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SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
TEMPORARY INVESTMENTS

Temporary investments totaled $63 million and $104 million as of December 31, 2025 and 2024, respectively.

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net, by classification were:
In millions as of December 31 
20252024
Accounts and notes receivable:
Trade
$399 $402 
Notes and other
25 27 
Total
$424 $429 

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 $17 million and $21 million at December 31, 2025 and December 31, 2024, 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
20252024
Raw materials
$69 $56 
Finished paper and pulp products
217 178 
Operating supplies
122 107 
Other
10 20 
Total
$418 $361 

The last-in, first-out inventory method is used to value most of the Company’s U.S. inventories. Approximately 47% of total raw materials and finished paper and pulp product inventories were valued using this method. The last-in, first-out inventory reserve was $55 million and $72 million as of December 31, 2025 and 2024, respectively. During the periods ended December 31, 2025 and 2024, the amount of inventories in one of our two LIFO pools decreased and resulted in the liquidation of LIFO inventory layers carried at lower costs. The effect of this liquidation was to increase income before income taxes in the North America segment by approximately $12 million and $12 million for the years ended December 31, 2025 and 2024, respectively.
PLANTS, PROPERTIES AND EQUIPMENT, NET
In millions as of December 31
20252024
Land
$10 $9 
Buildings
401 362 
Machinery
4,391 4,090 
Construction in progress
140 92 
Capital leases
40 37 
Gross cost
4,982 4,590 
Less: Accumulated depreciation
3,935 3,646 
Plants, Properties and Equipment, net
$1,047 $944 
Additions to plants, property and equipment included within accounts payable were $20 million, $12 million and $17 million as of December 31, 2025, 2024 and 2023, 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 $140 million, $128 million and $118 million for the years ended December 31, 2025, 2024 and 2023, respectively. Cost of products sold excludes depreciation and amortization expense.

FORESTLANDS

Additions to Forestlands included within accounts payable were $0 million, $10 million and $0 million as of December 31, 2025, 2024 and 2023.

ACCOUNTS PAYABLE

The Company maintains supplier finance agreements with third-party financial institutions. These agreements allow the Company’s participating suppliers to sell their receivables to such third-party financial institutions to receive payment earlier than the negotiated commercial terms between the supplier and the Company. Such sales are at the sole discretion of the supplier, and on terms and conditions that are negotiated between the supplier and the respective financial institution. The terms and conditions of the supplier invoice, including payment terms and amounts due, are not impacted by a supplier’s participation in the program. Pursuant to the supplier finance agreements, the Company has agreed to pay financial institutions on the original due date of the applicable invoice. There are no guarantees associated with these programs. The Company's outstanding payment obligations to financial institutions related to supplier financing programs are included within Accounts payable and accrued liabilities on the Consolidated Balance Sheets.

The following table presents supplier finance program obligations confirmed and paid for the year ended December 31, 2025:

In millions
Confirmed obligations outstanding at December 31, 2024$— 
Invoiced confirmed during the year8 
Confirmed invoices paid during the year(5)
Confirmed obligations outstanding at December 31, 2025$3 

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 was included within Cost of products sold and $10 million was included within Selling and administrative expenses in our consolidated statements of operations. Of these total costs, $2 million, $3 million and $8 million were related to our Europe, Latin America and North America business segments, respectively. As of December 31, 2024, the reserve totaled approximately $2 million which was paid in cash over the first quarter of 2025.
INTEREST

Cash interest payments of $49 million, $62 million and $68 million were made during the years ended December 31, 2025, 2024 and 2023, respectively. In addition, during the third quarter of 2024, we incurred a $3 million premium payment related to the redemption of our 2029 Senior Notes.

Amounts related to interest were as follows:

In millions
202520242023
Interest expense (a)
$49 $57 $64 
Interest income (b)
(6)(14)(26)
Capitalized interest costs(4)(4)(4)
Total$39 $39 $34 
(a)     Interest expense for 2024 includes $5 million of debt extinguishment cost related to the third quarter debt refinancing. Interest expense for 2023 includes $5 million of debt extinguishment cost related to the tender offer for our 7.00% 2029 Senior Notes.
(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, 2025 and 2024, we had recorded liabilities of $29 million and $28 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.