DIVESTITURES (Note)

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Note Text Block]

2020: On March 29, 2020, the Company announced that it had entered into an agreement to sell its Brazilian Industrial Packaging business for R$330 million (approximately $60.3 million using the June 30, 2020 exchange rate), with R$280 to be paid at closing and R$50 one year thereafter, subject to the final working capital adjustments. This business includes three containerboard mills and four box plants and the agreement follows International Paper's previously announced strategic review of the Brazilian Industrial Packaging business. This transaction is expected to close in the second half of 2020, subject to certain closing conditions and regulatory approvals.

In conjunction with the announced agreement, a preliminary pre-tax charge of $344 million ($337 million after taxes) was recorded during the first quarter of 2020. During the second quarter, the Company recorded an additional charge of $8 million ($6 million after taxes), which included a $5 million loss ($3 million after taxes) related to the change in the book value of the long-lived assets of the Brazilian Industrial Packaging business compared to their estimated fair value and a $3 million loss related to the change in cumulative foreign currency translation loss. These charges are included in Net (gains) losses on sales and impairments of businesses in the accompanying condensed consolidated statement of operations and is included in the results for the Industrial Packaging segment.

At June 30, 2020, all assets and liabilities related to the Brazilian Industrial Packaging business are classified as current assets held for sale and current liabilities held for sale in the accompanying condensed consolidated balance sheet.

The following summarizes the major classes of assets and liabilities of this business reconciled to total Assets held for sale and total Liabilities held for sale in the accompanying condensed consolidated balance sheet.

In millions	June 30, 2020
Cash and temporary investments	$	13
Accounts and notes receivable	35
Inventories	24
Other current assets	1
Plants, properties and equipment (net of impairment)	22
Deferred income taxes	13
Deferred charges and other assets	4
Total Assets Held for Sale	$	112
Accounts payable and accrued liabilities	$	32
Other liabilities	9
Impairment reserve (cumulative foreign currency translation)	327
Total Liabilities Held for Sale	$	368

2019: On October 30, 2019, the Company closed the previously announced sale of its controlling interest in International Paper APPM Limited (APPM) to West Coast Paper Mills (WCPM). During the second quarter of 2020 the Company sold substantially all of its remaining investment and recorded a gain of $6 million. The fair value of the Company's remaining investment at June 30, 2020 is immaterial.