Divestitures and Impairments of Businesses (Note)

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

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

PRINTING PAPERS SPIN-OFF

2021: On October 1, 2021, the Company completed the previously announced spin-off of its Printing Papers segment along with certain mixed-use coated paperboard and pulp businesses in North America, France and Russia into a standalone, publicly-traded company, Sylvamo Corporation. The transaction was implemented through the distribution of shares of the standalone company to International Paper's shareholders (the "Distribution"). As a result of the Distribution, Sylvamo Corporation is an independent

public company that trades on the New York Stock Exchange under the symbol "SLVM".

All current and historical operating results of the Sylvamo Corporation businesses and Kwidzyn are presented as Discontinued Operations, net of tax, in the consolidated statement of operations. Kwidzyn was previously part of the Printing Papers business prior to its sale in August 2021. See Kwidzyn Mill section below for further details regarding this sale. The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued Operations, net of tax, related to the Sylvamo Corporation businesses and Kwidzyn for all prior periods presented in the consolidated statement of operations:

In millions	2021		2020		2019
Net Sales	$	2,417	$	3,015	$	4,059
Costs and Expenses
Cost of products sold	1,508		2,036		2,597
Selling and administrative expenses	224		165		199
Depreciation, amortization and cost of timber harvested	113		196		234
Distribution expenses	229		264		310
Taxes other than payroll and income taxes	24		35		38
Restructuring and other charges, net	—		—		6
Net (gains) losses on sales of fixed assets	(86)		—		—
Net (gains) losses on sales and impairments of businesses	(351)		—		—
Interest expense, net	(19)		(2)		(7)
Earnings (Loss) Before Income Taxes and Equity Earnings	775		321		682
Income tax provision (benefit)	145		69		156
Discontinued Operations, Net of Taxes	$	630	$	252	$	526

All historical assets and liabilities of the Sylvamo Corporation businesses and Kwidzyn are classified as current and long-term assets of discontinued operations and current and long-term liabilities of discontinued operations in the accompanying balance sheet. The following summarizes the major classes of assets and liabilities of the Sylvamo Corporation businesses and Kwidzyn reconciled to current assets and long-term assets of discontinued operations and current liabilities and long-term liabilities of

discontinued operations in the accompanying consolidated balance sheet:

In millions	2020
Cash and temporary investments	$	127
Accounts and notes receivable	432
Contract assets	24
Inventories	424
Other current assets	43
Current assets of discontinued operations	$	1,050
Plants, Properties and Equipment	$	1,272
Forestlands	293
Goodwill	200
Right of Use Assets	73
Deferred Charges and Other Assets	116
Long-Term Assets of Discontinued Operations	$	1,954
Notes payable and current maturities of long-term debt	$	4
Accounts payable	285
Accrued payroll and benefits	56
Other current liabilities	150
Current liabilities of discontinued operations	$	495
Long-Term Debt	$	22
Deferred Income taxes	171
Pension Benefit Obligation	24
Postretirement and Postemployment Benefit Obligation	17
Long-Term Lease Obligations	59
Other Liabilities	76
Long-Term Liabilities of Discontinued Operations	$	369

The following summarizes the total cash provided by operations and total cash used for investing activities related to the Sylvamo Corporation businesses and Kwidzyn and included in the consolidated statement of cash flows:

In millions	2021		2020		2019
Cash Provided by (Used For) Operating Activities	$	290	$	463	$	831
Cash Provided by (Used For) Investment Activities	$	757	$	(111)	$	(147)

In anticipation of the spin-off, Sylvamo incurred $1.5 billion in debt during the third quarter of 2021 with the proceeds used for a distribution to the Company and other expenses associated with the transaction. The

Company was an obligor of the debt prior to the spin-off as Sylvamo was a wholly-owned subsidiary. Subsequent to the distribution of the net assets, the Company was no longer an obligor of the Sylvamo debt. The $1.5 billion of borrowings was comprised of $450 million of 7.00% senior unsecured notes due 2029 issued in September 2021. It was also comprised of the senior secured credit facility that Sylvamo entered into in September 2021 which consisted of $450 million of borrowings related to its term loan “B” facility, $520 million of borrowings related to its term loan “F” facility, and the $100 million draw on its revolving credit facility which had a capacity of $450 million. Additionally, at the time of the spin-off in the fourth quarter of 2021, the Company distributed $130 million to Sylvamo. The debt issuance and distribution to Sylvamo Corporation are classified as financing activities in the accompanying consolidated statement of cash flows.

KWIDZYN MILL

2021: On August 6, 2021, the Company completed the sale of its Kwidzyn, Poland mill for €669 million (approximately $794 million using the July 31, 2021 exchange rate) in cash, subject to final working capital and net debt adjustments. The business includes the pulp and paper mill in Kwidzyn and supporting functions. During the third quarter of 2021, the Company recorded a net gain of $360 million ($350 million after taxes) including a gain of $404 million ($394 million after taxes) related to the sale of net assets and a loss of $44 million (before and after taxes) related to the cumulative foreign currency translation loss. During the fourth quarter of 2021, the Company incurred $9 million ($6 million after taxes) of costs related to the sale of Kwidzyn. All current year and historical operating results for Kwidzyn have been presented as Discontinued Operations, net of tax, in the consolidated statement of operations.

OLMUKSAN INTERNATIONAL PAPER

2021: On May 31, 2021, the Company completed the sale of its 90.38% ownership interest in Olmuksan International Paper, a corrugated packaging business in Turkey, to Mondi Group for €66 million (approximately $81 million using the May 31, 2021 exchange rate). During the second quarter of 2021, the Company recorded a gain of $6 million ($0 after taxes) related to the business working capital adjustment. This charge is included in the Net (gains) losses on sales and impairments of businesses in the accompanying consolidated statement of operations and is included in the results for the Industrial Packaging segment.

In conjunction with the announced agreement in the fourth quarter of 2020, a determination was made that the current book value of the Olmuksan International Paper disposal group exceeded its estimated fair value of $79 million which was based on the agreed upon transaction price. As a result, a preliminary charge of $123 million (before and after taxes) was recorded during the fourth quarter of 2020. During the first quarter of 2021, the Company recorded an additional charge of $2 million (before and after taxes) related to the cumulative foreign currency translation loss. This charge is included in the Net (gains) losses on sales and impairments of businesses in the accompanying consolidated statement of operations and is included in the results for the Industrial Packaging segment.

BRAZIL PACKAGING

2020: On October 14, 2020, the Company closed the previously announced sale of its Brazilian Industrial Packaging business for R$330 million ($58.5 million U.S. dollars), with R$280 million ($49.6 million U.S. dollars) paid at closing and R$50 million ($8.9 million U.S. dollars) to be paid one year from closing. This business includes three containerboard mills and four box plants and the agreement follows International Paper's previously announced strategic review of the Brazilian Industrial Packaging business.

In conjunction with the announced agreement, net pre-tax charges of $347 million ($340 million after taxes) were recorded in 2020. These charges included $327 million related to the cumulative foreign currency translation loss and a $20 million loss related the write down of the long-lived assets of the Brazilian Industrial Packaging business to their estimated fair value. These charges are included in Net (gains) losses on sales and impairments of businesses in the accompanying consolidated statement of operations and is included in the results for the Industrial Packaging segment.