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SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION 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 $64 million and $63 million at June 30, 2026 and December 31, 2025, respectively.

Accounts and Notes Receivable, Net

Accounts and notes receivable, net, by classification were:

In millions
June 30, 2026December 31, 2025
Accounts and notes receivable:
Trade
$342 $399 
Notes and other
24 25 
Total
$366 $424 

The allowance for expected credit losses was $18 million and $17 million at June 30, 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
June 30, 2026December 31, 2025
Raw materials
$70 $69 
Finished paper and pulp products
299 217 
Operating supplies
124 122 
Other
10 10 
Total
$503 $418 

Plants, Properties and Equipment, Net

Accumulated depreciation was $4.0 billion and $3.9 billion at June 30, 2026 and December 31, 2025, respectively. Depreciation expense was $33 million and $33 million for the three months and $66 million and $66 million for the six months ended June 30, 2026 and 2025, respectively.

Additions to plants, property and equipment included within “Accounts payable” were $18 million and $20 million at June 30, 2026 and December 31, 2025, respectively.
Forestlands

Depletion expense, recorded within “Depreciation, amortization and cost of timber harvested”, was $10 million and $11 million for the three months and $17 million and $18 million for the six months ended June 30, 2026 and 2025, respectively.

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 $10 million and $3 million as of June 30, 2026 and December 31, 2025, respectively.

Interest Expense, Net

Interest payments of $26 million and $24 million were made during the six months ended June 30, 2026 and 2025, respectively.

Amounts related to interest were as follows:

Three Months Ended June 30,Six Months Ended June 30,
In millions
2026202520262025
Interest expense (a)
$15 $12 $27 $24 
Interest income
(2)(1)(4)(3)
Capitalized interest costs
(2)(1)(3)(2)
Total
$11 $10 $20 $19 

(a) Interest expense for the three and six months ended June 30, 2026 includes $2 million of debt extinguishment cost related to the repayment of Term Loan F.

Asset Retirement Obligations

As of June 30, 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.