SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Note)

3 Months Ended

Mar. 31, 2023

Disclosure Text Block Supplement [Abstract]

Supplemental Financial Statement Information [Note Text Block]

Temporary Investments 

Temporary investments with an original maturity of three months or less and money market funds with greater than three month maturities but with the right to redeem without notices are treated as cash equivalents and are stated at cost. Temporary investments totaled $534 million and $690 million at March 31, 2023 and December 31, 2022, respectively.

Restricted Cash

A reconciliation of cash and temporary investments and restricted cash in the condensed consolidated balance sheet to cash and temporary investments and restricted cash in the condensed consolidated statement of cash flows for the three months ended March 31, 2023 and 2022, respectively is below.

	Three Months Ended March 31,
In millions	2023		2022
Cash and Temporary Investments	$	636	$	1,031
Restricted Cash	72		88
Total Cash and Temporary Investments and Restricted Cash	$	708	$	1,119

The Company's restricted cash at March 31, 2023 consists of the cash proceeds from the $72 million first quarter 2023 environmental development bond (EDB) issuance. Proceeds from this debt issuance were used to repay an EDB maturing on April 1, 2023. See Note 15 - Debt for further details regarding the first quarter 2023 EDB issuance and the expected debt repayment.

Accounts and Notes Receivable

In millions	March 31, 2023		December 31, 2022
Accounts and notes receivable, net:
Trade (less allowances of $33 in 2023 and $31 in 2022)	$	2,935	$	3,064
Other	261		220
Total	$	3,196	$	3,284

Inventories

In millions	March 31, 2023		December 31, 2022
Raw materials	$	242	$	267
Finished pulp, paper and packaging	1,043		1,071
Operating supplies	583		516
Other	71		88
Total	$	1,939	$	1,942

Current Investments

As a result of the 2021 spin-off of Sylvamo, the Company retained 19.9% of the shares of Sylvamo with the intent to monetize its investment and provide additional proceeds to the Company. In the second quarter 2022, the Company exchanged 4,132,000 shares of Sylvamo common stock owned by the Company in exchange and as repayment for an approximately $144 million term loan obligation which resulted in the reversal of a $31 million deferred tax liability due to the tax-free exchange of the Sylvamo Corporation common stock. In the third quarter 2022, the Company exchanged the remaining 4,614,358 shares of Sylvamo common stock owned by the Company in exchange for $167 million and as partial repayment of a $210 million term loan obligation. This also resulted in the reversal of a $35 million deferred tax liability due to the tax-free exchange of the Sylvamo Corporation common stock. As of the end of the third quarter 2022, the Company no longer had an ownership interest in Sylvamo.

Plants, Properties and Equipment  

Accumulated depreciation was $18.6 billion and $18.4 billion at March 31, 2023 and December 31, 2022, respectively. Depreciation expense was $232 million and $250 million for the three months ended March 31, 2023 and 2022, respectively.

Non-cash additions to plants, properties and equipment included within accounts payable were $94 million and $185 million at March 31, 2023 and December 31, 2022, respectively.

There were no insurance recoveries included within capital spending for the three months ended March 31, 2023. Insurance recoveries included in capital spending were $18 million for the three months ended March 31, 2022.

Accounts Payable  

Under a supplier finance program, IP agrees to pay a bank the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices. IP or the bank may terminate the agreement upon at least 90 days’ notice. The supplier invoices that have been confirmed as valid under the program require payment in full with the payment date not to exceed 180 days past the invoice date. The accounts payable balance included $142 million and $122 million of supplier finance program liabilities as of March 31, 2023 and December 31, 2022, respectively.

Interest

Interest payments made during the three months ended March 31, 2023 and 2022 were $114 million and $56 million, respectively.

Amounts related to interest were as follows: 

	Three Months Ended March 31,
In millions	2023		2022
Interest expense	$	103	$	77
Interest income	41		8
Capitalized interest costs	5		4

Asset Retirement Obligations

The Company had recorded liabilities of $104 million and $105 million related to asset retirement obligations at March 31, 2023 and December 31, 2022, respectively.