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RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Summary of changes in projected benefit obligations, fair value of plan assets, and funded status of plan
The following table shows the changes in the benefit obligation and plan assets and the plans’ funded status. The transfer of the PBO and assets which were accounted for as multi-employer until October 1, 2021, are reflected within the Pension plan transfer from Parent line below, and three months of activity after the spin-off date is reflected within the table for 2021.
In millions
20212020
Change in projected benefit obligation:
Benefit obligation, January 1
$171 $165 
Pension plan transfer from Parent287 — 
Service cost
2 1 
Interest cost
6 4 
Actuarial loss (gain)
— 7 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (1)
Benefit obligation, December 31
$462 $171 
Change in plan assets:
Fair value of plan assets, January 1
$171 $163 
Pension plan transfer from Parent252 — 
Actual return on plan assets
2 11 
Company contributions
10 4 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (2)
Fair value of plan assets, December 31
$431 $171 
Funded status, December 31
$(31)$— 
Amounts recognized in the consolidated and combined balance sheets:
Non-current asset
$8 $5 
Non-current liability
(39)(5)
$(31)$— 
Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax):
Net prior service cost$2 $— 
Net actuarial loss
106 63 
$108 $63 
Schedule of amounts recognized in balance sheet
The following table shows the changes in the benefit obligation and plan assets and the plans’ funded status. The transfer of the PBO and assets which were accounted for as multi-employer until October 1, 2021, are reflected within the Pension plan transfer from Parent line below, and three months of activity after the spin-off date is reflected within the table for 2021.
In millions
20212020
Change in projected benefit obligation:
Benefit obligation, January 1
$171 $165 
Pension plan transfer from Parent287 — 
Service cost
2 1 
Interest cost
6 4 
Actuarial loss (gain)
— 7 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (1)
Benefit obligation, December 31
$462 $171 
Change in plan assets:
Fair value of plan assets, January 1
$171 $163 
Pension plan transfer from Parent252 — 
Actual return on plan assets
2 11 
Company contributions
10 4 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (2)
Fair value of plan assets, December 31
$431 $171 
Funded status, December 31
$(31)$— 
Amounts recognized in the consolidated and combined balance sheets:
Non-current asset
$8 $5 
Non-current liability
(39)(5)
$(31)$— 
Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax):
Net prior service cost$2 $— 
Net actuarial loss
106 63 
$108 $63 
Schedule of amounts recognized in other comprehensive income (loss)
The following table shows the changes in the benefit obligation and plan assets and the plans’ funded status. The transfer of the PBO and assets which were accounted for as multi-employer until October 1, 2021, are reflected within the Pension plan transfer from Parent line below, and three months of activity after the spin-off date is reflected within the table for 2021.
In millions
20212020
Change in projected benefit obligation:
Benefit obligation, January 1
$171 $165 
Pension plan transfer from Parent287 — 
Service cost
2 1 
Interest cost
6 4 
Actuarial loss (gain)
— 7 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (1)
Benefit obligation, December 31
$462 $171 
Change in plan assets:
Fair value of plan assets, January 1
$171 $163 
Pension plan transfer from Parent252 — 
Actual return on plan assets
2 11 
Company contributions
10 4 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (2)
Fair value of plan assets, December 31
$431 $171 
Funded status, December 31
$(31)$— 
Amounts recognized in the consolidated and combined balance sheets:
Non-current asset
$8 $5 
Non-current liability
(39)(5)
$(31)$— 
Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax):
Net prior service cost$2 $— 
Net actuarial loss
106 63 
$108 $63 
Schedule of accumulated and projected benefit obligations
The following table summarizes obligation and asset information:
In millions as of December 31
20212020
Projected benefit obligation
$462 $171 
Accumulated benefit obligation
446 168 
Fair value of plan assets
431 171 
Schedule of defined benefit plans disclosures
The following table summarizes obligation and asset information:
In millions as of December 31
20212020
Projected benefit obligation
$462 $171 
Accumulated benefit obligation
446 168 
Fair value of plan assets
431 171 
Schedule of net benefit costs
Net periodic pension expense comprised the following:
In millions
202120202019
Service cost
$2 $1 $1 
Interest cost6 4 5 
Expected return on plan assets
(11)(8)(9)
Actuarial loss (gain)
2 1 1 
Net periodic pension expense (benefit)
$(1)$(2)$(2)
Schedule of assumptions used to determine the net periodic (benefit)/cost
Major actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit plans are presented in the following table:
202120202019
Actuarial assumptions used to determine benefit obligations as of December 31:
Discount rate
2.79 %2.27 %2.80 %
Rate of compensation increase
3.36 %3.54 %3.39 %
Actuarial assumptions used to determine net periodic pension cost for years ended December 31:
Discount rate
2.79 %2.76 %4.23 %
Expected long-term rate of return on plan assets
5.38 %4.84 %6.59 %
Rate of compensation increase
2.85 %3.42 %3.63 %
Defined benefit plan, plan assets, category
The fair values of Sylvamo’s pension plan assets at December 31, 2020 for the direct plans consisted primarily of diversified investment funds classified as Level 2 assets. The fair value of pension plan assets at December 31, 2021 by asset class are shown below for the material plans which include the U.S. and U.K. pension plans.
Fair Value Measurement at December 31, 2021
Asset Class 
TotalQuoted Prices in Active Markets For Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
In millions
Cash and cash equivalents
$17 $17 $— $— 
Equities - developed markets
88 — 88 — 
Equities - emerging markets8 — 8 — 
Government securities59 23 36 — 
Corporate bonds137 — 137 — 
Other fixed income securities91 — 91 — 
Derivatives2 1 1 — 
Other
4 — 4 — 
Total Investments
$406 $41 $365 $— 
Schedule of expected future benefit payments
At December 31, 2021, projected future pension benefit payments, excluding any termination benefits, were as follows:

In millions
2022$6 
20237 
20249 
202511 
202613 
2027-203196