LEASES (Note)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Lessee, Operating Leases

International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have a remaining lease term of up to 31 years. Total lease costs were $64 million and $63 million for the three months ended June 30, 2022 and 2021, respectively, and $124 million and $123 million for the six months ended June 30, 2022 and 2021, respectively.

Supplemental Balance Sheet Information Related to Leases

In millions	Classification	June 30, 2022		December 31, 2021
Assets
Operating lease assets	Right-of-use assets	$	383	$	365
Finance lease assets	Plants, properties and equipment, net (a)	53		57
Total leased assets		$	436	$	422
Liabilities
Current
Operating	Other current liabilities	$	143	$	132
Finance	Notes payable and current maturities of long-term debt	10		10
Noncurrent
Operating	Long-term lease obligations	245		236
Finance	Long-term debt	52		56
Total lease liabilities		$	450	$	434

(a)Finance leases are recorded net of accumulated amortization of $55 million and $51 million as of June 30, 2022 and December 31, 2021, respectively.

Lessee, Finance Leases

International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have a remaining lease term of up to 31 years. Total lease costs were $64 million and $63 million for the three months ended June 30, 2022 and 2021, respectively, and $124 million and $123 million for the six months ended June 30, 2022 and 2021, respectively.

Supplemental Balance Sheet Information Related to Leases

In millions	Classification	June 30, 2022		December 31, 2021
Assets
Operating lease assets	Right-of-use assets	$	383	$	365
Finance lease assets	Plants, properties and equipment, net (a)	53		57
Total leased assets		$	436	$	422
Liabilities
Current
Operating	Other current liabilities	$	143	$	132
Finance	Notes payable and current maturities of long-term debt	10		10
Noncurrent
Operating	Long-term lease obligations	245		236
Finance	Long-term debt	52		56
Total lease liabilities		$	450	$	434

(a)Finance leases are recorded net of accumulated amortization of $55 million and $51 million as of June 30, 2022 and December 31, 2021, respectively.