Retirement Plans (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| Defined Benefit Plan Disclosure [Line Items] |
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| Net Periodic Pension Expense For Qualified And Nonqualified U.S. Defined Benefit Plans [Table Text Block] |
Net periodic pension expense for qualified and nonqualified U.S. and non-U.S. defined benefit plans comprised the following:
| | | | | | | | | | | | | | | | | | | | | | | 2022 | 2021 | 2020 | | In millions | U.S.
Plans | Non-
U.S.
Plans | U.S.
Plans | Non-
U.S.
Plans | U.S.
Plans | Non-
U.S.
Plans | | Service cost | $ | 85 | | $ | 3 | | $ | 100 | | $ | 5 | | $ | 85 | | $ | 5 | | | Interest cost | 338 | | 2 | | 333 | | 4 | | 393 | | 6 | | | Expected return on plan assets | (649) | | (1) | | (705) | | (7) | | (668) | | (8) | | | Actuarial loss (gain) | 87 | | 1 | | 138 | | 2 | | 202 | | 2 | | | Amortization of prior service cost | 23 | | — | | 22 | | — | | 20 | | — | | | Curtailment loss (gain) | — | | — | | — | | — | | — | | (1) | | | Settlement loss | — | | — | | — | | — | | — | | 1 | | | Net periodic pension (income) expense | $ | (116) | | $ | 5 | | $ | (112) | | $ | 4 | | $ | 32 | | $ | 5 | |
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| Pension Allocations By Type Of Fund And Target Allocations [Table Text Block] |
International Paper’s U.S. pension allocations by type of fund at December 31, 2022 and 2021 and target allocations were as follows:
| | | | | | | | | | | | | Asset Class | 2022 | 2021 | Target
Allocations | | Equity accounts | 16 | % | 18 | % | 14% - 25% | | Fixed income accounts | 67 | % | 68 | % | 62% - 78% | | Real estate accounts | 9 | % | 8 | % | 4% - 11% | | Other | 8 | % | 6 | % | 2% - 8% | | Total | 100 | % | 100 | % | |
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| Schedule of Allocation of Plan Assets [Table Text Block] |
The fair values of International Paper’s pension plan assets at December 31, 2022 and 2021 by asset class are shown below. Hedge funds disclosed in the following table are allocated to fixed income accounts for target allocation purposes. | | | | | | | | | | | | | | | | Fair Value Measurement at December 31, 2022 | | Asset Class | Total | Quoted
Prices
in
Active
Markets
For
Identical
Assets
(Level 1) | Significant
Observable
Inputs
(Level 2) | Significant
Unobservable
Inputs
(Level 3) | | In millions | | | | | | Equities – domestic | $ | 442 | | $ | 248 | | $ | 194 | | $ | — | | | Equities – international | 911 | | 641 | | 270 | | — | | | Corporate bonds | 1,790 | | — | | 1,790 | | — | | | Government securities | 3,796 | | — | | 3,796 | | — | | | Mortgage backed securities | 103 | | — | | 103 | | — | | | Other fixed income | (1,139) | | — | | (1,146) | | 7 | | | Derivatives | 25 | | — | | — | | 25 | | | Cash and cash equivalents | 82 | | 82 | | — | | — | | | Other investments: | | | | | | Hedge funds | 1,319 | | | | | | Private equity | 688 | | | | | | Real estate funds | 828 | | | | | | Total Investments | $ | 8,845 | | $ | 971 | | $ | 5,007 | | $ | 32 | |
| | | | | | | | | | | | | | | | Fair Value Measurement at December 31, 2021 | | Asset Class | Total | Quoted
Prices in
Active
Markets
For
Identical
Assets
(Level 1) | Significant
Observable
Inputs
(Level 2) | Significant
Unobservable
Inputs
(Level 3) | | In millions | | | | | | Equities – domestic | $ | 805 | | $ | 471 | | $ | 334 | | $ | — | | | Equities – international | 1,381 | | 976 | | 405 | | — | | | Corporate bonds | 2,249 | | — | | 2,249 | | — | | | Government securities | 5,733 | | — | | 5,733 | | — | | | Mortgage backed securities | 126 | | — | | 126 | | — | | | Other fixed income | (1,482) | | — | | (1,498) | | 16 | | | Derivatives | (21) | | — | | — | | (21) | | | Cash and cash equivalents | 266 | | 266 | | — | | — | | | Other investments: | | | | | | Hedge funds | 1,368 | | | | | | Private equity | 721 | | | | | | Real estate funds | 929 | | | | | | Total Investments | $ | 12,075 | | $ | 1,713 | | $ | 7,349 | | $ | (5) | |
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| Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block] |
| | | | | | | | | | | | | | | | Other Investments at December 31, 2022 | | Investment | Fair Value | Unfunded Commitments | Redemption Frequency | Remediation Notice Period | | In millions | | | | | | Hedge funds | $ | 1,319 | | $ | 120 | | Daily to annually | 1 - 100 days | | Private equity | 688 | | 126 | | (a) | None | | Real estate funds | 828 | | 129 | | Quarterly | 45 - 60 days | | Total | $ | 2,835 | | $ | 375 | | | |
(a) A private equity fund investment ("partnership interest") is contractually locked up for the life of the private equity fund by the partnership agreement. Limited partners do not have the option to redeem partnership interests. | | | | | | | | | | | | | | | | Other Investments at December 31, 2021 | | Investment | Fair Value | Unfunded Commitments | Redemption Frequency | Remediation Notice Period | | In millions | | | | | | Hedge funds | $ | 1,368 | | $ | 176 | | Daily to annually | 1 - 100 days | | Private equity | 721 | | 190 | | (a) | None | | Real estate funds | 929 | | 176 | | Quarterly | 45 - 60 days | | Total | $ | 3,018 | | $ | 542 | | | |
(a) A private equity fund investment ("partnership interest") is contractually locked up for the life of the private equity fund by the partnership agreement. Limited partners do not have the option to redeem partnership interests.
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| Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Table Text Block] |
The following is a reconciliation of the assets that are classified using significant unobservable inputs (Level 3) at December 31, 2022: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | | | | | | | | | | | | In millions | | Other
fixed
income | Derivatives | Total | | Beginning balance at December 31, 2020 | | $ | 14 | | $ | (6) | | $ | 8 | | | Actual return on plan assets: | | | | | | Relating to assets still held at the reporting date | | 2 | | (20) | | (18) | | | Relating to assets sold during the period | | — | | (101) | | (101) | | | Purchases, sales and settlements | | — | | 106 | | 106 | | | Transfers in and/or out of Level 3 | | — | | — | | — | | | Ending balance at December 31, 2021 | | $ | 16 | | $ | (21) | | $ | (5) | | | Actual return on plan assets: | | | | | | Relating to assets still held at the reporting date | | (9) | | 38 | | 29 | | | Relating to assets sold during the period | | 10 | | (189) | | (179) | | | Purchases, sales and settlements | | (10) | | 197 | | 187 | | | Transfers in and/or out of Level 3 | | — | | — | | — | | | Ending balance at December 31, 2022 | | $ | 7 | | $ | 25 | | $ | 32 | |
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| Retirement Plans [Member] |
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| Defined Benefit Plan Disclosure [Line Items] |
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| Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] |
The following table shows the changes in the benefit obligation and plan assets for 2022 and 2021 and the plans’ funded status. | | | | | | | | | | | | | | | | | 2022 | 2021 | | In millions | U.S.
Plans | Non-
U.S.
Plans | U.S.
Plans | Non-
U.S.
Plans | | Change in projected benefit obligation: | | | | | | Benefit obligation, January 1 | $ | 11,833 | | $ | 65 | | $ | 13,020 | | $ | 264 | | | Service cost | 85 | | 3 | | 100 | | 5 | | | Interest cost | 338 | | 2 | | 333 | | 4 | | | | | | | | | | | | | Actuarial loss (gain) | (2,863) | | (11) | | (760) | | (11) | | | Divestitures | — | | — | | (287) | | (187) | | | Plan amendments | 16 | | — | | — | | — | | | Benefits paid | (593) | | (2) | | (573) | | (5) | | | Effect of foreign currency exchange rate movements | — | | (3) | | — | | (5) | | | Benefit obligation, December 31 | $ | 8,816 | | $ | 54 | | $ | 11,833 | | $ | 65 | | | Change in plan assets: | | | | | | Fair value of plan assets, January 1 | $ | 12,075 | | $ | 19 | | $ | 12,018 | | $ | 190 | | | Actual return on plan assets | (2,666) | | — | | 864 | | 4 | | | Company contributions | 29 | | 2 | | 21 | | 6 | | | Benefits paid | (593) | | (2) | | (573) | | (5) | | | | | | | | Divestiture | — | | — | | (255) | | (175) | | | Effect of foreign currency exchange rate movements | — | | (1) | | — | | (1) | | | Fair value of plan assets, December 31 | $ | 8,845 | | $ | 18 | | $ | 12,075 | | $ | 19 | | | Funded status, December 31 | $ | 29 | | $ | (36) | | $ | 242 | | $ | (46) | | | Amounts recognized in the consolidated balance sheet: | | | | | | Overfunded pension plan assets | $ | 297 | | $ | — | | $ | 595 | | $ | — | | | Underfunded pension benefit obligation - current | (22) | | (2) | | (21) | | (1) | | | Underfunded pension benefit obligation - non-current | (246) | | (34) | | (332) | | (45) | | | | $ | 29 | | $ | (36) | | $ | 242 | | $ | (46) | |
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| Schedule Of Amounts In Accumulated Other Comprehensive Income [Table Text Block] |
| | | | | | | | | | | | | | | | Amounts recognized in accumulated other comprehensive income (loss) under ASC 715 (pre-tax): | | | | | | Prior service cost (credit) | $ | 89 | | $ | — | | $ | 95 | | $ | — | | | Net actuarial loss (gain) | 1,563 | | (7) | | 1,199 | | 4 | | | | $ | 1,652 | | $ | (7) | | $ | 1,294 | | $ | 4 | |
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| Pension Benefit Adjustments Recognized In Other Comprehensive (Loss) Income [Table Text Block] |
The components of the $357 million and $(12) million related to U.S. plans and non-U.S. plans, respectively, in the amounts recognized in OCI during 2022 consisted of: | | | | | | | | | | In millions | U.S.
Plans | Non-
U.S.
Plans | | Current year actuarial (gain) loss | $ | 451 | | $ | (10) | | | Amortization of actuarial loss | (87) | | (1) | | | Current year prior service cost | 16 | | — | | | Amortization of prior service cost | (23) | | — | | | Effect of foreign currency exchange rate movements | — | | (1) | | | | $ | 357 | | $ | (12) | |
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| Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] |
The following table summarizes information for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2022 and 2021:
| | | | | | | | | | | | | | | | | 2022 | 2021 | | In millions | U.S.
Plans | Non-U.S.
Plans | U.S.
Plans | Non-U.S.
Plans | | Projected benefit obligation | $ | 268 | | $ | 54 | | $ | 353 | | $ | 65 | | | Accumulated benefit obligation | 268 | | 45 | | 353 | | 56 | | | Fair value of plan assets | — | | 18 | | — | | 19 | |
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| Defined Benefit Plan, Assumptions [Table Text Block] |
Major actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit plans are presented in the following table:
| | | | | | | | | | | | | | | | | | | | | | | 2022 | 2021 | 2020 | | | U.S.
Plans | Non-
U.S.
Plans | U.S.
Plans | Non-
U.S.
Plans | U.S.
Plans | Non-
U.S.
Plans | | Actuarial assumptions used to determine benefit obligations as of December 31: | | | | | | | | Discount rate | 5.40 | % | 5.31 | % | 2.90 | % | 2.59 | % | 2.60 | % | 2.32 | % | | Rate of compensation increase | 3.00 | % | 3.36 | % | 3.00 | % | 2.92 | % | 2.25 | % | 3.66 | % | | Actuarial assumptions used to determine net periodic pension cost for years ended December 31: | | | | | | | | Discount rate (a) | 2.90 | % | 2.59 | % | 2.67 | % | 2.32 | % | 3.40 | % | 2.70 | % | | Expected long-term rate of return on plan assets (a) | 6.00 | % | 3.66 | % | 6.40 | % | 4.99 | % | 7.00 | % | 4.92 | % | | Rate of compensation increase | 3.00 | % | 2.92 | % | 2.25 | % | 3.66 | % | 2.25 | % | 3.62 | % |
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| Effect Of A 25 Basis Point Decrease On Net Pension Expense [Table Text Block] |
The following illustrates the effect on pension expense for 2023 of a 25 basis point decrease in the above assumptions:
| | | | | | | In millions | 2023 | | Expense (Income): | | | Discount rate | $ | 15 | | | Expected long-term rate of return on plan assets | 20 | |
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| Projected Future Pension Benefit Payments, Excluding Any Termination Benefits [Table Text Block] |
At December 31, 2022, projected future pension benefit payments, excluding any termination benefits, were as follows:
| | | | | | | In millions | | | 2023 | $ | 610 | | | 2024 | 622 | | | 2025 | 628 | | | 2026 | 637 | | | 2027 | 640 | | | 2028-2032 | 3,199 | |
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