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SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
TEMPORARY INVESTMENTS

Temporary investments totaled $109 million and $80 million as of December 31, 2023 and 2022, respectively.

RESTRICTED CASH
Restricted cash of $60 million as of December 31, 2023 represents funds held in escrow related to the Brazil Tax Dispute. See Note 14 Long-Term Debt for further details.
The following table provides a reconciliation of cash, temporary investments and restricted cash in the consolidated balance sheets to total cash, temporary investments and restricted cash in the consolidated and combined statements of cash flows:
In millions as of December 31
20232022
Cash and temporary investments
$220 $360 
Restricted cash
60 — 
Total cash, temporary investments and restricted cash in the statements of cash flows
$280 $360 
ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net, by classification were:
In millions as of December 31 
20232022
Accounts and notes receivable:
Trade
$404 $430 
Notes and other
24 20 
Total
$428 $450 

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 $25 million and $20 million at December 31, 2023 and December 31, 2022, 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
20232022
Raw materials
$60 $40 
Finished paper and pulp products
213 226 
Operating supplies
109 78 
Other
22 20 
Total
$404 $364 

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 $81 million and $54 million as of December 31, 2023 and 2022, respectively. During the period ended December 31, 2023, the amount of inventories in a certain LIFO pool decreased and resulted in the liquidation of LIFO inventory layers carried at lower costs. The effect of this liquidation was to increase income from continuing operations before income taxes in the North America segment by approximately $2 million.
PLANTS, PROPERTIES AND EQUIPMENT, NET
In millions as of December 31
20232022
Land
$10 $8 
Buildings
396 361 
Machinery
4,298 3,903 
Construction in progress
102 103 
Capital leases
38 37 
Gross cost
4,844 4,412 
Less: Accumulated depreciation
3,842 3,595 
Plants, Properties and Equipment, net
$1,002 $817 
Non-cash additions to plants, property and equipment included within accounts payable were $17 million, $36 million and $6 million as of December 31, 2023, 2022 and 2021, 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 $118 million, $104 million and $107 million for the years ended December 31, 2023, 2022 and 2021, respectively. Cost of products sold excludes depreciation and amortization expense.
OTHER LIABILITIES AND COSTS

During the year ended December 31, 2023, the Company recorded approximately $13 million before taxes ($10 million after taxes) of severance costs related to a planned reduction in our salaried workforce, of which $3 million is included within Cost of products sold and $10 million is included within Selling and administrative expenses in our consolidated statements of operations. Of these total costs, $2 million, $3 million and $8 million are related to our Europe, Latin America and North America business segments, respectively. These severance amounts are reflected in Other current liabilities in our consolidated balance sheet and will be paid in cash during 2024.

INTEREST

Interest payments of $68 million, $63 million and $10 million were made during the years ended December 31, 2023, 2022 and 2021, respectively.

Amounts related to interest were as follows:

In millions
202320222021
Interest expense (a)
$64 $80 $32 
Interest income (b)
(26)(8)(32)
Capitalized interest costs(4)(3)(1)
Total$34 $69 $(1)
(a)     Interest expense for 2023 includes $5 million of debt extinguishment cost related to the tender offer for our 7.00% 2029 Senior Notes. Interest expense for 2022 includes $5 million of debt extinguishment cost related to the repayment of the total outstanding balance of Term Loan B.
(b)    Interest income for 2023 includes $9 million of interest income related to tax settlements and $4 million of interest income related to the recognition of a foreign value-added tax refund in Brazil.

ASSET RETIREMENT OBLIGATIONS

At December 31, 2023 and 2022, we had recorded liabilities of $27 million and $26 million, respectively, related to asset retirement obligations. These amounts are included in “Other liabilities” in the accompanying consolidated balance sheets. For asset retirement obligations which are conditional upon future events, we cannot reasonably estimate the current fair value of those potential obligations due to the uncertainty as to the timing or amounts that may be incurred.