RETIREMENT PLANS

9 Months Ended

Sep. 30, 2025

Retirement Benefits [Abstract]

RETIREMENT PLANS

RETIREMENT PLANS

International Paper operates both defined benefit and defined contribution pension plans as well as other post retirement benefit plans throughout our operations in accordance with local conditions and practice.

We sponsor and maintain the Retirement Plan of International Paper Company (the "Pension Plan"), a tax-qualified defined benefit pension plan that provides retirement benefits to substantially all hourly and union employees who work at a participating business unit. The Pension Plan was frozen as of January 1, 2019 for salaried participants.

The Pension Plan provides defined pension benefits based on years of credited service and either final average earnings (salaried employees and hourly employees receiving salaried benefits), hourly job rates or specified benefit rates (hourly and union employees).

In connection with our acquisition, International Paper acquired the existing DS Smith Group Pension plan (the "Group Plan"), a UK funded defined benefit plan providing pension benefits and lump sum benefits to members and dependents. The Group Plan closed to new entrants and future accruals as of April 30, 2011.

Net periodic pension expense (income) for our qualified and nonqualified defined benefit plans and the Group Plan, is comprised of the following: 

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2025		2024		2025		2024
Service cost	$	11	$	12	$	32	$	39
Interest cost	127		112		377		335
Expected return on plan assets	(157)		(148)		(465)		(444)
Actuarial loss	17		20		52		59
Amortization of prior service cost	4		4		12		10
Settlement	—		—		8		—
Termination benefits	2		—		4		—
Net periodic pension expense (income)	$	4	$	—	$	20	$	(1)

The components of net periodic pension expense (income) other than the Service cost component are included in Non-operating pension expense (income) in the condensed consolidated statement of operations.

The Company’s funding policy for our pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that the Company may determine to be appropriate considering the funded status of the plan, tax deductibility, the cash flows generated by the Company, and other factors. The Company made no voluntary cash contributions to the qualified pension plan in the first nine months of 2025 or 2024. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $40 million and $16 million for the nine months ended September 30, 2025 and 2024, respectively.