Equity Method Investments (Note)

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 11 EQUITY METHOD INVESTMENTS

The Company accounts for the following investments under the equity method of accounting.

ILIM S.A. ("Ilim")

The Company holds a 50% equity interest in Ilim, which has subsidiaries whose primary operations are in Russia. The Company recorded equity earnings, net of taxes, of $311 million, $48 million, and $207 million in 2021, 2020, and 2019, respectively, for Ilim. Foreign exchange gains (losses) included in equity earnings in 2021, were not material and JSC Ilim Group had no U.S. dollar-denominated debt outstanding as of December 31, 2021. Equity earnings includes an after-tax foreign exchange (loss) gain of $(50) million, and $32 million in 2020 and 2019, respectively, primarily on the remeasurement of U.S. dollar-denominated net debt. The Company received cash dividends from the joint venture of $154 million, $141 million and $246 million in 2021, 2020 and 2019, respectively. At December 31, 2021 and 2020, the Company's investment in Ilim, which is recorded in Investments in the consolidated balance sheet, was $557 million and $393 million, respectively, which was $121 million and $127 million, respectively, more than the Company's proportionate share of the joint venture's underlying net assets.

The differences primarily relate to currency translation adjustments and the basis difference between the fair value of our investment at acquisition and the underlying net assets. Prior to the spin-off of the Printing Papers segment on October 1, 2021, the Company was party to a joint marketing agreement with JSC Ilim Group, a subsidiary of Ilim, under which the Company purchased, marketed and sold paper produced by JSC Ilim Group. Purchases under this agreement were $125 million, $174 million and $215 million for the years ended December 31, 2021, 2020 and 2019, respectively.The joint marketing agreement

was conveyed to Sylvamo Corporation as part of the spin-off transaction on October 1, 2021.

Summarized financial information for Ilim is presented in the following tables:

Balance Sheet

In millions	2021		2020
Current assets	$	1,010	$	739
Noncurrent assets	3,145		2,733
Current liabilities	1,212		674
Noncurrent liabilities	2,047		2,249
Noncontrolling interests	24		17

Income Statement

In millions	2021		2020		2019
Net sales	$	2,693	$	2,015	$	2,189
Gross profit	1,432		838		1,025
Income from continuing operations	635		115		438
Net income	613		113		424

GRAPHIC PACKAGING INTERNATIONAL PARTNERS, LLC

The Company completed the transfer of its North American Consumer Packaging business in exchange for an initial 20.5% ownership interest (79,911,591 units) in Graphic Packaging International Partners, LLC (GPIP) in 2018. The Company has since fully monetized its investment in GPIP with transactions beginning in the first quarter 2020 through the second quarter 2021.

GPIP Monetization Transactions

Date	Transaction Type	Units	Proceeds		Pre-Tax Gain		After-Tax Gain
In millions except units
2020 First Quarter	Units exchange	15,150,784	$	250	$	33	$	25
2020 Third Quarter	Units exchange	17,399,414	250		—		—
2021 First Quarter	Units exchange and open market sale	24,588,316	397		33		25
2021 First Quarter	TRA (a)				42		31
2021 Second Quarter	Units exchange and open market sale	22,773,077	403		64		48
2021 Second Quarter	TRA (a)				66		50

(a) The TRA entitles the Company to 50% of the amount of any tax benefits projected to be realized by GPIP upon the Company's exchange of its units. The Company made income tax payments of $310 million in 2021 as a result of the monetization of its investment in GPIP.

As of June 30, 2021, the Company no longer had an ownership interest in GPIP. The Company recorded equity earnings of $4 million, $40 million and $46 million for the twelve months ended December 31, 2021, 2020 and 2019, respectively. The Company received cash dividends from GPIP of $5 million, $20 million and $27 million during 2021, 2020 and 2019, respectively.

The Company's remaining equity method investments are not material.