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Postretirement Benefits (Note)
 12 Months Ended
Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Defined Benefit Plan

U.S. POSTRETIREMENT BENEFITS

International Paper provides certain retiree health care and life insurance benefits covering certain U.S. salaried and hourly employees. These employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. International Paper does not fund these benefits prior to payment and has the right to modify or terminate certain of these plans in the future.

In addition to the U.S. plan, certain Brazilian and Moroccan employees are eligible for retiree health care and life insurance benefits.
The components of postretirement benefit expense in 2021, 2020 and 2019 were as follows: 

In millions202120202019
U.S.
Plans		Non-
U.S.
Plans		U.S.
Plans		Non-
U.S.
Plans		U.S.
Plans		Non-
U.S.
Plans
Service cost$— $— $— $— $— $1 
Interest cost5 1 7 2 8 1 
Actuarial loss5 1 5 1 4 2 
Amortization of prior service credits— (2)(1)(2)(2)(3)
Net postretirement expense$10 $— $11 $1 $10 $1 

International Paper evaluates its actuarial assumptions annually as of December 31 (the measurement date) and considers changes in these long-term factors based upon market conditions and the requirements of employers’ accounting for postretirement benefits other than pensions. The discount rate assumption was determined based on a hypothetical settlement portfolio selected from a universe of high quality corporate bonds.

The discount rates used to determine net U.S. and non-U.S. postretirement benefit cost for the years ended December 31, 2021, 2020 and 2019 were as follows: 

202120202019
U.S.
Plans		Non-
U.S.
Plans		U.S.
Plans		Non-
U.S.
Plans		U.S.
Plans		Non-
U.S.
Plans
Discount rate2.50 %6.91 %3.30 %7.15 %4.20 %9.10 %

The weighted average assumptions used to determine the benefit obligation at December 31, 2021 and 2020 were as follows: 

20212020
U.S.
Plans		Non-
U.S.
Plans		U.S.
Plans		Non-
U.S.
Plans
Discount rate2.90 %5.20 %2.50 %6.91 %
Health care cost trend rate assumed for next year7.00 %4.00 %6.50 %8.56 %
Rate that the cost trend rate gradually declines to5.00 %4.00 %5.00 %4.23 %
Year that the rate reaches the rate it is assumed to remain2030202220262031
The plans are only funded in an amount equal to benefits paid. The following table presents the changes in benefit obligation and plan assets for 2021 and 2020: 

In millions20212020
U.S.
Plans		Non-
U.S.
Plans		U.S.
Plans		Non-
U.S.
Plans
Change in projected benefit obligation:
Benefit obligation, January 1$201 $20 $214 $31 
Service cost— — — — 
Interest cost5 1 7 2 
Participants’ contributions3 — 3 — 
Actuarial (gain) loss(12)— 4 1 
Benefits paid(26)— (28)(1)
Less: Federal subsidy1 — 1 — 
Divestiture— (15)— (7)
Currency Impact— (1)— (6)
Benefit obligation, December 31$172 $5 $201 $20 
Change in plan assets:
Fair value of plan assets, January 1$— $— $— $— 
Company contributions23 — 25 1 
Participants’ contributions3 — 3 — 
Benefits paid(26)— (28)(1)
Fair value of plan assets, December 31$— $— $— $— 
Funded status, December 31$(172)$(5)$(201)$(20)
Amounts recognized in the consolidated balance sheet under ASC 715:
Current liability$(17)$— $(18)$— 
Non-current liability(155)(5)(183)(20)
 $(172)$(5)$(201)$(20)
Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax):
Net actuarial loss (gain)$29 $— $46 $12 
Prior service credit— — — (12)
 $29 $— $46 $— 


The non-current portion of the liability is included with the postemployment liability in the accompanying consolidated balance sheet under Postretirement and postemployment benefit obligation.
The components of the ($17) million and $0 million change in the amounts recognized in OCI during 2021 for U.S. and non-U.S. plans, respectively, consisted of: 

In millionsU.S.
Plans		Non-
U.S.
Plans
Current year actuarial (gain) loss$(12)$— 
Amortization of actuarial (loss) gain(5)(1)
Current year prior service cost— — 
Amortization of prior service credit— 2 
Divestitures— (2)
Currency impact— 1 
 $(17)$— 

The portion of the change in the funded status that was recognized in net periodic benefit cost and OCI for the U.S. plans was $27 million, $12 million and $29 million in 2021, 2020 and 2019, respectively. The portion of the change in funded status for the non-U.S. plans was $1 million, $0 million, and $9 million in 2021, 2020 and 2019, respectively.

At December 31, 2021, estimated total future postretirement benefit payments, net of participant contributions and estimated future Medicare Part D subsidy receipts, were as follows: 

In millionsBenefit
Payments		Subsidy ReceiptsBenefit
Payments
U.S.
Plans		U.S.
Plans		Non-
U.S.
Plans
2022$18 $1 $— 
202316 1 — 
202415 1 — 
202514 1 — 
202614 1 — 
2027 – 203157 3 1