Supplementary Financial Statement Information (Note)

12 Months Ended

Dec. 31, 2019

Disclosure Text Block Supplement [Abstract]

Supplementary Financial Statement Information

TEMPORARY INVESTMENTS 

Temporary investments with an original maturity of three months or less are treated as cash equivalents and are stated at cost. Temporary investments totaled $335 million and $402 million at December 31, 2019 and 2018, respectively.

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net, by classification were: 

In millions at December 31	2019		2018
Accounts and notes receivable:
Trade	$	3,020	$	3,249
Other	260		272
Total	$	3,280	$	3,521

INVENTORIES 

In millions at December 31	2019		2018
Raw materials	$	298	$	260
Finished pulp, paper and packaging products	1,192		1,241
Operating supplies	659		641
Other	59		99
Inventories	$	2,208	$	2,241

The last-in, first-out inventory method is used to value most of International Paper’s U.S. inventories. Approximately 71% of total raw materials and finished products inventories were valued using this method. The last-in, first-out inventory reserve was $295 million and $329 million at December 31, 2019 and 2018, respectively.

PLANTS, PROPERTIES AND EQUIPMENT 

In millions at December 31	2019		2018
Pulp, paper and packaging facilities	$	32,292	$	32,329
Other properties and equipment	1,224		1,232
Gross cost	33,516		33,561
Less: Accumulated depreciation	20,512		20,494
Plants, properties and equipment, net	$	13,004	$	13,067

Non-cash additions to plants, property and equipment included within accounts payable were $164 million, $135 million and $275 million at December 31, 2019, 2018 and 2017, respectively.  

Annual straight-line depreciable lives generally are, for buildings - 20 to 40 years, and for machinery and equipment - 3 to 20 years. Depreciation expense was $1.2 billion for the each of the years ended December 31, 2019, 2018 and 2017, respectively. Cost of products sold excludes depreciation and amortization expense.

INTEREST

Interest payments of $754 million, $772 million and $782 million were made during the years ended December 31, 2019, 2018 and 2017, respectively.

Amounts related to interest were as follows: 

In millions	2019		2018		2017
Interest expense	$	706	$	734	$	758
Interest income	215		198		186
Capitalized interest costs	29		30		25

ASSET RETIREMENT OBLIGATIONS

At December 31, 2019 and 2018, we had recorded liabilities of $96 million and $86 million, respectively, related to asset retirement obligations.