Leases (Note)

12 Months Ended

Dec. 31, 2020

Leases of Lessee Disclosure [Text Block]

International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain

other equipment. The Company's leases have remaining lease terms of one year to 96 years.

COMPONENTS OF LEASE EXPENSE


In millions	2020		2019
Operating lease costs, net	$	145	$	132
Variable lease costs	61		70
Short-term lease costs, net	52		59
Finance lease cost
Amortization of lease assets	14		12
Interest on lease liabilities	5		5
Total lease cost, net	$	277	$	278

SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES


In millions	Classification	2020		2019
Assets
Operating lease assets	Right of use assets	$	459	$	434
Finance lease assets	Plants, properties and equipment, net (a)	95		103
Total leased assets		$	554	$	537
Liabilities
Current
Operating	Other current liabilities	$	148	$	134
Finance	Notes payable and current maturities of long-term debt	13		12
Noncurrent
Operating	Long-term lease obligations	315		304
Finance	Long-term debt	82		88
Total lease liabilities		$	558	$	538

(a) Finance leases are recorded net of accumulated amortization of $53 million and $40 million at December 31, 2020 and 2019, respectively.

LEASE TERM AND DISCOUNT RATE


In millions	2020		2019
Weighted average remaining lease term (years)
Operating leases	9.7 years		9.8 years
Finance leases	9.9 years		10.9 years
Weighted average discount rate
Operating leases	2.56	%	3.06	%
Finance leases	4.52	%	4.69	%

SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES


In millions	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	162	$	147
Operating cash flows related to financing leases	5		5
Financing cash flows related to finance leases	10		9

Right of use assets obtained in exchange for lease liabilities
Operating leases	179		162
Finance leases	11		11

MATURITY OF LEASE LIABILITIES


In millions	Operating Leases		Financing Leases		Total
2021	$	158	$	17	$	175
2022	117		16		133
2023	74		14		88
2024	42		11		53
2025	26		10		36
Thereafter	105		56		161
Total lease payments	522		124		646
Less imputed interest	59		29		88
Present value of lease liabilities	$	463	$	95	$	558