XML 66 R19.htm IDEA: XBRL DOCUMENT v3.24.0.1
Supplementary Financial Statement Information (Note)
 12 Months Ended
Dec. 31, 2023
Disclosure Text Block Supplement [Abstract]  
Supplementary Financial Statement Information

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 $950 million and $690 million at December 31, 2023 and 2022, respectively.

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net, by classification were: 
In millions at December 3120232022
Accounts and notes receivable:
Trade (less allowances of $34 in 2023 and $31 in 2022)
$2,841 $3,064 
Other218 220 
Total$3,059 $3,284 

INVENTORIES 

In millions at December 3120232022
Raw materials$229 $267 
Finished pulp and packaging products975 1,071 
Operating supplies622 516 
Other63 88 
Inventories$1,889 $1,942 

The last-in, first-out inventory method is used to value most of International Paper’s U.S. inventories. Approximately 81% of total raw materials and finished products inventories were valued using this method. The last-in, first-out inventory reserve was $343 million and $282 million at December 31, 2023 and 2022, respectively.

PLANTS, PROPERTIES AND EQUIPMENT 
In millions at December 3120232022
Pulp and packaging facilities$28,661 $27,773 
Other properties and equipment1,050 1,029 
Gross cost29,711 28,802 
Less: Accumulated depreciation19,561 18,371 
Plants, properties and equipment, net$10,150 $10,431 
 
Non-cash additions to plants, property and equipment included within accounts payable were $141 million, $185 million and $106 million at December 31, 2023, 2022 and 2021, respectively.  


Amounts invested in capital projects in the accompanying consolidated statement of cash flows are presented net of insurance recoveries of $26 million and $17 million received during the years ended December 31, 2022 and 2021, respectively. There were no insurance recoveries received during the year ended December 31, 2023.

Annual straight-line depreciable lives generally are, for buildings - 20 to 40 years, and for machinery and equipment - 3 to 20 years. Depreciation expense was $1.4 billion, $996 million and $1.1 billion for the years ended December 31, 2023, 2022 and 2021. Depreciation expense for the year ended December 31, 2023 includes $422 million of accelerated depreciation related to mill strategic actions. Cost of products sold excludes depreciation and amortization expense.

ACCOUNTS PAYABLE 

Under a supplier finance program, International Paper agrees to pay a bank the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices. International Paper 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 on the due date with no terms exceeding 180 days. The accounts payable balance included $122 million of supplier finance program liabilities as of both December 31, 2023 and 2022.

INTEREST

Interest payments of $463 million, $380 million and $473 million were made during the years ended December 31, 2023, 2022 and 2021, respectively.

Amounts related to interest were as follows: 
In millions202320222021
Interest expense$421 $403 $430 
Interest income 190 78 93 
Capitalized interest costs22 18 12 
ASSET RETIREMENT OBLIGATIONS

At December 31, 2023 and 2022, we had recorded liabilities of $103 million and $105 million, respectively, related to asset retirement obligations.

In connection with potential future closures or redesigns of certain production facilities, it is possible that the Company may be required to take steps to remove certain materials from these facilities. Applicable regulations and standards provide that the removal of certain materials would only be required if
the facility were to be demolished or underwent major renovations. At this time, any such obligations have an indeterminate settlement date, and the Company believes that adequate information does not exist to apply an expected-present-value technique to estimate any such potential obligations. Accordingly, the Company does not record a liability for such remediation until a decision is made that allows reasonable estimation of the timing of such remediation.