Leases (Note)

12 Months Ended

Dec. 31, 2021

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 up to 32 years.

COMPONENTS OF LEASE EXPENSE


In millions	2021		2020		2019
Operating lease costs, net	$	138	$	132	$	121
Variable lease costs	40		43		51
Short-term lease costs, net	53		46		46
Finance lease cost
Amortization of lease assets	11		10		9
Interest on lease liabilities	3		3		3
Total lease cost, net	$	245	$	234	$	230

SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES


In millions	Classification	2021		2020
Assets
Operating lease assets	Right of use assets	$	365	$	387
Finance lease assets	Plants, properties and equipment, net (a)	57		62
Total leased assets		$	422	$	449
Liabilities
Current
Operating	Other current liabilities	$	132	$	134
Finance	Notes payable and current maturities of long-term debt	10		10
Noncurrent
Operating	Long-term lease obligations	236		256
Finance	Long-term debt	56		61
Total lease liabilities		$	434	$	461

(a) Finance leases are recorded net of accumulated amortization of $51 million and $43 million at December 31, 2021 and 2020, respectively.

LEASE TERM AND DISCOUNT RATE


In millions	2021		2020
Weighted average remaining lease term (years)
Operating leases	4.0 years		4.0 years
Finance leases	9.1 years		9.3 years
Weighted average discount rate
Operating leases	2.12	%	2.63	%
Finance leases	4.50	%	4.45	%

SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES


In millions	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	166	$	162	$	147
Operating cash flows related to financing leases	4		5		5
Financing cash flows related to finance leases	14		10		9

Right of use assets obtained in exchange for lease liabilities
Operating leases	156		179		162
Finance leases	9		11		11

MATURITY OF LEASE LIABILITIES


In millions	Operating Leases		Financing Leases		Total
2022	$	139	$	13	$	152
2023	97		12		109
2024	60		10		70
2025	38		9		47
2026	23		8		31
Thereafter	28		34		62
Total lease payments	385		86		471
Less imputed interest	17		20		37
Present value of lease liabilities	$	368	$	66	$	434