INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income (loss) before income taxes

The components of the Company’s income before income taxes by taxing jurisdiction were as follows:


In millions	2025		2024		2023
U.S.	$	169	$	205	$	121
Non-U.S.	30		200		248
Income before income taxes	$	199	$	405	$	369

Schedule of provision for income taxes

Income tax provision by taxing jurisdictions was as follows:


In millions	2025		2024		2023
Current tax provision
U.S. federal	$	12	$	43	$	32
U.S. state and local	3		13		11
Non-U.S.	45		54		73
	60		110		116
Deferred tax provision
U.S. federal	17		(5)		(3)
U.S. state and local	5		(3)		(7)
Non-U.S.	(15)		1		10
	7		(7)		—
Income tax provision	$	67	$	103	$	116

Schedule of Income Tax Paid, by Individual Jurisdiction

Income taxes paid (net of refunds) by taxing jurisdictions was as follows:


In millions	2025		2024		2023
Federal	$	10	$	32	$	39
State	6		11		9
Non-U.S.	46		55		64
Total	$	62	$	98	$	112

Schedule of Income Taxes Paid in Jurisdictions Exceeding 5% or Total Income Taxes Paid, Net of Refunds

Income taxes paid (net of refunds) exceeded 5% of total income taxes paid (net of refunds) in the following jurisdictions:


In millions	2025		2024		2023
Non-U.S.
Brazil	$	42	$	52	$	60
Luxembourg	$	4	$	—	$	1

Schedule of reconciliation of income taxes using the statutory U.S. income tax rate


In millions	2025				2024				2023
	Amount		%		Amount		%		Amount		%
U.S. federal statutory tax rate	$	42	21	%	$	85	21	%	$	77	21	%
State and local income taxes, net of federal income tax effect (a)	6		3	%	6		2	%	2		—	%
Non-U.S. tax effects
Brazil
Statutory tax rate difference between Brazil and U.S.	17		9	%	23		6	%	33		9	%
Permanent benefit for non-U.S. interest deduction	(11)		(6)	%	(9)		(2)	%	(11)		(3)	%
France
Changes in valuation allowances	13		7	%	(3)		(1)	%	7		2	%
Sweden
Foreign exchange impacts	3		2	%	—		—	%	—		—	%
Other Non-U.S. jurisdiction	(2)		(1)	%	1		—	%	(2)		(1)	%
Effect of cross-border tax laws
Global intangible low-taxed income and Subpart F income	—		—	%	1		—	%	2		—	%
Tax credits
Research and development credits	(2)		(1)	%	(2)		(1)	%	(1)		—	%
Purchased credits	(1)		(1)	%	(2)		—	%	—		—	%
Nontaxable or nondeductible items
Stock compensation	(2)		(1)	%	—		—	%	1		—	%
Other permanent differences	1		1	%	—		—	%	2		1	%
Changes in unrecognized tax benefits	4		2	%	2		—	%	6		2	%
Other adjustments	(1)		(1)	%	1		—	%	—		—	%
Effective income tax rate	$	67	34	%	$	103	25	%	$	116	31	%

(a) State taxes in California, Illinois, New Jersey, Pennsylvania and Tennessee made up the majority (greater than 50%) of the tax effect in this category.

Schedule of components of deferred income tax assets and liabilities

The components of deferred income tax assets and liabilities are as follows:


In millions	2025		2024
Deferred income tax assets:
Net operating and capital loss carryforwards	$	43	$	23
Accrued payroll and benefits	24		31
Lease liabilities	11		13
Tax credits	34		25
Capitalized research and development	—		23
Other	37		35
Gross deferred income tax assets	149		150
Less: valuation allowance	(52)		(35)
Net deferred income tax asset	97		115
Deferred income tax liabilities:
Intangibles	(41)		(37)
Inventories	(16)		(15)
Right of use assets	(9)		(11)
Deferred foreign income	(55)		(49)
Plants, properties and equipment	(69)		(86)
Forestlands	(46)		(41)
Gross deferred income tax liabilities	(236)		(239)
Net deferred income tax liability	$	(139)	$	(124)

Schedule of Unrecognized Tax Benefits Roll Forward

The reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:


In millions	2025		2024		2023
Balance at January 1	$	(12)	$	(10)	$	(4)
(Additions) reductions for tax positions related to current year	(4)		(4)		(6)
Reductions for tax positions related to prior years	—		1		—
Settlements	—		1		—

Balance at December 31	$	(16)	$	(12)	$	(10)