Leases (Note)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Operating and Capital Leases

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 31 years.

COMPONENTS OF LEASE EXPENSE

In millions	2022		2021		2020
Operating lease costs, net	$	153	$	138	$	132
Variable lease costs	39		40		43
Short-term lease costs, net	57		53		46
Finance lease cost
Amortization of lease assets	11		11		10
Interest on lease liabilities	3		3		3
Total lease cost, net	$	263	$	245	$	234

SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

In millions	Classification	2022		2021
Assets
Operating lease assets	Right of use assets	$	424	$	365
Finance lease assets	Plants, properties and equipment, net (a)	49		57
Total leased assets		$	473	$	422
Liabilities
Current
Operating	Other current liabilities	$	147	$	132
Finance	Notes payable and current maturities of long-term debt	10		10
Noncurrent
Operating	Long-term lease obligations	283		236
Finance	Long-term debt	49		56
Total lease liabilities		$	489	$	434

(a) Finance leases are recorded net of accumulated amortization of $59 million and $51 million at December 31, 2022 and 2021, respectively.

LEASE TERM AND DISCOUNT RATE

In millions	2022		2021
Weighted average remaining lease term (years)
Operating leases	4.1 years		4.0 years
Finance leases	8.4 years		9.1 years
Weighted average discount rate
Operating leases	2.96	%	2.12	%
Finance leases	4.57	%	4.50	%

SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES

In millions	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	160	$	166	$	162
Operating cash flows related to financing leases	3		4		5
Financing cash flows related to finance leases	10		14		10
Right of use assets obtained in exchange for lease liabilities
Operating leases	221		156		179
Finance leases	6		9		11

MATURITY OF LEASE LIABILITIES

In millions	Operating Leases		Financing Leases		Total
2023	$	157	$	13	$	170
2024	113		11		124
2025	75		10		85
2026	48		9		57
2027	30		8		38
Thereafter	36		26		62
Total lease payments	459		77		536
Less imputed interest	29		18		47
Present value of lease liabilities	$	430	$	59	$	489