DIVESTITURES (Note)

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Note Text Block]

2020: On March 29, 2020, the Company announced that it had entered into an agreement to sell its Brazilian Industrial Packaging business for R$330 million (approximately $58.5 million using the September 30, 2020 exchange rate), with R$280 million to be paid at closing and R$50 million one year thereafter, subject to the final working capital adjustments. This business includes three containerboard mills and four box plants and the agreement follows International Paper's previously announced strategic review of the Brazilian Industrial Packaging business.

In conjunction with the announced agreement, a preliminary pre-tax charge of $347 million ($340 million after taxes) was recorded during the first nine months of 2020. These charges are included in Net (gains) losses on sales and impairments of businesses in the accompanying condensed consolidated statement of operations and is included in the results for the Industrial Packaging segment. Subsequent to September 30, 2020, the transaction closed and final working capital adjustments, if any, will be recognized during the fourth quarter of 2020.

At September 30, 2020, all assets and liabilities related to the Brazilian Industrial Packaging business are classified as current assets held for sale and current liabilities held for sale in the accompanying condensed consolidated balance sheet.

The following summarizes the major classes of assets and liabilities of this business reconciled to total Assets held for sale and total Liabilities held for sale in the accompanying condensed consolidated balance sheet.

In millions	September 30, 2020
Cash and temporary investments	$	11
Accounts and notes receivable	41
Inventories	22
Other current assets	1
Plants, properties and equipment (net of impairment)	28
Deferred charges and other assets	11
Total Assets Held for Sale	$	114
Accounts payable and accrued liabilities	$	36
Deferred income taxes	3
Other liabilities	8
Impairment reserve (cumulative foreign currency translation)	329
Total Liabilities Held for Sale	$	376

2019: On October 30, 2019, the Company closed the previously announced sale of its controlling interest in International Paper APPM Limited (APPM) to West Coast Paper Mills (WCPM). During the second quarter of 2020 the Company sold substantially all of its remaining investment and recorded a gain of $6 million. During the third quarter of 2020 the Company sold its remaining immaterial investment in APPM.