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Supplementary Financial Statement Information (Note)
 12 Months Ended
Dec. 31, 2022
Disclosure Text Block Supplement [Abstract]  
Supplementary 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 $690 million and $1.1 billion at December 31, 2022 and 2021, respectively.

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net, by classification were: 
In millions at December 3120222021
Accounts and notes receivable:
Trade (less allowances of $31 in 2022 and $34 in 2021)
$3,064 $3,027 
Other220 205 
Total$3,284 $3,232 

INVENTORIES 

In millions at December 3120222021
Raw materials$267 $245 
Finished pulp and packaging products1,071 1,014 
Operating supplies516 486 
Other88 69 
Inventories$1,942 $1,814 

The last-in, first-out inventory method is used to value most of International Paper’s U.S. inventories. Approximately 76% of total raw materials and finished products inventories were valued using this method. The last-in, first-out inventory reserve was $282 million and $195 million at December 31, 2022 and 2021, respectively.

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 the second quarter 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 the third quarter 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 16 - Debt and Lines of Credit for further discussion.

As of the end of the third quarter 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 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 
In millions at December 3120222021
Pulp and packaging facilities$27,773 $27,025 
Other properties and equipment1,029 972 
Gross cost28,802 27,997 
Less: Accumulated depreciation18,371 17,556 
Plants, properties and equipment, net$10,431 $10,441 
 
Non-cash additions to plants, property and equipment included within accounts payable were $185 million, $106 million and $41 million at December 31, 2022, 2021 and 2020, respectively.  

Amounts invested in capital projects in the accompanying consolidated statement of cash flows are presented net of insurance recoveries of $26 million, $17 million and $42 million received during the years ended December 31, 2022, 2021 and 2020, respectively.

Annual straight-line depreciable lives generally are, for buildings - 20 to 40 years, and for machinery and equipment - 3 to 20 years. Depreciation expense was $996 million for the year ended December 31, 2022 and $1.1 billion for each of the years ended December 31, 2021 and 2020. Cost of products sold excludes depreciation and amortization expense.

INTEREST

Interest payments of $380 million, $473 million and $682 million were made during the years ended December 31, 2022, 2021 and 2020, respectively.
Amounts related to interest were as follows: 
In millions202220212020
Interest expense$403 $430 $597 
Interest income 78 93 151 
Capitalized interest costs18 12 31 
ASSET RETIREMENT OBLIGATIONS

At December 31, 2022 and 2021, we had recorded liabilities of $105 million and $107 million, respectively, related to asset retirement obligations.

In connection with potential future closures or redesigns of certain production facilities, it is possible that the Company may be required to take steps to remove certain materials from these facilities. Applicable regulations and standards provide that the removal of certain materials would only be required if the facility were to be demolished or underwent major renovations. At this time, any such obligations have an indeterminate settlement date, and the Company believes that adequate information does not exist to apply an expected-present-value technique to estimate any such potential obligations. Accordingly, the Company does not record a liability for such remediation until a decision is made that allows reasonable estimation of the timing of such remediation.