018 2017 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ 30 $ 16 $ — Interest expense, net Debt (30 ) (16 ) — Interest expense, net Total $ — $ — $ — Derivatives Not Designated as Hedging Instruments: Electricity Contracts $ 3 $ 2 $ (10 ) Cost of products sold Foreign exchange contracts (2 ) 1 — Cost of products sold Interest rate contracts — — 1 (a) Interest expense, net Total $ 1 $ 3 $ (9 ) (a) Excluding gain of $1 million related to debt reduction recorded to Restructuring and other charges. |
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 consolidated balance sheet: Fair Value Measurements Level 2 – Significant Other Observable Inputs Assets Liabilities In millions December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 10 $ 3 $ 4 $ 10 Interest rate contracts - net investment 11 — — — Interest rate contracts – fair value 47 16 — — Total derivatives designated as hedging instruments 68 19 4 10 Derivatives not designated as hedging instruments Electricity contract — — 2 4 Foreign exchange contracts — — 1 1 Total derivatives not designated as hedging instruments — — 3 5 Total derivatives $ 68 (a) $ 19 (b) $ 7 (c) $ 15 (d) (a) Includes $14 million recorded in Other current assets and $54 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (b) Included $2 million recorded in Other current assets and $17 million Deferred charges recorded in the accompanying consolidated balance sheet. (c) Included $6 million recorded in Other accrued liabilities and $1 million recorded in Other liabilities the accompanying consolidated balance sheet. (d) Included in Other accrued liabilities in the accompanying consolidated balance sheet. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Class of Stock Disclosures [Abstract] | |
Rollforward Of Common Stock Activity [Table Text Block] | The following is a rollforward of shares of common stock for the three years ended December 31, 2019 , 2018 and 2017 : Common Stock In thousands Issued Treasury Balance at January 1, 2017 448,916 37,671 Issuance of stock for various plans, net — (2,577 ) Repurchase of stock — 881 Balance at December 31, 2017 448,916 35,975 Issuance of stock for various plans, net — (1,721 ) Repurchase of stock — 14,056 Balance at December 31, 2018 448,916 48,310 Issuance of stock for various plans, net — (3,416 ) Repurchase of stock — 11,906 Balance at December 31, 2019 448,916 56,800 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Periodic Pension Expense For Qualified And Nonqualified U.S. Defined Benefit Plans [Table Text Block] | Net periodic pension expense for qualified and nonqualified U.S. and non-U.S. defined benefit plans comprised the following: 2019 2018 2017 In millions U.S. Non- U.S. Non- U.S. Non- Service cost $ 68 $ 5 $ 153 $ 5 $ 160 $ 4 Interest cost 440 8 467 8 536 9 Expected return on plan assets (631 ) (10 ) (765 ) (11 ) (774 ) (11 ) Actuarial loss (gain) 200 2 337 2 339 2 Amortization of prior service cost 16 — 16 — 28 — Curtailment loss (gain) (a) — (1 ) — — 23 — Settlement loss — 2 424 — 383 1 Special termination benefits (a) — — — — 22 — Net periodic pension expense $ 93 $ 6 $ 632 $ 4 $ 717 $ 5 (a) 2017 amounts were recorded in Discontinued operations in the consolidated statement of operations. |
Pension Allocations By Type Of Fund And Target Allocations [Table Text Block] | International Paper’s U.S. pension allocations by type of fund at December 31, 2019 and 2018 and target allocations were as follows: Asset Class 2019 2018 Target Equity accounts 37 % 32 % 32% - 43% Fixed income accounts 50 % 51 % 44% - 56% Real estate accounts 8 % 11 % 5% - 11% Other 5 % 6 % 3% - 8% Total 100 % 100 % |
Schedule of Allocation of Plan Assets [Table Text Block] | The fair values of International Paper’s pension plan assets at December 31, 2019 and 2018 by asset class are shown below. Hedge funds disclosed in the following table are allocated to fixed income accounts for target allocation purposes. Following our adoption of ASU 2018-09 "Codification Improvements", we have evaluated certain investments and classified them as Level 2 (previously Level 0). Prior year leveling disclosures have been updated for comparability as a result of our retrospective adoption of this disclosure guidance. Fair Value Measurement at December 31, 2019 Asset Class Total Quoted Significant Significant In millions Equities – domestic $ 1,613 $ 965 $ 648 $ — Equities – international 2,181 1,599 582 — Corporate bonds 1,845 — 1,845 — Government securities 2,659 — 2,659 — Mortgage backed securities 1 — 1 — Other fixed income (647 ) — (661 ) 14 Derivatives (19 ) — — (19 ) Cash and cash equivalents 336 336 — — Other investments: Hedge funds 902 Private equity 522 Real estate funds 772 Total Investments $ 10,165 $ 2,900 $ 5,074 $ (5 ) Fair Value Measurement at December 31, 2018 Asset Class Total Quoted Significant Significant In millions Equities – domestic $ 1,200 $ 685 $ 515 $ — Equities – international 1,583 1,141 442 — Corporate bonds 1,493 — 1,493 — Government securities 2,262 — 2,262 — Other fixed income (543 ) — (556 ) 13 Derivatives 98 — — 98 Cash and cash equivalents 294 294 — — Other investments: Hedge funds 886 Private equity 518 Real estate funds 944 Total Investments $ 8,735 $ 2,120 $ 4,156 $ 111 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block] | Other Investments at December 31, 2018 Investment Fair Value Unfunded Commitments Redemption Frequency Remediation Notice Period In millions Hedge funds 886 — Daily to annually 1 - 100 days Private equity 518 310 (a) None Real estate funds 944 109 Quarterly 45 - 60 days Total $ 2,348 $ 419 (a) A private equity fund investment ("partnership interest") is contractually locked up for the life of the private equity fund by the partnership agreement. Limited partners do not have the option to redeem partnership interests. Other Investments at December 31, 2019 Investment Fair Value Unfunded Commitments Redemption Frequency Remediation Notice Period In millions Hedge funds 902 — Daily to annually 1 - 100 days Private equity 522 198 (a) None Real estate funds 772 147 Quarterly 45 - 60 days Total $ 2,196 $ 345 (a) A private equity fund investment ("partnership interest") is contractually locked up for the life of the private equity fund by the partnership agreement. Limited partners do not have the option to redeem partnership interests. |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Table Text Block] | he following is a reconciliation of the assets that are classified using significant unobservable inputs (Level 3) at December 31, 2019 . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) In millions Mortgage backed securities Other Derivatives Total Beginning balance at December 31, 2017 $ 1 $ 12 $ 16 $ 29 Actual return on plan assets: Relating to assets still held at the reporting date — 1 75 76 Relating to assets sold during the period — — (19 ) (19 ) Purchases, sales and settlements (1 ) — 26 25 Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2018 $ — $ 13 $ 98 $ 111 Actual return on plan assets: Relating to assets still held at the reporting date — 1 (127 ) (126 ) Relating to assets sold during the period — — 314 314 Purchases, sales and settlements — — (304 ) (304 ) Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2019 $ — $ 14 $ (19 ) $ (5 ) |
Retirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | The following table shows the changes in the benefit obligation and plan assets for 2019 and 2018 , and the plans’ funded status. 2019 2018 In millions U.S. Non- U.S. Non- Change in projected benefit obligation: Benefit obligation, January 1 $ 10,467 $ 215 $ 13,264 $ 247 Service cost 68 5 153 5 Interest cost 440 8 467 8 Curtailment — (1 ) — — Settlements — (6 ) (1,653 ) (2 ) Actuarial loss (gain) 1,230 33 (1,089 ) (17 ) Acquisitions — 3 — — Divestitures — (1 ) — — Plan amendments 40 — 2 — Benefits paid (546 ) (8 ) (677 ) (9 ) Effect of foreign currency exchange rate movements — 5 — (17 ) Benefit obligation, December 31 $ 11,699 $ 253 $ 10,467 $ 215 Change in plan assets: Fair value of plan assets, January 1 $ 8,735 $ 161 $ 11,368 $ 176 Actual return on plan assets 1,950 23 (332 ) (2 ) Company contributions 26 10 29 10 Benefits paid (546 ) (8 ) (677 ) (9 ) Settlements — (6 ) (1,653 ) (2 ) Effect of foreign currency exchange rate movements — 3 — (12 ) Fair value of plan assets, December 31 $ 10,165 $ 183 $ 8,735 $ 161 Funded status, December 31 $ (1,534 ) $ (70 ) $ (1,732 ) $ (54 ) Amounts recognized in the consolidated balance sheet: Non-current asset $ — $ 6 $ — $ 5 Current liability (28 ) (3 ) (27 ) (2 ) Non-current liability (1,506 ) (73 ) (1,705 ) (57 ) $ (1,534 ) $ (70 ) $ (1,732 ) $ (54 ) |
Schedule Of Amounts In Accumulated Other Comprehensive Income [Table Text Block] | Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax): Prior service cost (credit) $ 98 $ (1 ) $ 74 $ (1 ) Net actuarial loss 2,851 75 3,140 57 $ 2,949 $ 74 $ 3,214 $ 56 |
Pension Benefit Adjustments Recognized In Other Comprehensive (Loss) Income [Table Text Block] | The components of the $(265) million and $18 million related to U.S. plans and non-U.S. plans, respectively, in the amounts recognized in OCI during 2019 consisted of: In millions U.S. Non- Current year actuarial (gain) loss $ (89 ) $ 19 Amortization of actuarial loss (200 ) (2 ) Current year prior service cost 40 — Amortization of prior service cost (16 ) — Settlements/curtailments — (1 ) Effect of foreign currency exchange rate movements — 2 $ (265 ) $ 18 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | The following table summarizes information for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2019 and 2018 : 2019 2018 In millions U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 11,699 $ 225 $ 10,467 $ 187 Accumulated benefit obligation 11,672 208 10,440 175 Fair value of plan assets 10,165 149 8,735 128 |
Defined Benefit Plan, Assumptions [Table Text Block] | Major actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit plans are presented in the following table: 2019 2018 2017 U.S. Non- U.S. Non- U.S. Non- Actuarial assumptions used to determine benefit obligations as of December 31: Discount rate 3.40 % 2.70 % 4.30 % 3.97 % 3.60 % 3.59 % Rate of compensation increase 2.25 % 3.62 % 2.25 % 4.05 % 3.75 % 4.06 % Actuarial assumptions used to determine net periodic pension cost for years ended December 31: Discount rate (a) 4.30 % 3.97 % 3.80 % 3.59 % 4.03 % 3.88 % Expected long-term rate of return on plan assets 7.25 % 6.20 % 7.50 % 6.52 % 7.50 % 6.73 % Rate of compensation increase 2.25 % 4.05 % 3.38 % 4.06 % 3.75 % 4.20 % |
Effect Of A 25 Basis Point Decrease On Net Pension Expense [Table Text Block] | The following illustrates the effect on pension expense for 2020 of a 25 basis point decrease in the above assumptions: In millions 2020 Expense (Income): Discount rate $ 31 Expected long-term rate of return on plan assets 24 |
Projected Future Pension Benefit Payments, Excluding Any Termination Benefits [Table Text Block] | At December 31, 2019 , projected future pension benefit payments, excluding any termination benefits, were as follows: In millions 2020 $ 569 2021 579 2022 593 2023 607 2024 619 2025-2029 3,217 |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Postretirement Benefit Expense [Table Text Block] | Net periodic pension expense for qualified and nonqualified U.S. and non-U.S. defined benefit plans comprised the following: 2019 2018 2017 In millions U.S. Non- U.S. Non- U.S. Non- Service cost $ 68 $ 5 $ 153 $ 5 $ 160 $ 4 Interest cost 440 8 467 8 536 9 Expected return on plan assets (631 ) (10 ) (765 ) (11 ) (774 ) (11 ) Actuarial loss (gain) 200 2 337 2 339 2 Amortization of prior service cost 16 — 16 — 28 — Curtailment loss (gain) (a) — (1 ) — — 23 — Settlement loss — 2 424 — 383 1 Special termination benefits (a) — — — — 22 — Net periodic pension expense $ 93 $ 6 $ 632 $ 4 $ 717 $ 5 (a) 2017 amounts were recorded in Discontinued operations in the consolidated statement of operations. |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Postretirement Benefit Expense [Table Text Block] | The components of postretirement benefit expense in 2019 , 2018 and 2017 were as follows: In millions 2019 2018 2017 U.S. Non- U.S. Non- U.S. Non- Service cost $ — $ 1 $ 1 $ — $ 1 $ — Interest cost 8 1 8 2 11 2 Actuarial loss 4 2 9 2 8 3 Amortization of prior service credits (2 ) (3 ) (2 ) (3 ) (3 ) (4 ) Net postretirement expense $ 10 $ 1 $ 16 $ 1 $ 17 $ 1 |
Discount Rates Used To Determine Net Cost [Table Text Block] | The weighted average assumptions used to determine the benefit obligation at December 31, 2019 and 2018 were as follows: 2019 2018 U.S. Non- U.S. Non- Discount rate 3.30 % 7.15 % 4.20 % 9.10 % Health care cost trend rate assumed for next year 6.75 % 9.57 % 7.00 % 10.04 % Rate that the cost trend rate gradually declines to 5.00 % 4.78 % 5.00 % 4.93 % Year that the rate reaches the rate it is assumed to remain 2026 2030 2026 2030 |
Changes In Postretirement Benefit Obligation, Plan Assets, Funded Status And Amounts Recognized In Balance Sheet And Accumulated Other Comprehensive (Loss) Income [Table Text Block] | The plans are only funded in an amount equal to benefits paid. The following table presents the changes in benefit obligation and plan assets for 2019 and 2018 : In millions 2019 2018 U.S. Non- U.S. Non- Change in projected benefit obligation: Benefit obligation, January 1 $ 213 $ 24 $ 270 $ 25 Service cost — 1 1 — Interest cost 8 1 8 2 Participants’ contributions 4 — 5 — Actuarial (gain) loss 20 8 (34 ) 2 Benefits paid (32 ) (2 ) (38 ) (1 ) Less: Federal subsidy 1 — 1 — Currency Impact — (1 ) — (4 ) Benefit obligation, December 31 $ 214 $ 31 $ 213 $ 24 Change in plan assets: Fair value of plan assets, January 1 $ — $ — $ — $ — Company contributions 28 2 33 1 Participants’ contributions 4 — 5 — Benefits paid (32 ) (2 ) (38 ) (1 ) Fair value of plan assets, December 31 $ — $ — $ — $ — Funded status, December 31 $ (214 ) $ (31 ) $ (213 ) $ (24 ) Amounts recognized in the consolidated balance sheet under ASC 715: Current liability $ (21 ) $ (1 ) $ (23 ) $ (1 ) Non-current liability (193 ) (30 ) (190 ) (23 ) $ (214 ) $ (31 ) $ (213 ) $ (24 ) Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax): Net actuarial loss (gain) $ 47 $ 19 $ 31 $ 15 Prior service credit (2 ) (18 ) (4 ) (22 ) $ 45 $ 1 $ 27 $ (7 ) |
Postretirement Benefit Adjustments Recognized In Other Comprehensive (Loss) Income [Table Text Block] | The components of the $18 million and $8 million change in the amounts recognized in OCI during 2019 for U.S. and non-U.S. plans, respectively, consisted of: In millions U.S. Non- Current year actuarial (gain) loss $ 20 $ 7 Amortization of actuarial (loss) gain (4 ) (2 ) Current year prior service cost — — Amortization of prior service credit 2 3 Currency impact — — $ 18 $ 8 |
Estimated Total Future Postretirement Benefit Payments, Net Of Participant Contributions And Estimated Future Medicare Part D Subsidy Receipts [Table Text Block] | At December 31, 2019 , estimated total future postretirement benefit payments, net of participant contributions and estimated future Medicare Part D subsidy receipts, were as follows: In millions Benefit Subsidy Receipts Benefit U.S. U.S. Non- 2020 $ 22 $ 1 $ 1 2021 21 1 — 2022 20 1 1 2023 18 1 1 2024 17 1 1 2025 – 2029 73 4 6 |
Net Cost [Member] | Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Discount Rates Used To Determine Net Cost [Table Text Block] | The discount rates used to determine net U.S. and non-U.S. postretirement benefit cost for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 U.S. Non- U.S. Non- U.S. Non- Discount rate 4.20 % 9.10 % 3.50 % 9.38 % 4.00 % 10.53 % |
Incentive Plans (Tables)
Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Assumptions Used To Determine Compensation Cost For Market Condition Component Of Performance Share Program [Table Text Block] | The following table sets forth the assumptions used to determine compensation cost for the market condition component of the PSP plan: Twelve Months Ended December 31, 2019 Expected volatility 22.81%-24.60% Risk-free interest rate 1.47%-2.44% |
Summary Of Performance Restricted Share Activity [Table Text Block] | The following summarizes PSP activity for the three years ended December 31, 2019 : Share/Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 5,950,130 $35.89 Granted 2,163,912 51.78 Shares issued (1,876,134 ) 51.00 Forfeited (438,024 ) 45.96 Outstanding at December 31, 2017 5,799,884 36.17 Granted 1,751,235 62.97 Shares issued (1,588,642 ) 53.67 Forfeited (196,000 ) 56.57 Outstanding at December 31, 2018 5,766,477 38.79 Granted 2,353,613 43.49 Shares issued (2,367,135 ) 36.79 Forfeited (238,227 ) 50.64 Outstanding at December 31, 2019 5,514,728 $41.14 |
Summary Of Activity Of Executive Continuity And Restricted Stock Award Program [Table Text Block] | The following summarizes the activity of the RSA program for the three years ended December 31, 2019 : Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 169,331 $45.34 Granted 63,319 57.24 Shares issued (59,650 ) 47.90 Forfeited (6,700 ) 53.53 Outstanding at December 31, 2017 166,300 48.63 Granted 66,100 51.43 Shares issued (100,289 ) 48.44 Forfeited — — Outstanding at December 31, 2018 132,111 50.17 Granted 87,910 43.70 Shares issued (52,021 ) 48.90 Forfeited (7,300 ) 45.10 Outstanding at December 31, 2019 160,700 $47.27 |
Stock-Based Compensation Expense And Related Income Tax Benefits [Table Text Block] | Stock-based compensation expense and related income tax benefits were as follows: In millions 2019 2018 2017 Total stock-based compensation expense (included in selling and administrative expense) $ 130 $ 135 $ 147 Income tax benefits related to stock-based compensation 30 16 45 |
Financial Information By Busi_2
Financial Information By Business Segment And Geographic Area (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Net Sales In millions 2019 2018 2017 Industrial Packaging $ 15,326 $ 15,900 $ 15,077 Global Cellulose Fibers 2,551 2,819 2,551 Printing Papers 4,291 4,375 4,157 Corporate and Intersegment Sales (a) 208 212 (42 ) Net Sales $ 22,376 $ 23,306 $ 21,743 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating Profit In millions 2019 2018 2017 Industrial Packaging $ 2,076 $ 2,277 $ 1,919 Global Cellulose Fibers (6 ) 262 116 Printing Papers 529 543 459 Business Segment Operating Profit 2,599 3,082 2,494 Earnings (loss) from continuing operations before income taxes and equity earnings 1,604 1,781 848 Interest expense, net 491 536 572 Noncontrolling interests / equity earnings adjustment (b) 3 (10 ) (2 ) Corporate expenses, net (a) 54 67 91 Corporate special items, net (a) 104 9 76 Business special items, net 307 205 425 Non-operating pension expense 36 494 484 $ 2,599 $ 3,082 $ 2,494 |
Detail of Business Special Items By Segment [Table Text Block] | Business Special Items, Net In millions 2019 2018 2017 Industrial Packaging $ 78 $ 184 $ 372 Global Cellulose Fibers 68 11 51 Printing Papers 161 10 2 Business Special Items, Net $ 307 $ 205 $ 425 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Assets In millions 2019 2018 Industrial Packaging $ 16,338 $ 15,859 Global Cellulose Fibers 3,733 3,880 Printing Papers 3,476 3,905 Corporate and other (c) 9,924 9,932 Assets $ 33,471 $ 33,576 |
Reconciliation of Capital Spending from Segment to Consolidated [Table Text Block] | Capital Spending In millions 2019 2018 2017 Industrial Packaging $ 922 $ 1,061 $ 836 Global Cellulose Fibers 162 183 188 Printing Papers 172 303 235 Subtotal 1,256 1,547 1,259 Corporate and other 20 25 21 Capital Spending $ 1,276 $ 1,572 $ 1,280 |
Reconciliation of Depreciation and Amortization from Segment to Consolidated [Table Text Block] | Depreciation, Amortization and Cost of Timber Harvested In millions 2019 2018 2017 Industrial Packaging $ 794 $ 803 $ 815 Global Cellulose Fibers 263 262 264 Printing Papers 244 258 254 Corporate (d) 5 5 10 Depreciation and Amortization $ 1,306 $ 1,328 $ 1,343 |
Revenue from External Customers by Products and Services [Table Text Block] | External Sales By Major Product In millions 2019 2018 2017 Industrial Packaging $ 15,259 $ 15,828 $ 14,946 Global Cellulose Fibers 2,545 2,810 2,524 Printing Papers 4,284 4,359 4,142 Other (e) 288 309 131 Net Sales $ 22,376 $ 23,306 $ 21,743 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Net Sales (f) In millions 2019 2018 2017 United States (g) $ 16,948 $ 17,609 $ 16,247 EMEA 3,258 3,321 3,129 Pacific Rim and Asia 415 605 625 Americas, other than U.S. 1,755 1,771 1,742 Net Sales $ 22,376 $ 23,306 $ 21,743 |
Long-lived Assets by Geographic Areas [Table Text Block] | Long-Lived Assets (h) In millions 2019 2018 United States $ 10,706 $ 10,586 EMEA 1,368 1,315 Pacific Rim and Asia — 201 Americas, other than U.S. 1,321 1,367 Long-Lived Assets $ 13,395 $ 13,469 |
Interim Financial Results (Tabl
Interim Financial Results (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | In millions, except per share amounts and stock prices 1st 2nd 3rd 4th Quarter Year 2019 Net sales $ 5,643 $ 5,667 $ 5,568 $ 5,498 $ 22,376 Earnings (loss) from continuing operations before income taxes and equity earnings 418 (a) 334 (a) 452 (a) 400 (a) 1,604 (a) Gain (loss) from discontinued operations — — — — — Net earnings (loss) attributable to International Paper Company 424 (a-b) 292 (a-c) 344 (a-c) 165 (a-b) 1,225 (a-c) Basic earnings (loss) per share attributable to International Paper Company common shareholders: Earnings (loss) from continuing operations $ 1.06 $ 0.74 $ 0.88 $ 0.42 $ 3.10 Gain (loss) from discontinued operations — — — — — Net earnings (loss) 1.06 0.74 0.88 0.42 3.10 Diluted earnings (loss) per share attributable to International Paper Company common shareholders: Earnings (loss) from continuing operations 1.05 0.73 0.87 0.42 3.07 Gain (loss) from discontinued operations — — — — — Net earnings (loss) 1.05 0.73 0.87 0.42 3.07 Dividends per share of common stock 0.5000 0.5000 0.5000 0.5125 2.0125 2018 Net sales $ 5,621 $ 5,833 $ 5,901 $ 5,951 $ 23,306 Earnings (loss) from continuing operations before income taxes and equity earnings 356 (d) 490 (d) 553 (d) 382 (d) 1,781 (d) Gain (loss) from discontinued operations 368 (e) (23 ) (e) — (e) — (e) 345 (e) Net earnings (loss) attributable to International Paper Company 729 (d-f) 405 (d-f) 562 (d-f) 316 (d-f) 2,012 (d-f) Basic earnings (loss) per share attributable to International Paper Company common shareholders: Earnings (loss) from continuing operations $ 0.87 $ 1.03 $ 1.38 $ 0.79 $ 4.07 Gain (loss) from discontinued operations 0.89 (0.05 ) — — 0.84 Net earnings (loss) 1.76 0.98 1.38 0.79 4.91 Diluted earnings (loss) per share attributable to International Paper Company common shareholders: Earnings (loss) from continuing operations 0.86 1.02 1.37 0.78 4.02 Gain (loss) from discontinued operations 0.88 (0.05 ) — — 0.83 Net earnings (loss) 1.74 0.97 1.37 0.78 4.85 Dividends per share of common stock 0.4750 0.4750 0.4750 0.5000 1.9250 Note: International Paper's common shares (symbol: IP) are listed on the New York Stock Exchange. Note: Since basic and diluted earnings per share are computed independently for each period and category, full year per share amounts may not equal the sum of the four quarters. |
Interim Financial Results Footnotes [Table Text Block] | Footnotes to Interim Financial Results (a) Includes the following pre-tax charges (gains): 2019 In millions Q1 Q2 Q3 Q4 India impairment $ — $ 152 $ 8 $ (1 ) India divestiture transaction costs — — — 3 Global Cellulose Fibers goodwill impairment — — — 52 Litigation reserves — — 22 19 Italian antitrust fine — — 32 — Environmental remediation reserve adjustment — — 15 10 (Gain) loss on sale of EMEA Packaging box plant (7 ) — — 1 EMEA Packaging business optimization — — — 17 Multi-employer pension plan exit liability 16 — (7 ) — Abandoned property removal 11 11 13 15 Riverdale mill conversion costs 1 1 1 2 Foreign VAT refund accrual including interest — — — (6 ) Debt extinguishment costs — — — 21 Gain on sale of previously closed Oregon mill site — — (9 ) — Overhead cost reduction initiative — — 21 — Other items — 1 — 3 Non-operating pension expense 10 8 9 9 Total $ 31 $ 173 $ 105 $ 145 (b) Includes the following tax expenses (benefits): 2019 In millions Q1 Q2 Q3 Q4 Luxembourg statutory tax rate change $ — $ 9 $ — $ — State income tax legislative changes — (3 ) — — Foreign tax audits — 3 — — Internal investment restructuring — — — (53 ) Foreign deferred tax valuation allowance — — — 203 Tax impact of other special items (6 ) (5 ) (14 ) (28 ) Tax impact of non-operating pension expense (2 ) (2 ) (2 ) (2 ) Total $ (8 ) $ 2 $ (16 ) $ 120 (c) Includes allocation of loss to noncontrolling interest of $7 million and $2 million for the three months ended June 30, 2019 and September 30, 2019, respectively, associated with the impairment of the net assets of our India Papers business. (d) Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 Smurfit-Kappa acquisition proposal costs $ — $ 12 $ — $ — Legal settlement 9 — — — Litigation settlement recovery — — — (5 ) Environmental remediation reserve adjustment — — 9 — EMEA Packaging business optimization 22 26 — (1 ) Abandoned property removal 9 9 6 8 Riverdale mill conversion costs — — 5 4 Brazil Packaging impairment — — 122 — Debt extinguishment costs — — — 10 Gain on sale of investment in Liaison Technologies — — — (31 ) Non-operating pension expense 4 36 25 429 Total $ 44 $ 83 $ 167 $ 414 (e) Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 North American Consumer Packaging transaction costs $ 23 $ 2 $ — $ — North American Consumer Packaging gain on transfer (516 ) 28 — — Total $ (493 ) $ 30 $ — $ — (f) Includes the following tax expenses (benefits): 2018 In millions Q1 Q2 Q3 Q4 State income tax legislative changes $ — $ 9 $ — $ — Tax benefit of Tax Cuts and Jobs Act — — (36 ) — Internal investment restructuring — — — 19 Foreign tax audits — — — 25 Tax impact of other special items (9 ) (13 ) (46 ) 3 Tax impact of non-operating pension expense (1 ) (9 ) (6 ) (107 ) Total $ (10 ) $ (13 ) $ (88 ) $ (60 ) |
Recent Accounting Development_2
Recent Accounting Developments Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | ||
Goodwill, Impairment Loss | $ 60 | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Net of Tax | 529 | ||
Global Cellulose Fibers | |||
Goodwill, Impairment Loss | $ 52 | $ 52 | [1] |
[1] | Reflects the impairment of the Global Cellulose Fibers reporting unit. |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregaton of Revenue Table (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 22,376 | [1] | $ 23,306 | [2] |
Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 208 | [1] | 212 | [2] |
Subsegments Consolidation Items [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (160) | (246) | ||
North American Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,509 | 14,187 | ||
EMEA Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,335 | 1,355 | ||
Brazilian Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 235 | 232 | ||
European Coated Paperboard | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 365 | 359 | ||
Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,551 | 2,819 | ||
North American Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,956 | 1,956 | ||
Brazilian Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 967 | 978 | ||
European Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,250 | 1,252 | ||
Indian Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 160 | 202 | ||
Industrial Packaging | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 15,326 | 15,900 | ||
Industrial Packaging | Subsegments Consolidation Items [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (118) | (233) | ||
Industrial Packaging | Reportable Geographical Components [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 15,326 | [1] | 15,900 | [2] |
Industrial Packaging | North American Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,509 | 14,187 | ||
Industrial Packaging | EMEA Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,335 | 1,355 | ||
Industrial Packaging | Brazilian Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 235 | 232 | ||
Industrial Packaging | European Coated Paperboard | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 365 | 359 | ||
Global Cellulose Fibers | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,551 | 2,819 | ||
Global Cellulose Fibers | Reportable Geographical Components [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,551 | [1] | 2,819 | [2] |
Global Cellulose Fibers | Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,551 | 2,819 | ||
Printing Papers | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,291 | 4,375 | ||
Printing Papers | Subsegments Consolidation Items [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (42) | (13) | ||
Printing Papers | Reportable Geographical Components [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,291 | [1] | 4,375 | [2] |
Printing Papers | North American Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,956 | 1,956 | ||
Printing Papers | Brazilian Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 967 | 978 | ||
Printing Papers | European Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,250 | 1,252 | ||
Printing Papers | Indian Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 160 | 202 | ||
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 16,948 | [1] | 17,609 | [2] |
United States | Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 220 | [1] | 203 | [2] |
United States | Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12,668 | [1] | 13,167 | [2] |
United States | Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,148 | [1] | 2,336 | [2] |
United States | Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,912 | [1] | 1,903 | [2] |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,258 | [1] | 3,321 | [2] |
EMEA | Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (11) | [1] | (17) | [2] |
EMEA | Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,692 | [1] | 1,704 | [2] |
EMEA | Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 254 | [1] | 304 | [2] |
EMEA | Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,323 | [1] | 1,330 | [2] |
Pacific Rim and Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 415 | [1] | 605 | [2] |
Pacific Rim and Asia | Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12 | [1] | 39 | [2] |
Pacific Rim and Asia | Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 65 | [1] | 142 | [2] |
Pacific Rim and Asia | Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 149 | [1] | 179 | [2] |
Pacific Rim and Asia | Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 189 | [1] | 245 | [2] |
Americas, other than U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,755 | [1] | 1,771 | [2] |
Americas, other than U.S. | Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (13) | [1] | (13) | [2] |
Americas, other than U.S. | Industrial Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 901 | [1] | 887 | [2] |
Americas, other than U.S. | Global Cellulose Fibers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | [1] | 0 | [2] |
Americas, other than U.S. | Printing Papers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 867 | [1] | $ 897 | [2] |
[1] | Net sales are attributed to countries based on the location of the reportable segment making the sale. | |||
[2] | Net sales are attributed to countries based on the location of the reportable segment making the sale. |
Revenue Recognition Contract Wi
Revenue Recognition Contract With Customer, Asset and Liability Table (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 393 | $ 395 |
Contract with customer, asset, increase (decrease) | (2) | |
Contract with customer, liability, current | 56 | $ 56 |
Contract with customer, liability increase (decrease) | $ 0 |
(Reconciliation Of Earnings Per
(Reconciliation Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [2] | Sep. 30, 2018 | [2] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [2] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Earnings Per Share, Basic and Diluted [Line Items] | |||||||||||||||||||||
Earnings (loss) from continuing operations attributable to International Paper common shareholders | $ 1,225 | $ 1,667 | $ 2,110 | ||||||||||||||||||
Weighted average common shares outstanding | 395.3 | 409.1 | 412.7 | ||||||||||||||||||
Weighted average common shares outstanding – assuming dilution | 398.8 | 414.2 | 417.7 | ||||||||||||||||||
Basic earnings (loss) per share from continuing operations | $ 0.42 | $ 0.88 | $ 0.74 | $ 1.06 | $ 0.79 | $ 1.38 | $ 1.03 | $ 0.87 | $ 3.10 | [1] | $ 4.07 | [2] | $ 5.11 | ||||||||
Diluted earnings (loss) per share from continuing operations | $ 0.42 | $ 0.87 | $ 0.73 | $ 1.05 | $ 0.78 | $ 1.37 | $ 1.02 | $ 0.86 | $ 3.07 | [1] | $ 4.02 | [2] | $ 5.05 | ||||||||
Restricted performance share plan | |||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Line Items] | |||||||||||||||||||||
Effect of dilutive securities: | 3.5 | 5.1 | 5 | ||||||||||||||||||
[1] | Includes the following pre-tax charges (gains): 2019 In millions Q1 Q2 Q3 Q4 India impairment $ — $ 152 $ 8 $ (1 ) India divestiture transaction costs — — — 3 Global Cellulose Fibers goodwill impairment — — — 52 Litigation reserves — — 22 19 Italian antitrust fine — — 32 — Environmental remediation reserve adjustment — — 15 10 (Gain) loss on sale of EMEA Packaging box plant (7 ) — — 1 EMEA Packaging business optimization — — — 17 Multi-employer pension plan exit liability 16 — (7 ) — Abandoned property removal 11 11 13 15 Riverdale mill conversion costs 1 1 1 2 Foreign VAT refund accrual including interest — — — (6 ) Debt extinguishment costs — — — 21 Gain on sale of previously closed Oregon mill site — — (9 ) — Overhead cost reduction initiative — — 21 — Other items — 1 — 3 Non-operating pension expense 10 8 9 9 Total $ 31 $ 173 $ 105 $ 145 | ||||||||||||||||||||
[2] | Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 Smurfit-Kappa acquisition proposal costs $ — $ 12 $ — $ — Legal settlement 9 — — — Litigation settlement recovery — — — (5 ) Environmental remediation reserve adjustment — — 9 — EMEA Packaging business optimization 22 26 — (1 ) Abandoned property removal 9 9 6 8 Riverdale mill conversion costs — — 5 4 Brazil Packaging impairment — — 122 — Debt extinguishment costs — — — 10 Gain on sale of investment in Liaison Technologies — — — (31 ) Non-operating pension expense 4 36 25 429 Total $ 44 $ 83 $ 167 $ 414 |
(Schedule of Accumulated Other
(Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | $ (4,500) | $ (4,633) | |
Balance at end of period | (4,739) | (4,500) | $ (4,633) |
Defined Benefit Pension and Postretirement Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (1,916) | (2,527) | (3,072) |
Other comprehensive income (loss) before reclassifications | 2 | 22 | 59 |
Reclassification of stranded tax effects | (527) | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 164 | 589 | 486 |
Balance at end of period | (2,277) | (1,916) | (2,527) |
Change in Cumulative Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (2,581) | (2,111) | (2,287) |
Other comprehensive income (loss) before reclassifications | 14 | (475) | 178 |
Amounts reclassified from accumulated other comprehensive income | 102 | 2 | (1) |
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest | 0 | 3 | (1) |
Balance at end of period | (2,465) | (2,581) | (2,111) |
Net Gains and Losses on Cash Flow Hedging Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (3) | 5 | (3) |
Other comprehensive income (loss) before reclassifications | 4 | (10) | 15 |
Reclassification of stranded tax effects | (2) | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 4 | 2 | (7) |
Balance at end of period | 3 | (3) | 5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income | $ 259 | $ (593) | $ (478) |
(Schedule of Reclassifications
(Schedule of Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax provision (benefit) | $ 634 | $ 445 | $ (1,085) | |
EARNINGS (LOSS) FROM CONTINUING OPERATIONS | (1,220) | (1,672) | (2,110) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 259 | (593) | (478) | |
Prior-service costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (10) | (11) | (33) |
Actuarial gains/(losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (208) | (774) | (733) |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (218) | (785) | (766) | |
Income tax provision (benefit) | 54 | 196 | 280 | |
EARNINGS (LOSS) FROM CONTINUING OPERATIONS | (164) | (589) | (486) | |
Income (Loss) from Continuing Operations, Total, Net of Tax | 363 | (589) | (486) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification of stranded tax effects | 527 | 0 | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 164 | 589 | 486 | |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | (102) | (2) | 1 |
Income tax provision (benefit) | 0 | 0 | 0 | |
EARNINGS (LOSS) FROM CONTINUING OPERATIONS | (102) | (2) | 1 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (6) | (3) | 9 | |
Income tax provision (benefit) | 2 | 1 | (2) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | Foreign Exchange Contract [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [3] | (6) | (3) | 9 |
Net Gains and Losses on Cash Flow Hedging Derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
EARNINGS (LOSS) FROM CONTINUING OPERATIONS | (4) | (2) | 7 | |
Reclassification of stranded tax effects | 2 | 0 | 0 | |
Income (Loss) from Continuing Operations, Total, Net of Tax | (2) | (2) | 7 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 4 | $ 2 | $ (7) | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 19 for additional details). | |||
[2] | Amounts for 2018 were reclassed to Discontinued operations, net of taxes | |||
[3] | This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 17 for additional details). |
(Restructuring and Related Cost
(Restructuring and Related Costs Tables) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and other charges, net | $ 57 | $ 29 | $ 67 | ||||||||||
Overhead cost reduction initiative | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and other charges, net | $ 21 | 21 | [1] | ||||||||||
EMEA packaging restructuring | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and other charges, net | $ 17 | $ (1) | $ 26 | $ 22 | 15 | [2] | 47 | [3] | |||||
Early debt extinguishment costs (see Note 16) | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and other charges, net | 21 | 10 | $ 21 | 10 | 83 | ||||||||
Gain on sale of investment in Liaison Technologies Inc. | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and other charges, net | (31) | (31) | |||||||||||
Riverdale mill conversion severance | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and other charges, net | $ 2 | $ 1 | $ 1 | $ 1 | $ 4 | $ 5 | $ 3 | ||||||
Gain on sale of investment in ArborGen | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and other charges, net | (14) | ||||||||||||
Other | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and other charges, net | $ (2) | ||||||||||||
[1] | Includes pre-tax charges of $11 million , $6 million and $4 million in Corporate, the Printing Papers segment and the Global Cellulose Fibers segment, respectively, for severance related to an overhead cost reduction initiative. The majority of the severance charges will be paid in 2020. | ||||||||||||
[2] | Includes $14 million of severance and $1 million in other charges in conjunction with the restructuring of our EMEA Packaging business. The majority of the severance charges will be paid in 2020. | ||||||||||||
[3] | Includes $33 million of severance, $6 million in accelerated depreciation, $2 million in accelerated amortization and $6 million in other charges in conjunction with the optimization of our EMEA Packaging business. The majority of the severance charges recorded were paid throughout the year. |
Restructuring Charges and Oth_3
Restructuring Charges and Other Items (Restructuring and Related Costs Tables Footnotes) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Corporate Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | $ 11 | |
Printing Papers | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | 6 | |
Global Cellulose Fibers | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | 4 | |
EMEA packaging restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | 14 | $ 33 |
Restructuring and related cost, accelerated depreciation | 6 | |
Restructuring and related costs, accelerated amortization and other noncash costs | 2 | |
Restructuring and other related charges, other | $ 1 | $ 6 |
Restructuring Charges and Oth_4
Restructuring Charges and Other Items (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring and other charges, net | $ 57 | $ 29 | $ 67 |
(Schedule of Recognized Identif
(Schedule of Recognized Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 3,347 | $ 3,374 | $ 3,411 | ||
DS Smith Packaging [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash and temporary investments | $ 2 | ||||
Accounts and notes receivable | 22 | ||||
Inventory | 8 | ||||
Plants, properties and equipment | 40 | ||||
Goodwill | 23 | ||||
Other intangible assets | 16 | ||||
Right of use assets | 3 | ||||
Deferred charges and other assets | 1 | ||||
Total assets acquired | 115 | ||||
Short-term debt | 2 | ||||
Accounts payable and accrued liabilities | 21 | ||||
Other current liabilities | 4 | ||||
Deferred Income Taxes | 3 | ||||
Long-term lease obligations | 3 | ||||
Other long-term liabilities | 1 | ||||
Total liabilities assumed | 34 | ||||
Net assets acquired | $ 81 | ||||
Tangier, Morocco Facility [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash and temporary investments | $ 1 | ||||
Accounts and notes receivable | 7 | ||||
Inventory | 3 | ||||
Plants, properties and equipment | 31 | ||||
Goodwill | 4 | ||||
Other intangible assets | 5 | ||||
Deferred charges and other assets | 4 | ||||
Total assets acquired | 55 | ||||
Accounts payable and accrued liabilities | 4 | ||||
Long-term debt | 11 | ||||
Other long-term liabilities | 2 | ||||
Total liabilities assumed | 17 | ||||
Net assets acquired | $ 38 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, net of cash acquired | $ 103 | $ 8 | $ 45 | ||||
Tangier, Morocco Facility [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, net of cash acquired | $ 46 | € 40 | $ 38 | € 33 | |||
DS Smith Packaging [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, net of cash acquired | 81 | € 71 | |||||
Net sales since acquisition date | 50 | ||||||
Earnings (loss) from continuing operations before income taxes and equity earnings since acquisition date | $ 4 |
Divestitures and Impairments _3
Divestitures and Impairments of Businesses (Reconciliation of Major Line Items Constituting Pre-Tax Profit (Loss) of Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | [1] | Mar. 31, 2019 | Dec. 31, 2018 | [2] | Sep. 30, 2018 | [2] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [2] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||
(Gain) loss on transfer of business | $ 1 | $ (9) | $ (7) | $ 0 | $ 488 | $ 0 | ||||||||||||||
Discontinued operations, net of taxes | $ 0 | [1] | $ 0 | [1] | $ 0 | $ 0 | [1] | $ 0 | $ 0 | $ (23) | $ 368 | $ 0 | 345 | [2] | 34 | |||||
North American Consumer Packaging [Member] | Discontinued Operations, Held-for-sale [Member] | ||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||
Net Sales | 0 | 1,559 | ||||||||||||||||||
Cost of products sold | 0 | 1,179 | ||||||||||||||||||
Selling and administrative expenses | 25 | 110 | ||||||||||||||||||
Depreciation, amortization and cost of timber harvested | 0 | 80 | ||||||||||||||||||
Distribution expenses | 0 | 126 | ||||||||||||||||||
Taxes other than payroll and income taxes | 0 | 11 | ||||||||||||||||||
(Gain) loss on transfer of business | (488) | 0 | ||||||||||||||||||
Interest expense, net | 0 | 1 | ||||||||||||||||||
Earnings (Loss) Before Income Taxes and Equity Earnings | 463 | 52 | ||||||||||||||||||
Income tax provision (benefit) | 118 | 18 | ||||||||||||||||||
Discontinued operations, net of taxes | $ 345 | $ 34 | ||||||||||||||||||
[1] | Includes the following tax expenses (benefits): 2019 In millions Q1 Q2 Q3 Q4 Luxembourg statutory tax rate change $ — $ 9 $ — $ — State income tax legislative changes — (3 ) — — Foreign tax audits — 3 — — Internal investment restructuring — — — (53 ) Foreign deferred tax valuation allowance — — — 203 Tax impact of other special items (6 ) (5 ) (14 ) (28 ) Tax impact of non-operating pension expense (2 ) (2 ) (2 ) (2 ) Total $ (8 ) $ 2 $ (16 ) $ 120 | |||||||||||||||||||
[2] | Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 North American Consumer Packaging transaction costs $ 23 $ 2 $ — $ — North American Consumer Packaging gain on transfer (516 ) 28 — — Total $ (493 ) $ 30 $ — $ — |
Divestitures and Impairments _4
Divestitures and Impairments of Businesses (Narrative) (Details) ¥ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Jun. 30, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Impairment charge | $ (122,000,000) | $ (122,000,000) | ||||||||
Impairment charge, net of taxes | (81,000,000) | |||||||||
Proceeds from divestiture of businesses | $ 82,000,000 | |||||||||
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 0 | (40,000,000) | $ 0 | |||||||
North American Consumer Packaging [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Cash provided by (used in) operating activities, discontinued operations | (25,000,000) | 207,000,000 | ||||||||
Cash Provided by (Used in) Investing Activities, Discontinued Operations | (40,000,000) | $ (111,000,000) | ||||||||
Asia Foodservice [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Impairment of long-lived assets to be disposed of | $ 9,000,000 | |||||||||
Assets held-for-sale, long lived, fair value disclosure | $ 7,000,000 | |||||||||
Proceeds from divestiture of businesses | $ 18,000,000 | ¥ 129 | ||||||||
Proceeds from sales of business, affiliate and productive assets | ¥ | ¥ 49 | |||||||||
Number of locations sold | 2 | 2 | ||||||||
Proceeds from sale of notes receivable | ¥ | ¥ 80 | |||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | APPM [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Impairment charge | $ 1,000,000 | $ (8,000,000) | $ (152,000,000) | (159,000,000) | ||||||
Impairment charge, net of taxes | (157,000,000) | |||||||||
Other comprehensive income (loss), foreign currency transaction and translation adjustment, before tax | (97,000,000) | |||||||||
Impairment of long-lived assets to be disposed of | 62,000,000 | |||||||||
Gain (loss) on sale of assets and impairment charge allocated to minority interest | $ 9,000,000 | |||||||||
Graphic Packaging International Partners, LLC [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Percentage of ownership retained | 20.00% | |||||||||
Impairment charge | 488,000,000 | |||||||||
Impairment charge, net of taxes | 364,000,000 | |||||||||
Discontinued operation, equity method investment retained after disposal, ownership interest after disposal | 20.50% | |||||||||
Fair value of equity method investment | $ 32,000,000 | $ 32,000,000 | $ 1,100,000,000 |
(Accounts And Notes Receivable)
(Accounts And Notes Receivable) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and notes receivable | $ 3,280 | $ 3,521 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and notes receivable | 3,020 | 3,249 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and notes receivable | $ 260 | $ 272 |
(Inventories By Major Category)
(Inventories By Major Category) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Text Block Supplement [Abstract] | ||
Raw materials | $ 298 | $ 260 |
Finished pulp, paper and packaging products | 1,192 | 1,241 |
Operating supplies | 659 | 641 |
Other | 59 | 99 |
Inventories | $ 2,208 | $ 2,241 |
(Plants, Properties And Equipme
(Plants, Properties And Equipment By Major Classification) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Gross cost | $ 33,516 | $ 33,561 |
Less: Accumulated depreciation | 20,512 | 20,494 |
Plants, properties and equipment, net | 13,004 | 13,067 |
Pulp, paper and packaging facilities | ||
Property, Plant and Equipment [Line Items] | ||
Gross cost | 32,292 | 32,329 |
Other properties and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross cost | $ 1,224 | $ 1,232 |
(Schedule Of Interest Income An
(Schedule Of Interest Income And Interest Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |||
Interest expense | $ 706 | $ 734 | $ 758 |
Interest income | 215 | 198 | 186 |
Capitalized interest costs | $ 29 | $ 30 | $ 25 |
Supplementary Financial State_3
Supplementary Financial Statement Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Temporary Investments | $ 335 | $ 402 | |
Percentage of inventories valued using last-in, first-out inventory method | 71.00% | ||
Excess of replacement or current costs over stated LIFO value | $ 295 | 329 | |
Capital expenditures incurred but not yet paid | 164 | 135 | $ 275 |
Depreciation expense | 1,200 | 1,200 | 1,200 |
Interest payments | 754 | 772 | $ 782 |
Asset retirement obligation | $ 96 | $ 86 | |
Building [Member] | Minimum [Member] | |||
Property, plant and equipment, useful life | 20 years | ||
Building [Member] | Maximum [Member] | |||
Property, plant and equipment, useful life | 40 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, plant and equipment, useful life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, plant and equipment, useful life | 20 years |
Leases (Schedule of Lease Costs
Leases (Schedule of Lease Costs) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs, net | $ 132 |
Variable lease costs | 70 |
Short-term lease costs, net | 59 |
Amortization of lease assets | 12 |
Interest on lease liabilities | 5 |
Total lease cost, net | $ 278 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease, right-of-use asset | $ 434 | $ 0 | |
Finance lease, right-of-use asset | [1] | 103 | |
Total leased assets | 537 | ||
Operating lease, liability, current | 134 | ||
Finance lease, liability, current | 12 | ||
Operating lease, liability, noncurrent | 304 | $ 0 | |
Finance lease, liability, noncurrent | 88 | ||
Total lease liabilities | $ 538 | ||
[1] | Finance leases are recorded net of accumulated amortization of $40 million . |
Leases (Supplemental Balance _2
Leases (Supplemental Balance Sheet Information Related to Leases Footnotes) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Finance lease, right-of-use asset, accumulated amortization | $ 40 |
Leases (Schedule of Lease Terms
Leases (Schedule of Lease Terms and Discount Rates Related to Leases) (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term | 9 years 9 months 18 days |
Finance lease, weighted average remaining lease term | 10 years 10 months 24 days |
Operating lease, weighted average discount rate, percent | 3.06% |
Finance lease, weighted average discount rate, percent | 4.69% |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related to Leases) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows related to operating leases | $ 147 |
Operating cash flows related to financing leases | 5 |
Financing cash flows related to finance leases | 9 |
Right of use asset obtained in exchange for operating lease liability | 162 |
Right of use asset obtained in exchange for finance lease liability | $ 11 |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Operating and Financing Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Lessee, operating lease, liability, payments, due next twelve months | $ 147 | |
Finance lease, liability, payments, due next twelve months | 16 | |
Lease liability, payments, due next twelve months | 163 | |
Lessee, operating lease, liability, payments, due year two | 110 | |
Finance lease, liability, payments, due year two | 15 | |
Lease liability, payments, due year two | 125 | |
Lessee, operating lease, liability, payments, due year three | 75 | |
Finance lease, liability, payments, due year three | 14 | |
Lease liability, payments due, year three | 89 | |
Lessee, operating lease, liability, payments, due year four | 42 | |
Finance lease, liability, payments, due year four | 13 | |
Lease liability, payments, due year four | 55 | |
Lessee, operating lease, liability, payments, due year five | 24 | |
Finance lease, liability, payments, due year five | 10 | |
Lease liability, payments, due year five | 34 | |
Lessee, operating lease, liability, payments, due after year five | 103 | |
Finance lease, liability, payments, due after year five | 66 | |
Lease liability payments, due after year five | 169 | |
Operating lease, liability, payment, due | 501 | |
Finance lease, liability, payment, due | 134 | |
Lease liability, payments, total | 635 | |
Lessee, operating lease, liability, undiscounted excess amount | 63 | |
Lessee, finance lease, liability, undiscounted excess amount | 34 | |
Lease liability, undiscounted excess amount | 97 | |
Operating lease liability | 438 | |
Finance lease liability | 100 | $ 63 |
Lease liability total | $ 538 |
Leases (Schedule of Prior Year
Leases (Schedule of Prior Year Maturities) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 160 |
Operating Leases, Future Minimum Payments, Due in Two Years | 125 |
Operating Leases, Future Minimum Payments, Due in Three Years | 77 |
Operating Leases, Future Minimum Payments, Due in Four Years | 49 |
Operating Leases, Future Minimum Payments, Due in Five Years | 28 |
Operating Leases, Future Minimum Payments, Due Thereafter | $ 118 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum [Member] | |
Lessee, operating and financing leases, remaining lease term | 1 year |
Maximum [Member] | |
Lessee, operating and financing leases, remaining lease term | 97 years |
Equity Method Investments (Equi
Equity Method Investments (Equity Method Investments Table) (Details) - Reportable Subsegments [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Graphic Packaging LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | $ 1,796 | $ 1,757 | |
Noncurrent assets | 5,482 | 5,292 | |
Current liabilities | 1,178 | 1,148 | |
Noncurrent liabilities | 3,244 | 3,156 | |
Net sales | 6,160 | 6,023 | |
Gross profit | 1,093 | 946 | |
Income from continuing operations | 333 | 336 | |
Net income | 334 | 337 | |
Ilim Holding [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 804 | 981 | |
Noncurrent assets | 2,813 | 1,710 | |
Current liabilities | 1,015 | 545 | |
Noncurrent liabilities | 1,844 | 1,470 | |
Noncontrolling interests | 16 | 11 | |
Net sales | 2,189 | 2,713 | $ 2,150 |
Gross profit | 1,025 | 1,549 | 1,047 |
Income from continuing operations | 438 | 592 | 379 |
Net income | $ 424 | $ 571 | $ 362 |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 29, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity earnings (loss), net of taxes | $ 250,000,000 | $ 336,000,000 | $ 177,000,000 | ||
Reportable Subsegments [Member] | Graphic Packaging LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of equity interest | 21.60% | 20.50% | 18.30% | ||
Equity earnings (loss), net of taxes | $ 46,000,000 | $ 46,000,000 | |||
Dividends received from equity method investee | 27,000,000 | 25,000,000 | |||
Equity method investments | 1,100,000,000 | 1,100,000,000 | |||
Equity method investment, difference between carrying amount and underlying equity | 529,000,000 | 562,000,000 | |||
Revenue from related party | $ 274,000,000 | 240,000,000 | |||
Equity method investment, aggregate units exchanged | 19.00% | ||||
Proceeds from exchange of aggregate units owned in an equity method investment | $ 250,000,000 | ||||
Reportable Subsegments [Member] | Ilim Holding [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of equity interest | 50.00% | ||||
Equity earnings (loss), net of taxes | $ 207,000,000 | 290,000,000 | 183,000,000 | ||
Dividends received from equity method investee | 246,000,000 | 128,000,000 | |||
Equity method investments | 508,000,000 | 478,000,000 | |||
Equity method investment, difference between carrying amount and underlying equity | 136,000,000 | 145,000,000 | |||
Foreign currency transaction gain (loss), net of tax | 32,000,000 | (82,000,000) | 15,000,000 | ||
Purchases from related party | $ 215,000,000 | $ 214,000,000 | $ 205,000,000 |
(Changes In Goodwill Balances)
(Changes In Goodwill Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | $ 3,374 | $ 3,411 | ||||
Currency translation and other (a) | [1] | (6) | (35) | |||
Goodwill additions/reductions | (81) | (2) | ||||
Goodwill, Impairment Loss | 60 | |||||
Goodwill | $ 5,460 | 5,460 | 5,547 | $ 5,584 | ||
Accumulated impairment losses | (2,113) | (2,113) | (2,173) | (2,173) | ||
Goodwill, ending balance | 3,347 | 3,347 | 3,374 | |||
Industrial Packaging | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 3,083 | 3,086 | ||||
Currency translation and other (a) | [1] | 0 | (1) | |||
Goodwill additions/reductions | [3] | 31 | [2] | (2) | ||
Goodwill, Impairment Loss | 0 | |||||
Goodwill | 3,410 | 3,410 | 3,379 | 3,382 | ||
Accumulated impairment losses | (296) | (296) | (296) | (296) | ||
Goodwill, ending balance | 3,114 | 3,114 | 3,083 | |||
Global Cellulose Fibers | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 52 | 52 | ||||
Currency translation and other (a) | [1] | 0 | 0 | |||
Goodwill additions/reductions | 0 | 0 | ||||
Goodwill, Impairment Loss | 52 | 52 | [4] | |||
Goodwill | 52 | 52 | 52 | 52 | ||
Accumulated impairment losses | (52) | (52) | 0 | 0 | ||
Goodwill, ending balance | 0 | 0 | 52 | |||
Printing Papers | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 239 | 273 | ||||
Currency translation and other (a) | [1] | (6) | (34) | |||
Goodwill additions/reductions | (112) | [5] | 0 | |||
Goodwill, Impairment Loss | [5] | 112 | ||||
Goodwill | 1,998 | 1,998 | 2,116 | 2,150 | ||
Accumulated impairment losses | (1,765) | (1,765) | (1,877) | $ (1,877) | ||
Goodwill, ending balance | $ 233 | $ 233 | $ 239 | |||
[1] | Represents the effects of foreign currency translations and reclassifications. | |||||
[2] | Reflects the goodwill for the acquisitions of Industrial Packaging box plants in EMEA of which $28 million is considered provisional. | |||||
[3] | Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in the U.S. | |||||
[4] | Reflects the impairment of the Global Cellulose Fibers reporting unit. | |||||
[5] | Reflects the reclassification of India goodwill and related impairment losses to held for sale prior to the sale of the business. |
(Identifiable Intangible Assets
(Identifiable Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 782 | $ 847 |
Accumulated Amortization | 414 | 454 |
Net Intangible Assets | 368 | 393 |
Customer relationships and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 560 | 542 |
Accumulated Amortization | 275 | 247 |
Net Intangible Assets | 285 | 295 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0 | 67 |
Accumulated Amortization | 0 | 67 |
Net Intangible Assets | 0 | 0 |
Tradenames, patents and trademarks, and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 170 | 174 |
Accumulated Amortization | 102 | 90 |
Net Intangible Assets | 68 | 84 |
Land and water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8 | 8 |
Accumulated Amortization | 2 | 2 |
Net Intangible Assets | 6 | 6 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26 | 26 |
Accumulated Amortization | 25 | 25 |
Net Intangible Assets | 1 | 1 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 18 | 30 |
Accumulated Amortization | 10 | 23 |
Net Intangible Assets | $ 8 | $ 7 |
(Amortization Expense Of Intang
(Amortization Expense Of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets | $ 58 | $ 59 | $ 77 |
Goodwill And Other Intangible_3
Goodwill And Other Intangibles (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | ||
Goodwill [Line Items] | |||
Goodwill, Impairment Loss | $ (60) | ||
Intangibles subject to amortization, estimated amortization expense, next 12 months | $ 50 | 50 | |
Intangibles subject to amortization, estimated amortization expense, year 2 | 48 | 48 | |
Intangibles subject to amortization, estimated amortization expense, year 3 | 46 | 46 | |
Intangibles subject to amortization, estimated amortization expense, year 4 | 41 | 41 | |
Intangibles subject to amortization, estimated amortization expense, year 5 | 41 | 41 | |
Intangibles subject to amortization, estimated amortization expense cumulatively thereafter | 136 | 136 | |
Global Cellulose Fibers | |||
Goodwill [Line Items] | |||
Goodwill, Impairment Loss | $ (52) | $ (52) | [1] |
[1] | Reflects the impairment of the Global Cellulose Fibers reporting unit. |
Goodwill And Other Intangible_4
Goodwill And Other Intangibles Changes in Goodwill (Footnotes) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Business combination, provisional information, initial accounting incomplete, goodwill | $ 28 |
(Schedule of Income Before Inco
(Schedule of Income Before Income Tax, Domestic and Foreign) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [2] | Sep. 30, 2018 | [2] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [2] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
U.S. | $ 1,342 | $ 1,450 | $ 297 | ||||||||||||||||||
Non-U.S. | 262 | 331 | 551 | ||||||||||||||||||
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY EARNINGS (LOSSES) | $ 400 | $ 452 | $ 334 | $ 418 | $ 382 | $ 553 | $ 490 | $ 356 | $ 1,604 | [1] | $ 1,781 | [2] | $ 848 | ||||||||
[1] | Includes the following pre-tax charges (gains): 2019 In millions Q1 Q2 Q3 Q4 India impairment $ — $ 152 $ 8 $ (1 ) India divestiture transaction costs — — — 3 Global Cellulose Fibers goodwill impairment — — — 52 Litigation reserves — — 22 19 Italian antitrust fine — — 32 — Environmental remediation reserve adjustment — — 15 10 (Gain) loss on sale of EMEA Packaging box plant (7 ) — — 1 EMEA Packaging business optimization — — — 17 Multi-employer pension plan exit liability 16 — (7 ) — Abandoned property removal 11 11 13 15 Riverdale mill conversion costs 1 1 1 2 Foreign VAT refund accrual including interest — — — (6 ) Debt extinguishment costs — — — 21 Gain on sale of previously closed Oregon mill site — — (9 ) — Overhead cost reduction initiative — — 21 — Other items — 1 — 3 Non-operating pension expense 10 8 9 9 Total $ 31 $ 173 $ 105 $ 145 | ||||||||||||||||||||
[2] | Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 Smurfit-Kappa acquisition proposal costs $ — $ 12 $ — $ — Legal settlement 9 — — — Litigation settlement recovery — — — (5 ) Environmental remediation reserve adjustment — — 9 — EMEA Packaging business optimization 22 26 — (1 ) Abandoned property removal 9 9 6 8 Riverdale mill conversion costs — — 5 4 Brazil Packaging impairment — — 122 — Debt extinguishment costs — — — 10 Gain on sale of investment in Liaison Technologies — — — (31 ) Non-operating pension expense 4 36 25 429 Total $ 44 $ 83 $ 167 $ 414 |
(Schedule of Components of Inco
(Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. federal | $ 271 | $ 227 | $ (73) |
U.S. state and local | 29 | 37 | (23) |
Non-U.S. | 122 | 165 | 112 |
Current tax provision (benefit), total | 422 | 429 | 16 |
U.S. federal | 44 | 12 | (1,150) |
U.S. state and local | (23) | 50 | 9 |
Non-U.S. | 191 | (46) | 40 |
Deferred income tax provision (benefit), net | 212 | 16 | (1,101) |
Income tax provision (benefit) | $ 634 | $ 445 | $ (1,085) |
(Schedule of Effective Income T
(Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | [1] | Jun. 30, 2019 | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [2] | Sep. 30, 2018 | [2] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [2] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes and equity earnings | $ 400 | [1] | $ 452 | $ 334 | [1] | $ 418 | $ 382 | $ 553 | $ 490 | $ 356 | $ 1,604 | [1] | $ 1,781 | [2] | $ 848 | ||||||
Statutory U.S. income tax rate | 21.00% | 21.00% | 35.00% | ||||||||||||||||||
Tax expense (benefit) using statutory U.S. income tax rate | $ 337 | $ 374 | $ 297 | ||||||||||||||||||
State and local income taxes | 6 | 72 | (7) | ||||||||||||||||||
Impact of rate differential on non-U.S. permanent differences and earnings | 31 | 35 | (36) | ||||||||||||||||||
Foreign valuation allowance | $ 203 | 203 | 0 | 0 | |||||||||||||||||
Tax expense (benefit) on manufacturing activities | 0 | (1) | 23 | ||||||||||||||||||
Non-deductible business expenses | 20 | 27 | 7 | ||||||||||||||||||
Non-deductible impairments | 31 | 0 | 0 | ||||||||||||||||||
Tax audits | 0 | 28 | 0 | ||||||||||||||||||
Deemed repatriation, net of foreign tax credits | 1 | (25) | 231 | ||||||||||||||||||
U.S. federal tax rate change | $ 9 | 0 | (13) | (1,451) | |||||||||||||||||
Foreign derived intangible income deduction | 2 | (25) | 0 | ||||||||||||||||||
US tax on non-U.S. earnings (GILTI and Subpart F) | 36 | 19 | 44 | ||||||||||||||||||
Foreign tax credits | (2) | (15) | (96) | ||||||||||||||||||
General business and other tax credits | (33) | (26) | (86) | ||||||||||||||||||
Other, net | 2 | (5) | (11) | ||||||||||||||||||
Income tax provision (benefit) | $ 634 | $ 445 | $ (1,085) | ||||||||||||||||||
Effective income tax rate | 40.00% | 25.00% | (128.00%) | ||||||||||||||||||
[1] | Includes the following pre-tax charges (gains): 2019 In millions Q1 Q2 Q3 Q4 India impairment $ — $ 152 $ 8 $ (1 ) India divestiture transaction costs — — — 3 Global Cellulose Fibers goodwill impairment — — — 52 Litigation reserves — — 22 19 Italian antitrust fine — — 32 — Environmental remediation reserve adjustment — — 15 10 (Gain) loss on sale of EMEA Packaging box plant (7 ) — — 1 EMEA Packaging business optimization — — — 17 Multi-employer pension plan exit liability 16 — (7 ) — Abandoned property removal 11 11 13 15 Riverdale mill conversion costs 1 1 1 2 Foreign VAT refund accrual including interest — — — (6 ) Debt extinguishment costs — — — 21 Gain on sale of previously closed Oregon mill site — — (9 ) — Overhead cost reduction initiative — — 21 — Other items — 1 — 3 Non-operating pension expense 10 8 9 9 Total $ 31 $ 173 $ 105 $ 145 | ||||||||||||||||||||
[2] | Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 Smurfit-Kappa acquisition proposal costs $ — $ 12 $ — $ — Legal settlement 9 — — — Litigation settlement recovery — — — (5 ) Environmental remediation reserve adjustment — — 9 — EMEA Packaging business optimization 22 26 — (1 ) Abandoned property removal 9 9 6 8 Riverdale mill conversion costs — — 5 4 Brazil Packaging impairment — — 122 — Debt extinguishment costs — — — 10 Gain on sale of investment in Liaison Technologies — — — (31 ) Non-operating pension expense 4 36 25 429 Total $ 44 $ 83 $ 167 $ 414 |
(Schedule of Deferred Tax Asset
(Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Postretirement benefit accruals | $ 90 | $ 89 |
Pension obligations | 421 | 465 |
Tax credits | 290 | 291 |
Net operating and capital loss carryforwards | 621 | 594 |
Compensation reserves | 181 | 191 |
Lease obligations | 106 | 0 |
Environmental reserves | 93 | 78 |
Other | 126 | 86 |
Gross deferred income tax assets | 1,928 | 1,794 |
Less: valuation allowance (a) | (691) | (441) |
Net deferred income tax asset | 1,237 | 1,353 |
Intangibles | (152) | (152) |
Investments | (265) | (255) |
Right of use assets | (106) | 0 |
Plants, properties and equipment | (1,866) | (1,826) |
Forestlands, related installment sales, and investment in subsidiary | (1,407) | (1,453) |
Gross deferred income tax liabilities | (3,796) | (3,686) |
Net deferred income tax liability | $ (2,559) | $ (2,333) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities Footnotes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | ||||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ 250 | $ 12 | ||
Foreign valuation allowance | $ 203 | $ 203 | $ 0 | $ 0 |
(Schedule of Unrecognized Tax B
(Schedule of Unrecognized Tax Benefits Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance at January 1 | $ (220) | $ (188) | $ (98) |
(Additions) reductions for tax positions related to current year | (5) | (7) | (54) |
(Additions) for tax positions related to prior years | (6) | (37) | (40) |
Reductions for tax positions related to prior years | 5 | 5 | 4 |
Settlements | 31 | 2 | 6 |
Expiration of statutes of limitations | 3 | 2 | 1 |
Currency translation adjustment | 3 | 3 | (7) |
Balance at December 31 | $ (189) | $ (220) | $ (188) |
(Summary of Operating Loss And
(Summary of Operating Loss And Tax Credit Carryforwards) (Details) $ in Millions | Dec. 31, 2019USD ($) | |
Operating Loss Carryforwards [Line Items] | ||
Operating loss and tax credit carryforwards | $ 911 | |
Operating Loss Carryforwards, Valuation Allowance | (635) | [1] |
Operating Loss and Tax Credit Carryforwards, net | 276 | |
2020 Through 2029 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss and tax credit carryforwards | 291 | |
Operating Loss Carryforwards, Valuation Allowance | (198) | [1] |
Operating Loss and Tax Credit Carryforwards, net | 93 | |
2030 Through 2039 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss and tax credit carryforwards | 78 | |
Operating Loss Carryforwards, Valuation Allowance | (44) | [1] |
Operating Loss and Tax Credit Carryforwards, net | 34 | |
Indefinite | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss and tax credit carryforwards | 542 | |
Operating Loss Carryforwards, Valuation Allowance | (393) | [1] |
Operating Loss and Tax Credit Carryforwards, net | 149 | |
U.S. federal and non-U.S. NOLs | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 527 | |
U.S. federal and non-U.S. NOLs | 2020 Through 2029 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 55 | |
U.S. federal and non-U.S. NOLs | 2030 Through 2039 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 48 | |
U.S. federal and non-U.S. NOLs | Indefinite | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 424 | |
State taxing jurisdiction NOLs (a) | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 94 | [1] |
Tax credit carryforwards | 0 | [1] |
State taxing jurisdiction NOLs (a) | 2020 Through 2029 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 76 | [1] |
Tax credit carryforwards | 0 | [1] |
State taxing jurisdiction NOLs (a) | 2030 Through 2039 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 18 | [1] |
Tax credit carryforwards | 0 | [1] |
State taxing jurisdiction NOLs (a) | Indefinite | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 0 | [1] |
Tax credit carryforwards | 0 | [1] |
U.S. federal, non- U.S. and state tax credit carryforwards (a) | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards | 290 | [1] |
U.S. federal, non- U.S. and state tax credit carryforwards (a) | 2020 Through 2029 | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards | 160 | [1] |
U.S. federal, non- U.S. and state tax credit carryforwards (a) | 2030 Through 2039 | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards | 12 | [1] |
U.S. federal, non- U.S. and state tax credit carryforwards (a) | Indefinite | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards | $ 118 | [1] |
[1] | State amounts are presented net of federal benefit. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||||
Statutory U.S. income tax rate | 21.00% | 21.00% | 35.00% | |
Tax benefit of Tax Cuts and Jobs Act | $ (1,220) | |||
Deferred income tax provision (benefit) for the effect of changes in non-U.S. and U.S. state tax rates | $ (44) | $ (13) | (1,459) | |
Income tax payments, net of refunds | 349 | 388 | 7 | |
Deferred tax liabilities, other | 1,400 | |||
Accrual for the payment of estimated interest and penalties associated with unrecognized tax benefits | 21 | 21 | ||
Tax positions for which the ultimate benefits are highly certain, but for which there is uncertainty about the timing of such benefits | 53 | |||
Undistributed earnings of foreign subsidiaries | 2,200 | |||
Two Thousand And Six Financing Entities [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax liabilities, other | 884 | |||
Two Thousand Seven Monetized Notes [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax liabilities, other | 485 | |||
Tax Cuts and Jobs Act [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax benefit of Tax Cuts and Jobs Act | $ (36) | (1,454) | ||
Transition tax from Tax Cuts and Jobs Act | $ 231 | |||
Income tax expense (benefit) from Tax Cuts and Jobs Act | $ (36) | |||
Secretariat of the Federal Revenue Bureau of Brazil [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, estimate of possible loss | 146 | |||
Income tax examination, penalties and interest Expense | $ 387 |
Commitments And Contingent Li_2
Commitments And Contingent Liabilities (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2019USD ($)Producers | Dec. 31, 2015USD ($) | Dec. 31, 2019EUR (€) | |
Loss Contingencies [Line Items] | ||||||
Accrual for environmental loss contingencies | $ 157 | |||||
Accrual for environmental loss contingencies, gross | 166 | |||||
Value added tax receivable | 6 | |||||
Cass Lake Minnesota [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Accrual for environmental loss contingencies | 46 | |||||
Kalamazoo River Superfund Site [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages sought, value | $ 37 | $ 19 | ||||
Proposed consent decree, value of remediation payments | 100 | |||||
Proposed consent decree, value of labor performed | 135.7 | |||||
San Jacinto River Superfund Site [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages sought, value | $ 115 | |||||
Harris County San Jacinto River Superfund Site [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, number of plaintiffs | 600 | |||||
Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC Cost Recovery Action [Member] | Kalamazoo River Superfund Site [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages sought, value | $ 79 | |||||
Loss contingency, damages awarded, value | $ 50 | |||||
Loss Contingencies, share of damages | 15.00% | |||||
Italian Competition Authority [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, number of defendants | Producers | 30 | |||||
Loss contingency accrual | $ 32 | € 29 | ||||
Signature Industrial Services LLC et al. v. International Paper [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages awarded, value | $ 137 | $ 125 | ||||
Disputed invoices, value | 1 | |||||
Northern Impoundment [Member] | San Jacinto River Superfund Site [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages sought, value | 105 | |||||
Southern Impoundment [Member] [Member] | San Jacinto River Superfund Site [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages sought, value | $ 10 |
(Activity Between Company And E
(Activity Between Company And Entities) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Variable Interest Entity [Line Items] | ||||
Cash receipts | $ 273 | $ 153 | $ 133 | |
Two Thousand And Fifteen Financing Entities [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | [1] | 95 | 95 | 95 |
Expense | [1] | 128 | 128 | 128 |
Cash receipts | [2] | 95 | 95 | 95 |
Cash payments | [3] | 128 | 128 | 128 |
Two Thousand And Seven Financing Entities [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | [4] | 79 | 72 | 49 |
Expense | [5] | 76 | 67 | 48 |
Cash receipts | [6] | 62 | 48 | 28 |
Cash payments | [7] | $ 69 | $ 57 | $ 39 |
[1] | The revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations. | |||
[2] | The cash receipts are interest received on the Financial assets of variable interest entities. | |||
[3] | The cash payments represent interest paid on Current nonrecourse financial liabilities of variable interest entities. | |||
[4] | The revenue is included in Interest expense, net, in the accompanying consolidated statement of operations and includes approximately $19 million for the years ended December 31, 2019, 2018 and 2017, respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of variable interest entities. | |||
[5] | The expense is included in Interest expense, net, in the accompanying consolidated statement of operations and includes approximately $7 million for the years ended December 31, 2019, 2018 and 2017, respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Long-term nonrecourse financial liabilities of variable interest entities. | |||
[6] | The cash receipts are interest received on the Financial assets of special purpose entities. | |||
[7] | The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
Variable Interest Entities (Act
Variable Interest Entities (Activity Between Entities Footnotes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entities [Abstract] | |||
Accretion Income for Amortization of Purchase Accounting Adjustment, Financial Assets | $ 19 | $ 19 | $ 19 |
Accretion Expense for Amortization of Purchase Accounting Adjustment, Financial Liabiities | $ 7 | $ 7 | $ 7 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) a in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2007USD ($)a | Dec. 31, 2019USD ($) | Dec. 31, 2006USD ($)a | Dec. 31, 2018USD ($) | Dec. 31, 2007USD ($) | |
Variable Interest Entity [Line Items] | |||||
Deferred tax liabilities, other | $ 1,400 | ||||
Financing Receivable, before Allowance for Credit Loss | 7,088 | $ 7,070 | |||
Long-term debt | 9,597 | 10,015 | |||
Letters of credit issued | 2,400 | ||||
Notes receivable, fair value disclosure | 2,300 | 2,200 | |||
Long-term debt | $ 2,100 | ||||
Long-term debt, fair value | 2,100 | 2,000 | |||
Two Thousand And Seven Financing Entities [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Forestlands average sales | a | 5,600 | ||||
Amount of consideration received | $ 4,800 | ||||
Deferred tax liabilities, other | 884 | ||||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Forestlands average sales | a | 1,550 | ||||
Amount of consideration received | $ 2,400 | 2,400 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
International Paper debt obligations held by the Entities | $ 150 | ||||
Timber Notes Maturity Extension | 5 years | ||||
Financing Receivable, before Allowance for Credit Loss | $ 4,800 | ||||
Long-term debt | 4,200 | ||||
ip_Extension Loans requiring LC banks to maintain credit rating at or above a specified threshold | $ 1,100 | ||||
Letters of credit downgrade period of replacement | P60D | ||||
Notes receivable, fair value disclosure | $ 4,900 | 4,700 | |||
Long-term debt, fair value | 4,300 | $ 4,200 | |||
Two Thousand Seven Monetized Notes [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Deferred tax liabilities, other | $ 485 | ||||
Letters of credit downgrade period of replacement | P30D |
(Debt Extinguishment) (Details)
(Debt Extinguishment) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Extinguishment of Debt [Line Items] | ||||
Early debt reductions (a) | [1] | $ 614 | $ 780 | $ 993 |
Pre-tax early debt extinguishment costs (b) | [2] | $ 21 | $ 10 | $ 83 |
[1] | Reductions related to notes with interest rates ranging from 1.57% to 9.50% with original maturities from 2018 to 2048 for the years ended December 31, 2019 , 2018 and 2017 | |||
[2] | Amounts are included in Restructuring and other charges in the accompanying consolidated statements of operations. |
Debt And Lines Of Credit (Debt
Debt And Lines Of Credit (Debt Extinguishment Footnotes) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Extinguishment of Debt [Line Items] | |||
Debt instrument, maturity date range, start | Jan. 15, 2018 | Jan. 15, 2018 | Jan. 15, 2018 |
Debt instrument, maturity date range, end | Aug. 15, 2048 | Aug. 15, 2048 | Aug. 15, 2048 |
Minimum [Member] | |||
Extinguishment of Debt [Line Items] | |||
Debt instrument, interest rate, stated percentage | 1.57% | 1.57% | 1.57% |
Maximum [Member] | |||
Extinguishment of Debt [Line Items] | |||
Debt instrument, interest rate, stated percentage | 9.50% | 9.50% | 9.50% |
(Summary Of Long-Term Debt) (De
(Summary Of Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | ||||
Total principal | $ 9,699 | $ 10,661 | ||
Capitalized leases | 100 | 63 | ||
Premiums, discounts, and debt issuance costs | (88) | (98) | ||
Debt instrument, interest rate swap | 46 | 16 | ||
Other (c) | [1] | 8 | 12 | |
Total (d) | [2] | 9,765 | 10,654 | |
Less: current maturities | (168) | (639) | ||
Long-term debt | $ 9,597 | $ 10,015 | ||
Debt instrument, maturity date range, start | Jan. 15, 2018 | Jan. 15, 2018 | Jan. 15, 2018 | |
Debt instrument, maturity date range, end | Aug. 15, 2048 | Aug. 15, 2048 | Aug. 15, 2048 | |
Seven Point Five Percentage Notes Due Twenty Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 406 | $ 406 | ||
Debt instrument, interest rate, stated percentage | 7.50% | 7.50% | ||
Maturity date | Aug. 15, 2021 | Aug. 15, 2021 | ||
Four Point Seven Five Percentage Notes Due Twenty Twenty Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 0 | $ 355 | ||
Debt instrument, interest rate, stated percentage | 4.75% | 4.75% | ||
Maturity date | Feb. 15, 2022 | Feb. 15, 2022 | ||
Six Point Eight Seven Five Percentage Notes Due Twenty Twenty Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 94 | $ 94 | ||
Debt instrument, interest rate, stated percentage | 6.88% | 6.88% | ||
Maturity date | Nov. 1, 2023 | Nov. 1, 2023 | ||
Three Point Six Five Percentage Notes Due Twenty Twenty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 658 | $ 676 | ||
Debt instrument, interest rate, stated percentage | 3.65% | 3.65% | ||
Maturity date | Jun. 15, 2024 | Jun. 15, 2024 | ||
Seven Point Three Five Percentage Notes Due Twenty Twenty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 44 | $ 44 | ||
Debt instrument, interest rate, stated percentage | 7.35% | 7.35% | ||
Maturity date | Nov. 1, 2025 | Nov. 1, 2025 | ||
Seven Point Seven Five Percentage Note Due Twenty Twenty Five [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 31 | $ 31 | ||
Debt instrument, interest rate, stated percentage | 7.75% | 7.75% | ||
Maturity date | Sep. 1, 2025 | Sep. 1, 2025 | ||
Three Point Eight Percentage Notes Due Twenty Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 645 | $ 669 | ||
Debt instrument, interest rate, stated percentage | 3.80% | 3.80% | ||
Maturity date | Jan. 15, 2026 | Jan. 15, 2026 | ||
Seven Point Two Percentage Notes Due Twenty Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 58 | $ 58 | ||
Debt instrument, interest rate, stated percentage | 7.20% | 7.20% | ||
Maturity date | Nov. 1, 2026 | Nov. 1, 2026 | ||
Six Point Four Percentage Notes Due Twenty Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 5 | $ 5 | ||
Debt instrument, interest rate, stated percentage | 6.40% | 6.40% | ||
Maturity date | Feb. 15, 2026 | Feb. 15, 2026 | ||
Three Point Zero Percentage Notes Due Twenty Twenty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 803 | $ 939 | ||
Debt instrument, interest rate, stated percentage | 3.00% | 3.00% | ||
Maturity date | Feb. 15, 2027 | Feb. 15, 2027 | ||
Seven Point One Five Percentage Notes Due Twenty Twenty Seven [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 7 | $ 7 | ||
Debt instrument, interest rate, stated percentage | 7.15% | 7.15% | ||
Maturity date | Dec. 15, 2027 | Dec. 15, 2027 | ||
Three Point Fifty Five Percentage Notes Due Twenty Twenty Nine [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 200 | $ 0 | ||
Debt instrument, interest rate, stated percentage | 3.55% | 3.55% | ||
Maturity date | Jun. 15, 2029 | Jun. 15, 2029 | ||
Six Point Eight Seven Five Percentage Notes Due Twenty Twenty Nine [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 37 | $ 37 | ||
Debt instrument, interest rate, stated percentage | 6.88% | 6.88% | ||
Maturity date | Apr. 15, 2029 | Apr. 15, 2029 | ||
Five Point Zero Percentage Notes Due Twenty Thirty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 600 | $ 600 | ||
Debt instrument, interest rate, stated percentage | 5.00% | 5.00% | ||
Maturity date | Sep. 15, 2035 | Sep. 15, 2035 | ||
Six Point Six Five Percentage Notes Due Twenty Thirty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 4 | $ 4 | ||
Debt instrument, interest rate, stated percentage | 6.65% | 6.65% | ||
Maturity date | Dec. 15, 2037 | Dec. 15, 2037 | ||
Eight Point Seven Percentage Note Due Twenty Thirty Eight [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 265 | $ 265 | ||
Debt instrument, interest rate, stated percentage | 8.70% | 8.70% | ||
Maturity date | Jun. 15, 2038 | Jun. 15, 2038 | ||
Seven Point Three Percentage Notes Twenty Thirty Nine [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 722 | $ 722 | ||
Debt instrument, interest rate, stated percentage | 7.30% | 7.30% | ||
Maturity date | Nov. 15, 2039 | Nov. 15, 2039 | ||
Six Point Zero Percentage Notes Due Twenty Forty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 585 | $ 585 | ||
Debt instrument, interest rate, stated percentage | 6.00% | 6.00% | ||
Maturity date | Nov. 15, 2041 | Nov. 15, 2041 | ||
Four Point Eight Percentage Notes Due Twenty Forty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 800 | $ 800 | ||
Debt instrument, interest rate, stated percentage | 4.80% | 4.80% | ||
Maturity date | Jun. 15, 2044 | Jun. 15, 2044 | ||
Five Point One Five Percentage Notes Due Twenty Forty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 700 | $ 700 | ||
Debt instrument, interest rate, stated percentage | 5.15% | 5.15% | ||
Maturity date | May 15, 2046 | May 15, 2046 | ||
Four Point Four Percentage Notes Due Twenty Forty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 1,158 | $ 1,200 | ||
Debt instrument, interest rate, stated percentage | 4.40% | 4.40% | ||
Maturity date | Aug. 15, 2047 | Aug. 15, 2047 | ||
Four Point Three Five Percentage Notes Due Twenty Forty Eight [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 986 | $ 1,000 | ||
Debt instrument, interest rate, stated percentage | 4.35% | 4.35% | ||
Maturity date | Aug. 15, 2048 | Aug. 15, 2048 | ||
Floating rate notes – due 2019 – 2024 (a) | ||||
Debt Instrument [Line Items] | ||||
Total principal | [3] | $ 339 | $ 908 | |
Debt Instrument, Interest Rate During Period | 3.10% | 3.50% | ||
Debt instrument, maturity date range, start | Jan. 2, 2019 | Jan. 2, 2019 | ||
Debt instrument, maturity date range, end | Mar. 1, 2024 | Mar. 1, 2024 | ||
Environmental and industrial development bonds – due 2019 – 2035 (b) | ||||
Debt Instrument [Line Items] | ||||
Total principal | [4] | $ 552 | $ 556 | |
Debt Instrument, Interest Rate During Period | 4.40% | 5.50% | ||
Debt instrument, maturity date range, start | Feb. 1, 2019 | Feb. 1, 2019 | ||
Debt instrument, maturity date range, end | Dec. 1, 2035 | Dec. 1, 2035 | ||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 1.57% | 1.57% | 1.57% | |
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 9.50% | 9.50% | 9.50% | |
[1] | Includes $7 million and $10 million of fair market value adjustments as of December 31, 2019 and 2018, respectively. | |||
[2] | The fair market value was approximately $10.9 billion at December 31, 2019 and $10.6 billion at December 31, 2018 . | |||
[3] | The weighted average interest rate on these notes was 3.1% in 2019 and 3.5% in 2018 . | |||
[4] | The weighted average interest rate on these bonds was 4.4% in 2019 and 5.5% in 2018 . |
Debt And Lines Of Credit (Summa
Debt And Lines Of Credit (Summary of Long-Term Debt Footnotes) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 10,900 | $ 10,600 |
Variable Rate Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate During Period | 3.10% | 3.50% |
Environmental and industrial development bonds – due 2019 – 2035 (b) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate During Period | 4.40% | 5.50% |
Other (c) | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Net | $ 7 | $ 10 |
Debt And Lines Of Credit (Narra
Debt And Lines Of Credit (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Schedule of Debt Activity [Line Items] | |||||
Payment for pension benefits | $ 0 | $ 0 | $ 1,250 | ||
Debt instrument, maturity date range, start | Jan. 15, 2018 | Jan. 15, 2018 | Jan. 15, 2018 | ||
Debt instrument, maturity date range, end | Aug. 15, 2048 | Aug. 15, 2048 | Aug. 15, 2048 | ||
Maturities of long-term debt, 2019 | $ 168 | ||||
Maturities of long-term debt, 2020 | 431 | ||||
Maturities of long-term debt, 2021 | 136 | ||||
Maturities of long-term debt, 2022 | 355 | ||||
Maturities of long-term debt, 2023 | 803 | ||||
Debt covenant compliance, minimum net worth | $ 9,000 | ||||
Debt covenant compliance, minimum debt to capital ratio | 60.00% | ||||
Commercial Paper [Member] | |||||
Schedule of Debt Activity [Line Items] | |||||
Revolving credit facilities available | $ 1,000 | $ 750 | |||
Short-term Debt | 30 | $ 465 | |||
Credit Facility [Domain] | |||||
Schedule of Debt Activity [Line Items] | |||||
Contractually committed credit facilities | 2,100 | ||||
Revolving Credit Facility [Member] | |||||
Schedule of Debt Activity [Line Items] | |||||
Revolving credit facilities available | $ 1,500 | ||||
Credit agreement facility fee | 0.15% | ||||
Receivables Securitization Program [Member] | |||||
Schedule of Debt Activity [Line Items] | |||||
Line of credit, maturity date | Dec. 31, 2020 | ||||
Commercial paper-based financings agreement value | $ 600 | ||||
Minimum [Member] | |||||
Schedule of Debt Activity [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 1.57% | 1.57% | 1.57% | ||
Maximum [Member] | |||||
Schedule of Debt Activity [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 9.50% | 9.50% | 9.50% | ||
Forecast [Member] | Revolving Credit Facility [Member] | |||||
Schedule of Debt Activity [Line Items] | |||||
Line of credit, maturity date | Dec. 15, 2021 |
(Schedule of Notional Amounts o
(Schedule of Notional Amounts of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 7 | $ 19 | |
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount | 16 | 8 | |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount | [1] | 407 | 407 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount | 700 | 700 | |
Net Investment Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 475 | $ 0 | |
[1] | These contracts had maturities of two years or less as of December 31, 2019 . |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Schedule of Notional Amounts of Financial Instruments Footnotes) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum Length of Time Hedged in Cash Flow Hedge | 2 years |
(Gains Losses Recognized In Acc
(Gains Losses Recognized In Accumulated Other Comprehensive Income AOCI Net Of Tax Related To Derivative Instruments) (Details) - Other Comprehensive Income (Loss) [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other comprehensive income (loss), unrealized gain (loss) on derivatives arising during period, before tax | $ 4 | $ (10) | $ 15 |
Net Investment Hedging [Member] | Interest Rate Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other comprehensive income (loss), unrealized gain (loss) on derivatives arising during period, before tax | $ 7 | $ 0 | $ 0 |
(Gains And Losses Recognized In
(Gains And Losses Recognized In Consolidated Statement Of Operations On Qualifying And Non-Qualifying Financial Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from accumulated OCI into income (effective portion) | $ (4) | $ (2) | $ 7 | |
Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 | |
Designated as Hedging Instrument [Member] | Cost Of Products Sold [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from accumulated OCI into income (effective portion) | (3) | (1) | 8 | |
Designated as Hedging Instrument [Member] | Interest Income Expense [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from accumulated OCI into income (effective portion) | (1) | (1) | (1) | |
Designated as Hedging Instrument [Member] | Interest Income Expense [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in unrealized gain (loss) on fair value hedging instruments | 30 | 16 | 0 | |
Designated as Hedging Instrument [Member] | Interest Income Expense [Member] | Fair Value Hedging [Member] | Debt [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in unrealized gain (loss) on hedged item in fair value hedge | (30) | (16) | 0 | |
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivative, net | 1 | 3 | (9) | |
Not Designated as Hedging Instrument [Member] | Cost Of Products Sold [Member] | Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivative, net | (2) | 1 | 0 | |
Not Designated as Hedging Instrument [Member] | Cost Of Products Sold [Member] | Energy Related Derivative [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivative, net | 3 | 2 | (10) | |
Not Designated as Hedging Instrument [Member] | Interest Income Expense [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivative, net | [1] | $ 0 | $ 0 | $ 1 |
[1] | Excluding gain of $1 million related to debt reduction recorded to Restructuring and other charges. |
(Gains And Losses Recognized _2
(Gains And Losses Recognized In Consolidated Statement Of Operations On Qualifying and Non-Qualifying Financial Instruments Other) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring and other charges [Member] | Interest Rate Contract [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Restructuring and other charges | $ 1 |
(Impact Of Derivative Instrumen
(Impact Of Derivative Instruments In Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | $ 68 | [1] | $ 19 | [2] |
Derivative liabilities | 7 | [3] | 15 | [4] |
Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 68 | 19 | ||
Derivative liabilities | 4 | 10 | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 3 | 5 | ||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 1 | 1 | ||
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 2 | 4 | ||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 10 | 3 | ||
Derivative liabilities | 4 | 10 | ||
Net Investment Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 11 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 47 | 16 | ||
Derivative liabilities | $ 0 | $ 0 | ||
[1] | Includes $14 million recorded in Other current assets and $54 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||
[2] | Included $2 million recorded in Other current assets and $17 million Deferred charges recorded in the accompanying consolidated balance sheet. | |||
[3] | Included $6 million recorded in Other accrued liabilities and $1 million recorded in Other liabilities the accompanying consolidated balance sheet. | |||
[4] | Included in Other accrued liabilities in the accompanying consolidated balance sheet. |
(Impact of Derivative Instrum_2
(Impact of Derivative Instruments in Consolidated Balance Sheet Other) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | $ 68 | [1] | $ 19 | [2] |
Derivative liabilities | 7 | [3] | 15 | [4] |
Other Current Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 14 | 2 | ||
Other Noncurrent Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 54 | $ 17 | ||
Accrued Liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liabilities | 6 | |||
Other Accrued Liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liabilities | $ 1 | |||
[1] | Includes $14 million recorded in Other current assets and $54 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||
[2] | Included $2 million recorded in Other current assets and $17 million Deferred charges recorded in the accompanying consolidated balance sheet. | |||
[3] | Included $6 million recorded in Other accrued liabilities and $1 million recorded in Other liabilities the accompanying consolidated balance sheet. | |||
[4] | Included in Other accrued liabilities in the accompanying consolidated balance sheet. |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 3,000,000 | |
Derivative, collateral, right to reclaim cash | 15,000,000 | |
Credit risk derivatives, at fair value, net | 1,000,000 | |
Collateral posted related to credit-risk-related contingent features | $ 0 | $ 0 |
(Rollforward Of Common Stock Ac
(Rollforward Of Common Stock Activity) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Common stock, beginning balance | 448,916 | ||
Treasury stock, beginning balance | 48,310 | ||
Common stock, ending balance | 448,916 | 448,916 | |
Treasury stock, ending balance | 56,800 | 48,310 | |
Issued | |||
Class of Stock [Line Items] | |||
Common stock, beginning balance | 448,916 | 448,916 | 448,916 |
Issuance of stock for various plans, net | 0 | 0 | 0 |
Repurchase of stock | 0 | 0 | 0 |
Common stock, ending balance | 448,916 | 448,916 | 448,916 |
Treasury | |||
Class of Stock [Line Items] | |||
Treasury stock, beginning balance | 48,310 | 35,975 | 37,671 |
Issuance of stock for various plans, net | (3,416) | (1,721) | (2,577) |
Repurchase of stock | 11,906 | 14,056 | 881 |
Treasury stock, ending balance | 56,800 | 48,310 | 35,975 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||
Common stock, authorized shares | 990,850,000 | 990,850,000 |
Common stock, par value | $ 1 | $ 1 |
Cumulative Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, authorized shares | 400,000 | 400,000 |
Preferred stock, dividend per share | $ 4 | $ 4 |
Preferred stock, par value (stated value) | $ 100 | $ 100 |
Serial Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, authorized shares | 8,750,000 | 8,750,000 |
Preferred stock, par value (stated value) | $ 1 | $ 1 |
(Schedule Of Net Funded Status)
(Schedule Of Net Funded Status) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Other | $ (1,600) | $ (1,300) | |||
Non-U.S. Plans | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, January 1 | $ 215 | $ 247 | |||
Service cost | 5 | 5 | $ 4 | ||
Interest cost | 8 | 8 | 9 | ||
Curtailment | (1) | 0 | |||
Settlements | (6) | (2) | |||
Actuarial (gain) loss | 33 | (17) | |||
Acquisitions | 3 | 0 | |||
Divestitures | (1) | 0 | |||
Plan amendments | 0 | 0 | |||
Benefits Paid | (8) | (9) | |||
Effect of foreign currency exchange rate movements | 5 | (17) | |||
Benefit obligation, December 31 | 253 | 215 | 253 | 215 | 247 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, January 1 | 161 | 176 | |||
Actual return on plan assets | 23 | (2) | |||
Company contributions | 10 | 10 | |||
Benefits paid | (8) | (9) | |||
Settlements | (6) | (2) | |||
Effect of foreign currency exchange rate movements | 3 | (12) | |||
Fair value of plan assets, December 31 | 183 | 161 | 183 | 161 | 176 |
Funded status, December 31 | (70) | (54) | (70) | (54) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (70) | (54) | (70) | (54) | |
U.S. Plans | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, January 1 | 10,467 | 13,264 | |||
Service cost | 68 | 153 | 160 | ||
Interest cost | 440 | 467 | 536 | ||
Curtailment | 0 | 0 | |||
Settlements | 0 | (1,653) | |||
Actuarial (gain) loss | 1,230 | (1,089) | |||
Acquisitions | 0 | 0 | |||
Divestitures | 0 | 0 | |||
Plan amendments | 40 | 2 | |||
Benefits Paid | (546) | (677) | |||
Effect of foreign currency exchange rate movements | 0 | 0 | |||
Benefit obligation, December 31 | 11,699 | 10,467 | 11,699 | 10,467 | 13,264 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, January 1 | 8,735 | 11,368 | |||
Actual return on plan assets | 1,950 | (332) | |||
Company contributions | 26 | 29 | |||
Benefits paid | (546) | (677) | |||
Settlements | 0 | (1,653) | |||
Effect of foreign currency exchange rate movements | 0 | 0 | |||
Fair value of plan assets, December 31 | 10,165 | 8,735 | 10,165 | 8,735 | $ 11,368 |
Funded status, December 31 | (1,534) | (1,732) | (1,534) | (1,732) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | $ (1,534) | $ (1,732) | $ (1,534) | $ (1,732) |
(Schedule Of Amounts Recognized
(Schedule Of Amounts Recognized In Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liability | $ (1,578) | $ (1,762) |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | 6 | 5 |
Current liability | (3) | (2) |
Non-current liability | (73) | (57) |
Amounts recognized in the consolidated balance sheet | (70) | (54) |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | 0 | 0 |
Current liability | (28) | (27) |
Non-current liability | (1,506) | (1,705) |
Amounts recognized in the consolidated balance sheet | $ (1,534) | $ (1,732) |
(Schedule Of Amounts In Accumul
(Schedule Of Amounts In Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | $ 98 | $ 74 |
Net actuarial loss | 2,851 | 3,140 |
Amounts recognized in accumulated other comprehensive income (pre-tax) | 2,949 | 3,214 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | (1) | (1) |
Net actuarial loss | 75 | 57 |
Amounts recognized in accumulated other comprehensive income (pre-tax) | $ 74 | $ 56 |
(Pension Benefit Adjustments Re
(Pension Benefit Adjustments Recognized In Other Comprehensive (Loss) Income) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Current year actuarial (gain) loss | $ (89) |
Amortization of actuarial loss | (200) |
Current year prior service cost | 40 |
Amortization of prior service cost | (16) |
Settlements/curtailments | 0 |
Total recognized in other comprehensive income | (265) |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Current year actuarial (gain) loss | 19 |
Amortization of actuarial loss | (2) |
Amortization of prior service cost | 0 |
Settlements/curtailments | (1) |
Effect of foreign currency exchange rate movements | 2 |
Total recognized in other comprehensive income | $ 18 |
(Pension Plans With An Accumula
(Pension Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 11,699 | $ 10,467 |
Accumulated benefit obligation | 11,672 | 10,440 |
Fair value of plan assets | 10,165 | 8,735 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 225 | 187 |
Accumulated benefit obligation | 208 | 175 |
Fair value of plan assets | $ 149 | $ 128 |
(Net Periodic Pension Expense F
(Net Periodic Pension Expense For Qualified And Nonqualified U.S. Defined Benefit Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement loss | $ 424 | $ 376 | |||
U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 68 | $ 153 | $ 160 | ||
Interest cost | 440 | 467 | 536 | ||
Expected return on plan assets | (631) | (765) | (774) | ||
Actuarial loss (gain) | 200 | 337 | 339 | ||
Amortization of prior service cost | 16 | 16 | 28 | ||
Curtailment loss (gain) (a) | 0 | 0 | 23 | ||
Settlement loss | 0 | 424 | 383 | ||
Special termination benefits (a) | 0 | 0 | 22 | ||
Net periodic pension expense | 93 | 632 | 717 | ||
Non-U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 5 | 5 | 4 | ||
Interest cost | 8 | 8 | 9 | ||
Expected return on plan assets | (10) | (11) | (11) | ||
Actuarial loss (gain) | 2 | 2 | 2 | ||
Amortization of prior service cost | 0 | 0 | 0 | ||
Curtailment loss (gain) (a) | (1) | 0 | 0 | ||
Settlement loss | 2 | 0 | 1 | ||
Special termination benefits (a) | 0 | 0 | 0 | ||
Net periodic pension expense | $ 6 | $ 4 | $ 5 |
(Major Actuarial Assumptions Us
(Major Actuarial Assumptions Used In Determining Benefit Obligations And Net Periodic Pension Cost For Defined Benefit Plans) (Details) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial assumptions used to determine benefit obligations, Discount rate | 3.40% | 4.30% | 3.60% | |
Actuarial assumptions used to determine benefit obligations, Rate of compensation increase | 2.25% | 2.25% | 3.75% | |
Discount rate | [1] | 4.30% | 3.80% | 4.03% |
Actuarial assumptions used to determine net periodic pension cost, Expected long-term rate of return on plan assets | 7.25% | 7.50% | 7.50% | |
Actuarial assumptions used to determine net periodic pension cost, Rate of compensation increase | 2.25% | 3.38% | 3.75% | |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial assumptions used to determine benefit obligations, Discount rate | 2.70% | 3.97% | 3.59% | |
Actuarial assumptions used to determine benefit obligations, Rate of compensation increase | 3.62% | 4.05% | 4.06% | |
Discount rate | [1] | 3.97% | 3.59% | 3.88% |
Actuarial assumptions used to determine net periodic pension cost, Expected long-term rate of return on plan assets | 6.20% | 6.52% | 6.73% | |
Actuarial assumptions used to determine net periodic pension cost, Rate of compensation increase | 4.05% | 4.06% | 4.20% | |
[1] | Represents the weighted average rate for the U.S. qualified plans in 2018 and 2017 due to the remeasurements |
(Effect Of A 25 Basis Point Dec
(Effect Of A 25 Basis Point Decrease On Net Pension Expense) (Details) - U.S. Plans $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Discount rate | $ 31 |
Expected long-term rate of return on plan assets | $ 24 |
(Pension Allocations By Type Of
(Pension Allocations By Type Of Fund And Target Allocations) (Details) - U.S. Plans | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage | 37.00% | 32.00% |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage | 50.00% | 51.00% |
Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage | 8.00% | 11.00% |
Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage | 5.00% | 6.00% |
Minimum [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .32 | |
Minimum [Member] | Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .44 | |
Minimum [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .05 | |
Minimum [Member] | Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .03 | |
Maximum [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .43 | |
Maximum [Member] | Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .56 | |
Maximum [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .11 | |
Maximum [Member] | Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .08 |
(Fair Values Pension Plan Asset
(Fair Values Pension Plan Assets By Asset Class) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 10,165 | $ 8,735 | $ 11,368 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 2,900 | 2,120 | |
Significant Observable Inputs (Level 2) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 5,074 | 4,156 | |
Significant Unobservable Inputs (Level 3) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | (5) | 111 | 29 |
Equity Securities, US [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,613 | 1,200 | |
Equity Securities, US [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 965 | 685 | |
Equity Securities, US [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 648 | 515 | |
Equity Securities, US [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Equity Securities, Non-US [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 2,181 | 1,583 | |
Equity Securities, Non-US [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,599 | 1,141 | |
Equity Securities, Non-US [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 582 | 442 | |
Equity Securities, Non-US [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,845 | 1,493 | |
Corporate Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,845 | 1,493 | |
Government Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 2,659 | 2,262 | |
Government Securities [Member] | Significant Observable Inputs (Level 2) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 2,659 | 2,262 | |
Mortgage Backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1 | ||
Mortgage Backed Securities [Member] | Significant Observable Inputs (Level 2) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1 | ||
Mortgage Backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | 1 |
Other Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | (647) | (543) | |
Other Fixed Income [Member] | Significant Observable Inputs (Level 2) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | (661) | (556) | |
Other Fixed Income [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 14 | 13 | 12 |
Derivatives [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | (19) | 98 | |
Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | (19) | 98 | $ 16 |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 336 | 294 | |
Cash and Cash Equivalents [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 336 | 294 | |
Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Alternative investment | 902 | 886 | |
Private Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Alternative investment | 522 | 518 | |
Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Alternative investment | $ 772 | $ 944 |
Retirement Plans (Fair Value, I
Retirement Plans (Fair Value, Investments, Entities That Calculate Net Asset Value Per Share) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value, investments, entities that calculate net Asset value per share, unfunded commitments | $ 345 | $ 419 |
Investments, fair value disclosure | 2,196 | 2,348 |
Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Alternative investment | 902 | 886 |
Fair value, investments, entities that calculate net Asset value per share, unfunded commitments | $ 0 | $ 0 |
Fair value, investments, entities that calculate net asset value per share, investment redemption, frequency | Daily to annually | Daily to annually |
Fair value, investments, entities that calculate net asset value per share, investment redemption, description | 1 - 100 days | 1 - 100 days |
Private Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Alternative investment | $ 522 | $ 518 |
Fair value, investments, entities that calculate net Asset value per share, unfunded commitments | $ 198 | $ 310 |
Fair value, investments, entities that calculate net asset value per share, investment redemption, frequency | (a) | (a) |
Fair value, investments, entities that calculate net asset value per share, investment redemption, description | None | None |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Alternative investment | $ 772 | $ 944 |
Fair value, investments, entities that calculate net Asset value per share, unfunded commitments | $ 147 | $ 109 |
Fair value, investments, entities that calculate net asset value per share, investment redemption, frequency | Quarterly | Quarterly |
Fair value, investments, entities that calculate net asset value per share, investment redemption, description | 45 - 60 days | 45 - 60 days |
(Fair Value Measurements Using
(Fair Value Measurements Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Mortgage Backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, December 31 | $ 1 | |
Other Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, January 1 | (543) | |
Fair value of plan assets, December 31 | (647) | $ (543) |
Derivatives [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, January 1 | 98 | |
Fair value of plan assets, December 31 | (19) | 98 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, January 1 | 8,735 | 11,368 |
Fair value of plan assets, December 31 | 10,165 | 8,735 |
U.S. Plans | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, January 1 | 111 | 29 |
Relating to assets still held at the reporting date | (126) | 76 |
Relating to assets sold during the period | 314 | (19) |
Purchases, sales and settlements | (304) | 25 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, December 31 | (5) | 111 |
U.S. Plans | Mortgage Backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, January 1 | 0 | 1 |
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | 0 | (1) |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, December 31 | 0 | 0 |
U.S. Plans | Other Fixed Income [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, January 1 | 13 | 12 |
Relating to assets still held at the reporting date | 1 | 1 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, December 31 | 14 | 13 |
U.S. Plans | Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, January 1 | 98 | 16 |
Relating to assets still held at the reporting date | (127) | 75 |
Relating to assets sold during the period | 314 | (19) |
Purchases, sales and settlements | (304) | 26 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets, December 31 | $ (19) | $ 98 |
Retirement Plans (Projected Fut
Retirement Plans (Projected Future Pension Benefit Payments, Excluding Any Termination Beneftis) (Details) - U.S. Plans $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Benefit Payments, year 1 | $ 569 |
Benefit Payments, year 2 | 579 |
Benefit Payments, year 3 | 593 |
Benefit Payments, year 4 | 607 |
Benefit Payments, year 5 | 619 |
Benefit Payments, year 6-10 | $ 3,217 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)plan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Years of eligibility to participate in pension plan | 1 year | ||||
Age to participate in the pension plan | 21 | ||||
Plan assets, increase (decrease) for assets transferred to (from) plan | $ 1,600,000,000 | $ 1,300,000,000 | |||
Former employees | 23,000 | 45,000 | |||
Monthly benefit payments | $ 1,000 | $ 450 | |||
Settlement loss | 424,000,000 | 376,000,000 | |||
Change in basis point for assumptions for next year | 25.00% | ||||
Payment for pension benefits | $ 0 | $ 0 | $ 1,250,000,000 | ||
Defined contribution plan, cost recognized | $ 172,000,000 | 125,000,000 | 117,000,000 | ||
Number of nonqualified pension plans | plan | 2 | ||||
Number of SERP plans | plan | 1 | ||||
U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefits paid | $ (546,000,000) | (677,000,000) | |||
Expected future benefit payment, next twelve months | 569,000,000 | 569,000,000 | |||
Defined benefit plan, plan assets, amount | $ 10,165,000,000 | $ 8,735,000,000 | $ 10,165,000,000 | $ 8,735,000,000 | $ 11,368,000,000 |
Actuarial assumptions used to determine benefit obligations, Discount rate | 3.40% | 4.30% | 3.40% | 4.30% | 3.60% |
Total recognized in other comprehensive income | $ (265,000,000) | ||||
Amount recognized in net periodic benefit cost (credit) and other comprehensive (income) loss, before tax | (172,000,000) | $ (134,000,000) | $ (184,000,000) | ||
Accumulated benefit obligation for defined benefit plans | $ 11,700,000,000 | $ 10,400,000,000 | 11,700,000,000 | 10,400,000,000 | |
Settlement loss | 0 | 424,000,000 | 383,000,000 | ||
Settlements | $ 0 | (1,653,000,000) | |||
Expected long term return on assets for next year | 7.00% | ||||
Expected discount rate for next year | 3.40% | ||||
Rate of compensation increase | 2.25% | ||||
Expected benefit cost estimate for next fiscal year | 46,000,000 | $ 46,000,000 | |||
Defined benefit expense | 93,000,000 | 632,000,000 | 717,000,000 | ||
Payment for pension benefits | 0 | 1,250,000,000 | |||
Non-U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefits paid | (8,000,000) | (9,000,000) | |||
Defined benefit plan, plan assets, amount | $ 183,000,000 | $ 161,000,000 | $ 183,000,000 | $ 161,000,000 | $ 176,000,000 |
Actuarial assumptions used to determine benefit obligations, Discount rate | 2.70% | 3.97% | 2.70% | 3.97% | 3.59% |
Total recognized in other comprehensive income | $ 18,000,000 | ||||
Amount recognized in net periodic benefit cost (credit) and other comprehensive (income) loss, before tax | 24,000,000 | $ (6,000,000) | $ 10,000,000 | ||
Accumulated benefit obligation for defined benefit plans | $ 236,000,000 | $ 200,000,000 | 236,000,000 | 200,000,000 | |
Settlement loss | 2,000,000 | 0 | 1,000,000 | ||
Settlements | (6,000,000) | (2,000,000) | |||
Defined benefit expense | 6,000,000 | 4,000,000 | 5,000,000 | ||
Supplemental Employee Retirement Plan, Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefits paid | (26,000,000) | (29,000,000) | $ (40,000,000) | ||
Expected future benefit payment, next twelve months | 28,000,000 | 28,000,000 | |||
Settlement loss | 7,000,000 | ||||
Other Fixed Income [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, plan assets, amount | (647,000,000) | (543,000,000) | (647,000,000) | (543,000,000) | |
Cash and Cash Equivalents [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, plan assets, amount | $ 336,000,000 | $ 294,000,000 | $ 336,000,000 | $ 294,000,000 |
(Components Of Postretirement B
(Components Of Postretirement Benefit Expense) (Details) - Other Postretirement Benefits Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 1 | $ 1 |
Interest cost | 8 | 8 | 11 |
Actuarial loss (gain) | 4 | 9 | 8 |
Amortization of prior service credits | (2) | (2) | (3) |
Net periodic pension expense | 10 | 16 | 17 |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 0 | 0 |
Interest cost | 1 | 2 | 2 |
Actuarial loss (gain) | 2 | 2 | 3 |
Amortization of prior service credits | (3) | (3) | (4) |
Net periodic pension expense | $ 1 | $ 1 | $ 1 |
(Discount Rates Used To Determi
(Discount Rates Used To Determine Net Cost) (Details) - Other Postretirement Benefits Plan [Member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.20% | 3.50% | 4.00% |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 9.10% | 9.38% | 10.53% |
(Weighted Average Assumptions U
(Weighted Average Assumptions Used To Determine Benefit Obligation) (Details) - Other Postretirement Benefits Plan [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.30% | 4.20% |
Health care cost trend rate assumed for next year | 6.75% | 7.00% |
Rate that the cost trend rate gradually declines to | 5.00% | 5.00% |
Year that the rate reaches the rate it is assumed to remain | 2026 | 2026 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 7.15% | 9.10% |
Health care cost trend rate assumed for next year | 9.57% | 10.04% |
Rate that the cost trend rate gradually declines to | 4.78% | 4.93% |
Year that the rate reaches the rate it is assumed to remain | 2030 | 2030 |
(Changes In Postretirement Bene
(Changes In Postretirement Benefit Obligation, Plan Assets, Funded Status And Amounts Recognized In Balance Sheet And Accumulated Other Comprehensive (Loss) Income) (Details) - Other Postretirement Benefits Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, January 1 | $ 213 | $ 270 | |
Service cost | 0 | 1 | $ 1 |
Interest cost | 8 | 8 | 11 |
Participants’ contributions | 4 | 5 | |
Actuarial (gain) loss | 20 | (34) | |
Benefits paid | (32) | (38) | |
Less: Federal subsidy | 1 | 1 | |
Currency Impact | 0 | 0 | |
Benefit obligation, December 31 | 214 | 213 | 270 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, January 1 | 0 | 0 | |
Company contributions | 28 | 33 | |
Participants’ contributions | 4 | 5 | |
Benefits paid | (32) | (38) | |
Fair value of plan assets, December 31 | 0 | 0 | 0 |
Funded status, December 31 | (214) | (213) | |
Current liability | (21) | (23) | |
Non-current liability | (193) | (190) | |
Amounts recognized in the consolidated balance sheet | (214) | (213) | |
Net actuarial loss (gain) | 47 | 31 | |
Prior service credit | (2) | (4) | |
Amounts recognized in accumulated other comprehensive income (pre-tax) | 45 | 27 | |
Non-U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, January 1 | 24 | 25 | |
Service cost | 1 | 0 | 0 |
Interest cost | 1 | 2 | 2 |
Participants’ contributions | 0 | 0 | |
Actuarial (gain) loss | 8 | 2 | |
Benefits paid | (2) | (1) | |
Less: Federal subsidy | 0 | 0 | |
Currency Impact | (1) | (4) | |
Benefit obligation, December 31 | 31 | 24 | 25 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, January 1 | 0 | 0 | |
Company contributions | 2 | 1 | |
Participants’ contributions | 0 | 0 | |
Benefits paid | (2) | (1) | |
Fair value of plan assets, December 31 | 0 | 0 | $ 0 |
Funded status, December 31 | (31) | (24) | |
Current liability | (1) | (1) | |
Non-current liability | (30) | (23) | |
Amounts recognized in the consolidated balance sheet | (31) | (24) | |
Net actuarial loss (gain) | 19 | 15 | |
Prior service credit | (18) | (22) | |
Amounts recognized in accumulated other comprehensive income (pre-tax) | $ 1 | $ (7) |
(Postretirement Benefit Adjustm
(Postretirement Benefit Adjustments Recognized In Other Comprehensive (Loss) Income) (Details) - Other Postretirement Benefits Plan [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of actuarial (loss) gain | $ 20 |
Amortization of actuarial loss | (4) |
Current year prior service cost | 0 |
Amortization of prior service credit | 2 |
Currency impact | 0 |
Total recognized in other comprehensive income | 18 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of actuarial (loss) gain | 7 |
Amortization of actuarial loss | (2) |
Current year prior service cost | 0 |
Amortization of prior service credit | 3 |
Currency impact | 0 |
Total recognized in other comprehensive income | $ 8 |
(Estimated Total Future Postret
(Estimated Total Future Postretirement Benefit Payments, Net Of Participant Contributions And Estimated Future Medicare Part D Subsidy Receipts) (Details) - Other Postretirement Benefits Plan [Member] $ in Millions | Dec. 31, 2019USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefit Payments, year 1 | $ 22 |
Benefit Payments, year 2 | 21 |
Benefit Payments, year 3 | 20 |
Benefit Payments, year 4 | 18 |
Benefit Payments, year 5 | 17 |
Benefit Payments, year 6-10 | 73 |
Subsidy Receipts, year 1 | 1 |
Subsidy Receipts, year 2 | 1 |
Subsidy Receipts, year 3 | 1 |
Subsidy Receipts, year 4 | 1 |
Subsidy Receipts, year 5 | 1 |
Subsidy Receipts, year 6-10 | 4 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefit Payments, year 1 | 1 |
Benefit Payments, year 2 | 0 |
Benefit Payments, year 3 | 1 |
Benefit Payments, year 4 | 1 |
Benefit Payments, year 5 | 1 |
Benefit Payments, year 6-10 | $ 6 |
Postretirement Benefits (Narrat
Postretirement Benefits (Narrative) (Details) - Other Postretirement Benefits Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in other comprehensive income | $ 18 | ||
Total recognized in net periodic benefit cost or OCI | 29 | $ (25) | $ 25 |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in other comprehensive income | 8 | ||
Total recognized in net periodic benefit cost or OCI | $ 9 | $ 5 | $ 3 |
(Assumptions Used To Determine
(Assumptions Used To Determine Compensation Cost For Market Condition Component Of Performance Share Program) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Expected volatility, lower limit | 22.81% |
Expected volatility, upper limit | 24.60% |
Risk-free interest rate, lower limit | 1.47% |
Risk-free interest rate, upper limit | 2.44% |
(Summary Of Performance Share P
(Summary Of Performance Share Program Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares/units, outstanding | 5,766,477 | 5,799,884 | 5,950,130 |
Shares/units, granted | 2,353,613 | 1,751,235 | 2,163,912 |
Shares/units, shares issued | (2,367,135) | (1,588,642) | (1,876,134) |
Shares/units, forfeited | (238,227) | (196,000) | (438,024) |
Shares/units, outstanding | (5,514,728) | (5,766,477) | (5,799,884) |
Weighted average grant date fair value, outstanding | $ 38.79 | $ 36.17 | $ 35.89 |
Weighted average grant date fair value, granted | 43.49 | 62.97 | 51.78 |
Weighted average grant date fair value, shares issued | 36.79 | 53.67 | 51 |
Weighted average grant date fair value, forfeited | 50.64 | 56.57 | 45.96 |
Weighted average grant date fair value, outstanding | $ 41.14 | $ 38.79 | $ 36.17 |
(Summary Of Activity Of Restric
(Summary Of Activity Of Restricted Stock Award Program) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares/units, outstanding | 5,766,477 | 5,799,884 | 5,950,130 |
Shares/units, granted | 2,353,613 | 1,751,235 | 2,163,912 |
Shares/units, shares issued | (2,367,135) | (1,588,642) | (1,876,134) |
Shares/units, forfeited | (238,227) | (196,000) | (438,024) |
Shares/Units, outstanding | 5,514,728 | 5,766,477 | 5,799,884 |
Weighted average grant date fair value, outstanding | $ 38.79 | $ 36.17 | $ 35.89 |
Weighted average grant date fair value, granted | 43.49 | 62.97 | 51.78 |
Weighted average grant date fair value, shares issued | 36.79 | 53.67 | 51 |
Weighted average grant date fair value, forfeited | 50.64 | 56.57 | 45.96 |
Weighted average grant date fair value, outstanding | $ 41.14 | $ 38.79 | $ 36.17 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares/units, outstanding | 132,111 | 166,300 | 169,331 |
Shares/units, granted | 87,910 | 66,100 | 63,319 |
Shares/units, shares issued | (52,021) | (100,289) | (59,650) |
Shares/units, forfeited | (7,300) | 0 | (6,700) |
Shares/Units, outstanding | 160,700 | 132,111 | 166,300 |
Weighted average grant date fair value, outstanding | $ 50.17 | $ 48.63 | $ 45.34 |
Weighted average grant date fair value, granted | 43.70 | 51.43 | 57.24 |
Weighted average grant date fair value, shares issued | 48.90 | 48.44 | 47.90 |
Weighted average grant date fair value, forfeited | 45.10 | 0 | 53.53 |
Weighted average grant date fair value, outstanding | $ 47.27 | $ 50.17 | $ 48.63 |
(Stock-Based Compensation Expen
(Stock-Based Compensation Expense And Related Income Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Income tax benefits related to stock-based compensation | $ 30 | $ 16 | $ 45 |
Selling And Marketing Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated share-based compensation expense | $ 130 | $ 135 | $ 147 |
Incentive Plans (Narrative) (De
Incentive Plans (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to unvested restricted performace shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures | $ 92 | ||
Compensation cost related to unvested restricted performace shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures, weighted-average period (in years) | 1 year 7 months 6 days | ||
Restricted performance share plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weight of return on investment (ROI) on awards | 50.00% | ||
Weight of total shareholder return (TSR) on awards | 50.00% | ||
Restricted performance share plan | Other Participants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weight of return on investment (ROI) on awards | 75.00% | ||
Weight of total shareholder return (TSR) on awards | 25.00% | ||
Restricted performance share plan | Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weight of return on investment (ROI) on awards | 50.00% | ||
Weight of total shareholder return (TSR) on awards | 50.00% | ||
Share-based Payment Arrangement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 9.8 | 11.9 | 13.2 |
(Sales By Industry Segment) (De
(Sales By Industry Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
NET SALES | $ 5,498 | $ 5,568 | $ 5,667 | $ 5,643 | $ 5,951 | $ 5,901 | $ 5,833 | $ 5,621 | $ 22,376 | [1] | $ 23,306 | [1] | $ 21,743 | [1] | |
Operating Segments [Member] | Industrial Packaging | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
NET SALES | 15,326 | 15,900 | 15,077 | ||||||||||||
Operating Segments [Member] | Global Cellulose Fibers | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
NET SALES | 2,551 | 2,819 | 2,551 | ||||||||||||
Operating Segments [Member] | Printing Papers | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
NET SALES | 4,291 | 4,375 | 4,157 | ||||||||||||
Intersegment Eliminations [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
NET SALES | [2] | $ 208 | $ 212 | $ (42) | |||||||||||
[1] | Net sales are attributed to countries based on the location of the seller. | ||||||||||||||
[2] | Includes sales of $15 million , operating profits (losses) of $0 million and corporate special items expense of $9 million |
(Operating Profit By Industry S
(Operating Profit By Industry Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes and equity earnings | $ 400 | [1] | $ 452 | [1] | $ 334 | [1] | $ 418 | [1] | $ 382 | [2] | $ 553 | [2] | $ 490 | [2] | $ 356 | [2] | $ 1,604 | [1] | $ 1,781 | [2] | $ 848 | ||
Interest expense, net | (491) | (536) | (572) | ||||||||||||||||||||
Noncontrolling interests / equity earnings adjustment (b) | [3] | 3 | (10) | (2) | |||||||||||||||||||
Corporate expenses, net (a) | [4] | 54 | 67 | 91 | |||||||||||||||||||
Corporate special items, net (a) | 3 | 1 | 104 | [4] | 9 | [4] | 76 | [4] | |||||||||||||||
Business special items, net | 307 | 205 | 425 | ||||||||||||||||||||
Non-operating pension expense | $ 9 | $ 9 | $ 8 | $ 10 | $ 429 | $ 25 | $ 36 | $ 4 | 36 | 494 | 530 | ||||||||||||
Non-operating pension expense (income) | 484 | ||||||||||||||||||||||
Operating Segments [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Business Segment Operating Profit | 2,599 | 3,082 | 2,494 | ||||||||||||||||||||
Operating Segments [Member] | Industrial Packaging | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Business Segment Operating Profit | 2,076 | 2,277 | 1,919 | ||||||||||||||||||||
Business special items, net | 78 | 184 | 372 | ||||||||||||||||||||
Operating Segments [Member] | Global Cellulose Fibers | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Business Segment Operating Profit | (6) | 262 | 116 | ||||||||||||||||||||
Business special items, net | 68 | 11 | 51 | ||||||||||||||||||||
Operating Segments [Member] | Printing Papers | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Business Segment Operating Profit | 529 | 543 | 459 | ||||||||||||||||||||
Business special items, net | 161 | 10 | 2 | ||||||||||||||||||||
Corporate and other | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Interest expense, net | $ 491 | $ 536 | $ 572 | ||||||||||||||||||||
[1] | Includes the following pre-tax charges (gains): 2019 In millions Q1 Q2 Q3 Q4 India impairment $ — $ 152 $ 8 $ (1 ) India divestiture transaction costs — — — 3 Global Cellulose Fibers goodwill impairment — — — 52 Litigation reserves — — 22 19 Italian antitrust fine — — 32 — Environmental remediation reserve adjustment — — 15 10 (Gain) loss on sale of EMEA Packaging box plant (7 ) — — 1 EMEA Packaging business optimization — — — 17 Multi-employer pension plan exit liability 16 — (7 ) — Abandoned property removal 11 11 13 15 Riverdale mill conversion costs 1 1 1 2 Foreign VAT refund accrual including interest — — — (6 ) Debt extinguishment costs — — — 21 Gain on sale of previously closed Oregon mill site — — (9 ) — Overhead cost reduction initiative — — 21 — Other items — 1 — 3 Non-operating pension expense 10 8 9 9 Total $ 31 $ 173 $ 105 $ 145 | ||||||||||||||||||||||
[2] | Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 Smurfit-Kappa acquisition proposal costs $ — $ 12 $ — $ — Legal settlement 9 — — — Litigation settlement recovery — — — (5 ) Environmental remediation reserve adjustment — — 9 — EMEA Packaging business optimization 22 26 — (1 ) Abandoned property removal 9 9 6 8 Riverdale mill conversion costs — — 5 4 Brazil Packaging impairment — — 122 — Debt extinguishment costs — — — 10 Gain on sale of investment in Liaison Technologies — — — (31 ) Non-operating pension expense 4 36 25 429 Total $ 44 $ 83 $ 167 $ 414 | ||||||||||||||||||||||
[3] | Operating profits for industry segments include each segment’s percentage share of the profits of subsidiaries included in that segment that are less than wholly-owned. The pre-tax noncontrolling interests and equity earnings for these subsidiaries is added here to present consolidated earnings from continuing operations before income taxes and equity earnings. | ||||||||||||||||||||||
[4] | Includes sales of $15 million , operating profits (losses) of $0 million and corporate special items expense of $9 million |
(Business Special Items By Segm
(Business Special Items By Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Business special items, net | $ 307 | $ 205 | $ 425 |
Industrial Packaging | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Business special items, net | 78 | 184 | 372 |
Global Cellulose Fibers | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Business special items, net | 68 | 11 | 51 |
Printing Papers | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Business special items, net | $ 161 | $ 10 | $ 2 |
(Information By Industry Segmen
(Information By Industry Segment, Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 33,471 | $ 33,576 | |
Operating Segments [Member] | Industrial Packaging | |||
Segment Reporting Information [Line Items] | |||
Assets | 16,338 | 15,859 | |
Operating Segments [Member] | Global Cellulose Fibers | |||
Segment Reporting Information [Line Items] | |||
Assets | 3,733 | 3,880 | |
Operating Segments [Member] | Printing Papers | |||
Segment Reporting Information [Line Items] | |||
Assets | 3,476 | 3,905 | |
Corporate and other | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 9,924 | $ 9,932 |
[1] | Includes corporate assets and assets of businesses held for sale. |
(Information By Industry Segm_2
(Information By Industry Segment, Capital Spending) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Capital Spending | $ 1,276 | $ 1,572 | $ 1,280 |
Subtotal | |||
Segment Reporting Information [Line Items] | |||
Capital Spending | 1,256 | 1,547 | 1,259 |
Subtotal | Industrial Packaging | |||
Segment Reporting Information [Line Items] | |||
Capital Spending | 922 | 1,061 | 836 |
Subtotal | Global Cellulose Fibers | |||
Segment Reporting Information [Line Items] | |||
Capital Spending | 162 | 183 | 188 |
Subtotal | Printing Papers | |||
Segment Reporting Information [Line Items] | |||
Capital Spending | 172 | 303 | 235 |
Corporate and other | |||
Segment Reporting Information [Line Items] | |||
Capital Spending | $ 20 | $ 25 | $ 21 |
(Depreciation, Amortization And
(Depreciation, Amortization And Cost of Timber Harvested) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization | $ 1,306 | $ 1,328 | $ 1,343 | |
Operating Segments [Member] | Industrial Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization | 794 | 803 | 815 | |
Operating Segments [Member] | Global Cellulose Fibers | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization | 263 | 262 | 264 | |
Operating Segments [Member] | Printing Papers | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization | 244 | 258 | 254 | |
Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization | [1] | $ 5 | $ 5 | $ 10 |
[1] | Includes $1 million in 2017 from previously divested businesses. |
(Information By Industry Segm_3
(Information By Industry Segment, External Sales By Major Product) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 22,376 | $ 23,306 | $ 21,743 | |
Operating Segments [Member] | Industrial Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 15,259 | 15,828 | 14,946 | |
Operating Segments [Member] | Global Cellulose Fibers | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 2,545 | 2,810 | 2,524 | |
Operating Segments [Member] | Printing Papers | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 4,284 | 4,359 | 4,142 | |
Corporate and other | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | $ 288 | $ 309 | $ 131 |
[1] | Includes $15 million in 2017 from previously divested businesses. |
(Information By Geographic Area
(Information By Geographic Area, Net Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
NET SALES | $ 5,498 | $ 5,568 | $ 5,667 | $ 5,643 | $ 5,951 | $ 5,901 | $ 5,833 | $ 5,621 | $ 22,376 | [1] | $ 23,306 | [1] | $ 21,743 | [1] | |
Operating Segments [Member] | United States | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
NET SALES | [1],[2] | 16,948 | 17,609 | 16,247 | |||||||||||
Operating Segments [Member] | EMEA | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
NET SALES | [1] | 3,258 | 3,321 | 3,129 | |||||||||||
Operating Segments [Member] | Pacific Rim and Asia | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
NET SALES | [1] | 415 | 605 | 625 | |||||||||||
Operating Segments [Member] | Americas, other than U.S. | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
NET SALES | [1] | $ 1,755 | $ 1,771 | $ 1,742 | |||||||||||
[1] | Net sales are attributed to countries based on the location of the seller. | ||||||||||||||
[2] | Export sales to unaffiliated customers were $2.7 billion in 2019 , $3.1 billion in 2018 and $2.9 billion in 2017 . |
(Information By Geographic Ar_2
(Information By Geographic Area, Long-Lived Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | [1] | $ 13,395 | $ 13,469 |
Operating Segments [Member] | United States | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | [1] | 10,706 | 10,586 |
Operating Segments [Member] | EMEA | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | [1] | 1,368 | 1,315 |
Operating Segments [Member] | Pacific Rim and Asia | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | [1] | 0 | 201 |
Operating Segments [Member] | Americas, other than U.S. | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | [1] | $ 1,321 | $ 1,367 |
[1] | Long-Lived Assets includes Forestlands and Plants, Properties and Equipment, net. |
Financial Information By Busi_3
Financial Information By Business Segment And Geographic Area (Information By Geographic Area, Net Sales Footnotes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from contract with customer, including assessed tax | $ 5,498 | $ 5,568 | $ 5,667 | $ 5,643 | $ 5,951 | $ 5,901 | $ 5,833 | $ 5,621 | $ 22,376 | [1] | $ 23,306 | [1] | $ 21,743 | [1] | |
Corporate special items | $ 3 | $ 1 | 104 | [2] | 9 | [2] | 76 | [2] | |||||||
Depreciation, amortization and cost of timber harvested | 1,306 | 1,328 | 1,343 | ||||||||||||
External sales by reportable segment | 22,376 | 23,306 | 21,743 | ||||||||||||
United States | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Segment reporting information, unaffiliated revenue | 2,700 | 3,100 | 2,900 | ||||||||||||
Corporate (c) | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Depreciation, amortization and cost of timber harvested | [3] | 5 | 5 | 10 | |||||||||||
Corporate and Other | Corporate (c) | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
External sales by reportable segment | [4] | $ 288 | $ 309 | 131 | |||||||||||
Previously Divested Businesses [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from contract with customer, including assessed tax | [2] | 15 | |||||||||||||
Operating income (loss) | [2] | 0 | |||||||||||||
Corporate special items | [2] | 9 | |||||||||||||
Previously Divested Businesses [Member] | Corporate (c) | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Depreciation, amortization and cost of timber harvested | [3],[4] | 1 | |||||||||||||
Previously Divested Businesses [Member] | Corporate and Other | Corporate (c) | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
External sales by reportable segment | [1] | $ 15 | |||||||||||||
[1] | Net sales are attributed to countries based on the location of the seller. | ||||||||||||||
[2] | Includes sales of $15 million , operating profits (losses) of $0 million and corporate special items expense of $9 million | ||||||||||||||
[3] | Includes $1 million in 2017 from previously divested businesses. | ||||||||||||||
[4] | Includes $15 million in 2017 from previously divested businesses. |
Interim Financial Results (Deta
Interim Financial Results (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
NET SALES | $ 5,498 | $ 5,568 | $ 5,667 | $ 5,643 | $ 5,951 | $ 5,901 | $ 5,833 | $ 5,621 | $ 22,376 | [1] | $ 23,306 | [1] | $ 21,743 | [1] | ||||||||
Earnings (loss) from continuing operations before income taxes and equity earnings | 400 | [2] | 452 | [2] | 334 | [2] | 418 | [2] | 382 | [3] | 553 | [3] | 490 | [3] | 356 | [3] | 1,604 | [2] | 1,781 | [3] | 848 | |
Gain (loss) from discontinued operations | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [5] | 0 | [5] | (23) | [5] | 368 | [5] | 0 | 345 | [5] | 34 | ||
Net earnings (loss) attributable to International Paper Company | $ 165 | [2],[4],[6] | $ 344 | [2],[4],[6] | $ 292 | [2],[4],[6] | $ 424 | [2],[4],[6] | $ 316 | [3],[5],[7] | $ 562 | [3],[5],[7] | $ 405 | [3],[5],[7] | $ 729 | [3],[5],[7] | $ 1,225 | [2],[4],[6] | $ 2,012 | [3],[5],[7] | $ 2,144 | |
Earnings (loss) from continuing operations | $ 0.42 | [2] | $ 0.88 | [2] | $ 0.74 | [2] | $ 1.06 | [2] | $ 0.79 | [3] | $ 1.38 | [3] | $ 1.03 | [3] | $ 0.87 | [3] | $ 3.10 | [2] | $ 4.07 | [3] | $ 5.11 | |
Gain (loss) from discontinued operations | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [5] | 0 | [5] | (0.05) | [5] | 0.89 | [5] | 0 | [4] | 0.84 | [5] | 0.08 | |
Net earnings (loss) | 0.42 | [2],[4],[6] | 0.88 | [2],[4],[6] | 0.74 | [2],[4],[6] | 1.06 | [2],[4],[6] | 0.79 | [3],[5],[7] | 1.38 | [3],[5],[7] | 0.98 | [3],[5],[7] | 1.76 | [3],[5],[7] | 3.10 | [2],[4],[6] | 4.91 | [3],[5],[7] | 5.19 | |
Diluted earnings (loss) per share from continuing operations | 0.42 | [2] | 0.87 | [2] | 0.73 | [2] | 1.05 | [2] | 0.78 | [3] | 1.37 | [3] | 1.02 | [3] | 0.86 | [3] | 3.07 | [2] | 4.02 | [3] | 5.05 | |
Gain (loss) from discontinued operations | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [5] | 0 | [5] | (0.05) | [5] | 0.88 | [5] | 0 | [4] | 0.83 | [5] | 0.08 | |
Net earnings (loss) | 0.42 | [2],[4],[6] | 0.87 | [2],[4],[6] | 0.73 | [2],[4],[6] | 1.05 | [2],[4],[6] | 0.78 | [3],[5],[7] | 1.37 | [3],[5],[7] | 0.97 | [3],[5],[7] | 1.74 | [3],[5],[7] | 3.07 | [2],[4],[6] | 4.85 | [3],[5],[7] | 5.13 | |
Dividends per share of common stock | $ 0.5125 | $ 0.5000 | $ 0.5000 | $ 0.5000 | $ 0.5000 | $ 0.4750 | $ 0.4750 | $ 0.4750 | $ 2.0125 | $ 1.9250 | $ 1.863 | |||||||||||
[1] | Net sales are attributed to countries based on the location of the seller. | |||||||||||||||||||||
[2] | Includes the following pre-tax charges (gains): 2019 In millions Q1 Q2 Q3 Q4 India impairment $ — $ 152 $ 8 $ (1 ) India divestiture transaction costs — — — 3 Global Cellulose Fibers goodwill impairment — — — 52 Litigation reserves — — 22 19 Italian antitrust fine — — 32 — Environmental remediation reserve adjustment — — 15 10 (Gain) loss on sale of EMEA Packaging box plant (7 ) — — 1 EMEA Packaging business optimization — — — 17 Multi-employer pension plan exit liability 16 — (7 ) — Abandoned property removal 11 11 13 15 Riverdale mill conversion costs 1 1 1 2 Foreign VAT refund accrual including interest — — — (6 ) Debt extinguishment costs — — — 21 Gain on sale of previously closed Oregon mill site — — (9 ) — Overhead cost reduction initiative — — 21 — Other items — 1 — 3 Non-operating pension expense 10 8 9 9 Total $ 31 $ 173 $ 105 $ 145 | |||||||||||||||||||||
[3] | Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 Smurfit-Kappa acquisition proposal costs $ — $ 12 $ — $ — Legal settlement 9 — — — Litigation settlement recovery — — — (5 ) Environmental remediation reserve adjustment — — 9 — EMEA Packaging business optimization 22 26 — (1 ) Abandoned property removal 9 9 6 8 Riverdale mill conversion costs — — 5 4 Brazil Packaging impairment — — 122 — Debt extinguishment costs — — — 10 Gain on sale of investment in Liaison Technologies — — — (31 ) Non-operating pension expense 4 36 25 429 Total $ 44 $ 83 $ 167 $ 414 | |||||||||||||||||||||
[4] | Includes the following tax expenses (benefits): 2019 In millions Q1 Q2 Q3 Q4 Luxembourg statutory tax rate change $ — $ 9 $ — $ — State income tax legislative changes — (3 ) — — Foreign tax audits — 3 — — Internal investment restructuring — — — (53 ) Foreign deferred tax valuation allowance — — — 203 Tax impact of other special items (6 ) (5 ) (14 ) (28 ) Tax impact of non-operating pension expense (2 ) (2 ) (2 ) (2 ) Total $ (8 ) $ 2 $ (16 ) $ 120 | |||||||||||||||||||||
[5] | Includes the following pre-tax charges (gains): 2018 In millions Q1 Q2 Q3 Q4 North American Consumer Packaging transaction costs $ 23 $ 2 $ — $ — North American Consumer Packaging gain on transfer (516 ) 28 — — Total $ (493 ) $ 30 $ — $ — | |||||||||||||||||||||
[6] | Includes allocation of loss to noncontrolling interest of $7 million and $2 million for the three months ended June 30, 2019 and September 30, 2019, respectively, associated with the impairment of the net assets of our India Papers business. | |||||||||||||||||||||
[7] | 2018 In millions Q1 Q2 Q3 Q4 State income tax legislative changes $ — $ 9 $ — $ — Tax benefit of Tax Cuts and Jobs Act — — (36 ) — Internal investment restructuring — — — 19 Foreign tax audits — — — 25 Tax impact of other special items (9 ) (13 ) (46 ) 3 Tax impact of non-operating pension expense (1 ) (9 ) (6 ) (107 ) Total $ (10 ) $ (13 ) $ (88 ) $ (60 ) |
Interim Financial Results (Foot
Interim Financial Results (Footnotes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill, Impairment Loss | $ 60 | |||||||||||||
Selling and administrative expenses | $ 12 | 1,647 | $ 1,723 | $ 1,621 | ||||||||||
Litigation settlement recovery | $ (5) | |||||||||||||
Litigation reserves | $ 19 | $ 22 | ||||||||||||
Litigation settlement | 32 | $ 9 | 32 | 0 | 354 | |||||||||
Environmental remediation reserve adjustment | 10 | 15 | $ 9 | |||||||||||
(Gain) loss on transfer of business | 1 | (9) | $ (7) | 0 | 488 | 0 | ||||||||
Restructuring and other charges, net | 57 | 29 | 67 | |||||||||||
Multi-employer pension plan exit liability | (7) | 16 | ||||||||||||
Abandoned property removal | 15 | 13 | $ 11 | 11 | 8 | 6 | 9 | 9 | ||||||
Value added tax receivable | (6) | (6) | ||||||||||||
Corporate special items | 3 | 1 | 104 | [1] | 9 | [1] | 76 | [1] | ||||||
Brazil Packaging impairment | 122 | 122 | ||||||||||||
Non-operating pension expense | 9 | 9 | 8 | 10 | 429 | 25 | 36 | 4 | 36 | 494 | 530 | |||
Non-operating pension expense (income) | 484 | |||||||||||||
Pre-tax charges (gains) | 145 | 105 | 173 | 31 | 414 | 167 | 83 | 44 | ||||||
U.S. federal tax rate change | 9 | 0 | (13) | (1,451) | ||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | (3) | 9 | ||||||||||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Amount | 3 | 25 | ||||||||||||
Internal investment restructuring | (53) | 19 | ||||||||||||
Foreign valuation allowance | 203 | 203 | 0 | 0 | ||||||||||
Tax impact of other special items | (28) | (14) | (5) | (6) | 3 | (46) | (13) | (9) | ||||||
Tax impact of non-operating pension expense | (2) | (2) | (2) | (2) | (107) | (6) | (9) | (1) | ||||||
Other Tax Expense (Benefit) | 120 | (16) | 2 | (8) | (60) | (88) | (13) | (10) | ||||||
Tax benefit of Tax Cuts and Jobs Act | (1,220) | |||||||||||||
Global Cellulose Fibers | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill, Impairment Loss | 52 | 52 | [2] | |||||||||||
North American Consumer Packaging [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
North American Consumer Packaging transaction costs | 2 | 23 | ||||||||||||
Non-operating pension expense (income) | 28 | (516) | ||||||||||||
Pre-tax charges (gains) | 30 | (493) | ||||||||||||
Riegelwood mill conversion costs | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restructuring and other charges, net | (14) | |||||||||||||
EMEA packaging restructuring | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restructuring and other charges, net | 17 | (1) | $ 26 | $ 22 | 15 | [3] | 47 | [4] | ||||||
Riverdale mill conversion | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restructuring and other charges, net | 2 | 1 | 1 | $ 1 | 4 | 5 | 3 | |||||||
Early debt extinguishment costs (see Note 13) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restructuring and other charges, net | 21 | 10 | 21 | 10 | 83 | |||||||||
Gain on sale of investment in Liaison Technologies Inc. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restructuring and other charges, net | $ (31) | $ (31) | ||||||||||||
Overhead cost reduction initiative | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restructuring and other charges, net | 21 | 21 | [5] | |||||||||||
Tax Cuts and Jobs Act [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Tax benefit of Tax Cuts and Jobs Act | $ (36) | $ (1,454) | ||||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | APPM [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Gain (loss) on sale of assets and impairment charge allocated to minority interest | (2) | (7) | (9) | |||||||||||
Divestiture costs | 3 | |||||||||||||
Brazil Packaging impairment | $ (1) | $ 8 | $ 152 | $ 159 | ||||||||||
[1] | Includes sales of $15 million , operating profits (losses) of $0 million and corporate special items expense of $9 million | |||||||||||||
[2] | Reflects the impairment of the Global Cellulose Fibers reporting unit. | |||||||||||||
[3] | Includes $14 million of severance and $1 million in other charges in conjunction with the restructuring of our EMEA Packaging business. The majority of the severance charges will be paid in 2020. | |||||||||||||
[4] | Includes $33 million of severance, $6 million in accelerated depreciation, $2 million in accelerated amortization and $6 million in other charges in conjunction with the optimization of our EMEA Packaging business. The majority of the severance charges recorded were paid throughout the year. | |||||||||||||
[5] | Includes pre-tax charges of $11 million , $6 million and $4 million in Corporate, the Printing Papers segment and the Global Cellulose Fibers segment, respectively, for severance related to an overhead cost reduction initiative. The majority of the severance charges will be paid in 2020. |