LEASES (Note)

9 Months Ended

Sep. 30, 2023

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 30 years. Total lease costs were $76 million and $68 million for the three months ended September 30, 2023 and 2022, respectively, and $224 million and $192 million for the nine months ended September 30, 2023 and 2022, respectively.

Supplemental Balance Sheet Information Related to Leases

In millions	Classification	September 30, 2023		December 31, 2022
Assets
Operating lease assets	Right-of-use assets	$	459	$	424
Finance lease assets	Plants, properties and equipment, net (a)	47		49
Total leased assets		$	506	$	473
Liabilities
Current
Operating	Other current liabilities	$	151	$	147
Finance	Notes payable and current maturities of long-term debt	11		10
Noncurrent
Operating	Long-term lease obligations	317		283
Finance	Long-term debt	45		49
Total lease liabilities		$	524	$	489

(a)Finance leases are recorded net of accumulated amortization of $66 million and $59 million as of September 30, 2023 and December 31, 2022, 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 30 years. Total lease costs were $76 million and $68 million for the three months ended September 30, 2023 and 2022, respectively, and $224 million and $192 million for the nine months ended September 30, 2023 and 2022, respectively.

Supplemental Balance Sheet Information Related to Leases

In millions	Classification	September 30, 2023		December 31, 2022
Assets
Operating lease assets	Right-of-use assets	$	459	$	424
Finance lease assets	Plants, properties and equipment, net (a)	47		49
Total leased assets		$	506	$	473
Liabilities
Current
Operating	Other current liabilities	$	151	$	147
Finance	Notes payable and current maturities of long-term debt	11		10
Noncurrent
Operating	Long-term lease obligations	317		283
Finance	Long-term debt	45		49
Total lease liabilities		$	524	$	489

(a)Finance leases are recorded net of accumulated amortization of $66 million and $59 million as of September 30, 2023 and December 31, 2022, respectively.