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SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
TEMPORARY INVESTMENTS

Temporary investments totaled $80 million and $64 million as of December 31, 2022 and 2021, respectively.

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net, by classification were:
In millions as of December 31 
20222021
Accounts and notes receivable:
Trade
$430 $391 
Notes and other
20 11 
Total
$450 $402 

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 $19 million at December 31, 2022 and December 31, 2021, 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
20222021
Raw materials
$40 $37 
Finished paper and pulp products
226 164 
Operating supplies
78 69 
Other
20 9 
Total
$364 $279 
The last-in, first-out inventory method is used to value most of the Company’s U.S. inventories. Approximately 71% of total raw materials and finished paper and pulp product inventories were valued using this method. The last-in, first-out inventory reserve was $54 million and $43 million as of December 31, 2022 and 2021, respectively.
PLANTS, PROPERTIES AND EQUIPMENT, NET
In millions as of December 31
20222021
Land
$8 $9 
Buildings
361 351 
Machinery
3,903 3,827 
Construction in progress
103 28 
Capital leases
37 37 
Gross cost
4,412 4,252 
Less: Accumulated depreciation
3,595 3,488 
Plants, Properties and Equipment, net
$817 $764 
Non-cash additions to plants, property and equipment included within accounts payable were $36 million, $6 million and $8 million as of December 31, 2022, 2021 and 2020, 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 $104 million, $107 million and $121 million for the years ended December 31, 2022, 2021 and 2020, respectively. Cost of products sold excludes depreciation and amortization expense.

INTEREST

Interest payments of $63 million, $10 million and $1 million were made during the years ended December 31, 2022, 2021 and 2020, respectively.

Amounts related to interest were as follows:
In millions
202220212020
Interest expense (a)$80 $32 $4 
Interest income(8)(32)(8)
Capitalized interest costs(3)(1)— 
(a)     Interest expense for 2022 includes $5 million of debt extinguishment cost related to the repayment of the total outstanding balance of Term Loan B in the fourth quarter.

ASSET RETIREMENT OBLIGATIONS

At both December 31, 2022 and 2021, we had recorded liabilities of $26 million related to asset retirement obligations. These amounts are included in “Other liabilities” in the accompanying consolidated balance sheets.