Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income Before Income Tax, Domestic and Foreign [Table Text Block]

The components of International Paper’s earnings from continuing operations before income taxes and equity earnings by taxing jurisdiction were as follows:


In millions	2023		2022		2021
Earnings (loss)
U.S.	$	129	$	1,469	$	906
Non-U.S.	253		42		93
Earnings (loss) from continuing operations before income taxes and equity earnings (losses)	$	382	$	1,511	$	999

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision (benefit) for income taxes from continuing operations (excluding noncontrolling interests) by taxing jurisdiction was as follows:


In millions	2023		2022		2021
Current tax provision (benefit)
U.S. federal	$	157	$	454	$	413
U.S. state and local	16		56		47
Non-U.S.	42		27		37
	$	215	$	537	$	497
Deferred tax provision (benefit)
U.S. federal	$	(164)	$	(775)	$	(274)
U.S. state and local	3		(39)		(27)
Non-U.S.	5		41		(8)
	$	(156)	$	(773)	$	(309)
Income tax provision (benefit)	$	59	$	(236)	$	188

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of income tax expense using the statutory U.S. income tax rate compared with the actual income tax provision follows:


In millions	2023			2022			2021
Earnings (loss) from continuing operations before income taxes and equity earnings	$	382		$	1,511		$	999
Statutory U.S. income tax rate	21		%	21		%	21		%
Tax expense (benefit) using statutory U.S. income tax rate	80			317			210
State and local income taxes	2			44			15
Impact of rate differential on non-U.S. permanent differences and earnings	(10)			1			5
Foreign valuation allowance	—			45			—
Tax expense (benefit) on exchange of Sylvamo shares	—			(56)			—
Adjustment to tax basis of assets	—			—			(14)
Non-deductible business expenses	7			2			1
Non-deductible impairments	—			16			—
Non-deductible compensation	7			13			11
Tax audits	(4)			6			9
Timber Monetization Audit Settlement	—			(604)			—
Foreign derived intangible income deduction	2			(8)			(7)
US tax on non-U.S. earnings (GILTI and Subpart F)	—			27			5
Foreign tax credits	8			8			(6)
General business and other tax credits	(38)			(43)			(39)
Tax expense (benefit) on equity earnings	(4)			(1)			—
Legal entity restructuring gain (loss)	4			—			—
Other, net	5			(3)			(2)
Income tax provision (benefit)	$	59		$	(236)		$	188
Effective income tax rate	15		%	(16)		%	19		%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of significant temporary differences, representing deferred income tax assets and liabilities at December 31, 2023 and 2022, were as follows:


In millions	2023		2022
Deferred income tax assets:
Postretirement benefit accruals	$	67	$	68
Pension obligations	61		18
Tax credits	182		175
Net operating and capital loss carryforwards	699		568
Compensation reserves	146		151
Lease obligations	116		108
Environmental reserves	114		119
Other	319		271
Gross deferred income tax assets	$	1,704	$	1,478
Less: valuation allowance (a)	(848)		(677)
Net deferred income tax asset	$	856	$	801
Deferred income tax liabilities:
Intangibles	$	(141)	$	(147)
Investments	3		(2)
Right of use assets	(116)		(108)
Plants, properties and equipment	(1,650)		(1,778)
Forestlands, related installment sales, and investment in subsidiary	(485)		(485)
Gross deferred income tax liabilities	$	(2,389)	$	(2,520)
Net deferred income tax liability	$	(1,533)	$	(1,719)

(a) The net change in the total valuation allowance for the years ended December 31, 2023 and 2022 was an increase of $171 million and a decrease of $(31) million, respectively.

Schedule of Unrecognized Tax Benefits Rollforward [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021 is as follows:


In millions	2023		2022		2021
Balance at January 1	$	(177)	$	(166)	$	(143)
(Additions) reductions for tax positions related to current year	(13)		(7)		(13)
(Additions) for tax positions related to prior years	(11)		(10)		(23)
Reductions for tax positions related to prior years	1		3		1
Settlements	17		1		10
Expiration of statutes of limitations	11		1		1
Currency translation adjustment	(1)		1		1
Balance at December 31	$	(173)	$	(177)	$	(166)

Summary of Operating Loss and Tax Credit Carryforwards [Table Text Block]

The following details the scheduled expiration dates of the Company’s net operating loss and income tax credit carryforwards:


In millions	2024 Through 2033		2034 Through 2043		Indefinite		Total
U.S. federal and non-U.S. NOLs	$	1	$	225	$	426	$	652
State taxing jurisdiction NOLs (a)	38		9		—		47
U.S. federal, non- U.S. and state tax credit carryforwards (a)	82		3		97		182
Total	$	121	$	237	$	523	$	881
Less: valuation allowance (a)	(83)		(220)		(475)		(778)
Total, net	$	38	$	17	$	48	$	103

(a) State amounts are presented net of federal benefit.