EQUITY METHOD INVESTMENTS (Note)

6 Months Ended

Jun. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

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

Ilim S.A.

The Company has a 50% equity interest in Ilim S.A. (Ilim), which has subsidiaries whose primary operations are in Russia. The Company recorded equity earnings, net of taxes, of $95 million and $101 million for the three months ended June 30, 2022 and 2021, respectively and $188 million and $150 million for the six months ended June 30, 2022 and 2021, respectively. Foreign exchange gains and losses, net of tax, included in equity earnings for the three months and six months ended June 30, 2022 were $13 million and $(2) million, respectively. They relate primarily to the re-measurement of receivables, payables and borrowings. JSC Ilim Group ("Ilim Group"), a subsidiary of Ilim, had no U.S. dollar-denominated debt outstanding as of June 30, 2022. The Company received cash dividends from the joint venture of $204 million and $144 million during the first six months of 2022 and 2021, respectively. At June 30, 2022 and December 31, 2021, the Company's investment in Ilim, which is recorded in Long-Term Investments in the condensed consolidated balance sheets, was $737 million and $557 million, respectively, which was $130 million and $121 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. As of June 30, 2022, there was $187 million of cumulative translation adjustment loss included within equity related to our Ilim investment. Prior to the spin-off of the Printing Papers segment on October 1, 2021, the Company was party to a joint marketing agreement with Ilim Group under which the Company purchased, marketed and sold paper produced by Ilim Group. Purchases under this agreement were $42 million and $83 million for the three months and six months ended June 30, 2021, respectively. The joint marketing agreement was conveyed to Sylvamo as part of the spin-off transaction on October 1, 2021. See Note 1 - Basis of Presentation for additional discussion regarding our Ilim investment.

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

Balance Sheet

In millions	June 30, 2022	December 31, 2021
Current assets	1,135	$	1,010
Noncurrent assets	4,755	3,145
Current liabilities	2,238	1,212
Noncurrent liabilities	2,391	2,047
Noncontrolling interests	46	24

Income Statement

	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2022		2021		2022		2021
Net sales	$	815	$	733	$	1,522	$	1,264
Gross profit	444		410		843		658
Income (loss) from continuing operations	189		205		372		308
Net income (loss)	185		199		362		299

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