SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION

6 Months Ended

Jun. 30, 2012

SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION

NOTE 8 – SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION

Temporary Investments

In millions	June 30, 2012		December 31, 2011
Temporary investments	$	794	$	2,904

Accounts and Notes Receivable

Accounts and notes receivable, net of allowances, by classification were:

In millions	June 30, 2012		December 31, 2011
Accounts and notes receivable, net:
Trade	$	3,389	$	3,039
Other		212		447
Total	$	3,601	$	3,486

Inventories

In millions	June 30, 2012		December 31, 2011
Raw materials	$	417	$	368
Finished pulp, paper and packaging		1,658		1,503
Operating supplies		501		390
Other		74		59
Total	$	2,650	$	2,320

Depreciation Expense

	Three Months Ended June  30,				Six Months Ended June  30,
In millions	2012		2011		2012		2011
Depreciation expense	$	353	$	320	$	698	$	642

Valuation Accounts

Certain valuation accounts were as follows:

In millions	June 30, 2012		December 31, 2011
Accumulated depreciation	$	18,415	$	18,591
Allowance for doubtful accounts		126		126

There was no material activity related to asset retirement obligations during either of the six months ended June 30, 2012 or 2011.

Interest

Cash payments related to interest were as follows:

	Six Months Ended June  30,
In millions	2012		2011
Interest payments	$	349	$	312

Amounts related to interest were as follows:

	Three Months Ended June  30,				Six Months Ended June  30,
In millions	2012		2011		2012		2011
Interest expense (a)	$	179	$	150	$	362	$	300
Interest income (a)		7		13		22		27
Capitalized interest costs		13		4		19		8

(a) Interest expense and interest income exclude approximately $12 million and $20 million for the three months and six months ended June 30, 2012, respectively, and $12 million and $26 million for the three months and six months ended June 30, 2011, respectively, related to investments in and borrowings from variable interest entities for which the Company has a legal right of offset (see Note 12).

Postretirement Benefit Expense

The components of the Company’s postretirement benefit expense were as follows:

	Three Months Ended June  30,						Six Months Ended June  30,
In millions	2012			2011			2012			2011
Service cost	$	0		$	0		$	1		$	1
Interest cost		5			6			10			11
Actuarial loss		3			3			5			5
Amortization of prior service credit		(7	)		(7	)		(14	)		(13	)
Net postretirement benefit expense	$	1		$	2		$	2		$	4