SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Note)

9 Months Ended

Sep. 30, 2022

Disclosure Text Block Supplement [Abstract]

Supplemental Financial Statement Information [Note Text Block]

NOTE 10 - SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION

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 $408 million and $1.1 billion at September 30, 2022 and December 31, 2021, respectively.

Accounts and Notes Receivable


In millions	September 30, 2022		December 31, 2021
Accounts and notes receivable, net:
Trade (less allowances of $29 in 2022 and $34 in 2021)	$	3,179	$	3,027
Other	274		205
Total	$	3,453	$	3,232

Inventories


In millions	September 30, 2022		December 31, 2021
Raw materials	$	272	$	245
Finished pulp, paper and packaging	1,128		1,014
Operating supplies	492		486
Other	84		69
Total	$	1,976	$	1,814

Current Investments

As a result of the 2021 spin-off of Sylvamo, the Company retained 19.9% of the shares of Sylvamo with the intent to monetize its investment and provide additional proceeds to the Company. In April 2022, the Company exchanged 4,132,000 shares of Sylvamo common stock owned by the Company in exchange and as repayment for an approximately $144 million term loan obligation which resulted in the reversal of a $31 million deferred tax liability due to the tax-free exchange of the Sylvamo Corporation common stock. In September 2022, the Company exchanged the remaining 4,614,358 shares of Sylvamo common stock owned by the Company in exchange for $167 million and as partial repayment of a $210 million term loan obligation. This also resulted in the reversal of a $35 million deferred tax liability due to the tax-free exchange of the Sylvamo Corporation common stock. See Note 17 - Debt for further discussion.

As of September 30, 2022, the Company no longer had an ownership interest in Sylvamo. The Company's investment in Sylvamo was valued at $245 million at December 31, 2021, and was recorded in Current investments in the accompanying condensed consolidated balance sheet. The Company accounted for its ownership interest in Sylvamo at fair value as an investment in equity securities.

Plants, Properties and Equipment

Accumulated depreciation was $18.1 billion and $17.6 billion at September 30, 2022 and December 31, 2021, respectively. Depreciation expense was $250 million and $270 million for the three months ended September 30, 2022 and 2021, respectively, and $756 million and $790 million for the nine months ended September 30, 2022 and 2021, respectively.

Non-cash additions to plants, properties and equipment included within accounts payable were $102 million and $106 million at September 30, 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 $26 million received during the nine months ended September 30, 2022 and $6 million received during the nine months ended September 30, 2021.

Interest

Interest payments made during the nine months ended September 30, 2022 and 2021 were $273 million and $346 million, respectively.

Amounts related to interest were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2022		2021		2022		2021
Interest expense	$	150	$	104	$	310	$	345
Interest income	27		22		44		84
Capitalized interest costs	5		3		13		8

Asset Retirement Obligations

The Company had recorded liabilities of $105 million and $107 million related to asset retirement obligations at September 30, 2022 and December 31, 2021, respectively.