Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 19, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-03157 | |
Entity Registrant Name | INTERNATIONAL PAPER COMPANY | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-0872805 | |
Entity Address, Address Line One | 6400 Poplar Avenue | |
Entity Address, City or Town | Memphis | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 38197 | |
City Area Code | 901 | |
Local Phone Number | 419-9000 | |
Title of 12(b) Security | Common Shares | |
Trading Symbol | IP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 347,332,324 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000051434 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Net Sales | [1] | $ 4,619 | $ 5,020 |
Costs and Expenses | |||
Cost of products sold | 3,424 | 3,642 | |
Selling and administrative expenses | 358 | 381 | |
Depreciation, amortization and cost of timber harvested | 278 | 241 | |
Distribution expenses | 391 | 422 | |
Taxes other than payroll and income taxes | 41 | 36 | |
Restructuring and other charges, net | 3 | 0 | |
Net (gains) losses on sales of fixed assets | 5 | 0 | |
Interest expense, net | 46 | 62 | |
Non-operating pension expense (income) | (12) | 15 | |
Earnings (loss) from continuing operations before income taxes and equity earnings | 85 | 221 | |
Income tax provision (benefit) | 27 | 48 | |
Equity earnings (loss), net of taxes | (2) | (1) | |
Earnings (Loss) From Continuing Operations | 56 | 172 | |
Discontinued operations, net of taxes | 0 | 0 | |
Net Earnings (Loss) | $ 56 | $ 172 | |
Basic Earnings (Loss) Per Share | |||
Basic earnings (loss) per share from continuing operations | $ 0.16 | $ 0.49 | |
Discontinued operations, net of taxes | 0 | 0 | |
Earnings Per Share, Basic, Total | 0.16 | 0.49 | |
Diluted Earnings (Loss) Per Share | |||
Diluted earnings (loss) per share from continuing operations | 0.16 | 0.49 | |
Discontinued operations, net of taxes | 0 | 0 | |
Earnings Per Share, Diluted, Total | $ 0.16 | $ 0.49 | |
Average Shares of Common Stock Outstanding – assuming dilution | 348.5 | 353.3 | |
[1]Net sales are attributed to countries based on the location of the seller. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Earnings (Loss) | $ 56 | $ 172 |
Amortization of pension and post-retirement prior service costs and net loss: | 17 | 23 |
Change in cumulative foreign currency translation adjustment | (10) | (9) |
Total Other Comprehensive Income (Loss), Net of Tax | 7 | 14 |
Comprehensive Income (Loss) | $ 63 | $ 186 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash and temporary investments | $ 1,070 | $ 1,113 |
Accounts and notes receivable, net | 3,048 | 3,059 |
Contract assets | 430 | 433 |
Inventories | 1,771 | 1,889 |
Other current assets | 140 | 114 |
Total Current Assets | 6,459 | 6,608 |
Plants, Properties and Equipment, net | 10,027 | 10,150 |
Investments | 160 | 163 |
Long-Term Financial Assets of Variable Interest Entities (Note 14) | 2,317 | 2,312 |
Goodwill | 3,041 | 3,041 |
Overfunded Pension Plan Assets | 145 | 118 |
Right of Use Assets | 445 | 448 |
Deferred Charges and Other Assets | 434 | 421 |
Total Assets | 23,028 | 23,261 |
Current Liabilities | ||
Notes payable and current maturities of long-term debt | 138 | 138 |
Accounts payable | 2,322 | 2,442 |
Accrued payroll and benefits | 378 | 397 |
Other current liabilities | 1,016 | 982 |
Total Current Liabilities | 3,854 | 3,959 |
Long-Term Debt | 5,453 | 5,455 |
Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities (Note 14) | 2,115 | 2,113 |
Deferred Income Taxes | 1,541 | 1,552 |
Underfunded Pension Benefit Obligation | 279 | 280 |
Postretirement and Postemployment Benefit Obligation | 137 | 140 |
Long-Term Lease Obligations | 307 | 312 |
Other Liabilities | 1,085 | 1,095 |
Equity | ||
Common stock, $1 par value, 2024 – 448.9 shares and 2023 – 448.9 shares | 449 | 449 |
Paid-in capital | 4,663 | 4,730 |
Retained earnings | 9,386 | 9,491 |
Accumulated other comprehensive loss | (1,558) | (1,565) |
Shareholders' Equity before Treasury Stock, Total | 12,940 | 13,105 |
Less: Common stock held in treasury, at cost, 2024 – 101.6 shares and 2023 – 102.9 shares | 4,683 | 4,750 |
Total Equity | 8,257 | 8,355 |
Total Liabilities and Equity | $ 23,028 | $ 23,261 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares | 448,900 | 448,900 |
Treasury Stock, Common, Shares | 101,600 | 102,900 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Activities | ||
Net earnings (loss) | $ 56 | $ 172 |
Depreciation, amortization and cost of timber harvested | 278 | 241 |
Deferred income tax provision (benefit), net | (11) | (2) |
Restructuring and other charges, net | 3 | 0 |
Net (gains) losses on sales and impairments of equity method investments | 0 | 43 |
Net (gains) losses on sales of fixed assets | 5 | 0 |
Equity (earnings) losses, net of taxes | 2 | (42) |
Pension Expense (Reversal of Expense), Noncash | (2) | 26 |
Other, net | 32 | 39 |
Changes in current assets and liabilities | ||
Accounts and notes receivable | 7 | 103 |
Contract assets | 2 | (52) |
Inventories | 76 | 52 |
Accounts payable and accrued liabilities | (44) | (203) |
Interest payable | 17 | (5) |
Other | (26) | (27) |
Cash Provided By (Used For) Operations | 395 | 345 |
Investment Activities | ||
Invested in capital projects | (251) | (341) |
Proceeds from sale of fixed assets | 1 | 2 |
Other | 3 | 0 |
Cash Provided By (Used For) Investment Activities | (247) | (339) |
Financing Activities | ||
Repurchases of common stock and payments of restricted stock tax withholding | (22) | (177) |
Issuance of debt | 0 | 670 |
Reduction of debt | (3) | (413) |
Change in book overdrafts | (5) | (26) |
Dividends paid | (161) | (162) |
Cash Provided By (Used For) Financing Activities | (191) | (108) |
Effect of Exchange Rate Changes on Cash and Temporary Investments | 0 | 6 |
Change in Cash and Temporary Investments | (43) | (96) |
Cash and Temporary Investments | ||
Beginning of period | 1,113 | 804 |
End of period | $ 1,070 | $ 708 |
BASIS OF PRESENTATION (Note)
BASIS OF PRESENTATION (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of International Paper Company’s ("International Paper's," "the Company’s," "IP's" or "our") financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first three months of the year may not necessarily be indicative of full year results. You should read these unaudited condensed financial statements in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the "Annual Report"), which have previously been filed with the U.S. Securities and Exchange Commission ("SEC"). These unaudited condensed 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. |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Developments [Note Text Block] | NOTE 2 - RECENT ACCOUNTING DEVELOPMENTS Recently Adopted Accounting Pronouncements Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This guidance provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective upon issuance and generally can be applied through December 31, 2024. The Company has applied and will continue to apply this guidance to account for contract modifications due to changes in reference rates as those modifications occur. We do not expect this guidance to have a material impact on our consolidated financial statements and related disclosures. Segment Reporting In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This guidance requires companies to disclose incremental segment information on an annual and interim basis. This guidance is effective for annual reporting periods beginning after December 15, 2023 and interim periods within those years beginning after December 15, 2024. Early adoption of these amendments is permitted and amendments are required to be applied retrospectively to all prior periods presented in the financial statements. The Company adopted this guidance as of January 1, 2024 and will update disclosures within the Company's 2024 annual filing. Recently Issued Accounting Pronouncements Not Yet Adopted Income Taxes In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This guidance requires companies to enhance income tax disclosures, particularly around rate reconciliations and income taxes paid information. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption of these amendments is permitted and amendments should be applied prospectively. The Company is currently evaluating the provisions of this guidance. |
REVENUE RECOGNITION (Note)
REVENUE RECOGNITION (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 3 - REVENUE RECOGNITION Generally, the Company recognizes revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods. For customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time which, generally, is as the goods are produced. Disaggregated Revenue Three Months Ended March 31, 2024 In millions Industrial Packaging Global Cellulose Fibers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 3,239 $ 650 $ 107 $ 3,996 Europe, Middle East & Africa ("EMEA") 348 20 — 368 Pacific Rim and Asia 14 34 — 48 Americas, other than U.S. 207 — — 207 Total $ 3,808 $ 704 $ 107 $ 4,619 Operating Segments North American Industrial Packaging $ 3,486 $ — $ — $ 3,486 EMEA Industrial Packaging 348 — — 348 Global Cellulose Fibers — 704 — 704 Intrasegment Eliminations (26) — — (26) Corporate & Intersegment Sales — — 107 107 Total $ 3,808 $ 704 $ 107 $ 4,619 (a) Net sales are attributed to countries based on the location of the seller. Three Months Ended March 31, 2023 In millions Industrial Packaging Global Cellulose Fibers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 3,455 $ 730 $ 126 $ 4,311 EMEA 391 25 — 416 Pacific Rim and Asia 8 56 — 64 Americas, other than U.S. 229 — — 229 Total $ 4,083 $ 811 $ 126 $ 5,020 Operating Segments North American Industrial Packaging $ 3,724 $ — $ — $ 3,724 EMEA Industrial Packaging 391 — — 391 Global Cellulose Fibers — 811 — 811 Intrasegment Eliminations (32) — — (32) Corporate & Intersegment Sales — — 126 126 Total $ 4,083 $ 811 $ 126 $ 5,020 (a) Net sales are attributed to countries based on the location of the seller. Revenue Contract Balances A contract asset is created when the Company recognizes revenue on its customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes to the customer. A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months. Contract liabilities of $28 million and $32 million are included in Other current liabilities in the accompanying condensed consolidated balance sheet as of March 31, 2024 and December 31, 2023, respectively. The Company also recorded a contract liability of $115 million related to a previous acquisition. The balance of this contract liability was $90 million and $92 million at March 31, 2024 and December 31, 2023, respectively, and is recorded in Other current liabilities and Other Liabilities in the accompanying condensed consolidated balance sheet. The difference between the opening and closing balances of the Company's contract assets and contract liabilities primarily results from the difference between the price and quantity at comparable points in time for goods for which we have an unconditional right to payment or receive prepayment from the customer, respectively. |
EQUITY (Note)
EQUITY (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity [Note Text Block] | NOTE 4 - EQUITY A summary of the changes in equity for the three months ended March 31, 2024 and 2023 is provided below: Three Months Ended March 31, 2024 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Held In Treasury, At Cost Total Balance, January 1 $ 449 $ 4,730 $ 9,491 $ (1,565) $ 4,750 $ 8,355 Issuance of stock for various plans, net — (67) — — (89) 22 Repurchase of stock — — — — 22 (22) Common stock dividends ($0.4625 per share) — — (161) — — (161) Comprehensive income (loss) — — 56 7 — 63 Ending Balance, March 31 $ 449 $ 4,663 $ 9,386 $ (1,558) $ 4,683 $ 8,257 Three Months Ended March 31, 2023 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Held In Treasury, At Cost Total Balance, January 1 $ 449 $ 4,725 $ 9,855 $ (1,925) $ 4,607 $ 8,497 Issuance of stock for various plans, net — (26) — — (72) 46 Repurchase of stock — — — — 179 (179) Common stock dividends ($0.4625 per share) — — (161) — — (161) Comprehensive income (loss) — — 172 14 — 186 Ending Balance, March 31 $ 449 $ 4,699 $ 9,866 $ (1,911) $ 4,714 $ 8,389 |
OTHER COMPREHENSIVE INCOME (Not
OTHER COMPREHENSIVE INCOME (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Other Comprehensive Income [Note Text Block] | The following table presents changes in Accumulated Other Comprehensive Income (Loss) ("AOCI"), net of tax, for the three months ended March 31, 2024 and 2023: Three Months Ended In millions 2024 2023 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (1,276) $ (1,195) Amounts reclassified from accumulated other comprehensive income 17 23 Balance at end of period (1,259) (1,172) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (281) (722) Other comprehensive income (loss) before reclassifications (10) (9) Balance at end of period (291) (731) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period (8) (8) Balance at end of period (8) (8) Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (1,558) $ (1,911) The following table presents details of the reclassifications out of AOCI for the three months ended March 31, 2024 and 2023: In millions: Amount Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI Three Months Ended 2024 2023 Defined benefit pension and postretirement items: Prior-service costs $ (3) $ (6) (a) Non-operating pension expense (income) Actuarial gains (losses) (19) (24) (a) Non-operating pension expense (income) Total pre-tax amount (22) (30) Tax (expense) benefit 5 7 Net of tax (17) (23) Total reclassifications for the period $ (17) $ (23) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). |
EARNINGS PER SHARE ATTRIBUTABLE
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Note Text Block] | Basic earnings per share is computed by dividing earnings by the weighted average number of common shares outstanding. Diluted earnings per share is computed assuming that all potentially dilutive securities were converted into common shares. There are no adjustments required to be made to net income for purposes of computing basic and diluted earnings per share. A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing operations and diluted earnings (loss) per share from continuing operations is as follows: Three Months Ended In millions, except per share amounts 2024 2023 Earnings (loss) from continuing operations $ 56 $ 172 Weighted average common shares outstanding 346.7 349.3 Effect of dilutive securities Restricted performance share plan 1.8 4.0 Weighted average common shares outstanding – assuming dilution 348.5 353.3 Basic earnings (loss) per share from continuing operations $ 0.16 $ 0.49 Diluted earnings (loss) per share from continuing operations $ 0.16 $ 0.49 |
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities [Note Text Block] | NOTE 7 - RESTRUCTURING AND OTHER CHARGES, NET 2024: During the three months ended March 31, 2024, the Company recorded restructuring and other charges of $3 million for costs associated with the permanent closure of our containerboard mill in Orange, Texas and the permanent shutdown of pulp machines at our Riegelwood, North Carolina and Pensacola, Florida mills. 2023: There were no restructuring and other charges recorded during the three months ended March 31, 2023. |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Statement Information [Note Text Block] | Temporary Investments Temporary investments with an original maturity of three months or less and money market funds with greater than three month maturities but with the right to redeem without notices are treated as cash equivalents and stated at cost. Temporary investments totaled $724 million and $950 million at March 31, 2024 and December 31, 2023, respectively. Accounts and Notes Receivable In millions March 31, 2024 December 31, 2023 Accounts and notes receivable, net: Trade (less allowances of $31 in 2024 and $34 in 2023) $ 2,783 $ 2,841 Other 265 218 Total $ 3,048 $ 3,059 Inventories In millions March 31, 2024 December 31, 2023 Raw materials $ 213 $ 229 Finished pulp, paper and packaging 891 975 Operating supplies 616 622 Other 51 63 Total $ 1,771 $ 1,889 Plants, Properties and Equipment Accumulated depreciation was $19.7 billion and $19.6 billion at March 31, 2024 and December 31, 2023, respectively. Depreciation expense was $268 million and $232 million for the three months ended March 31, 2024 and 2023, respectively. Depreciation expense for the three months ended March 31, 2024 includes $5 million of accelerated depreciation related to mill strategic actions. Non-cash additions to plants, properties and equipment included within accounts payable were $61 million and $141 million at March 31, 2024 and December 31, 2023, respectively. Accounts Payable Under a supplier finance program, International Paper agrees to pay a bank the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices. International Paper or the bank may terminate the agreement upon at least 90 days’ notice. The supplier invoices that have been confirmed as valid under the program require payment in full on the due date with no terms exceeding 180 days. The accounts payable balance included $116 million and $122 million of supplier finance program liabilities as of March 31, 2024 and December 31, 2023, respectively. Interest Interest payments made during the three months ended March 31, 2024 and 2023 were $94 million and $114 million, respectively. Amounts related to interest were as follows: Three Months Ended In millions 2024 2023 Interest expense $ 109 $ 103 Interest income 63 41 Capitalized interest costs 2 5 Asset Retirement Obligations The Company recorded liabilities in Other Liabilities in the accompanying condensed consolidated balance sheet of $103 million related to asset retirement obligations at both March 31, 2024 and December 31, 2023. |
LEASES (Note)
LEASES (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lessee, Operating Leases | International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have a remaining lease term of up to 29 years. Total lease costs were $79 million and $75 million for the three months ended March 31, 2024 and 2023, respectively. Supplemental Balance Sheet Information Related to Leases In millions Classification March 31, 2024 December 31, 2023 Assets Operating lease assets Right-of-use assets $ 445 $ 448 Finance lease assets Plants, properties and equipment, net (a) 44 47 Total leased assets $ 489 $ 495 Liabilities Current Operating Other current liabilities $ 149 $ 153 Finance Notes payable and current maturities of long-term debt 11 11 Noncurrent Operating Long-term lease obligations 307 312 Finance Long-term debt 42 44 Total lease liabilities $ 509 $ 520 (a) Finance leases are recorded net of accumulated amortization of $68 million and $67 million as of March 31, 2024 and December 31, 2023, respectively. |
Lessee, Finance Leases | International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have a remaining lease term of up to 29 years. Total lease costs were $79 million and $75 million for the three months ended March 31, 2024 and 2023, respectively. Supplemental Balance Sheet Information Related to Leases In millions Classification March 31, 2024 December 31, 2023 Assets Operating lease assets Right-of-use assets $ 445 $ 448 Finance lease assets Plants, properties and equipment, net (a) 44 47 Total leased assets $ 489 $ 495 Liabilities Current Operating Other current liabilities $ 149 $ 153 Finance Notes payable and current maturities of long-term debt 11 11 Noncurrent Operating Long-term lease obligations 307 312 Finance Long-term debt 42 44 Total lease liabilities $ 509 $ 520 (a) Finance leases are recorded net of accumulated amortization of $68 million and $67 million as of March 31, 2024 and December 31, 2023, respectively. |
EQUITY METHOD INVESTMENTS (Note
EQUITY METHOD INVESTMENTS (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | The Company accounts for the following investment under the equity method of accounting. Ilim S.A. On September 18, 2023, pursuant to a previously announced agreement, the Company completed the sale of its 50% equity interest in Ilim S.A. ("Ilim"), which was a joint venture that operated a pulp and paper business in Russia and has subsidiaries including Ilim Group, to its joint venture partners for $484 million in cash. The Company also completed the sale of all of its Ilim Group shares (constituting a 2.39% stake) for $24 million, and divested other non-material residual interests associated with Ilim, to its joint venture partners. Following the completed sales, the Company no longer has an interest in Ilim or any of its subsidiaries. Additionally, we incurred transaction fees of $36 million in connection with the sale of our investment. The Company reclassified currency translation adjustments in AOCI of $517 million to the investment at the completion of the transaction. All historical results of the Ilim investment are presented as Discontinued Operations, net of taxes in the condensed consolidated statement of operations. The following summarizes the items comprising Equity Earnings, Impairment Charges, Tax Expense (Benefit), Discontinued Operations and Dividends related to the sale of our equity interest in Ilim: In millions Equity Earnings Impairment Charges Tax Expense (Benefit) Discontinued Operations, net of tax (a) Dividends 2023 First Quarter 43 43 — — — 2023 Second Quarter 46 33 — 13 13 2023 Third Quarter 23 59 (9) (27) — (a) Discontinued operations, net of tax is Equity Earnings less Impairment Charges and Tax Expense (Benefit) |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles [Note Text Block] | Goodwill The following table presents changes in goodwill balances as allocated to each business segment for the three months ended March 31, 2024: In millions Industrial Global Cellulose Fibers Total Balance as of January 1, 2024 Goodwill $ 3,413 $ 52 $ 3,465 Accumulated impairment losses (372) (52) (424) Total 3,041 — 3,041 Balance as of March 31,2024 Goodwill 3,413 52 3,465 Accumulated impairment losses (372) (52) (424) Total $ 3,041 $ — $ 3,041 Other Intangibles Identifiable intangible assets are recorded in Deferred Charges and Other Assets in the accompanying condensed consolidated balance sheet and comprised the following: March 31, 2024 December 31, 2023 In millions Gross Accumulated Net Intangible Assets Gross Accumulated Net Intangible Assets Customer relationships and lists $ 494 $ 342 $ 152 $ 494 $ 335 $ 159 Tradenames, patents and trademarks, and developed technology 170 156 14 170 154 16 Land and water rights 8 2 6 8 2 6 Other 21 19 2 21 19 2 Total $ 693 $ 519 $ 174 $ 693 $ 510 $ 183 The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended In millions 2024 2023 Amortization expense related to intangible assets $ 9 $ 9 |
INCOME TAXES (Note)
INCOME TAXES (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Note Text Block] | International Paper made income tax payments, net of refunds, of $5 million and $169 million for the three months ended March 31, 2024 and 2023, respectively. The Company currently estimates, that as a result of ongoing discussions, pending tax settlements and expirations of statutes of limitations, the amount of unrecognized tax benefits could be reduced by approximately $7 million during the next 12 months. The Organization for Economic Cooperation and Development has proposed a 15% global minimum tax applied on a country-by-country basis (the "Pillar Two rule"), and many countries, including countries in which we operate, have enacted or begun the process of enacting laws adopting the Pillar Two rule. The first component of the Pillar Two rule became effective as of January 1, 2024 and did not have a material impact on the Company’s effective tax rate. The second component is expected to go into effect in 2025. The Company plans to complete an internal legal entity restructuring in the second quarter, which we currently estimate will result in a tax benefit of approximately $350 million. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Note Text Block] | 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. Brazil Goodwill Tax Matter: The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by Sylvamo do Brasil Ltda. ("Sylvamo Brazil"), which was a wholly-owned subsidiary of the Company, until the October 1, 2021 spin-off of the Printing Papers business, after which it became a subsidiary of Sylvamo Corporation ("Sylvamo"). Sylvamo Brazil received assessments for the tax years 2007-2015 totaling approximately $119 million (adjusted for variation in currency exchange rates) in tax, plus interest, penalties and fees. The interest, penalties and fees currently total approximately $278 million (adjusted for variation in currency exchange rates), which reflects a recent law change pursuant to which the Brazil tax authority on January 16, 2024 agreed to cancel a portion of the interest, penalties and fees. Accordingly, the assessments currently total approximately $397 million (adjusted for variation in currency exchange rates). After an initial favorable ruling challenging the basis for these assessments, Sylvamo Brazil received subsequent unfavorable decisions from the Brazilian Administrative Council of Tax Appeals. Sylvamo Brazil has appealed these decisions and intends to appeal any future unfavorable administrative judgments to the Brazilian federal courts; however, this tax litigation matter may take many years to resolve. Sylvamo Brazil and International Paper believe the transaction underlying these assessments was appropriately evaluated, and that Sylvamo Brazil's tax position should be sustained, based on Brazilian tax law. This matter pertains to a business that was conveyed to Sylvamo as of October 1, 2021, as part of our spin-off transaction. Pursuant to the terms of the tax matters agreement entered into between the Company and Sylvamo, the Company will pay 60% and Sylvamo will pay 40%, on up to $300 million of any assessment related to this matter, and the Company will pay all amounts of the assessment over $300 million. Under the terms of the agreement, decisions concerning the conduct of the litigation related to this matter, including strategy, settlement, pursuit and abandonment, will be made by the Company. Sylvamo thus has no control over any decision related to this ongoing litigation. The Company intends to vigorously defend this historic tax position against the current assessments and any similar assessments that may be issued for tax years subsequent to 2015. The Brazilian government may enact a tax amnesty program that would allow Sylvamo Brazil to resolve this dispute for less than the assessed amount. As of October 1, 2021, in connection with the recording of the distribution of assets and liabilities resulting from the spin-off transaction, the Company established a liability representing the initial fair value of the contingent liability under the tax matters agreement. The contingent liability was determined in accordance with ASC 460 "Guarantees" based on the probability weighting of various possible outcomes. The initial fair value estimate and recorded liability as of December 31, 2021 was $48 million and remains this amount at March 31, 2024. This liability will not be increased in subsequent periods unless facts and circumstances change such that an amount greater than the initial recognized liability becomes probable and estimable. Environmental The Company has been named as a potentially responsible party ("PRP") in environmental remediation actions under various federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"). Many of these proceedings involve the cleanup of hazardous substances at large commercial landfills that received waste from many different sources. While joint and several liability is authorized under CERCLA and equivalent state laws, as a practical matter, liability for CERCLA cleanups is typically allocated among the many PRPs. There are other remediation costs typically associated with the cleanup of hazardous substances at the Company’s current, closed and 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 $249 million and $251 million in the aggregate as of March 31, 2024 and December 31, 2023, respectively. Other than as described below, completion of required environmental remedial actions ("RAs") is not expected to have a material effect on our consolidated financial statements. Cass Lake: One of the matters included above arises out of a closed wood-treatment facility located in Cass Lake, Minnesota. In June 2011, the U.S. Environmental Protection Agency ("EPA") selected and published a proposed soil remedy at the site with an estimated cost of $46 million. In April 2020, the EPA issued a final plan concerning clean-up standards at a portion of the site, the estimated cost of which is included within the soil remedy referenced above. The total reserve for the Cass Lake superfund site was $45 million and $46 million as of March 31, 2024 and December 31, 2023, respectively. 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 primarily as a result of discharges from various paper mills located along the Kalamazoo River, including a paper mill formerly owned by St. Regis Paper Company ("St. Regis"). The Company is a successor in interest to St. Regis. • Operable Unit 5, Area 1: In March 2016, the Company and other PRPs received a special notice letter from the EPA (i) inviting participation in implementing a remedy for a portion of the site known as Operable Unit 5, Area 1, and (ii) demanding reimbursement of EPA past costs totaling $37 million, including $19 million in past costs previously demanded by the EPA. The Company responded to the special notice letter. In December 2016, the EPA issued a unilateral administrative order to the Company and other PRPs to perform the remedy. The Company responded to the unilateral administrative order, agreeing to comply with the order subject to its sufficient cause defenses. • Operable Unit 1: In October 2016, the Company and another PRP received a special notice letter from the EPA inviting participation in the remedial design ("RD") component of the landfill remedy for the Allied Paper Mill, which is also known as Operable Unit 1. A Record of Decision ("ROD") establishing the final landfill remedy for the Allied Paper Mill was issued by the EPA in September 2016. The Company responded to the Allied Paper Mill special notice letter in December 2016. In February 2017, the EPA informed the Company that it would make other arrangements for the performance of the RD. In the summer 2021, the EPA initiated RA activities. In October 2022, the Company received a unilateral administrative order to perform the RA. As a result, the Company increased its reserve by $27 million in the fourth quarter of 2022. The total reserve for the Kalamazoo River superfund site was $22 million and $27 million as of March 31, 2024 and December 31, 2023, respectively. In addition, in December 2020, the Federal District Court approved a Consent Decree among the United States, NCR Corporation (one of the parties to the allocation/apportionment litigation described below), the State of Michigan and natural resource trustees. Under the Consent Decree NCR agreed to make payments of more than $100 million and perform work in Operable Unit 5, Areas 2, 3, and 4 at an estimated cost of $136 million. The Company’s CERCLA liability has not been finally determined with respect to these or any other portions of the site, and except as noted above, the Company has declined to perform any work or reimburse the EPA at this time. As noted below, the Company is involved in allocation/apportionment litigation with regard to the site. Accordingly, it is premature to predict the outcome or estimate our maximum reasonably possible loss or range of loss with respect to this site. We have recorded a liability for future remediation costs at the site that are probable and presently 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 (collectively, "GP") in a contribution and cost recovery action for alleged pollution at the site related to the Company's potential CERCLA liability. NCR Corporation and Weyerhaeuser Company were 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 Federal District 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 District 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. In April 2022, the Sixth Circuit Court of Appeals (the "Sixth Circuit") reversed the Judgment of the Court, finding that the suit against the Company was time-barred by the applicable statute of limitations. In May 2022, GP filed a petition for rehearing with the Sixth Circuit, which was denied in July 2022. In November 2022, GP filed a petition for writ of certiorari with the U.S. Supreme Court. In October 2023, the U.S. Supreme Court denied GP's writ petition, thus rendering final the Sixth Circuit's decision that GP's suit against the Company was time-barred. In January 2024 GP requested that the District Court’s final order declare that each party is jointly and severally liable for future costs, arguing that the Sixth Circuit decision only applies to past costs. On April 9, 2024, the District Court entered Final Judgment After Remand, declaring, consistent with the Sixth Circuit's decision, that GP’s past costs are time-barred by the applicable statute of limitations. The District Court also entered Final Judgment on Remand that all three parties, including the Company, are jointly and severally liable for future response costs at the site. The Company believes the District Court’s Final Judgment on Remand regarding liability for future costs is in error and is appealing the Final Judgment on Remand on future costs liability to the Sixth Circuit. Harris County: International Paper and McGinnis Industrial Maintenance Corporation ("MIMC"), a subsidiary of Waste Management, Inc. ("WMI"), are PRPs at the San Jacinto River Waste Pits Superfund Site in Harris County, Texas. The PRPs have been actively participating in the activities at the site and share the costs of these activities. In October 2017, the EPA issued a ROD selecting the final remedy for the site: removal and relocation of the waste material from both the northern and southern impoundments. The EPA did not specify the methods or practices needed to perform this work. The EPA’s selected remedy was accompanied by a cost estimate of approximately $115 million ($105 million for the northern impoundment, and $10 million for the southern impoundment). Subsequent to the issuance of the ROD, there have been numerous meetings between the EPA and the PRPs, and the Company continues to work with the EPA and MIMC/WMI to develop the RD. 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 RD for the northern impoundment. That RD work is ongoing. The AOC does not include any agreement to perform waste removal or other construction activity at the site. Rather, it involves adaptive management techniques and a pre-design investigation, the objectives of which include filling data gaps (including but not limited to post-Hurricane Harvey technical data generated prior to the ROD and not incorporated into the selected remedy), refining areas and volumes of materials to be addressed, determining if an excavation remedy is able to be implemented in a manner protective of human health and the environment, and investigating potential impacts of remediation activities to infrastructure in the vicinity. During the first quarter of 2020, through a series of meetings among the Company, MIMC/WMI, our consultants, the EPA and the Texas Commission on Environmental Quality, progress was made to resolve key technical issues previously preventing the Company from determining the manner in which the selected remedy for the northern impoundment would be feasibly implemented. As a result of these developments, the Company reserved the following amounts in relation to remediation at this site: (a) $10 million for the southern impoundment; and (b) $55 million for the northern impoundment, which represents the Company's 50% share of our estimate of the low end of the range of probable remediation costs. We submitted the Final Design Package for the southern impoundment to the EPA, and the EPA approved this plan in May 2021. The EPA issued a Unilateral Administrative Order for RA of the southern impoundment in August 2021. An addendum to the Final 100% RD (Amended April 2021) was submitted to the EPA for the southern impoundment in June 2022. This addendum incorporated additional data collected to date which indicated that additional waste material removal will be required, lengthening the time to complete RA. With respect to the northern impoundment, the PRPs submitted the final component of the 90% to the EPA in November 2022. Upon submittal of the final component, an updated engineering estimate was developed, and the Company increased the reserved amount by approximately $21 million, which represents the Company's 50% share of our estimate of the low end of the range of probable remediation costs. On January 5, 2024, the PRPs received comments from the EPA on the November 2022 90% RD submittal. The PRPs responded to the EPA comments in late January 2024. While several key technical issues have been resolved, respondents still face significant challenges remediating this area in a cost-efficient manner that will not result in a release of contaminated materials to the environment during the excavation, removal and transport of the materials. Our discussions with the EPA on the best approach to remediation will continue. Because of ongoing questions regarding cost effectiveness, timing and gathering other technical data, additional losses in excess of our recorded liability are possible; however, we are unable to estimate any loss or range of loss in excess of such liability. The total reserve for the southern and northern impoundment was $78 million and $83 million as of March 31, 2024 and December 31, 2023, respectively. Versailles Pond: The Company is a responsible party for the investigation and remediation of Versailles Pond, a 57-acre dammed river impoundment that historically received paperboard mill wastewater in Sprague, Connecticut. A comprehensive investigation has determined that Versailles Pond is contaminated with polychlorinated biphenyls, mercury, and metals. A preliminary remediation plan was prepared in the third quarter of 2023. Negotiations with state and federal governmental officials are ongoing regarding the scope and timing of the remediation. The total reserve for Versailles Pond was $30 million as of both March 31, 2024 and December 31, 2023. Asbestos-Related Matters We have been named as a defendant in various asbestos-related personal injury litigation, in both state and federal court, primarily in relation to the prior operations of certain companies previously acquired by the Company. The Company's total recorded liability with respect to pending and future asbestos-related claims was $110 million and $97 million as of March 31, 2024 and December 31, 2023, respectively, both net of estimated insurance recoveries. While it is reasonably possible that the Company may incur losses in excess of its recorded liability with respect to asbestos-related matters, we are unable to estimate any loss or range of loss in excess of such liability, and do not believe additional material losses are probable. Antitrust In March 2017, the Italian Competition Authority ("ICA") commenced an investigation into the Italian packaging industry to determine whether producers of corrugated sheets and boxes violated the applicable European competition law. In April 2019, the ICA concluded its investigation and issued initial findings alleging that over 30 producers, including our Italian packaging subsidiary ("IP Italy"), improperly coordinated the production and sale of corrugated sheets and boxes. In August 2019, the ICA issued its decision and assessed IP Italy a fine of €29 million (approximately $31 million at the then-current exchange rates) which was recorded in the third quarter of 2019. We appealed the ICA decision and our appeal was denied in May 2021. We further appealed the decision to the Italian Council of State ("Council of State"), and in March 2023 the Council of State largely upheld the ICA’s findings, but referred the calculation of IP Italy’s fine back to the ICA, finding that it was disproportionately high based on the conduct found. We further appealed the Council of State decision to uphold the ICA’s findings, and in March 2024, the Council published its decision holding that its earlier decision should be interpreted as accepting many of IP Italy’s earlier arguments and that the ICA should reduce IP Italy’s fine accordingly. Notwithstanding these decisions by the Council of State, in March 2024 the ICA served IP Italy with its redetermination decision leaving IP Italy’s fine unchanged. IP Italy does not believe the ICA's redetermination decision is consistent with the Council of State's March 2024 decision or its March 2023 referral back to the ICA, and intends to further appeal the amount of its fine. The Company and other producers also have been named in lawsuits, and we have received other claims, by a number of customers in Italy for damages associated with the alleged anticompetitive conduct. We do not believe material losses arising from such private lawsuits and claims are probable. General |
VARIABLE INTEREST ENTITIES (Not
VARIABLE INTEREST ENTITIES (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosure | Variable Interest Entities As of March 31, 2024, the fair value of the Timber Notes and Extension Loans for the 2007 Financing Entities was $2.4 billion and $2.1 billion, respectively. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 1 in the Company’s Annual Report. The Timber Notes of $2.3 billion and the Extension Loans of $2.1 billion both mature in 2027 and are shown in Long-term nonrecourse financial assets of variable interest entities and Long-term nonrecourse financial liabilities of variable interest entities, respectively, on the accompanying condensed consolidated balance sheet. Activity between the Company and the 2007 Financing Entities was as follows: Three Months Ended In millions 2024 2023 Revenue (a) $ 39 $ 33 Expense (b) 35 31 Cash receipts (c) 34 27 Cash payments (d) 34 27 (a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million for both the three months ended March 31, 2024 and 2023, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities. (b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million for both the three months ended March 31, 2024 and 2023, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities. (c) The cash receipts are interest received on the Financial assets of special purpose entities. (d) The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
DEBT (Note)
DEBT (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt [Note Text Block] | The borrowing capacity of the Company's commercial paper program is $1.0 billion supported by its $1.4 billion credit agreement. Under the terms of the program, individual maturities on borrowings may vary, but not exceed one year from the date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. As of March 31, 2024, the Company had no borrowings outstanding under the program. At March 31, 2024, International Paper’s credit facilities totaled $1.9 billion. The credit facilities generally provide for interest rates at a floating rate index plus a pre-determined margin dependent upon International Paper’s credit rating. The credit facilities previously included a $1.5 billion contractually committed bank facility with a maturity date of June 2026. In June 2023, the Company amended and restated its credit agreement to, among other things, (i) reduce the size of the contractually committed bank facility from $1.5 billion to $1.4 billion, (ii) extend the maturity date from June 2026 to June 2028, and (iii) replace the LIBOR-based rate with a SOFR-based rate. The liquidity facilities also included up to $500 million of uncommitted financings based on eligible receivables balances under a receivables securitization program that expires in June 2025. At March 31, 2024, the Company had no borrowings outstanding under the receivables securitization program. During the first quarter of 2024, the Company had debt reductions of $3 million related to decreases in the amount of capital leases. The Company’s financial covenants require the maintenance of a minimum net worth, as defined in our debt agreements, of $9 billion and a total debt-to-capital ratio of less than 60%. Net worth is defined as the sum of common stock, paid-in capital and retained earnings, less treasury stock plus any cumulative goodwill impairment charges. The calculation also excludes accumulated other comprehensive income/loss and both the current and long-term Nonrecourse Financial Liabilities of Variable Interest Entities. The total debt-to-capital ratio is defined as total debt divided by the sum of total debt plus net worth. As of March 31, 2024, we were in compliance with our debt covenants. At March 31, 2024, the fair value of International Paper’s $5.6 billion of debt was approximately $5.3 billion. The fair value of the Company’s long-term debt is estimated based on the quoted market prices for the same or similar issues. International Paper’s long-term debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 1 in the Company’s Annual Report. |
RETIREMENT PLANS (Note)
RETIREMENT PLANS (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Retirement Plans [Note Text Block] | International Paper sponsors and maintains the Retirement Plan of International Paper Company (the "Pension Plan"), a tax-qualified defined benefit pension plan that provides retirement benefits to substantially all hourly and union employees who work at a participating business unit. The Pension Plan was frozen as of January 1, 2019 for salaried participants. 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). Net periodic pension expense (income) for our qualified and nonqualified U.S. defined benefit plans comprised the following: Three Months Ended In millions 2024 2023 Service cost $ 13 $ 12 Interest cost 111 116 Expected return on plan assets (148) (132) Actuarial loss 19 24 Amortization of prior service cost 3 6 Net periodic pension expense (income) $ (2) $ 26 The components of net periodic pension expense (income) other than the Service cost component are included in Non-operating pension expense (income) in the condensed consolidated statement of operations. The Company’s funding policy for our pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that the Company may determine to be appropriate considering the funded status of the plan, tax deductibility, the cash flows generated by the Company, and other factors. The Company made no voluntary cash contributions to the qualified pension plan in the first three months of 2024 or 2023. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $5 million for the three months ended March 31, 2024. |
STOCK-BASED COMPENSATION (Note)
STOCK-BASED COMPENSATION (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement | The Company's 2009 Amended and Restated Incentive Compensation Plan ("ICP") is administered by the Management Development and Compensation Committee of the Board of Directors (the "Committee"). 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 Committee. As of March 31, 2024, 3.8 million shares were available for grant under the ICP. Stock-based compensation expense and related income tax benefits were as follows: Three Months Ended In millions 2024 2023 Total stock-based compensation expense (selling and administrative) $ 9 $ 34 Income tax benefits related to stock-based compensation 13 11 At March 31, 2024, $108 million, net of estimated forfeitures, of compensation cost related to time-based and performance-based shares and restricted stock attributable to future service had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 1.8 years. Long-Term Incentive Plan During the first three months of 2024, the Company granted 1.4 million performance units at an average grant date fair value of $37.83 and 1.4 million time-based units at an average grant date fair value of $36.15. |
INDUSTRY SEGMENT INFORMATION (N
INDUSTRY SEGMENT INFORMATION (Note) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | International Paper’s business segments, Industrial Packaging and Global Cellulose Fibers, are consistent with the internal structure used to manage these businesses. Both 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 (losses) 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 (losses) are defined as earnings (loss) from continuing operations before income taxes and equity earnings, but including the impact of less than wholly owned subsidiaries, and excluding interest expense, net, corporate expenses, net, corporate net special items, business net special items and non-operating pension expense. Net sales by business segment for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended In millions 2024 2023 Industrial Packaging $ 3,808 $ 4,083 Global Cellulose Fibers 704 811 Corporate and Intersegment Sales 107 126 Net Sales $ 4,619 $ 5,020 Operating profit (loss) by business segment for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended In millions 2024 2023 Industrial Packaging $ 216 $ 322 Global Cellulose Fibers (47) (16) Business Segment Operating Profit (Loss) $ 169 $ 306 Earnings (loss) from continuing operations before income taxes and equity earnings $ 85 $ 221 Interest expense, net 46 62 Adjustment for less than wholly owned subsidiaries (2) — Corporate expenses, net 24 8 Corporate net special items 20 — Business net special items 8 — Non-operating pension expense (income) (12) 15 Business Segment Operating Profit (Loss) $ 169 $ 306 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | On April 16, 2024, the Company issued an announcement, pursuant to Rule 2.7 of the United Kingdom City Code on Takeovers and Mergers, disclosing the terms of a recommended offer by the Company to acquire the entire issued and to be issued share capital of DS Smith Plc, a public limited company incorporated in England and Wales (“DS Smith”), in an all-stock transaction (the “Business Combination”). Under the terms of the Business Combination, each DS Smith share will be valued at 415 pence per share based on the Company’s closing share price of $40.85 and GBP/USD exchange rate of 1.2645 on March 25, 2024, being the close of business on the last day prior to the announcement by DS Smith of a previously disclosed possible offer by the Company. This will result in IP issuing 0.1285 shares for each DS Smith share, resulting in pro forma ownership of 66.3% for IP shareholders and 33.7% for DS Smith shareholders, with an implied enterprise value of approximately $9.9 billion. Costs related to the transaction were $5 million for the three months ended March 31, 2024. In connection with the Business Combination, the Company also intends to seek a secondary listing of International Paper common stock on the London Stock Exchange. Following completion of the Business Combination, Memphis, Tennessee will be the headquarters of the combined company, with plans to establish a Europe, Middle East and Africa (EMEA) headquarters at DS Smith’s existing London headquarters. Upon the closing of the Business Combination, it is intended that the Company’s board of directors will form the board of directors of the combined company, and that up to two directors of DS Smith will be invited to join the board of directors of the combined company. Mr. Andrew K. Silvernail will be the Chief Executive Officer of the combined company. The transaction is expected to close during the fourth quarter of 2024, subject to the approval of IP shareholders and DS Smith shareholders, as well as customary closing conditions, including regulatory clearances in Europe and the U.S. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, 2024 In millions Industrial Packaging Global Cellulose Fibers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 3,239 $ 650 $ 107 $ 3,996 Europe, Middle East & Africa ("EMEA") 348 20 — 368 Pacific Rim and Asia 14 34 — 48 Americas, other than U.S. 207 — — 207 Total $ 3,808 $ 704 $ 107 $ 4,619 Operating Segments North American Industrial Packaging $ 3,486 $ — $ — $ 3,486 EMEA Industrial Packaging 348 — — 348 Global Cellulose Fibers — 704 — 704 Intrasegment Eliminations (26) — — (26) Corporate & Intersegment Sales — — 107 107 Total $ 3,808 $ 704 $ 107 $ 4,619 (a) Net sales are attributed to countries based on the location of the seller. Three Months Ended March 31, 2023 In millions Industrial Packaging Global Cellulose Fibers Corporate & Intersegment Total Primary Geographical Markets (a) United States $ 3,455 $ 730 $ 126 $ 4,311 EMEA 391 25 — 416 Pacific Rim and Asia 8 56 — 64 Americas, other than U.S. 229 — — 229 Total $ 4,083 $ 811 $ 126 $ 5,020 Operating Segments North American Industrial Packaging $ 3,724 $ — $ — $ 3,724 EMEA Industrial Packaging 391 — — 391 Global Cellulose Fibers — 811 — 811 Intrasegment Eliminations (32) — — (32) Corporate & Intersegment Sales — — 126 126 Total $ 4,083 $ 811 $ 126 $ 5,020 (a) Net sales are attributed to countries based on the location of the seller. |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity [Table Text Block] | A summary of the changes in equity for the three months ended March 31, 2024 and 2023 is provided below: Three Months Ended March 31, 2024 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Held In Treasury, At Cost Total Balance, January 1 $ 449 $ 4,730 $ 9,491 $ (1,565) $ 4,750 $ 8,355 Issuance of stock for various plans, net — (67) — — (89) 22 Repurchase of stock — — — — 22 (22) Common stock dividends ($0.4625 per share) — — (161) — — (161) Comprehensive income (loss) — — 56 7 — 63 Ending Balance, March 31 $ 449 $ 4,663 $ 9,386 $ (1,558) $ 4,683 $ 8,257 Three Months Ended March 31, 2023 In millions, except per share amounts Common Stock Issued Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Held In Treasury, At Cost Total Balance, January 1 $ 449 $ 4,725 $ 9,855 $ (1,925) $ 4,607 $ 8,497 Issuance of stock for various plans, net — (26) — — (72) 46 Repurchase of stock — — — — 179 (179) Common stock dividends ($0.4625 per share) — — (161) — — (161) Comprehensive income (loss) — — 172 14 — 186 Ending Balance, March 31 $ 449 $ 4,699 $ 9,866 $ (1,911) $ 4,714 $ 8,389 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | N OTE 5 - OTHER COMPREHENSIVE INCOME The following table presents changes in Accumulated Other Comprehensive Income (Loss) ("AOCI"), net of tax, for the three months ended March 31, 2024 and 2023: Three Months Ended In millions 2024 2023 Defined Benefit Pension and Postretirement Adjustments Balance at beginning of period $ (1,276) $ (1,195) Amounts reclassified from accumulated other comprehensive income 17 23 Balance at end of period (1,259) (1,172) Change in Cumulative Foreign Currency Translation Adjustments Balance at beginning of period (281) (722) Other comprehensive income (loss) before reclassifications (10) (9) Balance at end of period (291) (731) Net Gains and Losses on Cash Flow Hedging Derivatives Balance at beginning of period (8) (8) Balance at end of period (8) (8) Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (1,558) $ (1,911) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents details of the reclassifications out of AOCI for the three months ended March 31, 2024 and 2023: In millions: Amount Reclassified from Accumulated Other Comprehensive Income Location of Amount Reclassified from AOCI Three Months Ended 2024 2023 Defined benefit pension and postretirement items: Prior-service costs $ (3) $ (6) (a) Non-operating pension expense (income) Actuarial gains (losses) (19) (24) (a) Non-operating pension expense (income) Total pre-tax amount (22) (30) Tax (expense) benefit 5 7 Net of tax (17) (23) Total reclassifications for the period $ (17) $ (23) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). |
EARNINGS PER SHARE ATTRIBUTAB_2
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing operations and diluted earnings (loss) per share from continuing operations is as follows: Three Months Ended In millions, except per share amounts 2024 2023 Earnings (loss) from continuing operations $ 56 $ 172 Weighted average common shares outstanding 346.7 349.3 Effect of dilutive securities Restricted performance share plan 1.8 4.0 Weighted average common shares outstanding – assuming dilution 348.5 353.3 Basic earnings (loss) per share from continuing operations $ 0.16 $ 0.49 Diluted earnings (loss) per share from continuing operations $ 0.16 $ 0.49 |
SUPPLEMENTAL FINANCIAL STATEM_2
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts and Notes Receivable In millions March 31, 2024 December 31, 2023 Accounts and notes receivable, net: Trade (less allowances of $31 in 2024 and $34 in 2023) $ 2,783 $ 2,841 Other 265 218 Total $ 3,048 $ 3,059 |
Inventories [Table Text Block] | Inventories In millions March 31, 2024 December 31, 2023 Raw materials $ 213 $ 229 Finished pulp, paper and packaging 891 975 Operating supplies 616 622 Other 51 63 Total $ 1,771 $ 1,889 |
Interest Income and Interest Expense Disclosure [Table Text Block] | Amounts related to interest were as follows: Three Months Ended In millions 2024 2023 Interest expense $ 109 $ 103 Interest income 63 41 Capitalized interest costs 2 5 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases [Table Text Block] | Supplemental Balance Sheet Information Related to Leases In millions Classification March 31, 2024 December 31, 2023 Assets Operating lease assets Right-of-use assets $ 445 $ 448 Finance lease assets Plants, properties and equipment, net (a) 44 47 Total leased assets $ 489 $ 495 Liabilities Current Operating Other current liabilities $ 149 $ 153 Finance Notes payable and current maturities of long-term debt 11 11 Noncurrent Operating Long-term lease obligations 307 312 Finance Long-term debt 42 44 Total lease liabilities $ 509 $ 520 (a) Finance leases are recorded net of accumulated amortization of $68 million and $67 million as of March 31, 2024 and December 31, 2023, respectively. |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | The following summarizes the items comprising Equity Earnings, Impairment Charges, Tax Expense (Benefit), Discontinued Operations and Dividends related to the sale of our equity interest in Ilim: In millions Equity Earnings Impairment Charges Tax Expense (Benefit) Discontinued Operations, net of tax (a) Dividends 2023 First Quarter 43 43 — — — 2023 Second Quarter 46 33 — 13 13 2023 Third Quarter 23 59 (9) (27) — (a) Discontinued operations, net of tax is Equity Earnings less Impairment Charges and Tax Expense (Benefit) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill Balances [Table Text Block] | The following table presents changes in goodwill balances as allocated to each business segment for the three months ended March 31, 2024: In millions Industrial Global Cellulose Fibers Total Balance as of January 1, 2024 Goodwill $ 3,413 $ 52 $ 3,465 Accumulated impairment losses (372) (52) (424) Total 3,041 — 3,041 Balance as of March 31,2024 Goodwill 3,413 52 3,465 Accumulated impairment losses (372) (52) (424) Total $ 3,041 $ — $ 3,041 |
Finite and Indefinite-Lived Intangible Assets [Table Text Block] | Identifiable intangible assets are recorded in Deferred Charges and Other Assets in the accompanying condensed consolidated balance sheet and comprised the following: March 31, 2024 December 31, 2023 In millions Gross Accumulated Net Intangible Assets Gross Accumulated Net Intangible Assets Customer relationships and lists $ 494 $ 342 $ 152 $ 494 $ 335 $ 159 Tradenames, patents and trademarks, and developed technology 170 156 14 170 154 16 Land and water rights 8 2 6 8 2 6 Other 21 19 2 21 19 2 Total $ 693 $ 519 $ 174 $ 693 $ 510 $ 183 |
Amortization Expense of Intangible Assets [Table Text Block] | The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended In millions 2024 2023 Amortization expense related to intangible assets $ 9 $ 9 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entities [Abstract] | |
Activity Between Company And Entities [Table Text Block] | Activity between the Company and the 2007 Financing Entities was as follows: Three Months Ended In millions 2024 2023 Revenue (a) $ 39 $ 33 Expense (b) 35 31 Cash receipts (c) 34 27 Cash payments (d) 34 27 (a) The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million for both the three months ended March 31, 2024 and 2023, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities. (b) The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million for both the three months ended March 31, 2024 and 2023, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities. (c) The cash receipts are interest received on the Financial assets of special purpose entities. (d) |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans [Table Text Block] | Net periodic pension expense (income) for our qualified and nonqualified U.S. defined benefit plans comprised the following: Three Months Ended In millions 2024 2023 Service cost $ 13 $ 12 Interest cost 111 116 Expected return on plan assets (148) (132) Actuarial loss 19 24 Amortization of prior service cost 3 6 Net periodic pension expense (income) $ (2) $ 26 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits [Table Text Block] | tock-based compensation expense and related income tax benefits were as follows: Three Months Ended In millions 2024 2023 Total stock-based compensation expense (selling and administrative) $ 9 $ 34 Income tax benefits related to stock-based compensation 13 11 |
INDUSTRY SEGMENT INFORMATION (T
INDUSTRY SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment [Table Text Block] | Net sales by business segment for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended In millions 2024 2023 Industrial Packaging $ 3,808 $ 4,083 Global Cellulose Fibers 704 811 Corporate and Intersegment Sales 107 126 Net Sales $ 4,619 $ 5,020 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating profit (loss) by business segment for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended In millions 2024 2023 Industrial Packaging $ 216 $ 322 Global Cellulose Fibers (47) (16) Business Segment Operating Profit (Loss) $ 169 $ 306 Earnings (loss) from continuing operations before income taxes and equity earnings $ 85 $ 221 Interest expense, net 46 62 Adjustment for less than wholly owned subsidiaries (2) — Corporate expenses, net 24 8 Corporate net special items 20 — Business net special items 8 — Non-operating pension expense (income) (12) 15 Business Segment Operating Profit (Loss) $ 169 $ 306 |
REVENUE RECOGNITION Disaggregat
REVENUE RECOGNITION Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | $ 4,619 | $ 5,020 |
Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (26) | (32) | |
North American Industrial Packaging | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,486 | 3,724 | |
EMEA Industrial Packaging | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 348 | 391 | |
Global Cellulose Fibers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 704 | 811 | |
Corporate and Other [Member] | Consolidation, Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 107 | 126 | |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,996 | 4,311 | |
United States | Consolidation, Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 107 | 126 | |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 368 | 416 | |
EMEA | Consolidation, Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | |
Pacific Rim and Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 48 | 64 | |
Pacific Rim and Asia | Consolidation, Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | |
Americas, other than U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 207 | 229 | |
Americas, other than U.S. | Consolidation, Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | |
Industrial Packaging | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,808 | 4,083 | |
Industrial Packaging | Geography Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,808 | 4,083 | |
Industrial Packaging | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,808 | 4,083 | |
Industrial Packaging | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (26) | (32) | |
Industrial Packaging | North American Industrial Packaging | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,486 | 3,724 | |
Industrial Packaging | EMEA Industrial Packaging | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 348 | 391 | |
Industrial Packaging | United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,239 | 3,455 | |
Industrial Packaging | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 348 | 391 | |
Industrial Packaging | Pacific Rim and Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 14 | 8 | |
Industrial Packaging | Americas, other than U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 207 | 229 | |
Global Cellulose Fibers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 704 | 811 | |
Global Cellulose Fibers | Geography Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 704 | 811 | |
Global Cellulose Fibers | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 704 | 811 | |
Global Cellulose Fibers | Global Cellulose Fibers | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 704 | 811 | |
Global Cellulose Fibers | United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 650 | 730 | |
Global Cellulose Fibers | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 20 | 25 | |
Global Cellulose Fibers | Pacific Rim and Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 34 | 56 | |
Global Cellulose Fibers | Americas, other than U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | |
Corporate and Other [Member] | Consolidation, Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 107 | $ 126 | |
[1]Net sales are attributed to countries based on the location of the seller. |
REVENUE RECOGNITION Contract As
REVENUE RECOGNITION Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Apr. 01, 2021 |
Revenue from Contract with Customer [Abstract] | |||
Contract with Customer, Liability, Current | $ 28 | $ 32 | |
Contract with Customer, Liability | $ 90 | $ 92 | $ 115 |
EQUITY (Details)
EQUITY (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Beginning Balance | $ 8,355,000,000 | $ 8,497,000,000 | ||
Issuance of stock for various plans, net | 22,000,000 | 46,000,000 | ||
Repurchase of stock | (22,000,000) | (179,000,000) | ||
Common stock dividends | (161,000,000) | (161,000,000) | ||
Comprehensive Income (Loss) | 63,000,000 | 186,000,000 | ||
Ending Balance | $ 8,257,000,000 | $ 8,389,000,000 | ||
Common Stock, Dividends, Per Share, Declared | $ 0.4625 | $ 0.4625 | ||
Common Stock Issued | ||||
Stockholders' Equity Attributable to Parent | $ 449,000,000 | $ 449,000,000 | $ 449,000,000 | $ 449,000,000 |
Paid-in Capital | ||||
Stockholders' Equity Attributable to Parent | 4,663,000,000 | 4,699,000,000 | 4,730,000,000 | 4,725,000,000 |
Issuance of stock for various plans, net | (67,000,000) | (26,000,000) | ||
Retained Earnings | ||||
Stockholders' Equity Attributable to Parent | 9,386,000,000 | 9,866,000,000 | 9,491,000,000 | 9,855,000,000 |
Common stock dividends | (161,000,000) | (161,000,000) | ||
Comprehensive income (loss) | 56,000,000 | 172,000,000 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Stockholders' Equity Attributable to Parent | (1,558,000,000) | (1,911,000,000) | (1,565,000,000) | (1,925,000,000) |
Comprehensive income (loss) | 7,000,000 | 14,000,000 | ||
Common Stock Held In Treasury, At Cost | ||||
Stockholders' Equity Attributable to Parent | 4,683,000,000 | 4,714,000,000 | $ 4,750,000,000 | $ 4,607,000,000 |
Issuance of stock for various plans, net | (89,000,000) | (72,000,000) | ||
Repurchase of stock | $ 22,000,000 | $ 179,000,000 |
EQUITY Phantom (Details)
EQUITY Phantom (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Common Stock, Dividends, Per Share, Declared | $ 0.4625 | $ 0.4625 |
OTHER COMPREHENSIVE INCOME Sche
OTHER COMPREHENSIVE INCOME Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | $ (1,565) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (17) | $ (23) |
Balance at end of period | (1,558) | (1,911) |
Defined Benefit Pension and Postretirement Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (1,276) | (1,195) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 17 | 23 |
Balance at end of period | (1,259) | (1,172) |
Change in Cumulative Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (281) | (722) |
Other comprehensive income (loss) before reclassifications | (10) | (9) |
Balance at end of period | (291) | (731) |
Net Gains and Losses on Cash Flow Hedging Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (8) | (8) |
Balance at end of period | $ (8) | $ (8) |
OTHER COMPREHENSIVE INCOME Sc_2
OTHER COMPREHENSIVE INCOME Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (17) | $ (23) | |
Prior-service costs | Net periodic defined benefits expense (reversal of expense), excluding service cost component | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from accumulated other comprehensive income, current period, before tax | [1] | (3) | (6) |
Actuarial gains (losses) | Net periodic defined benefits expense (reversal of expense), excluding service cost component | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from accumulated other comprehensive income, current period, before tax | [1] | (19) | (24) |
Accumulated defined benefit plans adjustment including portion attributable to noncontrolling interest | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from accumulated other comprehensive income, current period, before tax | (22) | (30) | |
Reclassification from AOCI, Current Period, Tax | 5 | 7 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (17) | $ (23) | |
[1] These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). |
EARNINGS PER SHARE ATTRIBUTAB_3
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings (loss) from continuing operations | $ 56 | $ 172 |
Weighted average common shares outstanding | 346.7 | 349.3 |
Restricted performance share plan | 1.8 | 4 |
Weighted average common shares outstanding – assuming dilution | 348.5 | 353.3 |
Basic earnings (loss) per share from continuing operations | $ 0.16 | $ 0.49 |
Diluted earnings (loss) per share from continuing operations | $ 0.16 | $ 0.49 |
Restructuring and Related Activ
Restructuring and Related Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | $ 3 | $ 0 |
North American Industrial Packaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | $ 3 |
SUPPLEMENTAL FINANCIAL STATEM_3
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Accounts and Notes Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | $ 3,048 | $ 3,059 |
Trade (less allowances of $31 in 2024 and $34 in 2023) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | 2,783 | 2,841 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | $ 265 | $ 218 |
SUPPLEMENTAL FINANCIAL STATEM_4
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Accounts and Notes Receivable Allowances Phantom (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ 31 | $ 34 |
SUPPLEMENTAL FINANCIAL STATEM_5
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Inventories by Major Category (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory [Line Items] | ||
Raw materials | $ 213 | $ 229 |
Finished pulp, paper and packaging | 891 | 975 |
Operating supplies | 616 | 622 |
Other | 51 | 63 |
Total | $ 1,771 | $ 1,889 |
SUPPLEMENTAL FINANCIAL STATEM_6
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Interest Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental Income Statement Elements [Abstract] | ||
Interest expense | $ 109 | $ 103 |
Interest income | 63 | 41 |
Capitalized interest costs | $ 2 | $ 5 |
SUPPLEMENTAL FINANCIAL STATEM_7
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Disclosure Text Block Supplement [Abstract] | |||
Temporary investments | $ 724 | $ 950 | |
Accumulated depreciation | 19,700 | 19,600 | |
Depreciation expense | 268 | $ 232 | |
Accounts Payable, Other | 61 | 141 | |
Supplier Finance Program, Obligation | 116 | $ 122 | |
Interest payments | 94 | $ 114 | |
Asset retirement obligation | 103 | ||
Restructuring and related cost, accelerated depreciation | $ 5 |
LEASES Schedule of Supplemental
LEASES Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Operating lease, right-of-use asset | $ 445 | $ 448 | |
Finance lease, right-of-use asset | [1] | 44 | 47 |
Lease asset, total | 489 | 495 | |
Operating lease, liability, current | 149 | 153 | |
Finance lease, liability, current | 11 | 11 | |
Operating lease, liability, noncurrent | 307 | 312 | |
Finance lease, liability, noncurrent | 42 | 44 | |
Lease liability, total | $ 509 | $ 520 | |
[1] Finance leases are recorded net of accumulated amortization of $68 million and $67 million as of March 31, 2024 and December 31, 2023, respectively. |
LEASES Schedule of Supplement_2
LEASES Schedule of Supplemental Balance Sheet Information Footnotes (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 68 | $ 67 |
LEASES Narrative (Details)
LEASES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lease, Cost | $ 79 | $ 75 |
Maximum [Member] | ||
Lessee, operating and financing leases, remaining lease term | 29 years |
EQUITY METHOD INVESTMENTS ILIM
EQUITY METHOD INVESTMENTS ILIM Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
EQUITY METHOD INVESTMENTS ILIM Transactions (Details) [Line Items] | ||||
Equity Earnings | $ (2) | $ (1) | ||
Income tax provision (benefit) | 27 | 48 | ||
Discontinued operations, net of taxes | $ 0 | $ (27) | $ 13 | 0 |
Proceeds from Dividends Received | 0 | 13 | 0 | |
Ilim Holding | Reportable Subsegments | ||||
EQUITY METHOD INVESTMENTS ILIM Transactions (Details) [Line Items] | ||||
Equity Earnings | 23 | 46 | 43 | |
Impairment Charges | 59 | 33 | 43 | |
Income tax provision (benefit) | $ (9) | $ 0 | $ 0 |
EQUITY METHOD INVESTMENTS Narra
EQUITY METHOD INVESTMENTS Narrative (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Ilim Holding | |
Schedule of Equity Method Investments [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, before tax | $ 517 |
Proceeds from Divestiture of Businesses and Interests in Affiliates | 484 |
Divestiture, Transaction Costs | 36 |
Ilim JSC Group | |
Schedule of Equity Method Investments [Line Items] | |
Proceeds from Divestiture of Businesses and Interests in Affiliates | $ 24 |
Reportable Subsegments | Ilim Holding | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of equity interest | 50% |
Reportable Subsegments | Ilim JSC Group | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of equity interest | 2.39% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES Changes in Goodwill Balances (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill [Line Items] | ||
Goodwill, Gross | $ 3,465 | $ 3,465 |
Goodwill, Impaired, Accumulated Impairment Loss | (424) | (424) |
Goodwill | 3,041 | 3,041 |
Industrial Packaging | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 3,413 | 3,413 |
Goodwill, Impaired, Accumulated Impairment Loss | (372) | (372) |
Goodwill | 3,041 | 3,041 |
Global Cellulose Fibers | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 52 | 52 |
Goodwill, Impaired, Accumulated Impairment Loss | (52) | (52) |
Goodwill | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 693 | $ 693 |
Accumulated Amortization | 519 | 510 |
Net Intangible Assets | 174 | 183 |
Customer relationships and lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 494 | 494 |
Accumulated Amortization | 342 | 335 |
Net Intangible Assets | 152 | 159 |
Tradenames, patents and trademarks, and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 170 | 170 |
Accumulated Amortization | 156 | 154 |
Net Intangible Assets | 14 | 16 |
Land and water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8 | 8 |
Accumulated Amortization | 2 | 2 |
Net Intangible Assets | 6 | 6 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21 | 21 |
Accumulated Amortization | 19 | 19 |
Net Intangible Assets | $ 2 | $ 2 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense related to intangible assets | $ 9 | $ 9 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income tax payments, net of refunds | $ 5 | $ 169 | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 7 | ||
Subsequent Event [Member] | |||
Deferred Income Taxes and Tax Credits | $ 350 |
COMMITMENTS AND CONTINGENCIES E
COMMITMENTS AND CONTINGENCIES Environmental Remediation Obligations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Mar. 31, 2020 | Jun. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2015 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2020 | Jun. 30, 2011 | |
Loss Contingencies [Line Items] | |||||||||||
Accrual for environmental loss contingencies | $ 249,000,000 | $ 251,000,000 | |||||||||
Liability for Asbestos and Environmental Claims, Net | 110,000,000 | 97,000,000 | |||||||||
Cass Lake, Minnesota | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Accrual for environmental loss contingencies | 45,000,000 | 46,000,000 | $ 46,000,000 | ||||||||
Kalamazoo River Superfund Site | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Proposed consent decree, value of remediation payments | $ 100,000,000 | ||||||||||
Proposed consent decree, value of labor performed | $ 136,000,000 | ||||||||||
Liability for Asbestos and Environmental Claims, Net | 22,000,000 | 27,000,000 | |||||||||
Liability for Asbestos and Environmental Claims, Net, Period Increase (Decrease) | $ 27,000,000 | ||||||||||
Kalamazoo River Superfund Site | Time Critical Removal Action | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, damages sought, value | $ 37,000,000 | $ 19,000,000 | |||||||||
Kalamazoo River Superfund Site | Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC Cost Recovery Action | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, damages sought, value | $ 79,000,000 | ||||||||||
Responsible party percentage | 15% | ||||||||||
Loss Contingency, damages awarded, value | $ 50,000,000 | ||||||||||
San Jacinto River Superfund Site | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, damages sought, value | $ 115,000,000 | ||||||||||
Responsible party percentage | 50% | ||||||||||
Liability for Asbestos and Environmental Claims, Net | 78,000,000 | $ 83,000,000 | |||||||||
San Jacinto River Superfund Site | Northern impoundment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Liability for Asbestos and Environmental Claims, Net | $ 55,000,000 | $ 105,000,000 | |||||||||
Liability for Asbestos and Environmental Claims, Net, Period Increase (Decrease) | $ 21,000,000 | ||||||||||
San Jacinto River Superfund Site | Southern Impoundment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Liability for Asbestos and Environmental Claims, Net | $ 10,000,000 | ||||||||||
Versailles Pond | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Liability for Asbestos and Environmental Claims, Net | $ 30,000,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) € in Millions, $ in Millions | 3 Months Ended | ||||||
Jan. 16, 2024 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2020 | Sep. 30, 2019 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2019 EUR (€) | |
Italian Competition Authority [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Potentially Responsible Parties | 30 | ||||||
Loss Contingency Accrual | $ 31 | € 29 | |||||
San Jacinto River Superfund Site | |||||||
Loss Contingencies [Line Items] | |||||||
Responsible party percentage | 50% | ||||||
Secretariat of the Federal Revenue Bureau of Brazil [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Loss Contingency Accrual | $ 48 | $ 48 | |||||
Income tax examination, estimate of possible loss | $ 397 | $ 119 | |||||
Income tax examination, penalties and interest expense | $ 278 | ||||||
Responsible party percentage-Sylvamo | 40% | ||||||
Responsible party percentage | 60% | ||||||
Shared Tax Assessment Payment | $ 300 |
VARIABLE INTEREST ENTITIES Acti
VARIABLE INTEREST ENTITIES Activity Between Company and Entities (Details) - 2007 Financing Entities - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Variable Interest Entity [Line Items] | |||
Revenue | [1] | $ 39 | $ 33 |
Expense | [2] | 35 | 31 |
Cash receipts | [3] | 34 | 27 |
Cash payments | [4] | $ 34 | $ 27 |
[1] The revenue is included in Interest expense, net in the accompanying statement of operations and includes approximately $5 million for both the three months ended March 31, 2024 and 2023, of accretion income for the amortization of the basis difference adjustment on the Financial assets of special purpose entities. The expense is included in Interest expense, net in the accompanying statement of operations and includes approximately $2 million for both the three months ended March 31, 2024 and 2023, of accretion expense for the amortization of the basis difference adjustment on the Nonrecourse financial liabilities of special purpose entities. The cash receipts are interest received on the Financial assets of special purpose entities. The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
VARIABLE INTEREST ENTITIES Ac_2
VARIABLE INTEREST ENTITIES Activity Between Company and Entities Footnotes (Details) - 2007 Financing Entities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Variable Interest Entity [Line Items] | ||
Accretion income for amortization of purchase accounting adjustment, financial assets | $ 5 | $ 5 |
Accretion expense for amortization of purchase accounting adjustment, financial liabiities | $ 2 | $ 2 |
VARIABLE INTEREST ENTITIES Narr
VARIABLE INTEREST ENTITIES Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | |
Variable Interest Entity [Line Items] | ||||
Other Liabilities | $ 1,085 | $ 1,095 | ||
Income Taxes Paid, Net | (5) | $ (169) | ||
Interest payments | 94 | $ 114 | ||
2015 Financing Entities | ||||
Variable Interest Entity [Line Items] | ||||
Income Taxes Paid | 252 | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 58 | |||
Tax Adjustments, Settlements, and Unusual Provisions | $ 252 | |||
Income Taxes Paid, Net | 163 | |||
Interest payments | $ 30 | |||
2007 Financing Entities | ||||
Variable Interest Entity [Line Items] | ||||
Notes receivable, fair value disclosure | 2,400 | |||
Long-term debt, fair value | 2,100 | |||
Assets, Noncurrent | 2,300 | |||
Other Liabilities | $ 2,100 |
DEBT Narrative (Details)
DEBT Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 1,900 | |
Minimum Net Worth Required for Compliance | 9,000 | |
Debt and capital lease obligations | 5,600 | |
Debt fair value | 5,300 | |
Commercial Paper | 0 | |
Repayments of Debt | $ 3 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Ratio of Indebtedness to Net Capital | 0.60 | |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Revolving credit facilities available | $ 1,000 | |
Revolving Credit Facility [Member] | Committed Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit facilities available | 1,400 | $ 1,500 |
Receivables Securitization Program [Member] | Uncommitted Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit facilities available | $ 500 |
RETIREMENT PLANS Net Periodic P
RETIREMENT PLANS Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans (Details) - U.S. plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 13 | $ 12 |
Interest cost | 111 | 116 |
Expected return on plan assets | (148) | (132) |
Actuarial loss | 19 | 24 |
Amortization of prior service cost | 3 | 6 |
Net periodic pension expense (income) | $ (2) | $ 26 |
RETIREMENT PLANS Narrative (Det
RETIREMENT PLANS Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan contributions | $ 0 | $ 0 |
Non Qualified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefits paid | $ 5 |
STOCK-BASED COMPENSATION Schedu
STOCK-BASED COMPENSATION Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Income tax benefits related to stock-based compensation | $ 13 | $ 11 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense (selling and administrative) | $ 9 | $ 34 |
STOCK-BASED COMPENSATION Narrat
STOCK-BASED COMPENSATION Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures | $ | $ 108 |
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures, weighted-average period (in years) | 1 year 9 months 18 days |
Stock Compensation Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant under ICP | 3.8 |
Restricted performance share plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, nonvested shares / units | 1.4 |
Granted, nonvested, weighted average grant date fair value | $ / shares | $ 37.83 |
Time-based Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, nonvested shares / units | 1.4 |
Granted, nonvested, weighted average grant date fair value | $ / shares | $ 36.15 |
INDUSTRY SEGMENT INFORMATION Sa
INDUSTRY SEGMENT INFORMATION Sales by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Segment Reporting Information [Line Items] | |||
Net sales | [1] | $ 4,619 | $ 5,020 |
Global Cellulose Fibers [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 704 | 811 | |
Industrial Packaging | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,808 | 4,083 | |
Global Cellulose Fibers [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 704 | 811 | |
Global Cellulose Fibers [Member] | Global Cellulose Fibers [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 704 | 811 | |
Corporate and Other [Member] | Consolidation, Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 107 | $ 126 | |
[1]Net sales are attributed to countries based on the location of the seller. |
INDUSTRY SEGMENT INFORMATION Op
INDUSTRY SEGMENT INFORMATION Operating Profit by Industry Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit | $ 169 | $ 306 |
Earnings (loss) from continuing operations before income taxes and equity earnings | 85 | 221 |
Interest expense, net | 46 | 62 |
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Redeemable | (2) | 0 |
Corporate expenses, net | 24 | 8 |
Corporate net special items | 20 | 0 |
SegmentReportingInformationBusinessSpecialItems | 8 | 0 |
Non-operating pension expense (income) | (12) | 15 |
Industrial Packaging | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit | 216 | 322 |
Global Cellulose Fibers | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating profit | $ (47) | $ (16) |
Subsequent Events (Details)
Subsequent Events (Details) - DS Smith Plc $ / shares in Units, $ in Millions | Apr. 16, 2024 USD ($) $ / shares shares | Mar. 31, 2024 USD ($) |
Business Acquisition [Line Items] | ||
Business Acquisition, Transaction Costs | $ 5 | |
Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Share Price | $ / shares | $ 40.85 | |
Foreign Currency Exchange Rate, Remeasurement | 1.2645 | |
Business Combination, Price of Acquisition, Expected | $ 9,900 | |
Pro forma ownership - IP | 66.30% | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 0.1285 | |
Pro-forma ownership percent - DS Smith | 33.70% | |
Business Acquisition, Share Price-Pence per Share | 415 |