SYLVAMO CORP, 10-K filed on 3/2/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2021
Feb. 25, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-40718    
Entity Registrant Name SYLVAMO CORPORATION    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 86-2596371    
Entity Address, Address Line One 6400 Poplar Avenue    
Entity Address, City or Town Memphis    
Entity Address, State or Province TN    
Entity Address, Postal Zip Code 38197    
City Area Code 901    
Local Phone Number 519-8000    
Title of 12(b) Security Common Stock, par value $1.00 per share    
Trading Symbol SLVM    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   43,955,084  
Documents Incorporated by Reference [Text Block]
Documents incorporated by reference:
Portions of the registrant’s proxy statement filed within 120 days of the close of the registrant’s fiscal year in connection with registrant’s 2022 annual meeting of shareholders are incorporated by reference into Part III of this Form 10-K.
    
Entity Central Index Key 0001856485    
Amendment Flag false    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2021    
Entity Public Float     $ 0
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Audit Information
 12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Location Memphis, Tennessee
Auditor Firm ID 34
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CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
NET SALES $ 3,502 $ 3,009 $ 4,017
COSTS AND EXPENSES      
Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below) 2,298 2,101 2,638
Selling and administrative expenses 213 209 262
Depreciation, amortization and cost of timber harvested 143 154 192
Distribution expenses 363 321 393
Taxes other than payroll and income taxes 27 30 33
Restructuring and other charges, net 0 0 6
Interest (income) expense, net (2) (4) (9)
INCOME (LOSS) BEFORE INCOME TAXES 460 198 502
Income tax provision (benefit) 129 28 125
NET INCOME (LOSS) $ 331 $ 170 $ 377
BASIC EARNINGS (LOSS) PER SHARE      
Net earnings (loss) - basic (in dollars per share) $ 7.53 $ 3.85 $ 8.55
DILUTED EARNINGS (LOSS) PER SHARE      
Net earnings (loss) - diluted (in dollars per share) $ 7.53 $ 3.85 $ 8.55
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CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
NET INCOME (LOSS) $ 331 $ 170 $ 377
Defined Benefit Pension and Postretirement Adjustments:      
Amortization of pension and postretirement net loss 1 1 1
Pension and postretirement liability adjustments (less tax of $0, $1 and $3) (3) (5) (7)
Change in cumulative foreign currency translation adjustment (173) (246) (38)
Net gains/losses on cash flow hedging derivatives:      
Net gains (losses) arising during the period (less tax of $1, $13 and ($1)) (2) (25) 1
Reclassification adjustment for (gains) losses included in net earnings (less tax of $0, ($12) and ($2)) (1) 24 5
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX (178) (251) (38)
COMPREHENSIVE INCOME (LOSS) $ 153 $ (81) $ 339
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CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Tax on pension and postretirement liability adjustments $ 0 $ 1 $ 3
Tax on net gains (losses) arising during period on cash flow hedges 1 13 (1)
Tax on reclassification adjustment for (gains) losses included in earnings on cash flow hedges $ 0 $ (12) $ (2)
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CONSOLIDATED AND COMBINED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Current Assets    
Cash and temporary investments $ 180 $ 95
Accounts and notes receivable (less allowances of $20 in 2021 and $30 in 2020) 490 621
Contract assets 29 24
Inventories 342 342
Other current assets 67 37
Total Current Assets 1,108 1,119
Plants, Properties and Equipment, net 885 974
Forestlands 278 293
Goodwill 132 143
Right of Use Assets 41 46
Deferred Charges and Other Assets 153 336
TOTAL ASSETS 2,597 2,911
Current Liabilities    
Accounts payable 445 284
Notes payable and current maturities of long-term debt 42 4
Accrued payroll and benefits 51 68
Other current liabilities 220 134
Total Current Liabilities 758 490
Long-Term Debt 1,358 22
Deferred Income Taxes 169 170
Other Liabilities 130 117
Commitments and Contingent Liabilities (Note 11)
Equity    
Parent company investment 0 3,592
Common stock $1.00 par value, 200.0 shares authorized, 43.9 shares issued and outstanding at December 31, 2021 44 0
Paid-in capital 4 0
Retained earnings 1,935 0
Accumulated other comprehensive loss (1,801) (1,480)
Total Equity 182 2,112
TOTAL LIABILITIES AND EQUITY $ 2,597 $ 2,911
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CONSOLIDATED AND COMBINED BALANCE SHEETS (Parenthetical)
$ in Millions
Dec. 31, 2021
USD ($)
$ / shares
shares
Statement of Financial Position [Abstract]  
Allowance for expected credit losses | $ $ 20
Common stock, par value (in dollars per share) | $ / shares $ 1.00
Common stock, shares authorized (in shares) 200,000,000.0
Common stock, shares issued (in shares) 43,900,000
Common stock, shares outstanding (in shares 43,900,000
v3.22.0.1
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
OPERATING ACTIVITIES      
Net income (loss) $ 331 $ 170 $ 377
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:      
Depreciation, amortization and cost of timber harvested 143 154 192
Deferred income tax provision (benefit), net (6) (49) (7)
Stock-based compensation 14 15 19
Changes in operating assets and liabilities and other      
Accounts and notes receivable (118) 60 18
Inventories 19 71 (47)
Accounts payable and accrued liabilities 210 (46) (5)
Other (44) (16) (23)
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 549 359 524
INVESTMENT ACTIVITIES      
Invested in capital projects (76) (75) (118)
Cash pool arrangements with Parent 202 (5) (39)
Proceeds from sale of plants, properties and equipment 0 0 3
Other 1 1 (6)
CASH PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES 127 (79) (160)
FINANCING ACTIVITIES      
Net transfers (to) from Parent (456) (340) (369)
Special payment to Parent (1,520) 0 0
Issuance of debt 1,501 0 0
Reduction of debt (130) (10) (18)
Other 16 0 0
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES (589) (350) (387)
Effect of Exchange Rate Changes on Cash (2) 30 (17)
Change in Cash and Temporary Investments 85 (40) (40)
Beginning of the period 95 135 175
End of the period $ 180 $ 95 $ 135
v3.22.0.1
CONSOLIDATED AND COMBINED STATEMENTS OF CHANGES IN EQUITY - USD ($)
shares in Millions, $ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Paid-In Capital
Retained Earnings
Parent Company
Investment
Parent Company
Investment
Cumulative Effect, Period of Adoption, Adjustment
Accumulated  Other Comprehensive
Loss
Beginning balance (in shares) at Dec. 31, 2018     0.0          
Balance at beginning of period at Dec. 31, 2018 $ 2,528   $ 0 $ 0 $ 0 $ 3,719   $ (1,191)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net transfers (to) from Parent (350)         (350)    
Comprehensive income (loss) 339         377   (38)
Ending balance (in shares) at Dec. 31, 2019     0.0          
Balance at end of period at Dec. 31, 2019 $ 2,517 $ 1 $ 0 0 0 3,746 $ 1 (1,229)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Accounting Standards Update [Extensible Enumeration] Accounting Standards Update 2016-13 [Member]              
Net transfers (to) from Parent $ (325)         (325)    
Comprehensive income (loss) (81)         170   (251)
Ending balance (in shares) at Dec. 31, 2020     0.0          
Balance at end of period at Dec. 31, 2020 2,112   $ 0 0 0 3,592   (1,480)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net transfers (to) from Parent (567)         (424)   (143)
Special payment to Parent (1,520)         (1,520)    
Reclassification of Parent company investment 0       1,917 (1,917)    
Issuance of common stock at spin-off (in shares)     44.0          
Issuance of common stock at spin-off 0   $ 44   (44)      
Stock-based employee compensation 4     4        
Comprehensive income (loss) $ 153       62 269   (178)
Ending balance (in shares) at Dec. 31, 2021 43.9   44.0          
Balance at end of period at Dec. 31, 2021 $ 182   $ 44 $ 4 $ 1,935 $ 0   $ (1,801)
v3.22.0.1
BACKGROUND AND SUMMARY OF BUSINESS
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BACKGROUND AND SUMMARY OF BUSINESS BACKGROUND AND SUMMARY OF BUSINESS
BACKGROUND
On December 3, 2020, International Paper Company (“International Paper“ or “Parent”) announced that its Board of Directors had approved a plan to spin-off its Printing Papers segment along with certain mixed-use coated paperboard and pulp businesses in Europe, Latin America, and North America (collectively referred to herein as the “Company,” “we,” “us,” or “our”), and separate into two distinct publicly-traded companies. On October 1, 2021, we settled the net parent investment and the spin-off was completed by a pro rata distribution to International Paper’s stockholders of approximately 80.1% of our common stock, with International Paper retaining a 19.9% ownership interest. Each holder of International Paper common stock received one share of our common stock for every 11 shares of International Paper common stock held at the close of business on September 15, 2021, the record date for the distribution. International Paper structured the distribution to be tax-free to its U.S. stockholders for U.S. federal income tax purposes. As a result of the spin-off, Sylvamo Corporation is now an independent public company trading on the New York Stock Exchange under the symbol “SLVM.”

Prior to the spin-off, we historically operated as part of International Paper and not as a standalone company. These consolidated and combined financial statements reflect the combined historical financial position, results of operations and cash flows of the Company as historically managed within International Paper for the periods prior to the completion of the spin-off and reflect our consolidated financial position, results of operations and cash flows for the period after the completion of the spin-off. The consolidated and combined financial statements have been prepared in United States (“U.S.”) dollars and in conformity with accounting principles generally accepted in the United States (‘‘U.S. GAAP’’). The consolidated and combined financial statements may not be indicative of the Company’s future performance and do not necessarily reflect what the results of operations, financial position and cash flows would have been had it operated as an independent company during all periods presented.

For the periods prior to the spin-off, the consolidated and combined statements of operations also include expense allocations for certain functions provided by International Paper, including, but not limited to general corporate expenses related to finance, legal, information technology, human resources, communications, insurance and stock-based compensation. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder principally allocated on the basis of percent of capital employed, headcount or other measures. During the years ended 2021, 2020 and 2019 the Company was allocated approximately $120 million, $170 million and $210 million respectively, of such general corporate expenses, which were included within cost of products sold and selling and administrative expenses in the consolidated and combined statements of operations. Management considers the basis on which the expenses have been allocated to reasonably reflect the utilization of services provided to or the benefit received by the Company during the periods presented. The allocations may not, however, reflect the expenses the Company would have incurred if the Company had been an independent company for all periods presented. Actual costs that may have been incurred if the Company had been an independent company during these periods would depend on several factors, including the organizational structure, whether functions were outsourced or performed by employees, and strategic decisions made in areas such as information technology and infrastructure. The Company is unable to determine what such costs would have been had the Company been independent during these periods.

All intracompany transactions have been eliminated. Related party transactions between the Company and International Paper relating to general operating activities have been included in these consolidated and combined financial statements. These related party transactions historically settled in cash between the Company and International Paper have been reflected in the consolidated and combined balance sheets in “Accounts and notes receivable” or “Accounts payable” with the aggregate net effect of these related party transactions reflected in the consolidated and combined statements of cash flows as either “Accounts and notes receivable” or “Accounts payable and accrued liabilities” within operating activities.

The aggregate net effect of transactions with International Paper not settled in cash, including corporate allocations, has been reflected in the consolidated and combined balance sheets as “Parent company investment” and in the consolidated and combined statements of cash flows as “Net transfers (to) from Parent” within financing activities.

In addition, certain of the Company’s Europe locations participated in International Paper’s centralized cash pooling arrangement. Amounts due from the cash pool were generally settled on a daily basis and have been reflected in the consolidated and combined balance sheets as “Accounts and notes receivable” with the aggregate net activity between the Company and International Paper reflected in the consolidated and combined statements of cash flows as “Cash pool arrangements with Parent” within investing activities. Our participation in International Paper’s centralized cash pooling arrangements was terminated prior to September 30, 2021.
International Paper utilized a centralized approach to cash management and financing its operations. This arrangement is not reflective of the manner in which the Company would have been able to finance its operations had it been independent from International Paper for the periods prior to the completion of the spin-off. The cash and temporary investments held by International Paper at the corporate level were not specifically identifiable to the Company and therefore have not been reflected in the Company’s consolidated and combined balance sheets. Cash and temporary investments in the consolidated and combined balance sheets for the periods prior to the completion of the spin-off represent only cash and temporary investments held locally by the Company.

The consolidated and combined financial statements for the periods prior to the completion of the spin-off include certain assets and liabilities that were historically held at the International Paper corporate level but were specifically identifiable or otherwise attributable to the Company. International Paper’s third-party debt and the related interest expense have not been allocated to the Company for any of the periods presented as the Company was not the legal obligor of such debt. During the third quarter of 2021, we entered into a series of financing transactions under which we incurred $1.5 billion of debt in conjunction with our spin-off from International Paper, consisting of two term loan facilities, the 2029 Senior Notes and borrowings from our cash flow-based revolving credit facility. The proceeds of the debt were used primarily to fund a $1.5 billion special payment to International Paper on September 29, 2021 and pay related fees and expenses.

The Company operates on a calendar year-end.

COVID-19
On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. Many of these restrictive measures have been lifted or reduced as the number of COVID-19 cases has declined in the United States and various other countries in comparison to earlier levels at the height of the pandemic, and economic conditions have improved. At the current time all of our facilities are open and operating. Demand for printing papers products, which account for the majority of our net sales, initially was significantly reduced by the pandemic, but has seen a steady increase over 2021. Our operations have continued to experience higher supply chain costs and constrained transportation due in part to the impacts of COVID-19.
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BASIS OF CONSOLIDATION AND COMBINATION AND SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
BASIS OF CONSOLIDATION AND COMBINATION AND SIGNIFICANT ACCOUNTING POLICIES BASIS OF CONSOLIDATION AND COMBINATION AND SIGNIFICANT ACCOUNTING POLICIES
BASIS OF CONSOLIDATION AND COMBINATION

Our financial statements include amounts and disclosures related to the stand-alone financial statements and accounting records of the Company for the period after the spin-off (“consolidated”) in combination with amounts and disclosures that have been derived from the consolidated financial statements and accounting records of International Paper for the periods prior to the spin-off (“combined”). Any references to our financial statements, financial data and operating data refer to our accompanying consolidated and combined financial statements unless otherwise noted.

USE OF ESTIMATES

In preparing the consolidated and combined financial statements in accordance with U.S. GAAP, management makes estimates and assumptions that affect amounts reported in the consolidated and combined financial statements and accompanying notes. Actual results may differ from those estimates.

REVENUE RECOGNITION

The Company recognizes revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods. For customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time, which generally is as the goods are produced.

The Company’s revenue is primarily derived from fixed consideration; however, we do have contract terms that give rise to variable consideration, primarily volume rebates, early payment discounts and other customer refunds. The Company estimates its volume rebates at the individual customer level based upon the terms of the arrangement and expected volume purchases over the contract period, consistent with the most likely amount method outlined in ASC 606. The Company estimates early payment discounts and other customer refunds based on the historical experience across the Company’s portfolio of customers to record reductions in revenue which is consistent with the expected value method outlined in ASC 606. Management has concluded that these methods result in the best estimate of the consideration the Company will be entitled to from its customers.
The Company has elected to present all sales taxes on a net basis, account for shipping and handling activities as fulfillment activities, recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period of the asset the Company would recognize is one year or less, and not record interest income or interest expense when the difference in timing of control or transfer and customer payment is one year or less. See Note 4 for further details.

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 notice are treated as cash equivalents and are stated at cost, which approximates market value. See Note 7 for further details.

SHIPPING AND HANDLING COSTS

Shipping and handling costs, such as freight to customers’ destinations, are included in distribution expenses in the consolidated and combined statements of operations.

INVENTORIES

Inventories are valued at the lower of cost or market value and include all costs directly associated with manufacturing products: materials, labor and manufacturing overhead. In the United States, costs of raw materials and finished paper and pulp products are generally determined using the last-in, first-out method. Other inventories are valued using the first-in, first-out or average cost methods. See Note 7 for further details.

LEASED ASSETS

Operating lease right of use (“ROU”) assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company’s leases may include options to extend the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases are primarily related to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles and leases within supply agreements are primarily related to usage, repairs and maintenance. As the implicit rate is not readily determinable for most of the Company’s leases, the Company applies a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities. Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company’s leases. See Note 8 for further details.

PLANTS, PROPERTIES AND EQUIPMENT

Plants, properties and equipment are stated at cost, less accumulated depreciation. Expenditures for betterments are capitalized, whereas normal repairs and maintenance are expensed as incurred. The units-of-production method of depreciation is used for the mills, and the straight-line method is used for other plants and equipment. See Note 7 for further details.

GOODWILL
Annual evaluation for possible goodwill impairment is performed as of the beginning of the fourth quarter of each year, with additional interim evaluation performed when management believes that it is more likely than not that events or circumstances have occurred that would result in the impairment of a reporting unit’s goodwill.

The Company has the option to evaluate goodwill for impairment by first performing a qualitative assessment of events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is not required to be performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company does not elect the option to perform an initial qualitative assessment, then the
Company is required to perform the quantitative goodwill impairment test. In performing this evaluation, the Company estimates the fair value of its reporting unit using a weighted approach based on discounted future cash flows, market multiples and transaction multiples. The determination of fair value using the discounted cash flow approach requires management to make significant estimates and assumptions related to forecasts of future revenues, operating profit margins and discount rates. The determination of fair value using market multiples and transaction multiples requires management to make significant assumptions related to revenue multiples and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples. For reporting units whose carrying amount is in excess of their estimated fair value, the reporting unit will record an impairment charge by the amount that the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. See Note 9 for further discussion.
IMPAIRMENT OF LONG-LIVED ASSETS

Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable. A recoverability test is performed based on undiscounted cash flows, requiring judgments as to the weighting of operational alternatives being considered by management and estimates of the amount and timing of expected future cash flows from the use of the long-lived assets generated by their use. Impaired assets are written-down to their estimated fair value. See Note 9 for further discussion.

EMPLOYEE RETIREMENT BENEFITS

Prior to September 1, 2021, certain of the Company’s employees participated in defined benefit and other postretirement plans sponsored by International Paper in the U.S., Belgium, France, and Poland. These plans were accounted for by International Paper in accordance with accounting guidance for defined benefit pension and other postretirement benefit plans. The Company accounted for the participation of its employees in these plans as a participant in a multi-employer plan sponsored by International Paper. On September 1, 2021, the Company established legally separate plans from International Paper, in which International Paper transferred both pension liabilities and qualified pension assets to the Company for all of the Company’s active participants.

The Company also serves as the sponsor of certain direct defined benefit pension and postretirement plans in Brazil and the United Kingdom, which the Company accounts for using the single-employer method, with the net funded status of these plans recorded as an asset or liability in the consolidated and combined balance sheets. See Note 13 for additional disclosures regarding retirement benefits.

INCOME TAXES

The Company was included in the foreign and domestic tax returns of International Paper until its separation from International Paper on October 1, 2021. For the periods prior to the spin-off, we calculated the provision for income taxes by using a separate-return method. Any difference between the tax provision (or benefit) allocated to us under the separate-return method and payments to be made to (or received from) International Paper for tax expense is treated as either dividends or capital contributions.

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets are recognized to the extent that we believe that these assets are more likely than not to be realized.

We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

While we believe that these judgments and estimates are appropriate and reasonable under the circumstances, actual resolution of these matters may differ from recorded estimates and amounts. See Note 10 for further discussion.

TRANSLATION OF FINANCIAL STATEMENTS
Balance sheets of international operations are translated into U.S. dollars at period-end exchange rates, while statements of operations are translated at average rates. Adjustments resulting from financial statement translations are included as cumulative translation adjustments in accumulated other comprehensive income (loss) (“AOCI”).
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RECENT ACCOUNTING DEVELOPMENTS
 12 Months Ended
Dec. 31, 2021
Accounting Changes and Error Corrections [Abstract]  
RECENT ACCOUNTING DEVELOPMENTS RECENT ACCOUNTING DEVELOPMENTS
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
Reference Rate Reform
In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This guidance provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective upon issuance and generally can be applied through December 31, 2022. We will apply the amendments in this update to account for contract modifications due to changes in reference rates once those occur. We do not expect these amendments to have a material impact on our consolidated and combined financial statements.
v3.22.0.1
REVENUE RECOGNITION
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
EXTERNAL NET SALES BY PRODUCT

External net sales by major products were as follows:
In millions
202120202019
Europe
Uncoated Papers
$753 $666 $850 
Coated Paperboard / Other106 98 97 
Market Pulp
163 131 149 
Europe
1,022 895 1,096 
Latin America
Uncoated Papers
732 579 920 
Market Pulp
37 53 49 
Latin America
769 632 969 
North America
Uncoated Papers
1,643 1,428 1,912 
Market Pulp
68 54 40 
North America
1,711 1,482 1,952 
Total
$3,502 $3,009 $4,017 
REVENUE CONTRACT BALANCES

A contract asset is created when the Company recognizes revenue on its customized products for which we have an enforceable right to payment.

A contract liability is created when customers prepay for goods prior to the Company transferring control over those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months. Contract liabilities of $17 million and $11 million are included in current liabilities in the accompanying consolidated and combined balance sheets as of December 31, 2021 and 2020, respectively.
The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the difference between the price and quantity at comparable points in time for goods which we have an unconditional right to payment or receive pre-payment from the customer, respectively.

PERFORMANCE OBLIGATIONS AND SIGNIFICANT JUDGEMENTS

The Company’s principal business is to manufacture and sell uncoated freesheet papers, along with coated paperboard and pulp. As a general rule, none of our businesses provide equipment installation or other ancillary services outside of producing and shipping paper goods to customers.
The nature of the Company’s contracts can vary based on the business, customer type, and region; however, in all instances it is the Company’s customary business practice to receive a valid purchase order from the customer, in which each party’s rights and related payment terms are clearly identifiable. Contracts or purchase orders with customers could include a single type of product or it could include multiple types/grades of products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contracts or purchase orders. The Company does not bundle prices; however, we do negotiate with customers on pricing and rebates for the same products based on a variety of factors (e.g. level of contractual volume, geographical location, etc.). Management has concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product.
v3.22.0.1
OTHER COMPREHENSIVE INCOME
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME
The following table presents the changes in AOCI, net of tax, reported in the consolidated and combined financial statements:
In millions
202120202019
Defined Benefit Pension and Postretirement Adjustments
Balance at beginning of period
$(48)$(44)$(38)
Other comprehensive income (loss) before reclassifications(3)(5)(7)
Pension plan transfer from Parent
(30)— — 
Amounts reclassified from accumulated other comprehensive income1 1 1 
Balance at end of period
(80)(48)(44)
Change in Cumulative Foreign Currency Translation Adjustments
Balance at beginning of period
(1,433)(1,187)(1,149)
Transfer from Parent(113)(a)— — 
Other comprehensive income (loss) before reclassifications
(173)(a)(246)(38)
Balance at end of period
(1,719)(1,433)(1,187)
Net Gains and Losses on Cash Flow Hedging Derivatives
Balance at beginning of period
1 2 (4)
Other comprehensive income (loss) before reclassifications
(2)(25)1 
Amounts reclassified from accumulated other comprehensive income(1)24 5 
Balance at end of period
(2)1 2 
Total Accumulated Other Comprehensive Income (Loss) at End of Period
$(1,801)$(1,480)$(1,229)
(a)    These amounts include out of period corrections to record certain cumulative translation adjustment balances allocated to us from International Paper with an offsetting increase to Parent company investment. The corrections consist of a $(113) million adjustment pertaining to our opening balance sheet and a net adjustment of $(87) million to appropriately record subsequent cumulative translation adjustment (losses) gains pertaining to the years ended December 31, 2020, 2019 and 2018 in the amounts of $(42) million, $21 million and $(66) million, respectively. These amounts were determined to be immaterial to the current and prior periods.
v3.22.0.1
EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potentially dilutive shares of common stock been issued. The dilutive effect of restricted stock units is reflected in diluted earnings per share by applying the treasury stock method.

There are no adjustments required to be made to net income for purposes of computing basic and diluted earnings per share.
These financial statements are prepared on the basis that, at the date of distribution of Sylvamo common stock by International Paper to its shareholders on October 1, 2021, Sylvamo had 43,949,277 total shares of common stock outstanding. The calculation of pro forma earnings per share for each period presented utilizes the number of shares of common stock outstanding at the date of distribution as the basis for the calculation of the weighted average number of shares of common stock outstanding for periods prior to the spinoff because, at that time, Sylvamo did not operate as a separate, stand-alone entity, and no shares or equity-based awards were outstanding prior to the date of distribution. This share count reflects a change from the prior period to reflect an immaterial adjustment to the number of outstanding shares of common stock held by International Paper on the spin-off record date.

Basic and diluted earnings per share are calculated as follows:
In millions, except per share amounts202120202019
Net income (loss)$331 $170 $377 
Weighted average common shares outstanding444444
Effect of dilutive securities———
Weighted average common shares outstanding - assuming dilution444444
Earnings per share - basic and diluted$7.53 $3.85 $8.55 
v3.22.0.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION 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 months maturities but with the right to redeem without notices are treated as cash equivalents and are stated at cost. Temporary investments totaled $78 million and $36 million as of December 31, 2021 and 2020, respectively.

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net, by classification were:
In millions as of December 31 
20212020
Accounts and notes receivable:
Trade
$472 $398 
Due from Parent cash pool— 202 
Notes and other
18 21 
Total
$490 $621 

Accounts and notes receivable are recognized net of the allowance for expected credit losses. The allowance for expected credit losses reflects the best estimate of losses inherent in the Company’s receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts, expectations for future economic conditions through the use of macroeconomic data and other available evidence. The allowance for expected credit losses was $20 million and $30 million at December 31, 2021 and December 31, 2020, respectively. Based on the Company’s accounting estimates and the facts and circumstances available as of the reporting date, we believe our allowance for expected credit losses is adequate.
INVENTORIES
In millions as of December 31
20212020
Raw materials
$49 $50 
Finished paper and pulp products
189 171 
Operating supplies
95 102 
Other
9 19 
Total
$342 $342 
The last-in, first-out inventory method is used to value most of the Company’s U.S. inventories. Approximately 63% of total raw materials and finished paper and pulp product inventories were valued using this method. The last-in, first-out inventory reserve was $43 million and $108 million as of December 31, 2021 and 2020, respectively.
PLANTS, PROPERTIES AND EQUIPMENT, NET
In millions as of December 31
20212020
Land
$9 $9 
Buildings
386 408 
Machinery
4,212 4,299 
Construction in progress
33 23 
Capital leases
42 43 
Gross cost
4,682 4,782 
Less: Accumulated depreciation
3,797 3,808 
Plants, Properties and Equipment, net
$885 $974 
Non-cash additions to plants, property and equipment included within accounts payable were $6 million, $11 million and $13 million as of December 31, 2021, 2020 and 2019, 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 $141 million, $152 million and $190 million for the years ended December 31, 2021, 2020 and 2019, respectively. Cost of products sold excludes depreciation and amortization expense.

INTEREST

Interest payments of $10 million, $1 million and $2 million were made during the years ended December 31, 2021, 2020 and 2019, respectively.

Amounts related to interest were as follows:
In millions
202120202019
Interest expense$32 $4 $5 
Interest income(33)(8)(13)
Capitalized interest costs(1)— (1)

ASSET RETIREMENT OBLIGATIONS

At December 31, 2021 and 2020, we had recorded liabilities of $27 million and $20 million, respectively related to asset retirement obligations. These amounts are included in “Other liabilities” in the accompanying consolidated and combined balance sheets.
v3.22.0.1
LEASES
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
LEASES LEASESThe Company leases various real estate, including 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 15 years.
COMPONENTS OF LEASE EXPENSE
In millions
202120202019
Operating lease costs
$11 $10 $10 
Variable lease costs
20 16 20 
Short-term lease costs
7 1 2 
Finance lease cost
Amortization of right-of-use assets
4 4 2 
Interest on lease liabilities
1 1 1 
Total lease cost, net
$43 $32 $35 
SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES
In millions 
Classification
20212020
Assets
  
Operating lease assets
Right of use assets$41 $46 
Finance lease assets
Plants, properties, and equipment, net (a)29 33 
Total leased assets
$70 $79 
Liabilities
Current
Operating
Other current liabilities$16 $14 
Finance
Notes payable and current maturities of long-term debt4 2 
Noncurrent
Operating
Other Liabilities26 32 
Finance
Long-term debt18 21 
Total lease liabilities
$64 $69 
(a)Finance leases are recorded net of accumulated amortization of $13 million and $10 million as of December 31, 2021 and 2020, respectively.
LEASE TERM AND DISCOUNT RATE
20212020
Weighted average remaining lease term (years)
  
Operating leases
3.5 years4.2 years
Finance leases
6.8 years10.9 years
Weighted average discount rate
Operating leases
1.48 %2.70 %
Finance leases
3.65 %4.81 %
SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES
In millions
20212020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases
$11 $11 
Operating cash flows related to financing leases
1 1 
Financing cash flows related to finance leases
4 3 
Right of use assets obtained in exchange for lease liabilities
Operating leases
32 16 
Finance leases
1 4 
MATURITY OF LEASE LIABILITIES
In millions
Operating Leases
Financing Leases
Total
2022$17 $4 $21 
202312 4 16 
20247 2 9 
20253 2 5 
20262 2 4 
Thereafter
3 13 16 
Total lease payments
44 27 71 
Less: imputed interest
2 5 7 
Present value of lease liabilities
$42 $22 $64 
LEASES LEASESThe Company leases various real estate, including 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 15 years.
COMPONENTS OF LEASE EXPENSE
In millions
202120202019
Operating lease costs
$11 $10 $10 
Variable lease costs
20 16 20 
Short-term lease costs
7 1 2 
Finance lease cost
Amortization of right-of-use assets
4 4 2 
Interest on lease liabilities
1 1 1 
Total lease cost, net
$43 $32 $35 
SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES
In millions 
Classification
20212020
Assets
  
Operating lease assets
Right of use assets$41 $46 
Finance lease assets
Plants, properties, and equipment, net (a)29 33 
Total leased assets
$70 $79 
Liabilities
Current
Operating
Other current liabilities$16 $14 
Finance
Notes payable and current maturities of long-term debt4 2 
Noncurrent
Operating
Other Liabilities26 32 
Finance
Long-term debt18 21 
Total lease liabilities
$64 $69 
(a)Finance leases are recorded net of accumulated amortization of $13 million and $10 million as of December 31, 2021 and 2020, respectively.
LEASE TERM AND DISCOUNT RATE
20212020
Weighted average remaining lease term (years)
  
Operating leases
3.5 years4.2 years
Finance leases
6.8 years10.9 years
Weighted average discount rate
Operating leases
1.48 %2.70 %
Finance leases
3.65 %4.81 %
SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES
In millions
20212020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases
$11 $11 
Operating cash flows related to financing leases
1 1 
Financing cash flows related to finance leases
4 3 
Right of use assets obtained in exchange for lease liabilities
Operating leases
32 16 
Finance leases
1 4 
MATURITY OF LEASE LIABILITIES
In millions
Operating Leases
Financing Leases
Total
2022$17 $4 $21 
202312 4 16 
20247 2 9 
20253 2 5 
20262 2 4 
Thereafter
3 13 16 
Total lease payments
44 27 71 
Less: imputed interest
2 5 7 
Present value of lease liabilities
$42 $22 $64 
v3.22.0.1
GOODWILL AND OTHER INTANGIBLES
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLES GOODWILL AND OTHER INTANGIBLES
GOODWILL
There were no impairment charges related to goodwill for the years ended December 31, 2021, 2020 and 2019.
The following table presents changes in the goodwill balance as allocated to each business segment:
In millions
Europe
Latin
America 
North America
Total
Balance as of December 31, 2019
Goodwill
$29 $155 $— $184 
Accumulated impairment losses
(5)— — (5)
24 155 — 179 
Currency translation and other (a)
(2)(34)— (36)
Goodwill additions/reductions
— — — — 
Accumulated impairment loss additions/reductions
— — — — 
Balance as of December 31, 2020
 
Goodwill
27 121 — 148 
Accumulated impairment losses
(5)— — (5)
22 121 — 143 
 
Currency translation and other (a)
(2)(9)— (11)
Goodwill additions/reductions
— — — — 
Accumulated impairment loss additions/reductions
— — — — 
Balance as of December 31, 2021
 
Goodwill
25 112 — 137 
Accumulated impairment losses
(5)— — (5)
Total
$20 $112 $— $132 
(a)Represents the effects of foreign currency translations and reclassifications.
The Company performed its annual testing of its reporting units for possible goodwill impairments by applying the qualitative assessment to its Europe and Latin America reporting units as of October 1, 2021. For the current year evaluation, the Company assessed various assumptions, events and circumstances that would have affected the estimated fair value of the reporting units under the qualitative assessment for the reporting units listed above. The results of the qualitative assessments indicated that it is not more likely than not that the fair values of its Europe and Latin America reporting units were less than their carrying values.
In addition, the Company considered whether there were any events or circumstances outside of the annual evaluation that would reduce the fair value of its reporting units below their carrying amounts and necessitate a goodwill impairment evaluation. In consideration of all relevant factors, there were no indicators that would require goodwill impairment subsequent to October 1, 2021.

OTHER INTANGIBLES
Identifiable intangible assets comprised the following:
20212020
In millions as of December 31,
Gross
Carrying
Amount
Accumulated
Amortization
Net
Intangible
Assets
Gross
Carrying
Amount
Accumulated
Amortization
Net
Intangible
Assets
Customer relationships and lists
$56 $(48)$8 $60 $(49)$11 
Software
3 (2)1 3 (2)1 
Other
4 (4)— 4 (4)— 
Total
$63 $(54)$9 $67 $(55)$12 
The Company recognized the following amounts as amortization expense related to intangible assets:
In millions
202120202019
Amortization expense related to intangible assets
$2 $2 $3 
Based on current intangibles subject to amortization, estimated amortization expense for each of the succeeding years is as follows: 2022 – $2 million, 2023 – $2 million, 2024 – $2 million, 2025 – $2 million, 2026 - $1 million and cumulatively thereafter – $0 million.
v3.22.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of the Company’s income (loss) before income taxes by taxing jurisdiction were as follows:
In millions
202120202019
U.S.
$80 $10 $145 
Non-U.S.
380 188 357 
Income (loss) before income taxes
$460 $198 $502 
Income tax provision (benefit) by taxing jurisdictions was as follows:
In millions
202120202019
Current tax provision (benefit)
U.S. federal
$26 $(4)$36 
U.S. state and local
5 2 8 
Non-U.S.
104 77 88 
$135 $75 $132 
Deferred tax provision (benefit)
U.S. federal
$(3)$(4)$(4)
U.S. state and local
(1)(1)(2)
Non-U.S.
(2)(42)(1)
$(6)$(47)$(7)
Income tax provision (benefit)
$129 $28 $125 
A reconciliation of income taxes using the statutory U.S. income tax rate of 21% compared to the reported income tax provision (benefit) is summarized as follows:
In millions
202120202019
Income (loss) before income taxes
$460 $198 $502 
Statutory U.S. income tax rate
21 %21 %21 %
Income taxes using the statutory U.S. income tax rate
96 42 105 
State and local income taxes
5 1 5 
Impact of rate differential on non-U.S. permanent differences and earnings
28 (5)12 
Tax audits
— (10)— 
US tax on non-U.S. earnings (GILTI and Subpart F)
— 1 4 
Other, net
— (1)(1)
Income tax provision (benefit)
$129 $28 $125 
Effective income tax rate
28 %14 %25 %
The components of deferred income tax assets and liabilities are as follows:
In millions
20212020
Deferred income tax assets:
Net operating and capital loss carryforwards
$22 $27 
Accrued payroll and benefits
25 9 
Lease liabilities
6 10 
Tax credits
4 35 
Other
40 64 
Gross deferred income tax assets
$97 $145 
Less: valuation allowance
(9)(35)
Net deferred income tax asset
$88 $110 
Deferred income tax liabilities:
Intangibles
$(37)$(45)
Right of use assets
(6)(10)
Deferred foreign income
(40)(35)
Plants, properties and equipment
(92)(106)
Forestlands
(45)(49)
Gross deferred income tax liabilities
$(220)$(245)
Net deferred income tax liability
$(132)$(135)

The Company recognizes deferred income tax assets for deductible temporary differences and carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized based on estimates of future taxable income. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. Based on this evaluation, as of December 31, 2021, a valuation allowance of $9 million has been recorded to reduce the deferred tax asset to the amount that is more likely than not to be realized. The valuation allowance in 2021 is primarily attributable to French deferred assets that cannot be realized, while the valuation allowance in 2020 is primarily attributable to unrealizable state tax credits which were recognized under the separate return method but which remained with the Parent at spin-off.

The Company made income tax payments, net of refunds, of $10 million during the fourth quarter of 2021. Prior to the spin-off, all income tax payments and refunds were paid and received by International Paper on our behalf.
The reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:
In millions
202120202019
Balance at January 1
$(18)$(28)$(29)
(Additions) reductions for tax positions related to current year
(2)(1)— 
Reductions for tax positions related to prior years— 11 — 
Transfer of tax positions related to prior years to Parent
17 — — 
Expiration of statutes of limitations
— — 1 
Balance at December 31
$(3)$(18)$(28)

Included in the balance of unrecognized tax benefits as of December 31, 2021, December 31, 2020 and December 31, 2019 are $3 million, $18 million and $28 million, respectively, of tax benefits that if recognized would affect the effective tax rate. The Company accrues interest on unrecognized tax benefits as a component of interest expense. Penalties, if incurred, are recognized as a component of income tax expense. During 2021, we accrued interest of $1 million, and as of December 31, 2021, recognized a liability for interest of $2 million. During 2020, we did not accrue any interest, and as of December 31, 2020, recognized a liability related to the unrecognized tax benefits noted above for interest of $2 million. During 2019, we accrued interest of $200,000, and as of December 31, 2019, recognized a liability for interest of $3 million.

The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by International Paper do Brasil Ltda., a wholly-owned subsidiary of the Company now named Sylvamo do Brasil Ltda. (“Sylvamo Brasil”). Sylvamo Brasil received assessments for the tax years 2007-2015 totaling approximately $106 million in tax and $351 million in interest, penalties and fees as of December 31, 2021 (adjusted for variation in currency exchange rates). International Paper challenged and is managing the litigation of this matter pursuant to the Tax Matters Agreement between us and International Paper. After a previous favorable ruling challenging the basis for these assessments, there were subsequent unfavorable decisions from the Brazilian Administrative Council of Tax Appeals. On behalf of Sylvamo Brasil, International Paper has appealed and at present, has advised us that it intends to further appeal these and any future unfavorable administrative judgments to the Brazilian federal courts; however, this tax litigation matter may take many years to resolve. The Company believes that the transaction underlying these assessments was appropriately evaluated, and that the Company’s tax position would be sustained, based on Brazilian tax law.

Pursuant to the terms of the Tax Matters Agreement, International Paper will pay 60%, and Sylvamo will pay 40% on up to $300 million of any assessment related to this matter, and International Paper will pay all amounts of the assessment over $300 million. Also in connection with this agreement, all decisions concerning the conduct of the litigation related to this matter, including strategy settlement, pursuit and abandonment, will continue to be made by International Paper, which is vigorously defending Sylvamo Brasil’s historic tax position against the current assessments and any similar assessments that may be issued for tax years subsequent to 2015.
The following details the scheduled expiration dates of the Company’s December 31, 2021 net operating loss and income tax credit carryforwards:
In millions
Indefinite
Total
Non-U.S. NOLs
$22 $22 
Less: valuation allowance
(6)(6)
Total, net
$16 $16 
v3.22.0.1
COMMITMENTS AND CONTINGENT LIABILITIES
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENT LIABILITIES COMMITMENTS AND CONTINGENT LIABILITIES
ENVIRONMENTAL AND LEGAL PROCEEDINGS
The Company is subject to environmental remediation laws and regulations in the countries in which we operate. Remediation costs are recorded in the consolidated and combined financial statements when they become probable and reasonably estimable. The Company has estimated the probable liability associated with these environmental remediation matters to be approximately $16 million in the aggregate as of December 31, 2021.

In 2018, the Company discovered and voluntarily disclosed to the Russian environmental agency, Rosprirodnadzor (“RPN”) the presence of mercury contamination in sediment in a river tributary that traverses the Company’s mill property in Svetogorsk,
Russia, and the authorities initiated an investigation. The mercury contamination resulted from the operations of a former chlor-alkali manufacturing plant on the mill site. Remediation of the river tributary was completed in 2020. The Company is presently remediating soil and groundwater contamination associated with the old chlor-alkali plant. The Company has estimated the probable liability associated with this environmental matter to be $12 million as of December 31, 2021.

Subsequent to December 31, 2021, the Company received from RPN a damage claim in the amount of approximately $9 million relating to continued mercury discharges into the river in 2019 from the contaminated sediment at the Svetogorsk mill site. The damage claim also alleged discharge of aluminum and lignin in 2019. The Company intends to dispute and defend against this claim. The Company will record a charge of approximately $1 million in the first quarter of 2022 for the portion of the claim that is estimable and probable. The Company is having expert sampling and testing conducted for the presence of the claimed pollutants in the area of the river at issue. The Company will reassess the amount to reserve for the claim when the test results become available.

TAXES OTHER THAN PAYROLL TAXES
In 2017, the Brazilian Federal Supreme Court decided that the state value-added tax (“VAT”) should not be included in the basis of federal VAT calculations. In 2018 and 2019, the Brazilian tax authorities published both an internal consultation and a normative ruling with a narrow interpretation of the effects of the case. Based upon the best information available to us, we have determined an estimated refund was probable of being realized. Until March 31, 2021, we had recognized a receivable of $11 million based upon the Brazilian authorities’ narrow interpretation. On May 13, 2021 the Brazilian Federal Supreme Court ruled again on the case. This ruling provided a much broader definition of the state VAT, which increased the exclusion amount from the Federal VAT calculations. Therefore, we recognized an additional receivable of $70 million during the three months ended June 30, 2021. The $70 million of income recognized during the second quarter of 2021 included income of $42 million in cost of products sold and income of $28 million in interest (income) expense, net in the accompanying audited consolidated and combined statement of operations. A portion of this receivable has been consumed by offsetting various taxes payable. After giving effect to this offset, the ending balance of the total receivable is $35 million as of December 31, 2021. The VAT matter has been fully resolved, and no further ruling by either the Brazilian Supreme Court nor the Brazilian tax authorities is expected.

See Note 10 Income Taxes for a discussion of a goodwill amortization tax matter in Brazil.

We have other open tax matters awaiting resolution in Brazil, which are at various stages of review in various administrative and judicial proceedings. We routinely assess these tax matters for materiality and probability of loss or gain, and appropriate amounts have been recorded in our financial statements for any open items where the risk of loss is deemed probable. We currently do not consider any of these other tax matters to be material individually. However, it is reasonably possible that settlement of any of these matters concurrently could result in a material loss or that over time a matter could become material, for example, if interest were accruing on the amount at issue for a significant period of time. Also, future exchange rate fluctuations could be unfavorable to the U.S. dollar and significant enough to cause an open matter to become material. The expected timing for resolution of these open matters ranges from one year to 10 years.

GENERAL

The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, taxes (including VAT), personal injury, product liability, labor and employment, contracts, sales of property, intellectual property, and other matters, some of which allege substantial monetary damages. Assessments of lawsuits and claims can involve a series of complex judgments about future events, can rely heavily on estimates and assumptions, and are otherwise subject to significant uncertainties. As a result, there can be no certainty that the Company will not ultimately incur charges in excess of presently recorded liabilities. The Company believes that loss contingencies arising from pending matters, including the matters described herein, will not have a material effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in pending or threatened legal matters, some of which are beyond the Company's control, and the large or indeterminate damages sought in some of these matters, a future adverse ruling, settlement, unfavorable development, or increase in accruals with respect to these matters, could result in future charges that could be material to the Company's results of operations or cash flows in any particular reporting period.
v3.22.0.1
LONG-TERM DEBT
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
LONG-TERM DEBT LONG-TERM DEBTIn anticipation of our separation from International Paper, on August 16, 2021, we entered into a series of financing transactions in which we incurred long-term debt consisting of two term loans (“Term Loan F” and “Term Loan B”) and the 2029 Senior
Notes. The proceeds of the debt were directly attributed to the Company and as such are reflected as long-term debt in the accompanying consolidated and combined balance sheet.

In addition to the debt noted above, the Company has the ability to access a five-year cash flow-based revolving credit facility with a total borrowing capacity of $450 million (“Revolving Credit Facility”). As of December 31, 2021, the Company had a $20 million outstanding balance on the Revolving Credit Facility. The outstanding balance on the Revolving Credit Facility is recorded within notes payable and current maturities of long-term debt in the consolidated and combined balance sheet.

Long-term debt is summarized in the following table:
In millions as of December 31
20212020
Term Loan F - due 2027 (a)$512 $— 
Term Loan B - due 2028 (b)401 — 
7% Senior Notes - due 2029 (c)
443 — 
Other22 22 
Less: current portion(20)— 
Total$1,358 $22 

(a) As of December 31, 2021, presented net of $5 million in unamortized debt issuance costs.
(b) As of December 31, 2021, presented net of $5 million in unamortized debt issuance costs and $4 million in unamortized original issue discount paid.
(c) As of December 31, 2021, presented net of $7 million in unamortized debt issuance costs.

The 2029 Senior Notes are unsecured bonds with a 7.00% fixed interest rate, payable semi-annually. The obligations under the Term Loan F, Term Loan B and Revolving Credit Facility are secured by substantially all the tangible and intangible assets of Sylvamo and its subsidiaries, subject to certain exceptions, and along with the 2029 Senior Notes facility are guaranteed by Sylvamo and certain subsidiaries. The interest rates applicable to the Term Loan F, Term Loan B and revolving credit facility are based on a fluctuating rate of interest measured by reference to LIBOR plus a fixed percentage of 1.90%, 4.50% and 1.75%, respectively, payable monthly, with a LIBOR floor of 0.00% for the Term Loan F and Revolving Credit Facility and 0.50% floor for the Term Loan B.

We expect to receive interest patronage credits under the Term Loan F. Patronage credits are distributions of profits from banks in the Farm Credit system, which as cooperatives are required to distribute a portion of profits to their members. Patronage distributions, which are made primarily in cash but also in equity in the lenders, are received in the first quarter of the year following that in which they were earned. Expected patronage credits are accrued in accounts and notes receivable as a reduction to interest expense in the year earned. After giving effect to expected patronage distributions of 95 basis points, of which 70 basis points is expected as a cash rebate, the effective net interest rate on the Term Loan F was approximately 1.05% as of December 31, 2021.

In the fourth quarter of 2021 in connection with the Term Loan F, the Company entered into interest rate swaps with various counterparties with a notional amount of $400 million and maturities ranging from 2024 to 2026. These interest rate swaps allow for the Company to exchange the difference in the variable rates on Term Loan F determined in reference to LIBOR and the fixed interest rate per notional amount ranging from 1.05% to 1.40%. As of December 31, 2021, the fair value of these interest rate swaps was immaterial.

The Company is subject to certain covenants limiting, among other things, the ability and the ability of most of its subsidiaries to: incur additional indebtedness or issue certain preferred shares; pay dividends on or make distributions in respect of the Company’s or its subsidiaries’ capital stock or make investments or other restricted payments; create restrictions on the ability of the Company’s restricted subsidiaries to pay dividends to the Company or make certain other intercompany transfers; sell certain assets; create liens; consolidate, merge, sell or otherwise dispose of all or substantially all of the Company’s assets; and enter into certain transactions with its affiliates.

With respect to the Revolving Credit Facility and Term Loan F Facility, the Company is required to comply with a minimum consolidated interest charge coverage ratio of 3.00 to 1.00 and a maximum consolidated total leverage ratio of 4.25 to 1.00, stepping down to 4.00 to 1.00 following the third quarter of 2022, and with a further step down to 3.50 to 1.00 on and after September 13, 2023, if and so long as certain conditions remain unsatisfied that relate to the Company’s potential liability in
connection with the Brazil Tax Dispute. In addition, until certain conditions related to the Company’s potential liability in connection with the Brazil Tax Dispute have been satisfied, the Company’s ability to make certain restricted payments will be capped at an annual amount equal to $25 million, which amount shall be increased to $50 million in any calendar year if the Company’s pro forma consolidated total leverage ratio is below 2.50 to 1.00 and $75 million in any calendar year if the Company’s pro forma consolidated total leverage ratio is below 2.00 to 1.00.

The fair market value of total debt was approximately $1.4 billion at December 31, 2021.

At December 31, 2021, contractual obligations for future payments of debt maturities (including finance lease liabilities disclosed in Note 8 Leases) by calendar year were as follows over the next five years: 2022 - $20 million, $2023 - $30 million; 2024 - $50 million; 2025 - $51 million; 2026 - $51 million; and thereafter - $1.2 billion.
v3.22.0.1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS RETIREMENT AND POSTRETIREMENT BENEFIT PLANS
DEFINED BENEFIT PENSION PLANS
Certain of the Company’s employees participated in defined benefit pension plans sponsored by International Paper through August 31, 2021, which included participants of other International Paper operations, that were accounted for by International Paper in accordance with accounting guidance for defined benefit pension plans. Accordingly, net periodic pension expense for Company employees was allocated to the Company based upon a percent of salaries and reported in the consolidated and combined statements of operations, and the Company did not record an asset or liability to recognize the funded or unfunded status of the Plans. The service and non-service cost components of net periodic pension expense for these employees is recorded within cost of products sold and selling and administrative expenses in the consolidated and combined statements of operations.

As part of our separation from International Paper, the Company established and sponsored pension plans for the benefit of the Company’s employees. Pension assets and obligations relating to the employees of the Company that participated in plans sponsored by International Paper were transferred into pension plans sponsored by the Company. The Company is accounting for these plans as direct to the Company beginning on September 1, 2021. The assets and liabilities were remeasured on September 1, 2021 and all balances related to plans sponsored by the Company are reflected in deferred charges and other assets and other liabilities in the consolidated and combined balance sheet.

In addition, the Company has sponsored and maintained certain defined benefit pension plans for participating employees in the United Kingdom and Brazil. The Company’s participation in these plans have been accounted for using the single-employer method in all periods presented. All balances related to these plans are reflected in deferred charges and other assets and other liabilities in the consolidated and combined balance sheet.

U.S. PENSION PLAN

The Sylvamo defined benefit pension plan was transferred with a projected benefit obligation (“PBO”) and assets of approximately $261 million and $253 million, respectively, as of September 1, 2021. As of December 31, 2021, the defined benefit pension plan is 95% funded, with a PBO and assets of approximately $263 million and $250 million, respectively. The plan net unfunded obligation has been recorded in other liabilities in the consolidated and combined balance sheet.

INTERNATIONAL PLANS

As part of the separation, International Paper transferred certain international pension plans in Belgium, France and Poland to the Company for the Company’s active employees participating in these plans. As of December 31, 2021, the net unfunded pension liability for these plans was $12 million, comprised of a PBO of $16 million and assets of $4 million. The plan net unfunded obligation has been recorded in other liabilities in the consolidated and combined balance sheet.

The defined benefit pension plans in the UK and Brazil were accounted for as single-employer plans in all periods presented. As of December 31, 2021, the net pension asset was $9 million, comprised of a PBO of $168 million and assets of $177 million. The net pension asset for these plans has been recorded in deferred charges and other assets in the consolidated and combined balance sheet.

As the Brazil and UK defined benefit pension plans were accounted for as single-employer plans in all periods presented, the following tables reflect balances related to those plans for the full twelve-month period in 2019, 2020, and 2021. However, all other defined benefit pension plan balances and costs are reflected as direct to the employer as of September 1, 2021. The transfer of these balances is shown within pension plan transfer from Parent, and the changes in the projected benefit obligation
and pension assets reflect only four months of net periodic pension expense for those plans which were not single-employer throughout all periods presented.

OBLIGATIONS AND FUNDED STATUS

The following table shows the changes in the benefit obligation and plan assets and the plans’ funded status. The transfer of the PBO and assets which were accounted for as multi-employer until October 1, 2021, are reflected within the Pension plan transfer from Parent line below, and three months of activity after the spin-off date is reflected within the table for 2021.
In millions
20212020
Change in projected benefit obligation:
Benefit obligation, January 1
$171 $165 
Pension plan transfer from Parent287 — 
Service cost
2 1 
Interest cost
6 4 
Actuarial loss (gain)
— 7 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (1)
Benefit obligation, December 31
$462 $171 
Change in plan assets:
Fair value of plan assets, January 1
$171 $163 
Pension plan transfer from Parent252 — 
Actual return on plan assets
2 11 
Company contributions
10 4 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (2)
Fair value of plan assets, December 31
$431 $171 
Funded status, December 31
$(31)$— 
Amounts recognized in the consolidated and combined balance sheets:
Non-current asset
$8 $5 
Non-current liability
(39)(5)
$(31)$— 
Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax):
Net prior service cost$2 $— 
Net actuarial loss
106 63 
$108 $63 
The following table summarizes obligation and asset information:
In millions as of December 31
20212020
Projected benefit obligation
$462 $171 
Accumulated benefit obligation
446 168 
Fair value of plan assets
431 171 

NET PERIODIC PENSION EXPENSE

Service cost is the actuarial present value of benefits attributed by the plans’ benefit formula to services rendered by employees during the year. Interest cost represents the increase in the projected benefit obligation, which is a discounted amount, due to the
passage of time. The expected return on plan assets reflects the computed amount of current-year earnings from the investment of plan assets using an estimated long-term rate of return.

Net periodic pension expense comprised the following:
In millions
202120202019
Service cost
$2 $1 $1 
Interest cost6 4 5 
Expected return on plan assets
(11)(8)(9)
Actuarial loss (gain)
2 1 1 
Net periodic pension expense (benefit)
$(1)$(2)$(2)

The components of net periodic pension expense are included in cost of products sold and selling and administrative expenses in the consolidated and combined statements of operations.

ASSUMPTIONS

The Company evaluates its actuarial assumptions annually as of December 31 (the measurement date) and considers changes in these long-term factors based upon market conditions and the requirements for employers’ accounting for pensions. These assumptions are used to calculate benefit obligations as of December 31 of the current year and pension expense to be recorded in the following year (i.e., the discount rate used to determine the benefit obligation as of December 31, 2021 is also the discount rate used to determine net pension expense for the 2022 year).
Major actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit plans are presented in the following table:
202120202019
Actuarial assumptions used to determine benefit obligations as of December 31:
Discount rate
2.79 %2.27 %2.80 %
Rate of compensation increase
3.36 %3.54 %3.39 %
Actuarial assumptions used to determine net periodic pension cost for years ended December 31:
Discount rate
2.79 %2.76 %4.23 %
Expected long-term rate of return on plan assets
5.38 %4.84 %6.59 %
Rate of compensation increase
2.85 %3.42 %3.63 %
PLAN ASSETS
The plans maintain a strategic asset allocation policy that designates target allocations by asset class. Investments are diversified across classes and within each class to minimize the risk of large losses. Derivatives, including swaps, forward and futures contracts, may be used as asset class substitutes or for hedging or other risk management purposes. Periodic reviews are made of investment policy objectives and investment manager performance. The target allocations for each asset class in 2021 included 25% in equity securities, 70% in debt securities and 5% in other investment types. Each category of investments is diversified and comprised of the following:

•Equity investments - developed market and emerging market equity securities primarily held in mutual funds
•Debt securities - corporate bonds and government securities, both primarily held within common collective trusts and index funds
•Other investments - represents primarily mark-to-market derivatives, cash and cash equivalents and private equity-like investments.
The fair values of Sylvamo’s pension plan assets at December 31, 2020 for the direct plans consisted primarily of diversified investment funds classified as Level 2 assets. The fair value of pension plan assets at December 31, 2021 by asset class are shown below for the material plans which include the U.S. and U.K. pension plans.
Fair Value Measurement at December 31, 2021
Asset Class 
TotalQuoted Prices in Active Markets For Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
In millions
Cash and cash equivalents
$17 $17 $— $— 
Equities - developed markets
88 — 88 — 
Equities - emerging markets8 — 8 — 
Government securities59 23 36 — 
Corporate bonds137 — 137 — 
Other fixed income securities91 — 91 — 
Derivatives2 1 1 — 
Other
4 — 4 — 
Total Investments
$406 $41 $365 $— 

FUNDING AND CASH FLOWS

The Company’s funding policy for the 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 plans, tax deductibility, cash flow generated by the Company, and other factors. The Company continually reassesses the amount and timing of any discretionary contributions. Generally, the non-U.S. pension plans are funded using the projected benefit as a target, except in certain countries where funding of benefit plans is not required.

At December 31, 2021, projected future pension benefit payments, excluding any termination benefits, were as follows:

In millions
2022$6 
20237 
20249 
202511 
202613 
2027-203196 

OTHER POSTRETIREMENT BENEFITS

Certain of the Company’s Brazilian employees are eligible for retiree health care and life insurance benefits. The accumulated benefit obligation for this plan as of December 31, 2021 and 2020 was $8 million and $17 million, respectively, which is recorded within other liabilities in the consolidated and combined balance sheets. The year over year change in the accumulated benefit obligation is primarily due to certain retirees electing not to participate in the plan, resulting in an experience gain.

DEFERRED COMPENSATION AND NON-QUALIFIED PENSION PLAN

As part of our separation from International Paper and pursuant to the Employee Matters Agreement between us and International Paper, we have assumed responsibility for certain deferred compensation and non-qualified pension plan balances related to our employees. These employees previously participated in plans sponsored by International Paper. As our employees become eligible for and these benefits are paid, we will be reimbursed by International Paper. We have recorded a receivable of $24 million reflected within deferred charges and other assets of our consolidated and combined balance sheet as of December 31, 2021 related to the plans. The deferred compensation savings plan liability of $18 million as of December 31, 2021 is recorded within accounts payable in the combined balance sheet. The non-qualified pension plan is included within the
pension obligation and funded status presented above, and the liability is recorded in other liabilities in the combined balance sheet.
v3.22.0.1
INCENTIVE PLANS
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
INCENTIVE PLANS INCENTIVE PLANS
International Paper had an Incentive Compensation Plan (“ICP”) prior to the spin-off. The ICP authorizes grants of restricted stock, restricted or deferred stock units, performance awards payable in cash or stock upon the attainment of specified performance goals, dividend equivalents, stock options, stock appreciation rights, other stock-based awards and cash-based awards at the discretion of the Management Development and Compensation Committee of the Board of Directors of International Paper (the “Committee”) that administers the ICP. Stock-based compensation expense in prior years and until the spin-off on October 1, 2021, includes expense attributable to us based on the awards and terms previously granted to our employees and an allocation of International Paper’s corporate and shared functional expenses.
Adopted subsequent to the spin-off, Sylvamo’s Long-Term Incentive Plan (“LTIP”) grants certain employees, consultants, or non-employee directors of the Company different forms of awards, including stock options and restricted stock units. The equity and incentive plan has a maximum shares reserve for the grant of 4,410,725 shares. On October 15, 2021, Sylvamo granted 664,569 restricted stock units to our employees, some of who previously participated in incentive compensation plans sponsored by International Paper. As of December 31, 2021, 3,746,156 shares remain available for future grants.
The following summarizes restricted stock unit activity for employees for the period from the October 1, 2021 date of spin-off through December 31, 2021:
Shares
Weighted
Average Grant
Date Fair Value
Outstanding as of October 1, 2021— — 
Granted
664,569 28.51 
Shares issued
— — 
Forfeited
— — 
Outstanding as of December 31, 2021
664,569 $28.51 

Total stock-based compensation cost and the associated income tax benefits recognized by the Company in the consolidated and combined statements of operations were as follows:
In millions
202120202019
Total stock-based compensation expense (included in selling and administrative expense)
$14 $15 $19 
Income tax benefit (expense) related to stock-based compensation
$3 $1 $1 
As of December 31, 2021, $14 million of compensation cost, net of estimated forfeitures, related to all stock-based compensation arrangements for Company employees had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 1.1 years.
v3.22.0.1
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA
The Company’s business segments, Europe, Latin America and North America, are consistent with the internal structure used to manage these businesses.
Business segment operating profits are used by the Company’s management to measure the earnings performance of its businesses. Management believes that this measure provides investors and analysts useful insights into our operating performance. Business segment operating profits are defined as income (loss) before income taxes, excluding corporate special items, net, interest (income) expense, net, and other special items, net.

External sales are defined as those that are made to parties outside the Company’s combined group, whereas sales by segment in the Net Sales table are determined using a management approach and include intersegment sales.
INFORMATION BY BUSINESS SEGMENT
Net Sales
In millions202120202019
Europe
$1,040 $921 $1,122 
Latin America
786 632 969 
North America
1,718 1,490 1,996 
Corporate and Intersegment Sales
(42)(34)(70)
Net Sales
$3,502 $3,009 $4,017 
Operating Profit
In millions
202120202019
Europe
$98 $77 $140 
Latin America
195 84 158 
North America
136 43 200 
Business Segment Operating Profit
$429 $204 $498 
Income (loss) before income taxes
$460 $198 $502 
Interest (income) expense, net
(2)(4)(9)
Corporate special items, net5 — — 
Restructuring and other charges, net
— — 6 
Other special items, net
(34)10 (1)
Business Segment Operating Profit$429 $204 $498 
Other Special Items, Net
In millions
202120202019
Europe
$— $11 $— 
Latin America
(35)(2)(3)
North America
1 1 2 
Other special items, Net
$(34)$10 $(1)
Assets
In millions as of December 31
20212020
Europe
$538 $987 
Latin America
1,034 1,091 
North America
868 931 
Corporate and Other157 (98)
Assets
$2,597 $2,911 
Capital Spending
In millions
202120202019
Europe
$13 $15 $21 
Latin America
39 45 61 
North America
24 15 36 
Capital Spending
$76 $75 $118 
Depreciation, Amortization and Cost of Timber Harvested
In millions
202120202019
Europe
$35 $38 $40 
Latin America
58 66 96 
North America
50 50 56 
Depreciation, Amortization and Cost of Timber Harvested
$143 $154 $192 
INFORMATION BY GEOGRAPHIC AREA

External Net Sales (a)
In millions
202120202019
United States
$1,718 $1,490 $1,996 
Brazil
734 576 886 
Russia
553 502 603 
Europe, other than Russia
487 419 519 
Americas, other than United States and Brazil
52 56 83 
Corporate and Intersegment Sales
(42)(34)(70)
Net Sales
$3,502 $3,009 $4,017 
(a)Net sales are attributed to countries based on the location of the seller.
Long-Lived Assets
In millions as of December 31
20212020
United States
$413 $436 
Brazil
546 601 
Russia118 133 
Europe, other than Russia
86 97 
Long-lived Assets
$1,163 $1,267 
v3.22.0.1
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
The following discussion summarizes activity between the Company and International Paper.

ALLOCATION OF GENERAL CORPORATE EXPENSES

The consolidated and combined statements of operations include expenses for certain centralized functions and other programs provided and administered by International Paper that were charged directly to the Company. In addition, for purposes of preparing these consolidated and combined financial statements for periods prior to the spin-off on a carve-out basis, we have been allocated a portion of International Paper’s total corporate expense. See Note 1 Background and Summary of Business for a discussion of the methodology used to allocate corporate-related costs for purposes of preparing these financial statements on a carve-out basis.

RELATED PARTY SALES AND PURCHASES
The Company purchases certain of its products from International Paper which are produced in facilities that remained with International Paper. The Company continues to purchase uncoated freesheet and bristols pursuant to an offtake agreement between the Company and International Paper. The Company purchased inventory associated with the offtake agreements of $133 million during the period subsequent to the spin-off through December 31, 2021.
The Company purchases fiber pursuant to a fiber purchase agreement between the Company and International Paper. The Company purchased inventory associated with the fiber supply agreements of $52 million during the period subsequent to the spin-off through December 31, 2021.
RELATED PARTY RECEIVABLE
Related party receivable consists of the following:
In millions as of December 31
20212020
Due from Parent cash pool
$— $202 
Professional services provided to Parent / other
3 19 
Total
$3 $221 
Related party receivables are included in “Accounts and notes receivable” in the accompanying consolidated and combined balance sheets.

RELATED PARTY PAYABLE
Related party payable consists of the following:
In millions as of December 31 
20212020
Inventory purchases
$110 $16 
Other
— 9 
Total
$110 $25 
Related party payables are included in “Accounts payable” and “Other current liabilities” in the accompanying consolidated and combined balance sheets.
Included in our December 31, 2021 inventory purchases payable is a $77 million related party payable, pursuant to the terms of the supply and offtake agreements between the Company and International Paper, which will be paid for throughout the first six months of 2022.
Net transfers (to) from Parent are included within Parent company investment on the consolidated and combined balance sheets and statements of equity. The components of the net transfers (to) from International Paper are as follows:
In millions 
202120202019
General financing activities
$(661)(494)(565)
Corporate allocations
112 154 196 
Stock-based compensation
10 15 19 
Final spin-off adjustments (a)
(28)— — 
Total net transfers (to) from Parent
$(567)$(325)$(350)

(a)     This amount includes a net out of period correction of $(85) million to the final Parent company investment as of the date of the Distribution. The amount is comprised of an understatement of Inventories of $32 million, an understatement of Deferred tax liabilities of $(8) million, an overstatement of Deferred Charges and Other Assets of $(196) million, and an understatement of accumulated cumulative translation losses of $87 million (see further discussion in Note 5). These amounts were determined to be immaterial to the current and prior periods.
v3.22.0.1
SUBSEQUENT EVENTS
 12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTSAs disclosed in Note 15, our Russian operations account for approximately 15% of our net sales and 10% of our long-lived assets. On February 24, 2022, the Russian Federation commenced a military invasion of Ukraine. Russian actions with respect to Ukraine have resulted in certain sanctions being imposed by the United States, the European Union, the United Kingdom and other jurisdictions. Neither the Company, nor any of its Russian subsidiaries or other operations or assets, are a target of current
sanctions, and our mill is located near the Finnish border and is not near the conflict in Ukraine. However, we cannot predict the impact of Russian activities in Ukraine and any heightened military conflict or geopolitical instability that may follow, including heightened operating risks and production disruptions in Russia and Europe, additional sanctions or counter-sanctions, heightened inflation, cyber disruptions or attacks, higher energy costs, higher manufacturing costs, disruptions in raw materials supplies, increased raw material costs and higher supply chain costs. Any of the foregoing could have a material adverse effect on our business, financial condition and results of operations.

One of our suppliers to the Svetogorsk mill has already announced that it would discontinue deliveries to Russia until further notice in light of the Russian actions in Ukraine. We are therefore facing inadequate supplies of critical raw materials and are currently in the processs of curtailing production at the Svetogorsk mill, and may need to temporarily shut down pulp and paper production at the mill. The mill is currently operating in a slowed-back condition while we take steps to mitigate the issues and possibly continue production. It is too early to estimate the impact this curtailment or a possible shut down could have on our business, results of operations and financial condition.
v3.22.0.1
BASIS OF CONSOLIDATION AND COMBINATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Basis of Accounting Prior to the spin-off, we historically operated as part of International Paper and not as a standalone company. These consolidated and combined financial statements reflect the combined historical financial position, results of operations and cash flows of the Company as historically managed within International Paper for the periods prior to the completion of the spin-off and reflect our consolidated financial position, results of operations and cash flows for the period after the completion of the spin-off. The consolidated and combined financial statements have been prepared in United States (“U.S.”) dollars and in conformity with accounting principles generally accepted in the United States (‘‘U.S. GAAP’’). The consolidated and combined financial statements may not be indicative of the Company’s future performance and do not necessarily reflect what the results of operations, financial position and cash flows would have been had it operated as an independent company during all periods presented.
Consolidation
All intracompany transactions have been eliminated. Related party transactions between the Company and International Paper relating to general operating activities have been included in these consolidated and combined financial statements. These related party transactions historically settled in cash between the Company and International Paper have been reflected in the consolidated and combined balance sheets in “Accounts and notes receivable” or “Accounts payable” with the aggregate net effect of these related party transactions reflected in the consolidated and combined statements of cash flows as either “Accounts and notes receivable” or “Accounts payable and accrued liabilities” within operating activities.

The aggregate net effect of transactions with International Paper not settled in cash, including corporate allocations, has been reflected in the consolidated and combined balance sheets as “Parent company investment” and in the consolidated and combined statements of cash flows as “Net transfers (to) from Parent” within financing activities.

In addition, certain of the Company’s Europe locations participated in International Paper’s centralized cash pooling arrangement. Amounts due from the cash pool were generally settled on a daily basis and have been reflected in the consolidated and combined balance sheets as “Accounts and notes receivable” with the aggregate net activity between the Company and International Paper reflected in the consolidated and combined statements of cash flows as “Cash pool arrangements with Parent” within investing activities. Our participation in International Paper’s centralized cash pooling arrangements was terminated prior to September 30, 2021.
International Paper utilized a centralized approach to cash management and financing its operations. This arrangement is not reflective of the manner in which the Company would have been able to finance its operations had it been independent from International Paper for the periods prior to the completion of the spin-off. The cash and temporary investments held by International Paper at the corporate level were not specifically identifiable to the Company and therefore have not been reflected in the Company’s consolidated and combined balance sheets. Cash and temporary investments in the consolidated and combined balance sheets for the periods prior to the completion of the spin-off represent only cash and temporary investments held locally by the Company.

The consolidated and combined financial statements for the periods prior to the completion of the spin-off include certain assets and liabilities that were historically held at the International Paper corporate level but were specifically identifiable or otherwise attributable to the Company. International Paper’s third-party debt and the related interest expense have not been allocated to the Company for any of the periods presented as the Company was not the legal obligor of such debt. During the third quarter of 2021, we entered into a series of financing transactions under which we incurred $1.5 billion of debt in conjunction with our spin-off from International Paper, consisting of two term loan facilities, the 2029 Senior Notes and borrowings from our cash flow-based revolving credit facility. The proceeds of the debt were used primarily to fund a $1.5 billion special payment to International Paper on September 29, 2021 and pay related fees and expenses.

The Company operates on a calendar year-end.
Use of Estimates
USE OF ESTIMATES

In preparing the consolidated and combined financial statements in accordance with U.S. GAAP, management makes estimates and assumptions that affect amounts reported in the consolidated and combined financial statements and accompanying notes. Actual results may differ from those estimates.
Revenue Recognition, Shipping and Handling Costs
REVENUE RECOGNITION

The Company recognizes revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods. For customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time, which generally is as the goods are produced.

The Company’s revenue is primarily derived from fixed consideration; however, we do have contract terms that give rise to variable consideration, primarily volume rebates, early payment discounts and other customer refunds. The Company estimates its volume rebates at the individual customer level based upon the terms of the arrangement and expected volume purchases over the contract period, consistent with the most likely amount method outlined in ASC 606. The Company estimates early payment discounts and other customer refunds based on the historical experience across the Company’s portfolio of customers to record reductions in revenue which is consistent with the expected value method outlined in ASC 606. Management has concluded that these methods result in the best estimate of the consideration the Company will be entitled to from its customers.
The Company has elected to present all sales taxes on a net basis, account for shipping and handling activities as fulfillment activities, recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period of the asset the Company would recognize is one year or less, and not record interest income or interest expense when the difference in timing of control or transfer and customer payment is one year or less. SHIPPING AND HANDLING COSTSShipping and handling costs, such as freight to customers’ destinations, are included in distribution expenses in the consolidated and combined statements of operations.
Temporary Investments TEMPORARY INVESTMENTSTemporary 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 notice are treated as cash equivalents and are stated at cost, which approximates market value.
Inventories INVENTORIESInventories are valued at the lower of cost or market value and include all costs directly associated with manufacturing products: materials, labor and manufacturing overhead. In the United States, costs of raw materials and finished paper and pulp products are generally determined using the last-in, first-out method. Other inventories are valued using the first-in, first-out or average cost methods.
Leased Assets LEASED ASSETSOperating lease right of use (“ROU”) assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company’s leases may include options to extend the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases are primarily related to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles and leases within supply agreements are primarily related to usage, repairs and maintenance. As the implicit rate is not readily determinable for most of the Company’s leases, the Company applies a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities. Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company’s leases.
Plants, Properties and Equipment PLANTS, PROPERTIES AND EQUIPMENTPlants, properties and equipment are stated at cost, less accumulated depreciation. Expenditures for betterments are capitalized, whereas normal repairs and maintenance are expensed as incurred. The units-of-production method of depreciation is used for the mills, and the straight-line method is used for other plants and equipment.
Goodwill
GOODWILL
Annual evaluation for possible goodwill impairment is performed as of the beginning of the fourth quarter of each year, with additional interim evaluation performed when management believes that it is more likely than not that events or circumstances have occurred that would result in the impairment of a reporting unit’s goodwill.

The Company has the option to evaluate goodwill for impairment by first performing a qualitative assessment of events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is not required to be performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company does not elect the option to perform an initial qualitative assessment, then the
Company is required to perform the quantitative goodwill impairment test. In performing this evaluation, the Company estimates the fair value of its reporting unit using a weighted approach based on discounted future cash flows, market multiples and transaction multiples. The determination of fair value using the discounted cash flow approach requires management to make significant estimates and assumptions related to forecasts of future revenues, operating profit margins and discount rates. The determination of fair value using market multiples and transaction multiples requires management to make significant assumptions related to revenue multiples and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples. For reporting units whose carrying amount is in excess of their estimated fair value, the reporting unit will record an impairment charge by the amount that the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit.
Impairment of Long-Lived Assets IMPAIRMENT OF LONG-LIVED ASSETSLong-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable. A recoverability test is performed based on undiscounted cash flows, requiring judgments as to the weighting of operational alternatives being considered by management and estimates of the amount and timing of expected future cash flows from the use of the long-lived assets generated by their use. Impaired assets are written-down to their estimated fair value.
Employee Retirement Benefits
EMPLOYEE RETIREMENT BENEFITS

Prior to September 1, 2021, certain of the Company’s employees participated in defined benefit and other postretirement plans sponsored by International Paper in the U.S., Belgium, France, and Poland. These plans were accounted for by International Paper in accordance with accounting guidance for defined benefit pension and other postretirement benefit plans. The Company accounted for the participation of its employees in these plans as a participant in a multi-employer plan sponsored by International Paper. On September 1, 2021, the Company established legally separate plans from International Paper, in which International Paper transferred both pension liabilities and qualified pension assets to the Company for all of the Company’s active participants.
The Company also serves as the sponsor of certain direct defined benefit pension and postretirement plans in Brazil and the United Kingdom, which the Company accounts for using the single-employer method, with the net funded status of these plans recorded as an asset or liability in the consolidated and combined balance sheets.
Income Taxes
INCOME TAXES

The Company was included in the foreign and domestic tax returns of International Paper until its separation from International Paper on October 1, 2021. For the periods prior to the spin-off, we calculated the provision for income taxes by using a separate-return method. Any difference between the tax provision (or benefit) allocated to us under the separate-return method and payments to be made to (or received from) International Paper for tax expense is treated as either dividends or capital contributions.

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets are recognized to the extent that we believe that these assets are more likely than not to be realized.

We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.
While we believe that these judgments and estimates are appropriate and reasonable under the circumstances, actual resolution of these matters may differ from recorded estimates and amounts.
Translation of Financial Statements TRANSLATION OF FINANCIAL STATEMENTSBalance sheets of international operations are translated into U.S. dollars at period-end exchange rates, while statements of operations are translated at average rates. Adjustments resulting from financial statement translations are included as cumulative translation adjustments in accumulated other comprehensive income (loss) (“AOCI”).
Recently Issued Accounting Pronouncements Not Yet Adopted
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
Reference Rate Reform
In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This guidance provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective upon issuance and generally can be applied through December 31, 2022. We will apply the amendments in this update to account for contract modifications due to changes in reference rates once those occur. We do not expect these amendments to have a material impact on our consolidated and combined financial statements.
v3.22.0.1
REVENUE RECOGNITION (Tables)
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
External net sales by major products External net sales by major products were as follows:
In millions
202120202019
Europe
Uncoated Papers
$753 $666 $850 
Coated Paperboard / Other106 98 97 
Market Pulp
163 131 149 
Europe
1,022 895 1,096 
Latin America
Uncoated Papers
732 579 920 
Market Pulp
37 53 49 
Latin America
769 632 969 
North America
Uncoated Papers
1,643 1,428 1,912 
Market Pulp
68 54 40 
North America
1,711 1,482 1,952 
Total
$3,502 $3,009 $4,017 
v3.22.0.1
OTHER COMPREHENSIVE INCOME (Tables)
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Changes in Accumulated other comprehensive income (loss) (“AOCI”), net of tax
The following table presents the changes in AOCI, net of tax, reported in the consolidated and combined financial statements:
In millions
202120202019
Defined Benefit Pension and Postretirement Adjustments
Balance at beginning of period
$(48)$(44)$(38)
Other comprehensive income (loss) before reclassifications(3)(5)(7)
Pension plan transfer from Parent
(30)— — 
Amounts reclassified from accumulated other comprehensive income1 1 1 
Balance at end of period
(80)(48)(44)
Change in Cumulative Foreign Currency Translation Adjustments
Balance at beginning of period
(1,433)(1,187)(1,149)
Transfer from Parent(113)(a)— — 
Other comprehensive income (loss) before reclassifications
(173)(a)(246)(38)
Balance at end of period
(1,719)(1,433)(1,187)
Net Gains and Losses on Cash Flow Hedging Derivatives
Balance at beginning of period
1 2 (4)
Other comprehensive income (loss) before reclassifications
(2)(25)1 
Amounts reclassified from accumulated other comprehensive income(1)24 5 
Balance at end of period
(2)1 2 
Total Accumulated Other Comprehensive Income (Loss) at End of Period
$(1,801)$(1,480)$(1,229)
(a)    These amounts include out of period corrections to record certain cumulative translation adjustment balances allocated to us from International Paper with an offsetting increase to Parent company investment. The corrections consist of a $(113) million adjustment pertaining to our opening balance sheet and a net adjustment of $(87) million to appropriately record subsequent cumulative translation adjustment (losses) gains pertaining to the years ended December 31, 2020, 2019 and 2018 in the amounts of $(42) million, $21 million and $(66) million, respectively. These amounts were determined to be immaterial to the current and prior periods.
v3.22.0.1
EARNINGS PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
Basic and diluted earnings per share are calculated as follows:
In millions, except per share amounts202120202019
Net income (loss)$331 $170 $377 
Weighted average common shares outstanding444444
Effect of dilutive securities———
Weighted average common shares outstanding - assuming dilution444444
Earnings per share - basic and diluted$7.53 $3.85 $8.55 
v3.22.0.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Accounts and Notes Receivable Net
Accounts and notes receivable, net, by classification were:
In millions as of December 31 
20212020
Accounts and notes receivable:
Trade
$472 $398 
Due from Parent cash pool— 202 
Notes and other
18 21 
Total
$490 $621 
Schedule of Inventories
INVENTORIES
In millions as of December 31
20212020
Raw materials
$49 $50 
Finished paper and pulp products
189 171 
Operating supplies
95 102 
Other
9 19 
Total
$342 $342 
Schedule of Plants, Properties and Equipment, net
PLANTS, PROPERTIES AND EQUIPMENT, NET
In millions as of December 31
20212020
Land
$9 $9 
Buildings
386 408 
Machinery
4,212 4,299 
Construction in progress
33 23 
Capital leases
42 43 
Gross cost
4,682 4,782 
Less: Accumulated depreciation
3,797 3,808 
Plants, Properties and Equipment, net
$885 $974 
Schedule of Interest Expense
Amounts related to interest were as follows:
In millions
202120202019
Interest expense$32 $4 $5 
Interest income(33)(8)(13)
Capitalized interest costs(1)— (1)
v3.22.0.1
LEASES (Tables)
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Schedule of Components of Lease Cost
COMPONENTS OF LEASE EXPENSE
In millions
202120202019
Operating lease costs
$11 $10 $10 
Variable lease costs
20 16 20 
Short-term lease costs
7 1 2 
Finance lease cost
Amortization of right-of-use assets
4 4 2 
Interest on lease liabilities
1 1 1 
Total lease cost, net
$43 $32 $35 
LEASE TERM AND DISCOUNT RATE
20212020
Weighted average remaining lease term (years)
  
Operating leases
3.5 years4.2 years
Finance leases
6.8 years10.9 years
Weighted average discount rate
Operating leases
1.48 %2.70 %
Finance leases
3.65 %4.81 %
SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES
In millions
20212020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases
$11 $11 
Operating cash flows related to financing leases
1 1 
Financing cash flows related to finance leases
4 3 
Right of use assets obtained in exchange for lease liabilities
Operating leases
32 16 
Finance leases
1 4 
Schedule of Supplemental Balance Sheet Information Related To Leases
SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES
In millions 
Classification
20212020
Assets
  
Operating lease assets
Right of use assets$41 $46 
Finance lease assets
Plants, properties, and equipment, net (a)29 33 
Total leased assets
$70 $79 
Liabilities
Current
Operating
Other current liabilities$16 $14 
Finance
Notes payable and current maturities of long-term debt4 2 
Noncurrent
Operating
Other Liabilities26 32 
Finance
Long-term debt18 21 
Total lease liabilities
$64 $69 
(a)Finance leases are recorded net of accumulated amortization of $13 million and $10 million as of December 31, 2021 and 2020, respectively.
Maturity of Finance Leases
MATURITY OF LEASE LIABILITIES
In millions
Operating Leases
Financing Leases
Total
2022$17 $4 $21 
202312 4 16 
20247 2 9 
20253 2 5 
20262 2 4 
Thereafter
3 13 16 
Total lease payments
44 27 71 
Less: imputed interest
2 5 7 
Present value of lease liabilities
$42 $22 $64 
Maturity of Finance Leases
MATURITY OF LEASE LIABILITIES
In millions
Operating Leases
Financing Leases
Total
2022$17 $4 $21 
202312 4 16 
20247 2 9 
20253 2 5 
20262 2 4 
Thereafter
3 13 16 
Total lease payments
44 27 71 
Less: imputed interest
2 5 7 
Present value of lease liabilities
$42 $22 $64 
v3.22.0.1
GOODWILL AND OTHER INTANGIBLES (Tables)
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in the Goodwill
The following table presents changes in the goodwill balance as allocated to each business segment:
In millions
Europe
Latin
America 
North America
Total
Balance as of December 31, 2019
Goodwill
$29 $155 $— $184 
Accumulated impairment losses
(5)— — (5)
24 155 — 179 
Currency translation and other (a)
(2)(34)— (36)
Goodwill additions/reductions
— — — — 
Accumulated impairment loss additions/reductions
— — — — 
Balance as of December 31, 2020
 
Goodwill
27 121 — 148 
Accumulated impairment losses
(5)— — (5)
22 121 — 143 
 
Currency translation and other (a)
(2)(9)— (11)
Goodwill additions/reductions
— — — — 
Accumulated impairment loss additions/reductions
— — — — 
Balance as of December 31, 2021
 
Goodwill
25 112 — 137 
Accumulated impairment losses
(5)— — (5)
Total
$20 $112 $— $132 
(a)Represents the effects of foreign currency translations and reclassifications.
Schedule of Identifiable Intangible Assets
Identifiable intangible assets comprised the following:
20212020
In millions as of December 31,
Gross
Carrying
Amount
Accumulated
Amortization
Net
Intangible
Assets
Gross
Carrying
Amount
Accumulated
Amortization
Net
Intangible
Assets
Customer relationships and lists
$56 $(48)$8 $60 $(49)$11 
Software
3 (2)1 3 (2)1 
Other
4 (4)— 4 (4)— 
Total
$63 $(54)$9 $67 $(55)$12 
Amortization expense related to intangible assets
The Company recognized the following amounts as amortization expense related to intangible assets:
In millions
202120202019
Amortization expense related to intangible assets
$2 $2 $3 
v3.22.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income (loss) before income taxes
The components of the Company’s income (loss) before income taxes by taxing jurisdiction were as follows:
In millions
202120202019
U.S.
$80 $10 $145 
Non-U.S.
380 188 357 
Income (loss) before income taxes
$460 $198 $502 
Schedule of provision for income taxes
Income tax provision (benefit) by taxing jurisdictions was as follows:
In millions
202120202019
Current tax provision (benefit)
U.S. federal
$26 $(4)$36 
U.S. state and local
5 2 8 
Non-U.S.
104 77 88 
$135 $75 $132 
Deferred tax provision (benefit)
U.S. federal
$(3)$(4)$(4)
U.S. state and local
(1)(1)(2)
Non-U.S.
(2)(42)(1)
$(6)$(47)$(7)
Income tax provision (benefit)
$129 $28 $125 
Schedule of reconciliation of income taxes using the statutory U.S. income tax rate
A reconciliation of income taxes using the statutory U.S. income tax rate of 21% compared to the reported income tax provision (benefit) is summarized as follows:
In millions
202120202019
Income (loss) before income taxes
$460 $198 $502 
Statutory U.S. income tax rate
21 %21 %21 %
Income taxes using the statutory U.S. income tax rate
96 42 105 
State and local income taxes
5 1 5 
Impact of rate differential on non-U.S. permanent differences and earnings
28 (5)12 
Tax audits
— (10)— 
US tax on non-U.S. earnings (GILTI and Subpart F)
— 1 4 
Other, net
— (1)(1)
Income tax provision (benefit)
$129 $28 $125 
Effective income tax rate
28 %14 %25 %
Schedule of components of deferred income tax assets and liabilities
The components of deferred income tax assets and liabilities are as follows:
In millions
20212020
Deferred income tax assets:
Net operating and capital loss carryforwards
$22 $27 
Accrued payroll and benefits
25 9 
Lease liabilities
6 10 
Tax credits
4 35 
Other
40 64 
Gross deferred income tax assets
$97 $145 
Less: valuation allowance
(9)(35)
Net deferred income tax asset
$88 $110 
Deferred income tax liabilities:
Intangibles
$(37)$(45)
Right of use assets
(6)(10)
Deferred foreign income
(40)(35)
Plants, properties and equipment
(92)(106)
Forestlands
(45)(49)
Gross deferred income tax liabilities
$(220)$(245)
Net deferred income tax liability
$(132)$(135)
Schedule of Unrecognized Tax Benefits Roll Forward
The reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:
In millions
202120202019
Balance at January 1
$(18)$(28)$(29)
(Additions) reductions for tax positions related to current year
(2)(1)— 
Reductions for tax positions related to prior years— 11 — 
Transfer of tax positions related to prior years to Parent
17 — — 
Expiration of statutes of limitations
— — 1 
Balance at December 31
$(3)$(18)$(28)
Summary of Tax Credit Carryforwards
The following details the scheduled expiration dates of the Company’s December 31, 2021 net operating loss and income tax credit carryforwards:
In millions
Indefinite
Total
Non-U.S. NOLs
$22 $22 
Less: valuation allowance
(6)(6)
Total, net
$16 $16 
v3.22.0.1
LONG-TERM DEBT (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
Long-term debt is summarized in the following table:
In millions as of December 31
20212020
Term Loan F - due 2027 (a)$512 $— 
Term Loan B - due 2028 (b)401 — 
7% Senior Notes - due 2029 (c)
443 — 
Other22 22 
Less: current portion(20)— 
Total$1,358 $22 

(a) As of December 31, 2021, presented net of $5 million in unamortized debt issuance costs.
(b) As of December 31, 2021, presented net of $5 million in unamortized debt issuance costs and $4 million in unamortized original issue discount paid.
(c) As of December 31, 2021, presented net of $7 million in unamortized debt issuance costs.
v3.22.0.1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Summary of changes in projected benefit obligations, fair value of plan assets, and funded status of plan
The following table shows the changes in the benefit obligation and plan assets and the plans’ funded status. The transfer of the PBO and assets which were accounted for as multi-employer until October 1, 2021, are reflected within the Pension plan transfer from Parent line below, and three months of activity after the spin-off date is reflected within the table for 2021.
In millions
20212020
Change in projected benefit obligation:
Benefit obligation, January 1
$171 $165 
Pension plan transfer from Parent287 — 
Service cost
2 1 
Interest cost
6 4 
Actuarial loss (gain)
— 7 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (1)
Benefit obligation, December 31
$462 $171 
Change in plan assets:
Fair value of plan assets, January 1
$171 $163 
Pension plan transfer from Parent252 — 
Actual return on plan assets
2 11 
Company contributions
10 4 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (2)
Fair value of plan assets, December 31
$431 $171 
Funded status, December 31
$(31)$— 
Amounts recognized in the consolidated and combined balance sheets:
Non-current asset
$8 $5 
Non-current liability
(39)(5)
$(31)$— 
Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax):
Net prior service cost$2 $— 
Net actuarial loss
106 63 
$108 $63 
Schedule of amounts recognized in balance sheet
The following table shows the changes in the benefit obligation and plan assets and the plans’ funded status. The transfer of the PBO and assets which were accounted for as multi-employer until October 1, 2021, are reflected within the Pension plan transfer from Parent line below, and three months of activity after the spin-off date is reflected within the table for 2021.
In millions
20212020
Change in projected benefit obligation:
Benefit obligation, January 1
$171 $165 
Pension plan transfer from Parent287 — 
Service cost
2 1 
Interest cost
6 4 
Actuarial loss (gain)
— 7 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (1)
Benefit obligation, December 31
$462 $171 
Change in plan assets:
Fair value of plan assets, January 1
$171 $163 
Pension plan transfer from Parent252 — 
Actual return on plan assets
2 11 
Company contributions
10 4 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (2)
Fair value of plan assets, December 31
$431 $171 
Funded status, December 31
$(31)$— 
Amounts recognized in the consolidated and combined balance sheets:
Non-current asset
$8 $5 
Non-current liability
(39)(5)
$(31)$— 
Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax):
Net prior service cost$2 $— 
Net actuarial loss
106 63 
$108 $63 
Schedule of amounts recognized in other comprehensive income (loss)
The following table shows the changes in the benefit obligation and plan assets and the plans’ funded status. The transfer of the PBO and assets which were accounted for as multi-employer until October 1, 2021, are reflected within the Pension plan transfer from Parent line below, and three months of activity after the spin-off date is reflected within the table for 2021.
In millions
20212020
Change in projected benefit obligation:
Benefit obligation, January 1
$171 $165 
Pension plan transfer from Parent287 — 
Service cost
2 1 
Interest cost
6 4 
Actuarial loss (gain)
— 7 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (1)
Benefit obligation, December 31
$462 $171 
Change in plan assets:
Fair value of plan assets, January 1
$171 $163 
Pension plan transfer from Parent252 — 
Actual return on plan assets
2 11 
Company contributions
10 4 
Benefits paid
(5)(5)
Expenses paid from assets(1)— 
Effect of foreign currency exchange rate movements
2 (2)
Fair value of plan assets, December 31
$431 $171 
Funded status, December 31
$(31)$— 
Amounts recognized in the consolidated and combined balance sheets:
Non-current asset
$8 $5 
Non-current liability
(39)(5)
$(31)$— 
Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax):
Net prior service cost$2 $— 
Net actuarial loss
106 63 
$108 $63 
Schedule of accumulated and projected benefit obligations
The following table summarizes obligation and asset information:
In millions as of December 31
20212020
Projected benefit obligation
$462 $171 
Accumulated benefit obligation
446 168 
Fair value of plan assets
431 171 
Schedule of defined benefit plans disclosures
The following table summarizes obligation and asset information:
In millions as of December 31
20212020
Projected benefit obligation
$462 $171 
Accumulated benefit obligation
446 168 
Fair value of plan assets
431 171 
Schedule of net benefit costs
Net periodic pension expense comprised the following:
In millions
202120202019
Service cost
$2 $1 $1 
Interest cost6 4 5 
Expected return on plan assets
(11)(8)(9)
Actuarial loss (gain)
2 1 1 
Net periodic pension expense (benefit)
$(1)$(2)$(2)
Schedule of assumptions used to determine the net periodic (benefit)/cost
Major actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit plans are presented in the following table:
202120202019
Actuarial assumptions used to determine benefit obligations as of December 31:
Discount rate
2.79 %2.27 %2.80 %
Rate of compensation increase
3.36 %3.54 %3.39 %
Actuarial assumptions used to determine net periodic pension cost for years ended December 31:
Discount rate
2.79 %2.76 %4.23 %
Expected long-term rate of return on plan assets
5.38 %4.84 %6.59 %
Rate of compensation increase
2.85 %3.42 %3.63 %
Defined benefit plan, plan assets, category
The fair values of Sylvamo’s pension plan assets at December 31, 2020 for the direct plans consisted primarily of diversified investment funds classified as Level 2 assets. The fair value of pension plan assets at December 31, 2021 by asset class are shown below for the material plans which include the U.S. and U.K. pension plans.
Fair Value Measurement at December 31, 2021
Asset Class 
TotalQuoted Prices in Active Markets For Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
In millions
Cash and cash equivalents
$17 $17 $— $— 
Equities - developed markets
88 — 88 — 
Equities - emerging markets8 — 8 — 
Government securities59 23 36 — 
Corporate bonds137 — 137 — 
Other fixed income securities91 — 91 — 
Derivatives2 1 1 — 
Other
4 — 4 — 
Total Investments
$406 $41 $365 $— 
Schedule of expected future benefit payments
At December 31, 2021, projected future pension benefit payments, excluding any termination benefits, were as follows:

In millions
2022$6 
20237 
20249 
202511 
202613 
2027-203196 
v3.22.0.1
INCENTIVE PLANS (Tables)
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Summary of Stock Option Activity
The following summarizes restricted stock unit activity for employees for the period from the October 1, 2021 date of spin-off through December 31, 2021:
Shares
Weighted
Average Grant
Date Fair Value
Outstanding as of October 1, 2021— — 
Granted
664,569 28.51 
Shares issued
— — 
Forfeited
— — 
Outstanding as of December 31, 2021
664,569 $28.51 
Schedule of Stock Based Compensation Cost and Income Tax Benefits Recognized
Total stock-based compensation cost and the associated income tax benefits recognized by the Company in the consolidated and combined statements of operations were as follows:
In millions
202120202019
Total stock-based compensation expense (included in selling and administrative expense)
$14 $15 $19 
Income tax benefit (expense) related to stock-based compensation
$3 $1 $1 
v3.22.0.1
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Schedule of Segment Reporting
INFORMATION BY BUSINESS SEGMENT
Net Sales
In millions202120202019
Europe
$1,040 $921 $1,122 
Latin America
786 632 969 
North America
1,718 1,490 1,996 
Corporate and Intersegment Sales
(42)(34)(70)
Net Sales
$3,502 $3,009 $4,017 
Operating Profit
In millions
202120202019
Europe
$98 $77 $140 
Latin America
195 84 158 
North America
136 43 200 
Business Segment Operating Profit
$429 $204 $498 
Income (loss) before income taxes
$460 $198 $502 
Interest (income) expense, net
(2)(4)(9)
Corporate special items, net5 — — 
Restructuring and other charges, net
— — 6 
Other special items, net
(34)10 (1)
Business Segment Operating Profit$429 $204 $498 
Other Special Items, Net
In millions
202120202019
Europe
$— $11 $— 
Latin America
(35)(2)(3)
North America
1 1 2 
Other special items, Net
$(34)$10 $(1)
Assets
In millions as of December 31
20212020
Europe
$538 $987 
Latin America
1,034 1,091 
North America
868 931 
Corporate and Other157 (98)
Assets
$2,597 $2,911 
Capital Spending
In millions
202120202019
Europe
$13 $15 $21 
Latin America
39 45 61 
North America
24 15 36 
Capital Spending
$76 $75 $118 
Depreciation, Amortization and Cost of Timber Harvested
In millions
202120202019
Europe
$35 $38 $40 
Latin America
58 66 96 
North America
50 50 56 
Depreciation, Amortization and Cost of Timber Harvested
$143 $154 $192 
Schedule of External Net Sales
External Net Sales (a)
In millions
202120202019
United States
$1,718 $1,490 $1,996 
Brazil
734 576 886 
Russia
553 502 603 
Europe, other than Russia
487 419 519 
Americas, other than United States and Brazil
52 56 83 
Corporate and Intersegment Sales
(42)(34)(70)
Net Sales
$3,502 $3,009 $4,017 
(a)Net sales are attributed to countries based on the location of the seller.
Schedule of Information by Long-lived Assets
Long-Lived Assets
In millions as of December 31
20212020
United States
$413 $436 
Brazil
546 601 
Russia118 133 
Europe, other than Russia
86 97 
Long-lived Assets
$1,163 $1,267 
v3.22.0.1
RELATED PARTY TRANSACTIONS (Tables)
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
Related party receivable consists of the following:
In millions as of December 31
20212020
Due from Parent cash pool
$— $202 
Professional services provided to Parent / other
3 19 
Total
$3 $221 
Related party payable consists of the following:
In millions as of December 31 
20212020
Inventory purchases
$110 $16 
Other
— 9 
Total
$110 $25 
The components of the net transfers (to) from International Paper are as follows:
In millions 
202120202019
General financing activities
$(661)(494)(565)
Corporate allocations
112 154 196 
Stock-based compensation
10 15 19 
Final spin-off adjustments (a)
(28)— — 
Total net transfers (to) from Parent
$(567)$(325)$(350)

(a)     This amount includes a net out of period correction of $(85) million to the final Parent company investment as of the date of the Distribution. The amount is comprised of an understatement of Inventories of $32 million, an understatement of Deferred tax liabilities of $(8) million, an overstatement of Deferred Charges and Other Assets of $(196) million, and an understatement of accumulated cumulative translation losses of $87 million (see further discussion in Note 5). These amounts were determined to be immaterial to the current and prior periods.
v3.22.0.1
BACKGROUND AND SUMMARY OF BUSINESS (Details)
$ in Millions
 12 Months Ended
Sep. 29, 2021
USD ($)
Dec. 31, 2021
USD ($)
term_loan
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Oct. 01, 2021
Sep. 30, 2021
USD ($)
term_loan
Schedule of Equity Method Investments [Line Items]            
General corporate expenses   $ 120 $ 170 $ 210    
Long-term debt           $ 1,500
Number of term loans | term_loan   2       2
International Paper | Sylvamo Corporation            
Schedule of Equity Method Investments [Line Items]            
Ownership percentage by parent         19.90%  
International Paper            
Schedule of Equity Method Investments [Line Items]            
Spinoff transaction, common stock distributed, percentage         80.10%  
Spinoff transaction, shares of parent exchanged for each share of company         0.0909  
International Paper | Special Payment            
Schedule of Equity Method Investments [Line Items]            
Payment related to letter agreement $ 1,500          
v3.22.0.1
REVENUE RECOGNITION (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue from External Customer [Line Items]      
Net Sales $ 3,502 $ 3,009 $ 4,017
Contract liabilities 17 11  
Europe      
Revenue from External Customer [Line Items]      
Net Sales 1,022 895 1,096
Latin America      
Revenue from External Customer [Line Items]      
Net Sales 769 632 969
North America      
Revenue from External Customer [Line Items]      
Net Sales 1,711 1,482 1,952
Uncoated Papers | Europe      
Revenue from External Customer [Line Items]      
Net Sales 753 666 850
Uncoated Papers | Latin America      
Revenue from External Customer [Line Items]      
Net Sales 732 579 920
Uncoated Papers | North America      
Revenue from External Customer [Line Items]      
Net Sales 1,643 1,428 1,912
Coated Paperboard / Other | Europe      
Revenue from External Customer [Line Items]      
Net Sales 106 98 97
Market Pulp | Europe      
Revenue from External Customer [Line Items]      
Net Sales 163 131 149
Market Pulp | Latin America      
Revenue from External Customer [Line Items]      
Net Sales 37 53 49
Market Pulp | North America      
Revenue from External Customer [Line Items]      
Net Sales $ 68 $ 54 $ 40
v3.22.0.1
OTHER COMPREHENSIVE INCOME - Changes In Accumulated Other Comprehensive Income (Loss) (“AOCI”), Net Of Tax (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period $ 2,112 $ 2,517 $ 2,528  
Other comprehensive income (loss) before reclassifications 0      
Net transfers (to) from Parent (567) (325) (350)  
Balance at end of period 182 2,112 2,517  
Total Accumulated Other Comprehensive Income (Loss) at End of Period 182 2,112 2,517 $ 2,528
Revision of Prior Period, Error Correction, Adjustment        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Accumulated cumulative translation losses (87) (42) 21 (66)
Accumulated  Other Comprehensive
Loss        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period (1,480) (1,229) (1,191)  
Net transfers (to) from Parent (143)      
Balance at end of period (1,801) (1,480) (1,229)  
Total Accumulated Other Comprehensive Income (Loss) at End of Period (1,801) (1,480) (1,229) (1,191)
Defined Benefit Pension and Postretirement Adjustments        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period (48) (44) (38)  
Other comprehensive income (loss) before reclassifications (3) (5) (7)  
Net transfers (to) from Parent (30) 0 0  
Other comprehensive income (loss) before reclassifications 1 1 1  
Balance at end of period (80) (48) (44)  
Total Accumulated Other Comprehensive Income (Loss) at End of Period (80) (48) (44) (38)
Change in Cumulative Foreign Currency Translation Adjustments        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period (1,433) (1,187) (1,149)  
Net transfers (to) from Parent (113) 0 0  
Other comprehensive income (loss) before reclassifications (173) (246) (38)  
Balance at end of period (1,719) (1,433) (1,187)  
Total Accumulated Other Comprehensive Income (Loss) at End of Period (1,719) (1,433) (1,187) (1,149)
Change in Cumulative Foreign Currency Translation Adjustments | Revision of Prior Period, Error Correction, Adjustment        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Net transfers (to) from Parent (113)      
Net Gains and Losses on Cash Flow Hedging Derivatives        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period 1 2 (4)  
Other comprehensive income (loss) before reclassifications (1) 24 5  
Other comprehensive income (loss) before reclassifications (2) (25) 1  
Balance at end of period (2) 1 2  
Total Accumulated Other Comprehensive Income (Loss) at End of Period $ (2) $ 1 $ 2 $ (4)
v3.22.0.1
EARNINGS PER SHARE - Narrative (Details) - shares
Dec. 31, 2021
Oct. 01, 2021
Earnings Per Share [Abstract]    
Common shares outstanding (in shares) 43,900,000 43,949,277
v3.22.0.1
EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Earnings Per Share [Abstract]      
Net income (loss) $ 331 $ 170 $ 377
Weighted average common shares outstanding (in shares) 44 44 44
Effect of dilutive securities 0 0 0
Weighted average common shares outstanding - assuming dilution (in shares) 44 44 44
Earnings per share - basic (in dollars per share) $ 7.53 $ 3.85 $ 8.55
Earnings per share - diluted (in dollars per share) $ 7.53 $ 3.85 $ 8.55
v3.22.0.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Temporary Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Short-term Investments $ 78 $ 36
v3.22.0.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Schedule of Accounts and Notes Receivable, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Trade $ 472,000 $ 398,000
Due from Parent cash pool 0 202,000
Notes and other 18,000 21,000
Total $ 490,000 $ 621,000
v3.22.0.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Expected Credit Losses (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Allowance for expected credit losses $ 20 $ 30
v3.22.0.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Inventories (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Raw materials $ 49 $ 50
Finished paper and pulp products 189 171
Operating supplies 95 102
Other 9 19
Total $ 342 342
Inventory, LIFO reserve percentage 63.00%  
Last-in, first-out inventory reserve $ 43 $ 108
v3.22.0.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Plants, Property and Equipment, Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]      
Capital leases $ 42 $ 43  
Gross cost 4,682 4,782  
Less: Accumulated depreciation 3,797 3,808  
Plants, Properties and Equipment, net 885 974  
Non-cash additions 6 11 $ 13
Depreciation expense 141 152 $ 190
Land      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment gross 9 9  
Buildings      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment gross $ 386 408  
Buildings | Minimum      
Property, Plant and Equipment [Line Items]      
Annual straight-line depreciable lives 20 years    
Buildings | Maximum      
Property, Plant and Equipment [Line Items]      
Annual straight-line depreciable lives 40 years    
Machinery      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment gross $ 4,212 4,299  
Machinery | Minimum      
Property, Plant and Equipment [Line Items]      
Annual straight-line depreciable lives 3 years    
Machinery | Maximum      
Property, Plant and Equipment [Line Items]      
Annual straight-line depreciable lives 20 years    
Construction in progress      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment gross $ 33 $ 23  
v3.22.0.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Interest (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Interest payment $ 10 $ 1 $ 2
Interest expense 32 4 5
Interest income (33) (8) (13)
Capitalized interest costs $ (1) $ 0 $ (1)
v3.22.0.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Asset Retirement Obligations (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Asset retirement obligations $ 27 $ 20
v3.22.0.1
LEASES - Narrative (Details) - Maximum
Dec. 31, 2021
Lessee, Lease, Description [Line Items]  
Operating lease, remaining lease term 15 years
Finance lease, remaining lease term 15 years
v3.22.0.1
LEASES - Components of lease expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]      
Operating lease costs $ 11 $ 10 $ 10
Variable lease costs 20 16 20
Short-term lease costs 7 1 2
Finance lease cost      
Amortization of right-of-use assets 4 4 2
Interest on lease liabilities 1 1 1
Total lease cost, net $ 43 $ 32 $ 35
v3.22.0.1
LEASES - Balance Sheet Components (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Assets    
Operating lease assets $ 41 $ 46
Finance lease assets 29 33
Total leased assets 70 79
Current    
Operating 16 14
Finance 4 2
Noncurrent    
Operating 26 32
Finance 18 21
Total lease liabilities $ 64 $ 69
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Plants, Properties and Equipment, net Plants, Properties and Equipment, net
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Notes payable and current maturities of long-term debt Notes payable and current maturities of long-term debt
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other Liabilities Other Liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Long-term Debt and Lease Obligation Long-term Debt and Lease Obligation
Finance lease, accumulated amortization $ 13 $ 10
v3.22.0.1
LEASES - Lease term and discount rate (Details)
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Operating leases, weighted average remaining lease term (years) 3 years 6 months 4 years 2 months 12 days
Finance leases, weighted average remaining lease term (years) 6 years 9 months 18 days 10 years 10 months 24 days
Operating leases, weighted average discount rate (Percent) 1.48% 2.70%
Finance leases, weighted average discount rate (Percent) 3.65% 4.81%
v3.22.0.1
LEASES - Supplemental cash flow information related to leases (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Operating cash flows related to operating leases $ 11 $ 11
Operating cash flows related to financing leases 1 1
Financing cash flows related to finance leases 4 3
Operating leases 32 16
Finance leases $ 1 $ 4
v3.22.0.1
LEASES - Maturity of lease liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Operating Leases    
2022 $ 17  
2023 12  
2024 7  
2025 3  
2026 2  
Thereafter 3  
Total lease payments 44  
Less: imputed interest 2  
Present value of lease liabilities 42  
Financing Leases    
2022 4  
2023 4  
2024 2  
2025 2  
2026 2  
Thereafter 13  
Total lease payments 27  
Less: imputed interest 5  
Finance lease cost 22  
Total    
2022 21  
2023 16  
2024 9  
2025 5  
2026 4  
Thereafter 16  
Total lease payments 71  
Less: imputed interest 7  
Total lease liabilities $ 64 $ 69
v3.22.0.1
GOODWILL AND OTHER INTANGIBLES - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]      
Impairment charges $ 0 $ 0 $ 0
2022 2,000,000    
2023 2,000,000    
2024 2,000,000    
2025 2,000,000    
2026 1,000,000    
Thereafter $ 0    
v3.22.0.1
GOODWILL AND OTHER INTANGIBLES - Changes in the Goodwill Balance as Allocated to Each Business Segment (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Goodwill [Roll Forward]      
Goodwill gross beginning balance $ 148,000,000 $ 184,000,000  
Accumulated impairment loss, beginning balance (5,000,000) (5,000,000)  
Goodwill, beginning balance 143,000,000 179,000,000  
Currency translation and other (11,000,000) (36,000,000)  
Goodwill additions/reductions 0 0  
Accumulated impairment loss additions/reductions 0 0 $ 0
Goodwill gross ending balance 137,000,000 148,000,000 184,000,000
Accumulated impairment loss, ending balance (5,000,000) (5,000,000) (5,000,000)
Goodwill, ending balance 132,000,000 143,000,000 179,000,000
Europe      
Goodwill [Roll Forward]      
Goodwill gross beginning balance 27,000,000 29,000,000  
Accumulated impairment loss, beginning balance (5,000,000) (5,000,000)  
Goodwill, beginning balance 22,000,000 24,000,000  
Currency translation and other (2,000,000) (2,000,000)  
Goodwill additions/reductions 0 0  
Accumulated impairment loss additions/reductions 0 0  
Goodwill gross ending balance 25,000,000 27,000,000 29,000,000
Accumulated impairment loss, ending balance (5,000,000) (5,000,000) (5,000,000)
Goodwill, ending balance 20,000,000 22,000,000 24,000,000
Latin America      
Goodwill [Roll Forward]      
Goodwill gross beginning balance 121,000,000 155,000,000  
Accumulated impairment loss, beginning balance 0 0  
Goodwill, beginning balance 121,000,000 155,000,000  
Currency translation and other (9,000,000) (34,000,000)  
Goodwill additions/reductions 0 0  
Accumulated impairment loss additions/reductions 0 0  
Goodwill gross ending balance 112,000,000 121,000,000 155,000,000
Accumulated impairment loss, ending balance 0 0 0
Goodwill, ending balance 112,000,000 121,000,000 155,000,000
North America      
Goodwill [Roll Forward]      
Goodwill gross beginning balance 0 0  
Accumulated impairment loss, beginning balance 0 0  
Goodwill, beginning balance 0 0  
Currency translation and other 0 0  
Goodwill additions/reductions 0 0  
Accumulated impairment loss additions/reductions 0 0  
Goodwill gross ending balance 0 0 0
Accumulated impairment loss, ending balance 0 0 0
Goodwill, ending balance $ 0 $ 0 $ 0
v3.22.0.1
GOODWILL AND OTHER INTANGIBLES - Identifiable Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 63 $ 67
Accumulated Amortization (54) (55)
Net Intangible Assets 9 12
Customer relationships and lists    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 56 60
Accumulated Amortization (48) (49)
Net Intangible Assets 8 11
Software    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3 3
Accumulated Amortization (2) (2)
Net Intangible Assets 1 1
Other    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 4 4
Accumulated Amortization (4) (4)
Net Intangible Assets $ 0 $ 0
v3.22.0.1
GOODWILL AND OTHER INTANGIBLES - Amortization Expense Related to Intangible Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense related to intangible assets $ 2 $ 2 $ 3
v3.22.0.1
INCOME TAXES - Income (loss) before income taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
U.S. $ 80 $ 10 $ 145
Non-U.S. 380 188 357
INCOME (LOSS) BEFORE INCOME TAXES $ 460 $ 198 $ 502
v3.22.0.1
INCOME TAXES - Income tax provision (benefit) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current tax provision (benefit)      
U.S. federal $ 26 $ (4) $ 36
U.S. state and local 5 2 8
Non-U.S. 104 77 88
Total current income tax expense (benefit) 135 75 132
Deferred tax provision (benefit)      
U.S. federal (3) (4) (4)
U.S. state and local (1) (1) (2)
Non-U.S. (2) (42) (1)
Total deferred income tax expense (benefit) (6) (47) (7)
Income tax provision (benefit) $ 129 $ 28 $ 125
v3.22.0.1
INCOME TAXES - Reconciliation items from U.S. statutory income tax rate to the effective tax rate (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Income (loss) before income taxes $ 460 $ 198 $ 502
Statutory U.S. income tax rate 21.00% 21.00% 21.00%
Income taxes using the statutory U.S. income tax rate $ 96 $ 42 $ 105
State and local income taxes 5 1 5
Impact of rate differential on non-U.S. permanent differences and earnings 28 (5) 12
Tax audits 0 (10) 0
US tax on non-U.S. earnings (GILTI and Subpart F) 0 1 4
Other, net 0 (1) (1)
Income tax provision (benefit) $ 129 $ 28 $ 125
Effective income tax rate 28.00% 14.00% 25.00%
v3.22.0.1
INCOME TAXES - Components of deferred tax assets and liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Deferred income tax assets:    
Net operating and capital loss carryforwards $ 22 $ 27
Accrued payroll and benefits 25 9
Lease liabilities 6 10
Tax credits 4 35
Other 40 64
Gross deferred income tax assets 97 145
Less: valuation allowance (9) (35)
Net deferred income tax asset 88 110
Deferred income tax liabilities:    
Intangibles (37) (45)
Right of use assets (6) (10)
Deferred foreign income (40) (35)
Plants, properties and equipment (92) (106)
Forestlands (45) (49)
Gross deferred income tax liabilities (220) (245)
Net deferred income tax liability $ (132) $ (135)
v3.22.0.1
INCOME TAXES - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Examination [Line Items]        
Valuation allowance $ 9,000 $ 9,000 $ 35,000  
Income tax payments, net of refunds 10,000      
Unrecognized tax benefits 3,000 3,000 18,000 $ 28,000
Accrued interest   1,000 0 200
Liability for interest $ 2,000 $ 2,000 2,000 $ 3,000
Income tax examination, estimate of possible loss     106,000  
Income tax examination, penalties and interest expense     $ 351,000  
Income tax examination, tax liabilities payable, percentage 40.00% 40.00%    
Income tax examination, tax liability, threshold $ 300,000 $ 300,000    
International Paper        
Income Tax Examination [Line Items]        
Income tax examination, tax liabilities payable, percentage 60.00% 60.00%    
v3.22.0.1
INCOME TAXES - Unrecognized tax benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized Tax Benefits $ (18) $ (28) $ (29)
(Additions) reductions for tax positions related to current year (2) (1) 0
Reductions for tax positions related to prior years 0 11 0
Transfer of tax positions related to prior years to Parent 17 0 0
Expiration of statutes of limitations 0 0 1
Unrecognized Tax Benefits $ (3) $ (18) $ (28)
v3.22.0.1
INCOME TAXES - Net operating loss and income tax credit carryforwards (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Tax Credit Carryforward [Line Items]  
Net operating loss carryforwards $ 22
Less: valuation allowance (6)
Total, net 16
Indefinite  
Tax Credit Carryforward [Line Items]  
Net operating loss carryforwards 22
Less: valuation allowance (6)
Total, net $ 16
v3.22.0.1
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Jun. 30, 2021
Dec. 31, 2021
Mar. 02, 2022
Mar. 31, 2021
Site Contingency [Line Items]          
Accrual for environmental remediation matters     $ 16.0    
Value added tax receivable     $ 35.0   $ 11.0
Additional receivable recognized   $ 70.0      
Minimum          
Site Contingency [Line Items]          
Expected timings for resolution in open market term     1 year    
Maximum          
Site Contingency [Line Items]          
Expected timings for resolution in open market term     10 years    
Cost of Sales          
Site Contingency [Line Items]          
Value added tax, income   42.0      
Interest Expense          
Site Contingency [Line Items]          
Value added tax, income   $ 28.0      
Svetogorsk, Russia Mill          
Site Contingency [Line Items]          
Accrual for environmental remediation matters     $ 12.0    
Svetogorsk, Russia Mill | Forecast          
Site Contingency [Line Items]          
Accrual for environmental remediation matters       $ 9.0  
Environmental remediation charge $ 1.0        
v3.22.0.1
LONG-TERM DEBT - Narrative (Details)
 12 Months Ended
Dec. 31, 2021
USD ($)
term_loan
Sep. 30, 2021
term_loan
Aug. 16, 2021
USD ($)
Debt Instrument [Line Items]      
Number of term loans | term_loan 2 2  
Fair market value of total debt $ 1,400,000,000    
2022 20,000,000    
2023 30,000,000    
2024 50,000,000    
2025 51,000,000    
2026 51,000,000    
Thereafter 1,200,000,000    
Interest Rate Swap      
Debt Instrument [Line Items]      
Notional amount $ 400,000,000    
Minimum | Interest Rate Swap      
Debt Instrument [Line Items]      
Fixed interest rate per notional amount 1.05%    
Maximum | Interest Rate Swap      
Debt Instrument [Line Items]      
Fixed interest rate per notional amount 1.40%    
Line of Credit | Revolving Credit Facility      
Debt Instrument [Line Items]      
Line of credit facility, expiration period 5 years    
Total borrowing capacity     $ 450,000,000
Long-term Line of Credit $ 20,000,000    
Debt Instrument, interest rate, stated percentage 1.75%    
Minimum consolidated interest charge coverage ratio 3.00    
Minimum consolidated total leverage ratio 4.25    
Income tax examination, maximum annual restricted payments $ 25,000,000    
Line of Credit | Revolving Credit Facility | After The Third Fiscal Quarter After The Applicable First Testing Quarter      
Debt Instrument [Line Items]      
Minimum consolidated total leverage ratio 4.00    
Line of Credit | Revolving Credit Facility | On And After September 13, 2023      
Debt Instrument [Line Items]      
Minimum consolidated total leverage ratio 3.50    
Line of Credit | Revolving Credit Facility | Ratio Below 2.50      
Debt Instrument [Line Items]      
Income tax examination, maximum annual restricted payments $ 50,000,000    
Debt instrument, consolidated total leverage ratio 2.50    
Line of Credit | Revolving Credit Facility | Ratio Below 2.00      
Debt Instrument [Line Items]      
Income tax examination, maximum annual restricted payments $ 75,000,000    
Debt instrument, consolidated total leverage ratio 2.00    
Line of Credit | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate 0.00%    
Senior Notes | Seven Percent Senior Notes Due 2029      
Debt Instrument [Line Items]      
Debt Instrument, interest rate, stated percentage 7.00%    
Secured Debt | Term Loan B Due 2028      
Debt Instrument [Line Items]      
Debt Instrument, interest rate, stated percentage 4.50%    
Secured Debt | Term Loan B Due 2028 | London Interbank Offered Rate (LIBOR) | Minimum      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate 0.50%    
Secured Debt | Term Loan F Notes Due 2027      
Debt Instrument [Line Items]      
Debt Instrument, interest rate, stated percentage 1.90%    
Debt instrument, patronage distributions, percentage 0.95%    
Debt instrument, patronage distributions, cash rebate, percentage 0.70%    
Debt instrument, effective interest rate 1.05%    
Minimum consolidated interest charge coverage ratio 3.00    
Minimum consolidated total leverage ratio 4.25    
Income tax examination, maximum annual restricted payments $ 25,000,000    
Secured Debt | Term Loan F Notes Due 2027 | After The Third Fiscal Quarter After The Applicable First Testing Quarter      
Debt Instrument [Line Items]      
Minimum consolidated total leverage ratio 4.00    
Secured Debt | Term Loan F Notes Due 2027 | On And After September 13, 2023      
Debt Instrument [Line Items]      
Minimum consolidated total leverage ratio 3.50    
Secured Debt | Term Loan F Notes Due 2027 | Ratio Below 2.50      
Debt Instrument [Line Items]      
Income tax examination, maximum annual restricted payments $ 50,000,000    
Debt instrument, consolidated total leverage ratio 2.50    
Secured Debt | Term Loan F Notes Due 2027 | Ratio Below 2.00      
Debt Instrument [Line Items]      
Income tax examination, maximum annual restricted payments $ 75,000,000    
Debt instrument, consolidated total leverage ratio 2.00    
Secured Debt | Term Loan F Notes Due 2027 | London Interbank Offered Rate (LIBOR) | Minimum      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate 0.00%    
v3.22.0.1
LONG-TERM DEBT - Summary of Long-Term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Less: current portion $ (20) $ 0
Long-Term Debt 1,358 22
Other Long-Term Debt    
Debt Instrument [Line Items]    
Long-term debt 22 22
Term Loan F Due 2027 | Secured Debt    
Debt Instrument [Line Items]    
Long-term debt 512 0
Unamortized debt issuance costs 5  
Term Loan B Due 2028 | Secured Debt    
Debt Instrument [Line Items]    
Long-term debt $ 401 0
Debt Instrument, interest rate, stated percentage 4.50%  
Unamortized debt issuance costs $ 5  
Unamortized original issue discount 4  
Seven Percent Senior Notes Due 2029 | Senior Notes    
Debt Instrument [Line Items]    
Long-term debt $ 443 $ 0
Debt Instrument, interest rate, stated percentage 7.00%  
Unamortized debt issuance costs $ 7  
v3.22.0.1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Sep. 01, 2021
Dec. 31, 2020
Dec. 31, 2019
Deferred Compensation And Non-Qualifie Pension Plan        
Defined Benefit Plan Disclosure [Line Items]        
Deferred compensation receivables $ 24      
Deferred compensation savings plan liability 18      
Pension Plan        
Defined Benefit Plan Disclosure [Line Items]        
Projected benefit obligation 462   $ 171 $ 165
Fair value of plan assets 431   171 $ 163
Funded (unfunded) status of plan (31)   0  
Accumulated benefit obligation $ 446   168  
Pension Plan | Equity securities        
Defined Benefit Plan Disclosure [Line Items]        
Asset allocation, percentage 25.00%      
Pension Plan | Debt securities        
Defined Benefit Plan Disclosure [Line Items]        
Asset allocation, percentage 70.00%      
Pension Plan | Other investments        
Defined Benefit Plan Disclosure [Line Items]        
Asset allocation, percentage 5.00%      
Pension Plan | U.S. Qualified Plans | United States        
Defined Benefit Plan Disclosure [Line Items]        
Projected benefit obligation $ 263 $ 261    
Defined benefit plan, funded percentage   95.00%    
Fair value of plan assets 250 $ 253    
Pension Plan | International Plan | Belgium, France And Poland        
Defined Benefit Plan Disclosure [Line Items]        
Projected benefit obligation 16      
Fair value of plan assets 4      
Funded (unfunded) status of plan (12)      
Pension Plan | International Plan | U.K. And Brazil        
Defined Benefit Plan Disclosure [Line Items]        
Projected benefit obligation 168      
Fair value of plan assets 177      
Funded (unfunded) status of plan 9      
Pension Plan | International Plan | Brazil        
Defined Benefit Plan Disclosure [Line Items]        
Funded (unfunded) status of plan $ (8)   $ (17)  
v3.22.0.1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - Obligations and Funded Status (Details) - Pension Plan - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Change in projected benefit obligation:      
Benefit obligation, January 1 $ 171 $ 165  
Pension plan transfer from Parent 287 0  
Service cost 2 1 $ 1
Interest cost 6 4 5
Actuarial loss (gain) 0 7  
Benefits paid (5) (5)  
Expenses paid from assets (1) 0  
Effect of foreign currency exchange rate movements 2 (1)  
Benefit obligation, December 31 462 171 165
Change in plan assets:      
Fair value of plan assets, January 1 171 163  
Pension plan transfer from Parent 252 0  
Actual return on plan assets 2 11  
Company contributions 10 4  
Benefits paid (5) (5)  
Expenses paid from assets (1) 0  
Effect of foreign currency exchange rate movements 2 (2)  
Fair value of plan assets, December 31 431 171 $ 163
Funded status, December 31 (31) 0  
Amounts recognized in the consolidated and combined balance sheets:      
Non-current asset 8 5  
Non-current liability (39) (5)  
Liabilities (31) 0  
Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax):      
Net prior service cost 2 0  
Net actuarial loss 106 63  
Amounts recognized in accumulated other comprehensive income $ 108 $ 63  
v3.22.0.1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - Obligation and Asset Information (Details) - Pension Plan - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]      
Projected benefit obligation $ 462 $ 171 $ 165
Accumulated benefit obligation 446 168  
Fair value of plan assets $ 431 $ 171 $ 163
v3.22.0.1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - Summary of Net Benefit Costs (Details) - Pension Plan - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 2 $ 1 $ 1
Interest cost 6 4 5
Expected return on plan assets (11) (8) (9)
Actuarial loss (gain) 2 1 1
Net periodic pension expense (benefit) $ (1) $ (2) $ (2)
v3.22.0.1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - Assumptions Used to Determine Net Periodic Pension Cost (Details) - Pension Plan
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Actuarial assumptions used to determine benefit obligations as of December 31:      
Discount rate 2.79% 2.27% 2.80%
Rate of compensation increase 3.36% 3.54% 3.39%
Actuarial assumptions used to determine net periodic pension cost for years ended December 31:      
Discount rate 2.79% 2.76% 4.23%
Expected long-term rate of return on plan assets 5.38% 4.84% 6.59%
Rate of compensation increase 2.85% 3.42% 3.63%
v3.22.0.1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - Defined Benefit Plan Assets by Category (Details) - U.S. And U.K. Pension Plan
$ in Millions
Dec. 31, 2021
USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets $ 406
Cash and cash equivalents  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 17
Equities - developed markets  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 88
Equities - emerging markets  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 8
Government securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 59
Corporate bonds  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 137
Other fixed income securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 91
Derivatives  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 2
Other  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 4
Quoted Prices in Active Markets For Identical Assets (Level 1)  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 41
Quoted Prices in Active Markets For Identical Assets (Level 1) | Cash and cash equivalents  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 17
Quoted Prices in Active Markets For Identical Assets (Level 1) | Equities - developed markets  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Quoted Prices in Active Markets For Identical Assets (Level 1) | Equities - emerging markets  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Quoted Prices in Active Markets For Identical Assets (Level 1) | Government securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 23
Quoted Prices in Active Markets For Identical Assets (Level 1) | Corporate bonds  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Quoted Prices in Active Markets For Identical Assets (Level 1) | Other fixed income securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Quoted Prices in Active Markets For Identical Assets (Level 1) | Derivatives  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 1
Quoted Prices in Active Markets For Identical Assets (Level 1) | Other  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Significant Observable Inputs (Level 2)  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 365
Significant Observable Inputs (Level 2) | Cash and cash equivalents  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Significant Observable Inputs (Level 2) | Equities - developed markets  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 88
Significant Observable Inputs (Level 2) | Equities - emerging markets  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 8
Significant Observable Inputs (Level 2) | Government securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 36
Significant Observable Inputs (Level 2) | Corporate bonds  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 137
Significant Observable Inputs (Level 2) | Other fixed income securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 91
Significant Observable Inputs (Level 2) | Derivatives  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 1
Significant Observable Inputs (Level 2) | Other  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 4
Significant Unobservable Inputs (Level 3)  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Significant Unobservable Inputs (Level 3) | Equities - developed markets  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Significant Unobservable Inputs (Level 3) | Equities - emerging markets  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Significant Unobservable Inputs (Level 3) | Government securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Significant Unobservable Inputs (Level 3) | Corporate bonds  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Significant Unobservable Inputs (Level 3) | Other fixed income securities  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Significant Unobservable Inputs (Level 3) | Derivatives  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets 0
Significant Unobservable Inputs (Level 3) | Other  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of plan assets $ 0
v3.22.0.1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - Expected Future Benefit Payments (Details) - Pension Plan
$ in Millions
Dec. 31, 2021
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
2022 $ 6
2023 7
2024 9
2025 11
2026 13
2027-2030 $ 96
v3.22.0.1
INCENTIVE PLANS - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Oct. 15, 2021
Dec. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Maximum shares reserve for the grant   4,410,725 4,410,725    
Shares remain available for future grant   3,746,156 3,746,156    
Stock-based compensation cost   $ 14 $ 14 $ 15 $ 19
Restricted Stock Units (RSUs)          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted in period (in shares) 664,569 664,569      
Vesting period     1 year 1 month 6 days    
v3.22.0.1
INCENTIVE PLANS - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) - $ / shares
 3 Months Ended
Oct. 15, 2021
Dec. 31, 2021
Shares    
Beginning balance, outstanding (in shares)   0
Granted (in shares) 664,569 664,569
Shares issued (in shares)   0
Forfeited (in shares)   0
Ending balance, outstanding, (in shares)   664,569
Weighted Average Grant Date Fair Value    
Beginning balance, outstanding (in dollars per share)   $ 0
Granted (in dollars per share)   28.51
Shares issued (in dollars per share)   0
Forfeited (in dollars per share)   0
Ending balance, outstanding (in dollars per share)   $ 28.51
v3.22.0.1
INCENTIVE PLANS - Summary of Stock Based Compensation Cost (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]        
Total stock-based compensation expense (included in selling and administrative expense) $ 14 $ 14 $ 15 $ 19
Income tax benefit (expense) related to stock-based compensation $ 3   $ 1 $ 1
v3.22.0.1
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA - Schedule of Segment Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]      
Net Sales $ 3,502 $ 3,009 $ 4,017
Income (loss) before income taxes 460 198 502
Interest (income) expense, net (2) (4) (9)
Restructuring and other charges, net 0 0 6
Other special items, net (34) 10 (1)
Assets 2,597 2,911  
Capital spending 76 75 118
Depreciation, amortization and cost of timber harvested 143 154 192
Long-lived Assets 1,163 1,267  
United States      
Segment Reporting Information [Line Items]      
Long-lived Assets 413 436  
Brazil      
Segment Reporting Information [Line Items]      
Long-lived Assets 546 601  
Europe, other than Russia      
Segment Reporting Information [Line Items]      
Long-lived Assets 86 97  
Russia      
Segment Reporting Information [Line Items]      
Long-lived Assets 118 133  
Europe      
Segment Reporting Information [Line Items]      
Net Sales 1,022 895 1,096
Other special items, net 0 11 0
Capital spending 13 15 21
Depreciation, amortization and cost of timber harvested 35 38 40
Latin America      
Segment Reporting Information [Line Items]      
Net Sales 769 632 969
Other special items, net (35) (2) (3)
Capital spending 39 45 61
Depreciation, amortization and cost of timber harvested 58 66 96
North America      
Segment Reporting Information [Line Items]      
Net Sales 1,711 1,482 1,952
Other special items, net 1 1 2
Capital spending 24 15 36
Depreciation, amortization and cost of timber harvested 50 50 56
Operating Segments      
Segment Reporting Information [Line Items]      
Business Segment Operating Profit 429 204 498
Operating Segments | Europe      
Segment Reporting Information [Line Items]      
Net Sales 1,040 921 1,122
Business Segment Operating Profit 98 77 140
Assets 538 987  
Operating Segments | Latin America      
Segment Reporting Information [Line Items]      
Net Sales 786 632 969
Business Segment Operating Profit 195 84 158
Assets 1,034 1,091  
Operating Segments | North America      
Segment Reporting Information [Line Items]      
Net Sales 1,718 1,490 1,996
Business Segment Operating Profit 136 43 200
Assets 868 931  
Corporate and Intersegment Sales      
Segment Reporting Information [Line Items]      
Net Sales (42) (34) (70)
Corporate, Non-Segment      
Segment Reporting Information [Line Items]      
Other special items, net 5 0 0
Assets 157 (98)  
Segment Reconciling Items      
Segment Reporting Information [Line Items]      
Interest (income) expense, net (2) (4) (9)
Restructuring and other charges, net 0 0 6
Other special items, net (34) 10 (1)
Reportable Geographical Components | United States      
Segment Reporting Information [Line Items]      
Net Sales 1,718 1,490 1,996
Reportable Geographical Components | Brazil      
Segment Reporting Information [Line Items]      
Net Sales 734 576 886
Reportable Geographical Components | Europe, other than Russia      
Segment Reporting Information [Line Items]      
Net Sales 487 419 519
Reportable Geographical Components | Americas, other than United States and Brazil      
Segment Reporting Information [Line Items]      
Net Sales 52 56 83
Reportable Geographical Components | Russia      
Segment Reporting Information [Line Items]      
Net Sales $ 553 $ 502 $ 603
v3.22.0.1
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA - Net Sales and Assets by Geographic Area (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net Sales $ 3,502 $ 3,009 $ 4,017
Long-lived Assets 1,163 1,267  
Corporate and Intersegment Sales      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net Sales (42) (34) (70)
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Long-lived Assets 413 436  
United States | Reportable Geographical Components      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net Sales 1,718 1,490 1,996
Brazil      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Long-lived Assets 546 601  
Brazil | Reportable Geographical Components      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net Sales 734 576 886
Russia      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Long-lived Assets 118 133  
Russia | Reportable Geographical Components      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net Sales 553 502 603
Europe, other than Russia      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Long-lived Assets 86 97  
Europe, other than Russia | Reportable Geographical Components      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net Sales 487 419 519
Americas, other than United States and Brazil | Reportable Geographical Components      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net Sales $ 52 $ 56 $ 83
v3.22.0.1
RELATED PARTY TRANSACTIONS - Narrative (Details) - Affiliated Entity - International Paper
$ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
Offtake Agreement  
Related Party Transaction [Line Items]  
Related party transaction, expenses from related party $ 133
Accounts payable, related parties $ 77
Payment period 6 months
Fiber Purchase Agreement  
Related Party Transaction [Line Items]  
Related party transaction, expenses from related party $ 52
v3.22.0.1
RELATED PARTY TRANSACTIONS - Summary of Related Party Receivables (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Related Party Transaction [Line Items]    
Related party receivable $ 0 $ 202,000
Affiliated Entity    
Related Party Transaction [Line Items]    
Related party receivable 3,000 221,000
Due from Parent cash pool | Affiliated Entity    
Related Party Transaction [Line Items]    
Related party receivable 0 202,000
Professional services provided to Parent / other | Affiliated Entity    
Related Party Transaction [Line Items]    
Related party receivable $ 3,000 $ 19,000
v3.22.0.1
RELATED PARTY TRANSACTIONS - Summary of Related Party Payable (Details) - Affiliated Entity - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Related Party Transaction [Line Items]    
Related party payable $ 110 $ 25
Inventory purchases    
Related Party Transaction [Line Items]    
Related party payable 110 16
Other    
Related Party Transaction [Line Items]    
Related party payable $ 0 $ 9
v3.22.0.1
RELATED PARTY TRANSACTIONS - Summary of Components of Net Transfers From (To) Parent (Details) - USD ($)
$ in Millions
 12 Months Ended
Oct. 01, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Related Party Transaction [Line Items]          
Net transfers (to) from Parent   $ (567) $ (325) $ (350)  
Inventories   342 342    
Deferred income tax provision (benefit), net   (6) (49) (7)  
Deferred Charges and Other Assets   153 336    
Revision of Prior Period, Error Correction, Adjustment          
Related Party Transaction [Line Items]          
Accumulated cumulative translation losses   (87) (42) 21 $ (66)
Affiliated Entity | International Paper          
Related Party Transaction [Line Items]          
Net transfers (to) from Parent   (567) (325) (350)  
Affiliated Entity | International Paper | Revision of Prior Period, Error Correction, Adjustment          
Related Party Transaction [Line Items]          
Inventories $ 32        
Deferred income tax provision (benefit), net (8)        
Deferred Charges and Other Assets (196)        
Accumulated cumulative translation losses 87        
Affiliated Entity | General financing activities | International Paper          
Related Party Transaction [Line Items]          
Net transfers (to) from Parent   (661) (494) (565)  
Affiliated Entity | Corporate allocations | International Paper          
Related Party Transaction [Line Items]          
Net transfers (to) from Parent   112 154 196  
Affiliated Entity | Stock-based compensation | International Paper          
Related Party Transaction [Line Items]          
Net transfers (to) from Parent   10 15 19  
Affiliated Entity | Final spin-off adjustments | International Paper          
Related Party Transaction [Line Items]          
Net transfers (to) from Parent   $ (28) $ 0 $ 0  
Affiliated Entity | Out of period corrections          
Related Party Transaction [Line Items]          
Net transfers (to) from Parent $ (85)        
v3.22.0.1
SUBSEQUENT EVENTS (Details) - Geographic Concentration Risk - Russia
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer Benchmark  
Subsequent Event [Line Items]  
Concentration risk, percentage 15.00%
Long-Lived Assets  
Subsequent Event [Line Items]  
Concentration risk, percentage 10.00%