XML 36 R17.htm IDEA: XBRL DOCUMENT v3.25.0.1
DIVESTITURE AND IMPAIRMENT OF BUSINESS
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure DIVESTITURE AND IMPAIRMENT OF BUSINESS
RUSSIAN OPERATIONS

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 evaluated to exit the business. As a result, a pre-tax charge of $68 million ($57 million) was recorded for the impairment of the Russian fixed assets during the first quarter of 2022. 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 consolidated statement of operations.

During the second quarter of 2022, management committed to a plan to sell the Company’s Russian operations. In October 2022, the Company completed the sale of its Russian operations to Pulp Invest Limited Liability Company, a company incorporated in the Russian Federation, for $420 million. After transaction and foreign currency exchange costs of $35 million, Sylvamo received $385 million in cash proceeds.

As a result, all historical operating results of the Russian operations are presented as “Discontinued operations, net of taxes” in the consolidated statement of operations. 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 consolidated statements of operations.
In millions for the year ended December 31
2022
NET SALES$518 
COSTS AND EXPENSES
Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)425 
Selling and administrative expenses10 
Depreciation, amortization and cost of timber harvested4 
Taxes other than payroll and income taxes1 
Impairment of business296 
Interest expense (income), net(3)
INCOME BEFORE INCOME TAXES(215)
Income tax provision 3 
DISCONTINUED OPERATIONS, NET OF TAXES$(218)

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 consolidated statements of cash flows:

In millions for the year ended December 31
2022
Cash Provided by Operating Activities$20 
Cash Provided by (Used for) Investing Activities (a)
$(5)
(a) Includes cash invested in capital projects of $5 million