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FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA FINANCIAL INFORMATION BY BUSINESS SEGMENT
The Company’s business segments, Europe, Latin America and North America, are organized by geography. These segments are consistent with the internal structure used to manage these businesses. Each of our segments derive their revenue from the manufacture and sale of paper and pulp products.

Business segment operating profits are used by the Company’s management to measure the earnings performance of its businesses. Management believes that business segment operating profit provides investors and analysts useful insights into our operating performance. We define business segment operating profit as our income from continuing operations before income
taxes calculated in accordance with GAAP, excluding net interest expense (income) and net business special items and net corporate special items.

The chief operating decision maker uses business segment operating profit to allocate resources (primarily capital spending) for each segment predominantly during the annual strategic planning, budgeting and forecasting processes. The chief operating decision maker also considers actual performance variances in business segment operating profits on a monthly basis to assess the performance of the segments. The Company’s chief operating decision maker group is made up of the Chairman and Chief Executive Officer and Chief Operating Officer.

Sales by business segment are determined using a management approach and include intersegment sales (which are eliminated in consolidation).

Information By Business Segment

Net Sales and Business Segment Operating Profit

Three Months Ended September 30, 2025:

In millions
EuropeLatin AmericaNorth AmericaTotal
Sales$184 $228 $450 $862 
Intersegment sales— (16)— (16)
Net sales$184 $212 $450 $846 
Less:
Cost of products sold and other181 130 319 630 
Maintenance outages— — — — 
Economic downtime2 — — 2 
Selling and administrative expenses13 23 31 67 
Depreciation, amortization and cost of timber harvested9 24 16 49 
Add:
Other special items, net— — — — 
Business Segment Operating Profit (Loss)
$(21)$35 $84 $98 
Income before income taxes
88 
Interest (income) expense, net
9 
Corporate special items, net (a)
1 
Other special items, net
— 
Business Segment Operating Profit$98 

(a) Net special items represent income or expenses that are incurred periodically, rather than on a regular basis. Net special items in the period presented include certain severance costs related to our salaried workforce.
Nine Months Ended September 30, 2025:

In millions
EuropeLatin AmericaNorth AmericaTotal
Sales$555 $634 $1,307 $2,496 
Intersegment sales— (35)— (35)
Net sales$555 $599 $1,307 $2,461 
Less:
Cost of products sold and other528 383 936 1,847 
Maintenance outages40 21 32 93 
Economic downtime2 — 3 5 
Selling and administrative expenses43 67 102 212 
Depreciation, amortization and cost of timber harvested25 65 44 134 
Add:
Other special items, net (a)
— — 2 2 
Business Segment Operating Profit (Loss)
$(83)$63 $192 $172 
Income before income taxes
$141 
Interest (income) expense, net
28 
Corporate special items, net (a)
1 
Other special items, net (a)
2 
Business Segment Operating Profit$172 

(a) Net special items in the period presented primarily include certain severance costs related to our salaried workforce, a pre-tax gain to adjust the recognition of a foreign value-added tax refund in Brazil and charges related to the termination of the Georgetown mill offtake agreement and environmental reserves in Brazil.

Three Months Ended September 30, 2024:

In millions
EuropeLatin AmericaNorth AmericaTotal
Sales$194 $247 $532 $973 
Intersegment sales(1)(7)— (8)
Net sales$193 $240 $532 $965 
Less:
Cost of products sold and other165 154 370 689 
Maintenance outages1 — — 1 
Economic downtime5 — 11 16 
Selling and administrative expenses11 22 41 74 
Depreciation, amortization and cost of timber harvested8 18 13 39 
Add:
Other special items, net (a)
— 3 1 4 
Business Segment Operating Profit
$3 $49 $98 $150 
Income before income taxes
132 
Interest (income) expense, net
14 
Corporate special items, net
— 
Other special items, net (a)
4 
Business Segment Operating Profit$150 

(a) Net special items in the period presented primarily include legal fees related to the Brazil Tax Dispute, a loss related to forest fires in Brazil and certain severance costs related to our salaried workforce.
Nine Months Ended September 30, 2024:

In millions
EuropeLatin AmericaNorth AmericaTotal
Sales$607 $708 $1,515 $2,830 
Intersegment sales(2)(25)— (27)
Net sales$605 $683 $1,515 $2,803 
Less:
Cost of products sold and other527 449 1,063 2,039 
Maintenance outages1 18 36 55 
Economic downtime8 — 19 27 
Selling and administrative expenses39 66 124 229 
Depreciation, amortization and cost of timber harvested24 53 38 115 
Add:
Other special items, net (a)
1 3 2 6 
Business Segment Operating Profit
$7 $100 $237 $344 
Income before income taxes
$305 
Interest (income) expense, net
32 
Corporate special items, net (a)
1 
Other special items, net (a)
6 
Business Segment Operating Profit$344 

(a) Net special items in the period presented primarily include legal fees related to the Brazil Tax Dispute, a loss related to forest fires in Brazil, certain severance costs related to our salaried workforce, and integration costs related to the Nymölla acquisition.

Assets
In millions
September 30, 2025December 31, 2024
Europe
$402 $324 
Latin America
1,200 1,065 
North America
887 904 
Corporate and eliminations (a)
214 311 
Assets
$2,703 $2,604 

(a) Includes corporate assets.

Capital Spending
Nine Months Ended
September 30,
In millions
20252024
Europe
$26 $17 
Latin America
92 102 
North America
49 37 
Corporate1 1 
Capital Spending
$168 $157