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SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION 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 months maturities but with the right to redeem without notices are treated as cash equivalents and are stated at cost. Temporary investments totaled $78 million and $36 million as of December 31, 2021 and 2020, respectively.

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net, by classification were:
In millions as of December 31 
20212020
Accounts and notes receivable:
Trade
$472 $398 
Due from Parent cash pool— 202 
Notes and other
18 21 
Total
$490 $621 

Accounts and notes receivable are recognized net of the allowance for expected credit losses. The allowance for expected credit losses reflects the best estimate of losses inherent in the Company’s receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts, expectations for future economic conditions through the use of macroeconomic data and other available evidence. The allowance for expected credit losses was $20 million and $30 million at December 31, 2021 and December 31, 2020, respectively. Based on the Company’s accounting estimates and the facts and circumstances available as of the reporting date, we believe our allowance for expected credit losses is adequate.
INVENTORIES
In millions as of December 31
20212020
Raw materials
$49 $50 
Finished paper and pulp products
189 171 
Operating supplies
95 102 
Other
9 19 
Total
$342 $342 
The last-in, first-out inventory method is used to value most of the Company’s U.S. inventories. Approximately 63% of total raw materials and finished paper and pulp product inventories were valued using this method. The last-in, first-out inventory reserve was $43 million and $108 million as of December 31, 2021 and 2020, respectively.
PLANTS, PROPERTIES AND EQUIPMENT, NET
In millions as of December 31
20212020
Land
$9 $9 
Buildings
386 408 
Machinery
4,212 4,299 
Construction in progress
33 23 
Capital leases
42 43 
Gross cost
4,682 4,782 
Less: Accumulated depreciation
3,797 3,808 
Plants, Properties and Equipment, net
$885 $974 
Non-cash additions to plants, property and equipment included within accounts payable were $6 million, $11 million and $13 million as of December 31, 2021, 2020 and 2019, respectively.
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 $141 million, $152 million and $190 million for the years ended December 31, 2021, 2020 and 2019, respectively. Cost of products sold excludes depreciation and amortization expense.

INTEREST

Interest payments of $10 million, $1 million and $2 million were made during the years ended December 31, 2021, 2020 and 2019, respectively.

Amounts related to interest were as follows:
In millions
202120202019
Interest expense$32 $4 $5 
Interest income(33)(8)(13)
Capitalized interest costs(1)— (1)

ASSET RETIREMENT OBLIGATIONS

At December 31, 2021 and 2020, we had recorded liabilities of $27 million and $20 million, respectively related to asset retirement obligations. These amounts are included in “Other liabilities” in the accompanying consolidated and combined balance sheets.