SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Note)

3 Months Ended

Mar. 31, 2022

Disclosure Text Block Supplement [Abstract]

Supplemental Financial Statement Information [Note Text Block]

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 notices are treated as cash equivalents and are stated at cost. Temporary investments totaled $889 million and $1.1 billion at March 31, 2022 and December 31, 2021, respectively.

Restricted Cash

A reconciliation of cash and temporary investments and restricted cash in the condensed consolidated balance sheet to cash and temporary investments and restricted cash in the condensed consolidated statement of cash flows for the three months ended March 31, 2022 is below. The Company had no restricted cash at March 31, 2021.

	Three Months Ended March 31,
In millions	2022
Cash and Temporary Investments	$	1,031
Restricted Cash	88
Total Cash and Temporary Investments and Restricted Cash	$	1,119

The Company's restricted cash consists of the cash proceeds from the $88 million first quarter 2022 debt issuance. Proceeds from this debt issuance were used to repay debt maturing on April 1, 2022. See Note 17 - Debt for further details regarding the first quarter 2022 debt issuance and the expected debt repayment.

Accounts and Notes Receivable

In millions	March 31, 2022		December 31, 2021
Accounts and notes receivable, net:
Trade (less allowances of $31 in 2022 and $34 in 2021)	$	3,124	$	3,027
Other	239		205
Total	$	3,363	$	3,232

Inventories

In millions	March 31, 2022		December 31, 2021
Raw materials	$	251	$	245
Finished pulp, paper and packaging	986		1,014
Operating supplies	458		486
Other	51		69
Total	$	1,746	$	1,814

Current Investments

As a result of the 2021 spin-off of Sylvamo Corporation, the Company retained 19.9% of the shares of Sylvamo. The intent is to monetize its investment and to provide additional proceeds to the Company. The Company is accounting for its ownership interest in Sylvamo at fair value as an investment in equity securities. The investment was valued at $291 million and $245 million at March 31, 2022 and December 31, 2021, respectively, and is recorded in Current investments in the accompanying condensed consolidated balance sheet.

In April 2022, the Company borrowed approximately $144 million under a term loan credit agreement with a third-party lender. Subsequently, the Company exchanged 4,132,000 shares of Sylvamo Corporation common stock owned by the Company in exchange and as repayment of the approximately $144 million term loan obligation. After this transaction, the Company owns 4,614,358, or approximately 10.5% of the shares, of Sylvamo Corporation common stock.

Plants, Properties and Equipment  

Accumulated depreciation was $17.8 billion and $17.6 billion at March 31, 2022 and December 31, 2021, respectively. Depreciation expense was $250 million and $258 million for the three months ended March 31, 2022 and 2021, respectively.

Non-cash additions to plants, properties and equipment included within accounts payable were $68 million and $106 million at March 31, 2022 and December 31, 2021, respectively.

Amounts invested in capital projects in the accompanying condensed consolidated statement of cash flows are presented net of insurance recoveries of $18 million received during the three months ended March 31, 2022 and $2 million received during the three months ended March 31, 2021.

Interest

Interest payments made during the three months ended March 31, 2022 and 2021 were $56 million and $111 million, respectively.

Amounts related to interest were as follows: 

	Three Months Ended March 31,
In millions	2022		2021
Interest expense	$	77	$	124
Interest income	8		31
Capitalized interest costs	4		2

Asset Retirement Obligations

The Company had recorded liabilities of $107 million related to asset retirement obligations at March 31, 2022 and December 31, 2021.