XML 270 R22.htm IDEA: XBRL DOCUMENT v3.26.1
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA FINANCIAL INFORMATION BY BUSINESS SEGMENT
The Company’s three 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, the impact of foreign exchange on a note receivable from our Brazilian subsidiary, and net business and 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 is the President and Chief Executive Officer.

Sales by business segment are determined using a management approach and include intersegment sales (which are eliminated in consolidation). External sales in the External Net Sales table are defined as those that are made to parties outside the Company’s combined group.
Information By Business Segment

Net Sales and Business Segment Operating Profit (Loss)

Three Months Ended March 31, 2026:

In millions
EuropeLatin AmericaNorth AmericaTotal
Sales$190 $187 $390 $767 
Intersegment sales(2)(10)— (12)
Net sales$188 $177 $390 $755 
Less:
Cost of products sold and other211 125 303 639 
Maintenance outages— 3 14 17 
Economic downtime— — — — 
Selling and administrative expenses13 24 36 73 
Depreciation, amortization and cost of timber harvested8 21 12 41 
Add:
Other special items, net (a)
— — — — 
Business Segment Operating Profit (Loss)
$(44)$4 $25 $(15)
Income (loss) before income taxes
$(6)
Interest expense, net
9 
Foreign exchange gain on intercompany note (b)
(19)
Corporate special items, net (a)
1 
Business Segment Operating Profit (Loss)$(15)

(a) Net special items in the period presented primarily include other charges.
(b)    Unallocated gain related to the foreign exchange on a note receivable from our Brazilian subsidiary, which is recorded within “Cost of products sold”.

Three Months Ended March 31, 2025:

In millions
EuropeLatin AmericaNorth AmericaTotal
Sales$190 $199 $438 $827 
Intersegment sales— (6)— (6)
Net sales$190 $193 $438 $821 
Less:
Cost of products sold and other179 128 329 636 
Maintenance outages12 1 14 27 
Economic downtime— — 3 3 
Selling and administrative expenses15 21 37 73 
Depreciation, amortization and cost of timber harvested8 18 14 40 
Add:
Other special items, net (a)
— 1 1 2 
Business Segment Operating Profit (Loss)
$(24)$26 $42 $44 
Income (loss) before income taxes
$33 
Interest expense, net
9 
Other special items, net (a)
2 
Business Segment Operating Profit$44 
(a) Net special items in the period presented primarily include charges related to the termination of the Georgetown mill offtake agreement and environmental reserves in Brazil.

Assets
In millions
March 31, 2026December 31, 2025
Europe
$497 $500 
Latin America
1,259 1,231 
North America
945 884 
Corporate and other133 148 
Assets
$2,834 $2,763 

Capital Spending
Three Months Ended March 31,
In millions
20262025
Europe
$5 $10 
Latin America
21 27 
North America
23 11 
Capital Spending
$49 $48