LEASES (Note)

3 Months Ended

Mar. 31, 2023

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 a remaining lease term of up to 30 years. Total lease costs were $75 million and $60 million for the three months ended March 31, 2023 and 2022, respectively.

Supplemental Balance Sheet Information Related to Leases


In millions	Classification	March 31, 2023		December 31, 2022
Assets
Operating lease assets	Right-of-use assets	$	422	$	424
Finance lease assets	Plants, properties and equipment, net (a)	48		49
Total leased assets		$	470	$	473
Liabilities
Current
Operating	Other current liabilities	$	143	$	147
Finance	Notes payable and current maturities of long-term debt	10		10
Noncurrent
Operating	Long-term lease obligations	286		283
Finance	Long-term debt	47		49
Total lease liabilities		$	486	$	489

(a)Finance leases are recorded net of accumulated amortization of $62 million and $59 million as of March 31, 2023 and December 31, 2022, respectively.

Lessee, Finance Leases

Supplemental Balance Sheet Information Related to Leases


In millions	Classification	March 31, 2023		December 31, 2022
Assets
Operating lease assets	Right-of-use assets	$	422	$	424
Finance lease assets	Plants, properties and equipment, net (a)	48		49
Total leased assets		$	470	$	473
Liabilities
Current
Operating	Other current liabilities	$	143	$	147
Finance	Notes payable and current maturities of long-term debt	10		10
Noncurrent
Operating	Long-term lease obligations	286		283
Finance	Long-term debt	47		49
Total lease liabilities		$	486	$	489

(a)Finance leases are recorded net of accumulated amortization of $62 million and $59 million as of March 31, 2023 and December 31, 2022, respectively.