XML 26 R14.htm IDEA: XBRL DOCUMENT v3.26.3
DIVESTITURE AND IMPAIRMENT OF BUSINESS
 9 Months Ended
Sep. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure DIVESTITURE AND IMPAIRMENT OF BUSINESS
Europe Business Segment

During the third quarter of 2026, management committed to a plan to sell the Company’s Europe business segment. The divestiture of the business under this plan is expected to occur by the end of the first quarter of 2027. As a result, all current and historical operating results of the Europe business segment are presented as “Discontinued operations, net of taxes” in the condensed consolidated statement of operations and the notes to the condensed consolidated financial statements. All historical assets and liabilities of the Europe business segment are classified as current and long-term assets and liabilities held for sale in the accompanying condensed consolidated balance sheet.

The following summarizes the major classes of line items comprising Income (Loss) Before Income Taxes reconciled to “Discontinued Operations, net of taxes”, related to the Europe business segment for all periods presented in the condensed consolidated of operations.

Three Months Ended September 30,Nine Months Ended September 30,
In millions
2026202520262025
NET SALES$178 $184 $557 $555 
COSTS AND EXPENSES
Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)173 181 571 566 
Selling and administrative expenses7 7 19 23 
Depreciation, amortization and cost of timber harvested8 8 23 24 
Taxes other than payroll and income taxes3 3 9 5 
Impairment of business275 — 275 — 
Interest expense, net— 2 1 4 
INCOME (LOSS) BEFORE INCOME TAXES (288)(17)(341)(67)
Income tax provision (benefit)(4)(3)(11)(6)
DISCONTINUED OPERATIONS, NET OF TAXES$(284)$(14)$(330)$(61)

The following summarizes the major classes of assets and liabilities of the Europe business segment operations reconciled to the accompanying condensed consolidated balance sheets, with all amounts as of September 30, 2026 being presented as current assets or liabilities held for sale.
In millions
September 30,
2026		December 31,
2025
Cash and temporary investments$43 $49 
Accounts and notes receivable82 76 
Inventories146 157 
Other current assets6 7 
Current Assets Held for Sale277 289 
Plants, Properties and Equipment, net184 206 
Right of Use Assets8 7 
Deferred Charges and Other Assets33 24 
Long-Term Assets Held for Sale225 237 
Notes payable and current maturities of long-term debt2 2 
Accounts payable100 114 
Accrued payroll and benefits18 17 
Valuation allowance to adjust net assets to estimated fair value, less costs of disposal275 — 
Other current liabilities36 38 
Current Liabilities Held for Sale431 171 
Long-Term Debt4 5 
Other Liabilities19 17 
Long-Term Liabilities Held for Sale$23 $22 

The following summarizes the total cash used for operating activities from discontinued operations, net and total cash used for investing activities from discontinued operations, net and included in the consolidated statement of cash flows:

Nine Months Ended September 30,
In millions
20262025
Cash Used for Operating Activities$(49)$(66)
Cash Used for Investment Activities (a)
$(12)$(26)
(a) Includes cash invested in capital projects of $12 million and $26 million for the nine months ended September 30, 2026 and 2025, respectively.

During the third quarter of 2026, as a result of management’s commitment to a plan to sell the Company’s Europe business segment, a determination was made that the carrying value of the Europe business segment exceeded its estimated fair value. The fair value of the Europe business segment was estimated based on a probability-weighted average approach of potential cash flows from various alternatives with respect to the business. This estimated fair value was calculated using information available as of the impairment evaluation date of September 30, 2026 and could change materially in future periods. As a result, in the third quarter of 2026, we recorded a pre-tax charge of $342 million ($342 million after taxes) for the impairment of the Europe business segment and a pre-tax gain of $67 million ($67 million after taxes) which includes an expected cumulative foreign currency translation gain and other accumulated other comprehensive loss related to our Europe business segment, which will be recognized upon the sale of the business. These amounts are included in “Impairment of business” within the summarized income statement for our Europe business segment included in this footnote and is included in “Discontinued operations, net of taxes” in the condensed consolidated statement of operations and are reflected in the valuation allowance to adjust net assets to estimated fair value, less costs to dispose in current liabilities held for sale.
On November 6, 2026, the Company announced that it is entering into a put option agreement (“Option Agreement”) with Midas Atlantic Partners, in partnership with The Najafi Companies, for a binding offer to acquire the Company’s Europe business (the “Offer”). The Offer is for the business to be transferred to Midas Atlantic Partners with an agreed level of working capital and cash in exchange for the right to receive 20% of future distributions of the business. The Offer binds the buyer, but not the Company.