SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

3 Months Ended

Mar. 31, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

Temporary Investments

Temporary investments with an original maturity of three months or less and money market funds with greater than three-month maturities but with the right to redeem without notice are treated as cash equivalents and are stated at cost. Temporary investments totaled $76 million and $63 million at March 31, 2026 and December 31, 2025, respectively.

Accounts and Notes Receivable

Accounts and notes receivable, net, by classification were:


In millions	March 31, 2026		December 31, 2025
Accounts and notes receivable:
Trade	$	352	$	399
Notes and other	26		25
Total	$	378	$	424

The allowance for expected credit losses was $18 million and $17 million at March 31, 2026 and December 31, 2025, 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	March 31, 2026		December 31, 2025
Raw materials	$	69	$	69
Finished paper and pulp products	281		217
Operating supplies	122		122
Other	11		10
Total	$	483	$	418

Plants, Properties and Equipment, Net

Accumulated depreciation was $4.0 billion and $3.9 billion at March 31, 2026 and December 31, 2025, respectively. Depreciation expense was $33 million and $33 million for the three months ended March 31, 2026 and 2025, respectively.

Additions to plants, property and equipment included within accounts payable were $11 million and $20 million each at March 31, 2026 and December 31, 2025.

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 obligations to financial institutions related to supplier financing programs were $6 million and $3 million as of March 31, 2026 and December 31, 2025, respectively.

Interest Expense, Net

Interest payments of $13 million and $12 million were made during the three months ended March 31, 2026 and 2025, respectively.

Amounts related to interest were as follows:


	Three Months Ended March 31,
In millions	2026		2025
Interest expense	$	12	$	12
Interest income	(2)		(2)
Capitalized interest costs	(1)		(1)
Total	$	9	$	9

Asset Retirement Obligations

As of March 31, 2026 and December 31, 2025, we have recorded liabilities of $29 million and $29 million, respectively, related to asset retirement obligations. These amounts are included in “Other liabilities.” 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.