DIVESTITURE AND IMPAIRMENT OF BUSINESS

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

RUSSIAN OPERATIONS

2022: During the second quarter of 2022, management committed to a plan to sell the Company’s Russian operations. As a result, all current and historical operating results of the Russian operations are presented as “Discontinued operations, net of taxes” in the condensed consolidated and combined statement of operations. All historical assets and liabilities of the Russian operations are classified as current and long-term assets and liabilities held for sale in the accompanying condensed consolidated balance sheet. The Russian operations were previously part of the Europe business segment. The following summarizes the major classes of line items comprising Income (Loss) Before Income Taxes reconciled to Discontinued Operations, net of taxes, related to the Russian operations for all periods presented in the condensed consolidated and combined statement of operations.


	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2022		2021		2022		2021
NET SALES	$	157	$	149	$	313	$	303
COSTS AND EXPENSES
Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)	139		117		242		223
Selling and administrative expenses	3		1		4		3
Depreciation, amortization and cost of timber harvested	—		4		4		8
Distribution expenses	7		11		17		21
Taxes other than payroll and income taxes	1		—		1		1
Impairment of business	156		—		224		—
Interest (income) expense, net	(2)		—		(3)		—
INCOME (LOSS) BEFORE INCOME TAXES	(147)		16		(176)		47
Income tax provision (benefit)	(4)		2		(4)		9
DISCONTINUED OPERATIONS, NET OF TAXES	$	(143)	$	14	$	(172)	$	38

The following summarizes the major classes of assets and liabilities of the Russian operations reconciled to current assets and long-term assets and liabilities held for sale and current and long-term liabilities held for sale in the accompanying condensed consolidated balance sheet:


In millions	June 30, 2022		December 31, 2021
Cash and temporary investments	$	84	$	21
Accounts and notes receivable	90		88
Contract assets	2		3
Inventories	98		63
Other current assets	2		4
Current Assets Held for Sale	$	276	$	179
Plants, Properties and Equipment	38		121
Goodwill	14		10
Right of Use Assets	2		1
Deferred Charges and Other Assets	27		9
Long-Term Assets Held for Sale (a)	$	81	$	141
Notes payable and current maturities of long-term debt	$	2	$	1
Accounts payable	81		58
Accrued payroll and benefits	6		3
Other current liabilities	177		29
Current Liabilities Held for Sale	$	266	$	91
Long-Term Debt	0		1
Deferred Income Taxes	—		—
Other Liabilities	22		12
Long-Term Liabilities Held for Sale (a)	$	22	$	13

(a) Amounts included in current “Assets held for sale” and current “Liabilities held for sale” in the accompanying consolidated balance sheet as of June 30, 2022.

The following summarizes the total cash provided by operating activities from discontinued operations, net and total cash provided by (used for) investing activities from discontinued operations, net and included in the condensed consolidated and combined statement of cash flows:


In millions for the six months ended June 30	2022		2021
Cash Provided by Operating Activities	$	45	$	67
Cash Provided by (Used for) Investment Activities (a)	$	(5)	$	7

(a) Includes cash invested in capital projects of $5 million and $5 million for the six months ended June 30, 2022 and 2021, respectively.

During the first quarter of 2022, as a result of the significant changes in the business climate impacting our Russian operations, a determination was made that the current carrying value of our Russian operations exceeded the estimated fair value. The fair value of the Russian operations was estimated based on a probability-weighted average approach of the potential cash flows from various paths the Company was evaluating to exit the business. As a result, a pre-tax charge of $68 million ($57 million, net of taxes) was recorded for the impairment and allocated to the Russian fixed assets. During the second quarter of 2022, a pre-tax charge of $156 million ($156 million after taxes) was recorded to reserve for the elimination of the cumulative foreign currency translation losses related to our Russian operations. These charges are included in “Impairment of business” within the summarized income statement for our Russian operations included in this footnote and is included in “Discontinued operations, net of taxes” in the condensed consolidated and combined statement of operations.