EQUITY METHOD INVESTMENTS (Note)

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

The Company accounts for the following investments under the equity method of accounting.

Ilim S.A.

The Company has a 50% equity interest in Ilim S.A. (Ilim), which has subsidiaries whose primary operations are in Russia. The Company recorded equity earnings, net of taxes, of $64 million and $95 million for the three months ended September 30, 2022 and 2021, respectively and $252 million and $245 million for the nine months ended September 30, 2022 and 2021, respectively. The Company received cash dividends from the joint venture of $204 million and $144 million during the first nine months of 2022 and 2021, respectively. At September 30, 2022 and December 31, 2021, the Company's investment in Ilim, which is recorded in Long-Term Investments in the condensed consolidated balance sheets, was $736 million and $557 million, respectively, which was $129 million and $121 million, respectively, more than the Company's proportionate share of the joint venture's underlying net assets. The differences primarily relate to currency translation adjustments and the basis difference between the fair value of our investment at acquisition and the underlying net assets. As of September 30, 2022, there was $250 million of cumulative translation adjustment loss included within equity related to our Ilim investment. Prior to the spin-off of the Printing Papers segment on October 1, 2021, the Company was party to a joint marketing agreement with Ilim Group under which the Company purchased, marketed and sold paper produced by Ilim Group. Purchases under this agreement were $42 million and $125 million for the three months and nine months ended September 30, 2021, respectively. The joint marketing agreement was conveyed to Sylvamo as part of the spin-off transaction on October 1, 2021. See Note 1 - Basis of Presentation for additional discussion regarding our Ilim investment.

Summarized financial information for Ilim is presented in the following tables:

Balance Sheet

In millions	September 30, 2022	December 31, 2021
Current assets	892	$	1,010
Noncurrent assets	4,360	3,145
Current liabilities	1,457	1,212
Noncurrent liabilities	2,534	2,047
Noncontrolling interests	47	24

Income Statement

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2022		2021		2022		2021
Net sales	$	834	$	729	$	2,356	$	1,993
Gross profit	391		393		1,234		1,051
Income (loss) from continuing operations	129		190		501		498
Net income (loss)	124		182		486		481

The Company's remaining equity method investments are not material.