filings.toolsItem 1. [FINANCIAL STATEMENTS](#ifba6e37b77444babb431acefa4f904f816)
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Item 1. [FINANCIAL STATEMENTS](#ifba6e37b77444babb431acefa4f904f816)
INTERNATIONAL PAPER COMPANY
Condensed Consolidated Statement of Operations
(Unaudited)
(In millions, except per share amounts)
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net Sales | $ | 5,971 | $ | 5,264 | ||||||||||
| Costs and Expenses | ||||||||||||||
| Cost of products sold | 4,244 | 3,805 | ||||||||||||
| Selling and administrative expenses | 510 | 487 | ||||||||||||
| Depreciation and amortization | 489 | 520 | ||||||||||||
| Distribution expenses | 513 | 417 | ||||||||||||
| Taxes other than payroll and income taxes | 41 | 87 | ||||||||||||
| Restructuring charges, net | 23 | 83 | ||||||||||||
| Net (gains) losses on sales and impairments of assets | — | (67) | ||||||||||||
| Interest expense, net | 76 | 84 | ||||||||||||
| Non-operating pension expense (income) | (18) | 3 | ||||||||||||
| Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings (Loss) | 93 | (155) | ||||||||||||
| Income tax provision (benefit) | 17 | (32) | ||||||||||||
| Equity earnings (loss), net of taxes | — | (1) | ||||||||||||
| Earnings (Loss) From Continuing Operations | $ | 76 | $ | (124) | ||||||||||
| Discontinued operations, net of taxes | (16) | 19 | ||||||||||||
| Net Earnings (Loss) | $ | 60 | $ | (105) | ||||||||||
| Basic Earnings (Loss) Per Share | ||||||||||||||
| Earnings (loss) from continuing operations | $ | 0.14 | $ | (0.28) | ||||||||||
| Discontinued operations | (0.03) | 0.04 | ||||||||||||
| Net earnings (loss) | $ | 0.11 | $ | (0.24) | ||||||||||
| Diluted Earnings (Loss) Per Share | ||||||||||||||
| Earnings (loss) from continuing operations | $ | 0.14 | $ | (0.28) | ||||||||||
| Discontinued operations | (0.03) | 0.04 | ||||||||||||
| Net earnings (loss) | $ | 0.11 | $ | (0.24) | ||||||||||
| Average Shares of Common Stock Outstanding – assuming dilution | 531.8 | 437.6 |
The accompanying notes are an integral part of these condensed financial statements.
INTERNATIONAL PAPER COMPANY
Condensed Consolidated Statement of Comprehensive Income (Loss)
(Unaudited)
(In millions)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net Earnings (Loss) | $ | 60 | $ | (105) | |||||||
| Other Comprehensive Income (Loss), Net of Tax: | |||||||||||
| Amortization of pension and post-retirement prior service costs and net loss: | |||||||||||
| U.S. plans | 12 | 16 | |||||||||
| Pension and postretirement adjustments: | |||||||||||
| U.S. plans | 16 | 8 | |||||||||
| Non-U.S. plans | 1 | — | |||||||||
| Change in cumulative foreign currency translation adjustment | (5) | 410 | |||||||||
| Net gains/(losses) on cash flow hedging derivatives: | |||||||||||
| Net gains/(losses) on cash flow hedging derivatives | 137 | (52) | |||||||||
| Reclassification adjustment for (gains) losses included in net earnings (losses) | 1 | (1) | |||||||||
| Total Other Comprehensive Income (Loss), Net of Tax | 162 | 381 | |||||||||
| Comprehensive Income (Loss) | $ | 222 | $ | 276 |
The accompanying notes are an integral part of these condensed financial statements.
INTERNATIONAL PAPER COMPANY
Condensed Consolidated Balance Sheet
(In millions)
| March 31, 2026 | December 31, 2025 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current Assets | |||||||||||
| Cash and temporary investments | $ | 1,236 | $ | 1,145 | |||||||
| Restricted cash | 63 | — | |||||||||
| Accounts and notes receivable, net | 4,022 | 3,791 | |||||||||
| Contract assets | 670 | 635 | |||||||||
| Assets held for sale | 85 | 1,800 | |||||||||
| Inventories | 1,902 | 2,012 | |||||||||
| Other current assets | 602 | 723 | |||||||||
| Total Current Assets | 8,580 | 10,106 | |||||||||
| Plants, Properties and Equipment, net | 14,252 | 14,443 | |||||||||
| Goodwill | 5,297 | 5,326 | |||||||||
| Intangibles, net | 4,060 | 4,043 | |||||||||
| Long-Term Financial Assets of Variable Interest Entities (Note 15) | 2,354 | 2,349 | |||||||||
| Right of Use Assets | 652 | 697 | |||||||||
| Overfunded Pension Plan Assets | 507 | 486 | |||||||||
| Deferred Charges and Other Assets | 732 | 514 | |||||||||
| Total Assets | $ | 36,434 | $ | 37,964 | |||||||
| Liabilities and Equity | |||||||||||
| Current Liabilities | |||||||||||
| Notes payable and current maturities of long-term debt | $ | 918 | $ | 992 | |||||||
| Accounts payable | 3,833 | 3,902 | |||||||||
| Accrued payroll and benefits | 693 | 834 | |||||||||
| Liabilities held for sale | 6 | 502 | |||||||||
| Other current liabilities | 1,623 | 1,669 | |||||||||
| Total Current Liabilities | 7,073 | 7,899 | |||||||||
| Long-Term Debt | 8,175 | 8,839 | |||||||||
| Deferred Income Taxes | 1,963 | 1,898 | |||||||||
| Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities (Note 15) | 2,129 | 2,127 | |||||||||
| Long-Term Lease Obligations | 450 | 486 | |||||||||
| Underfunded Pension Benefit Obligation | 297 | 316 | |||||||||
| Postretirement and Postemployment Benefit Obligation | 131 | 133 | |||||||||
| Other Liabilities | 1,408 | 1,439 | |||||||||
| Equity | |||||||||||
| Common stock, $1 par value, 2026 – 627.0 shares and 2025 – 627.0 shares | 627 | 627 | |||||||||
| Paid-in capital | 14,352 | 14,414 | |||||||||
| Retained earnings | 4,699 | 4,885 | |||||||||
| Accumulated other comprehensive income (loss) | (366) | (528) | |||||||||
| 19,312 | 19,398 | ||||||||||
| Less: Common stock held in treasury, at cost, 2026 – 97.6 shares and 2025 – 99.0 shares | 4,504 | 4,571 | |||||||||
| Total Equity | 14,808 | 14,827 | |||||||||
| Total Liabilities and Equity | $ | 36,434 | $ | 37,964 |
The accompanying notes are an integral part of these condensed financial statements.
INTERNATIONAL PAPER COMPANY
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(In millions)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating Activities | |||||||||||
| Net earnings (loss) | $ | 60 | $ | (105) | |||||||
| Depreciation and amortization | 489 | 571 | |||||||||
| Deferred income tax provision (benefit), net | 7 | (74) | |||||||||
| Restructuring charges, net | 23 | 83 | |||||||||
| Net (gains) losses on sales and impairments of businesses | 3 | — | |||||||||
| Net (gains) losses on sales and impairments of assets | — | (67) | |||||||||
| Periodic pension (income) expense, net | 13 | 13 | |||||||||
| Other, net | 52 | (87) | |||||||||
| Changes in operating assets and liabilities | |||||||||||
| Accounts and notes receivable | (158) | (178) | |||||||||
| Contract assets | (39) | (47) | |||||||||
| Inventories | 58 | 22 | |||||||||
| Accounts payable | 158 | 97 | |||||||||
| Other current liabilities | (272) | (444) | |||||||||
| Other current assets | 217 | (72) | |||||||||
| Cash Provided By (Used For) Operations | 611 | (288) | |||||||||
| Investment Activities | |||||||||||
| Capital expenditures | (517) | (330) | |||||||||
| Acquisitions, net of cash acquired | — | 415 | |||||||||
| Proceeds from divestitures, net of cash divested | 1,059 | — | |||||||||
| Proceeds from sale of fixed assets | 21 | 83 | |||||||||
| Proceeds from insurance recoveries | 8 | 28 | |||||||||
| Other | (6) | 41 | |||||||||
| Cash Provided By (Used For) Investment Activities | 565 | 237 | |||||||||
| Financing Activities | |||||||||||
| Issuance of debt | — | 239 | |||||||||
| Reduction of debt | (660) | (6) | |||||||||
| Change in book overdrafts | (84) | 94 | |||||||||
| Repurchases of common stock and payments of restricted stock tax withholding | (30) | (62) | |||||||||
| Dividends paid | (245) | (244) | |||||||||
| Cash Provided By (Used For) Financing Activities | (1,019) | 21 | |||||||||
| Cash Included in Assets Held for Sale | — | (2) | |||||||||
| Effect of Exchange Rate Changes on Cash and Temporary Investments and Restricted Cash | (11) | 18 | |||||||||
| Change in Cash and Temporary Investments and Restricted Cash | 146 | (14) | |||||||||
| Cash and Temporary Investments and Restricted Cash | |||||||||||
| Beginning of period | 1,161 | 1,170 | |||||||||
| End of period | $ | 1,307 | $ | 1,156 |
The accompanying notes are an integral part of these condensed financial statements.
INTERNATIONAL PAPER COMPANY
Condensed Notes to Consolidated Financial Statements
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of International Paper Company’s ("International Paper's," "the Company’s," "IP's" or "our") financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first three months of the year may not necessarily be indicative of full year results. You should read these unaudited condensed financial statements in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"), which have previously been filed with the U.S. Securities and Exchange Commission (the "SEC").
Global Cellulose Fibers Discontinued Operations
On January 23, 2026, the Company completed the previously announced sale of its Global Cellulose Fibers ("GCF") business to American Industrial Partners ("AIP"). All current and historical operating results of the GCF business are presented as Discontinued Operations, net of taxes, in the consolidated statements of operations. All historical assets and liabilities of the Global Cellulose Fibers business are classified as Assets held for sale and Liabilities held for sale in the accompanying consolidated balance sheet as of December 31, 2025. See Note 9 - Divestitures for further details regarding the Global Cellulose Fibers business and discontinued operations.
PS EMEA Spin-Off
On January 29, 2026, the Company announced a plan to create two independent, publicly traded companies through the separation of its Packaging Solutions North America ("PS NA") and Packaging Solutions Europe, Middle East and Africa ("PS EMEA") businesses. The PS NA business will be comprised of the Company's current business in North America, including both legacy IP and DS Smith assets, and the PS EMEA business will be comprised of both legacy DS Smith and IP assets in EMEA. The separation is expected to be structured as a spin-off of the PS EMEA businesses to shareholders and is expected to be completed in 12-15 months from the announcement date, subject to the satisfaction of certain customary conditions.
These unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States that require the use of management’s estimates. Actual results could differ from management’s estimates.
NOTE 2 - RECENT ACCOUNTING DEVELOPMENTS
Recently Issued Accounting Pronouncements Not Yet Adopted
Government Grants
In December 2025, the FASB issued ASU 2025-10, "Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities." This guidance establishes accounting for government grants received by a business including guidance for grants related to assets and grants related to income. This guidance is effective for annual reporting periods beginning after December 15, 2028 and interim periods within that fiscal year. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance.
Derivatives and Hedging
In November 2025, the FASB issued ASU 2025-09, "Derivatives and Hedging (Topic 815): Hedge Accounting Improvements." This guidance includes changes to more closely align hedge accounting with the economics of an entity's risk management activities. This guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods within that fiscal year. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance.
Intangible Assets
In September 2025, the FASB issued ASU 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software." This guidance provides criteria that must be met for entities to capitalize software development costs and factors to consider if there is significant uncertainty associated with the development activities of the software. This guidance is effective for annual reporting periods beginning after December 15, 2027 and interim periods within that fiscal year. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance.
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)." This guidance requires companies to provide more detailed information of certain income statement expenses within the footnotes to the financial statements. This guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance.
Generally, the Company recognizes revenue on a point-in-time basis when the Company transfers control of the goods to the customer. 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.
Disaggregated Revenue
| Three Months Ended March 31, 2026 | ||||||||||||||||||||||||||
| In millions | PS NA | PS EMEA | Corporate & Intersegment | Total | ||||||||||||||||||||||
| Primary Geographical Markets (a) | ||||||||||||||||||||||||||
| United States | $ | 3,425 | $ | — | $ | 22 | $ | 3,447 | ||||||||||||||||||
| EMEA | — | 2,323 | — | 2,323 | ||||||||||||||||||||||
| Pacific Rim and Asia | 5 | — | — | 5 | ||||||||||||||||||||||
| Americas, other than U.S. | 196 | — | — | 196 | ||||||||||||||||||||||
| Total | $ | 3,626 | $ | 2,323 | $ | 22 | $ | 5,971 |
(a) Net sales are attributed to countries based on the location of the seller.
| Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||
| In millions | PS NA | PS EMEA | Corporate & Intersegment | Total | ||||||||||||||||||||||
| Primary Geographical Markets (a) | ||||||||||||||||||||||||||
| United States | $ | 3,498 | $ | — | $ | 12 | $ | 3,510 | ||||||||||||||||||
| EMEA | — | 1,550 | — | 1,550 | ||||||||||||||||||||||
| Pacific Rim and Asia | 11 | — | — | 11 | ||||||||||||||||||||||
| Americas, other than U.S. | 193 | — | — | 193 | ||||||||||||||||||||||
| Total | $ | 3,702 | $ | 1,550 | $ | 12 | $ | 5,264 |
(a) Net sales are attributed to countries based on the location of the seller.
Revenue Contract Balances
A contract asset is created when the Company recognizes revenue on its customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes to the customer.
A contract liability is created when customers prepay for goods prior to the Company transferring 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 $25 million and $18 million are included in Other current liabilities in the accompanying condensed consolidated balance sheet as of March 31, 2026 and December 31, 2025, 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 for which we have an unconditional right to payment or receive prepayment from the customer, respectively.
A summary of the changes in equity for the three months ended March 31, 2026 and 2025 is provided below:
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||
| In millions, except per share amounts | Common Stock Issued | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock Held In Treasury, At Cost | Total Equity | |||||||||||||||||||||||||||||
| Balance, January 1 | $ | 627 | $ | 14,414 | $ | 4,885 | $ | (528) | $ | 4,571 | $ | 14,827 | |||||||||||||||||||||||
| Issuance of stock for various plans, net | — | (62) | — | — | (97) | 35 | |||||||||||||||||||||||||||||
| Repurchase of stock | — | — | — | — | 30 | (30) | |||||||||||||||||||||||||||||
| Common stock dividends ($0.4625 per share) | — | — | (246) | — | — | (246) | |||||||||||||||||||||||||||||
| Comprehensive income (loss) | — | — | 60 | 162 | — | 222 | |||||||||||||||||||||||||||||
| Ending Balance, March 31 | $ | 627 | $ | 14,352 | $ | 4,699 | $ | (366) | $ | 4,504 | $ | 14,808 |
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||
| In millions, except per share amounts | Common Stock Issued | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock Held In Treasury, At Cost | Total Equity | |||||||||||||||||||||||||||||
| Balance, January 1 | $ | 449 | $ | 4,732 | $ | 9,393 | $ | (1,722) | $ | 4,679 | $ | 8,173 | |||||||||||||||||||||||
| Issuance of stock for various plans, net | — | (113) | — | — | (159) | 46 | |||||||||||||||||||||||||||||
| Issuance of stock for DS Smith acquisition | 178 | 9,731 | — | — | — | 9,909 | |||||||||||||||||||||||||||||
| Repurchase of stock | — | — | — | — | 62 | (62) | |||||||||||||||||||||||||||||
| Common stock dividends ($0.4625 per share) | — | — | (250) | — | — | (250) | |||||||||||||||||||||||||||||
| Comprehensive income (loss) | — | — | (105) | 381 | — | 276 | |||||||||||||||||||||||||||||
| Ending Balance, March 31 | $ | 627 | $ | 14,350 | $ | 9,038 | $ | (1,341) | $ | 4,582 | $ | 18,092 |
NOTE 5 - OTHER COMPREHENSIVE INCOME (LOSS)
The following table presents changes in Accumulated Other Comprehensive Loss ("AOCL"), net of tax, for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||
| In millions | 2026 | 2025 | |||||||||
| Defined Benefit Pension and Postretirement Adjustments | |||||||||||
| Balance at beginning of period | $ | (1,099) | $ | (1,312) | |||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | 29 | 24 | |||||||||
| Balance at end of period | (1,070) | (1,288) | |||||||||
| Change in Cumulative Foreign Currency Translation Adjustments | |||||||||||
| Balance at beginning of period | 630 | (402) | |||||||||
| Other comprehensive income (loss) before reclassifications | (8) | 410 | |||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | 3 | — | |||||||||
| Balance at end of period | 625 | 8 | |||||||||
| Net Gains and Losses on Cash Flow Hedging Derivatives | |||||||||||
| Balance at beginning of period | (59) | (8) | |||||||||
| Other comprehensive income (loss) before reclassifications | 137 | (52) | |||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | 1 | (1) | |||||||||
| Balance at end of period | 79 | (61) | |||||||||
| Total Accumulated Other Comprehensive Income (Loss) at End of Period | $ | (366) | $ | (1,341) |
The following table presents details of the reclassifications out of AOCL for the three months ended March 31, 2026 and 2025:
| In millions: | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Location of Amount Reclassified from AOCL | |||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Defined benefit pension and postretirement items: | |||||||||||||||||
| Prior-service costs | $ | (3) | $ | (4) | (a) | Non-operating pension expense (income) | |||||||||||
| Actuarial gains (losses) | (16) | (18) | (a) | Non-operating pension expense (income) | |||||||||||||
| Settlement charge | (19) | (8) | (a) | Discontinued operations, net of taxes and Non-operating pension expense (income) | |||||||||||||
| Total pre-tax amount | (38) | (30) | |||||||||||||||
| Tax (expense) benefit | 9 | 6 | |||||||||||||||
| Net of tax | (29) | (24) | |||||||||||||||
| Change in cumulative foreign currency translation adjustments: | |||||||||||||||||
| Business divestitures | (3) | — | Discontinued operations, net of taxes | ||||||||||||||
| Tax (expense)/benefit | — | — | |||||||||||||||
| Net of tax | (3) | — | |||||||||||||||
| Net gains and losses on cash flow hedging derivatives: | |||||||||||||||||
| Commodity contracts | (2) | 1 | (b) | Cost of products sold | |||||||||||||
| Total pre-tax amount | (2) | 1 | |||||||||||||||
| Tax (expense)/benefit | 1 | — | |||||||||||||||
| Net of tax | (1) | 1 | |||||||||||||||
| Total reclassifications for the period | $ | (33) | $ | (23) |
(a)These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 18 - Retirement Plans for additional details).
(b)This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 17 - Derivatives and Hedging Activities for additional details).
Basic earnings per share is computed by dividing earnings by the weighted average number of common shares outstanding. Diluted earnings (loss) per share is computed assuming that all potentially dilutive securities were converted into common shares. There are no adjustments required to be made to net income for purposes of computing basic and diluted earnings (loss) per share.
A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing operations and diluted earnings (loss) per share from continuing operations is as follows:
| Three Months Ended March 31, | |||||||||||
| In millions, except per share amounts | 2026 | 2025 | |||||||||
| Earnings (loss) from continuing operations | $ | 76 | $ | (124) | |||||||
| Weighted average common shares outstanding | 528.8 | 437.6 | |||||||||
| Effect of dilutive securities (a) | |||||||||||
| Restricted performance share plan | 3.0 | — | |||||||||
| Weighted average common shares outstanding – assuming dilution | 531.8 | 437.6 | |||||||||
| Basic earnings (loss) per share from continuing operations | $ | 0.14 | $ | (0.28) | |||||||
| Diluted earnings (loss) per share from continuing operations | $ | 0.14 | $ | (0.28) |
(a) 6.1 million of securities were anti-dilutive for the three months ended March 31, 2025 and were not included in the table.
NOTE 7 - RESTRUCTURING CHARGES, NET
During the three months ended March 31, 2026, the Company recorded restructuring charges of $23 million. These charges included:
| In millions | Three Months Ended March 31, 2026 | ||||
| Riceboro mill closure costs (a) | $ | 7 | |||
| Resource and asset realignment - PS EMEA (b) | 8 | ||||
| Resource and asset realignment - PS NA (c) | 8 | ||||
| $ | 23 |
(a) Includes severance charges of $3 million, the majority of which have been paid, and other costs of $4 million as of March 31, 2026.
(b) Includes severance charges of $4 million, of which $3 million is recorded in Accrued payroll and benefits in the accompanying condensed consolidated balance sheet as of March 31, 2026, and other costs of $4 million which were paid in the first quarter of 2026. The severance charges will be paid within the next twelve months.
(c) Includes severance charges of $6 million recorded in Accrued payroll and benefits in the accompanying condensed consolidated balance sheet as of March 31, 2026 and other costs of $2 million. The severance charges will be paid within the next twelve months.
During the three months ended March 31, 2025, the Company recorded restructuring charges of $83 million. The charges included:
| In millions | Three Months Ended March 31, 2025 | ||||
| Red River mill closure costs (a) | $ | 78 | |||
| Resource and asset realignment - PS NA (b) | 5 | ||||
| $ | 83 |
(a) Includes charges of $78 million for costs associated with the permanent closure of our Red River containerboard mill in Campti, Louisiana. Included in the $78 million of restructuring charges was $17 million of severance charges, $22 million of inventory charges and $39 million of other costs. The majority of the severance charges were paid in 2025.
(b) Includes restructuring charges of $5 million for other costs related to our 80/20 strategic approach.
On January 31, 2025, the Company completed its acquisition of the entire issued and to be issued share capital of DS Smith, a leading provider of sustainable paper-based packaging solutions across Europe and North America. Upon closing, IP issued 0.1285 shares for each DS Smith share, resulting in the issuance of 178,126,631 new shares of IP common stock ("New Company Common Stock"). As a result of the share issuance, the holders of the New Company Common Stock own approximately 34.1% of the Company's outstanding share capital. Based on the issuance of 178,126,631 new shares and the closing price of $55.63 on the close of January 31, 2025, the total purchase consideration for the completed acquisition was approximately $9.9 billion. Acquisition-related costs were $87 million for the three months ended March 31, 2025 and were recorded in Selling and administrative expenses and Taxes other than payroll and income taxes in the accompanying condensed consolidated statement of operations. On February 4, 2025, the Company began trading the New Company Common Stock and continues to be listed on the New York Stock Exchange under the trading symbol "IP" and via a secondary listing on the London Stock Exchange under the trading symbol "IPC." The headquarters of the combined company is based in Memphis, Tennessee, and the EMEA headquarters has been established at DS Smith's existing main office in London.
The Company accounted for the acquisition under ASC 805, "Business Combinations" and the results of operations have been included in International Paper's financial statements beginning with the date of acquisition.
The following table summarizes the fair value assigned to assets and liabilities acquired as of January 31, 2025:
| In millions | ||||||||
| Cash and temporary investments | $ | 448 | ||||||
| Accounts and notes receivable | 1,301 | |||||||
| Contract assets | 236 | |||||||
| Inventories | 626 | |||||||
| Other current assets | 311 | |||||||
| Plants, properties and equipment | 6,707 | |||||||
| Intangibles | 3,915 | |||||||
| Goodwill | 4,335 | |||||||
| Overfunded pension plan assets | 79 | |||||||
| Right of use assets | 270 | |||||||
| Deferred charges and other assets | 84 | |||||||
| Total assets acquired | 18,312 | |||||||
| Notes payable and current maturities of long-term debt | 118 | |||||||
| Accounts payable | 1,660 | |||||||
| Accrued payroll and benefits | 232 | |||||||
| Other current liabilities | 783 | |||||||
| Long-term debt | 3,571 | |||||||
| Deferred income taxes | 1,513 | |||||||
| Underfunded pension benefit obligation | 71 | |||||||
| Long-term lease obligations | 199 | |||||||
| Other liabilities | 256 | |||||||
| Total liabilities assumed | 8,403 | |||||||
| Net assets acquired | $ | 9,909 |
The fair value assigned to the assets and liabilities acquired above were measured using Level 2 and Level 3 inputs, which are further defined in Note 1 in the Company's Annual Report. The estimated fair value of inventory was determined using the Comparative Sales and Replacement Cost methods. Fair value estimates related to the trade name and patents identified intangible assets were determined using the Relief from Royalty method. The fair value estimates related to customer relationships and lists identified intangible assets were determined using the Multi-Period Excess Earnings method. The plants, properties and equipment, specifically the machinery and equipment and buildings and improvements, were valued using either the indirect or direct methods of the Cost Approach, while the land was valued using the Sales Comparison Approach. The allocation of the consideration transferred to the assets acquired and liabilities assumed has been finalized. Goodwill is not deductible for local income tax purposes and is primarily related to the value of new customers through expansion opportunities not reflected in the fair value of the existing customers relationships and the value of the intellectual property beyond selected life for trade names.
Net sales of $1.3 billion and Net earnings (loss) of $(107) million were included in the Company's condensed consolidated statement of operations for the three months ended March 31, 2025.
The identifiable intangible assets acquired in connection with the acquisition of DS Smith included the following:
| In millions | Estimated Fair Value | Average Useful Life | ||||||
| Customer relationships and lists | $ | 3,434 | 19 years | |||||
| Tradenames | 363 | 15 years | ||||||
| Software (a) | 90 | 3 - 5 years | ||||||
| Other (b) | 28 | 10 years | ||||||
| Total | $ | 3,915 |
(a) Of this balance, $57 million has been placed in service and $33 million is in development.
(b) Includes $10 million of intangible assets with indefinite lives.
Below are the consolidated results on an unaudited pro forma basis assuming the DS Smith acquisition had closed on January 1, 2024:
| Three Months Ended March 31 | ||||||||
| In millions | 2025 (Unaudited) | |||||||
| Net Sales | $ | 6,636 | ||||||
| Net Earnings (Loss) | (107) |
The unaudited pro forma information for the three months ended March 31, 2025 includes additional amortization expense on identifiable intangible assets of $9 million, additional depreciation expense on identifiable fixed assets of $6 million and eliminates the incremental expense of $70 million associated with the write-off of the estimated fair value of inventory and non-recurring integration costs associated with the acquisition of $65 million.
The unaudited pro forma consolidated financial information was prepared for comparative purposes only and includes certain adjustments, as noted above. The adjustments are estimates based on the preliminary valuation and information available as of March 31, 2025 and actual amounts may have differed materially from these estimates. They do not reflect the effect of costs or synergies that would have been expected to result from the integration of the acquisition. The pro forma information does not purport to represent International Paper's actual results of operations as if the transaction described above would have occurred as of January 1, 2024, nor is it necessarily an indicator of future results.
In connection with the DS Smith acquisition, the European Commission issued its Phase I clearance of the business combination between International Paper and DS Smith on January 31, 2025, with the condition that International Paper commit to divest five European plants in Mortagne, Saint-Amand, and Cabourg (France), Ovar (Portugal) and Bilbao (Spain). On June 30, 2025, the Company completed the sale of these locations to Palm Group of Germany for €125 million (approximately $147 million at the June 30, 2025 exchange rate) in cash. The Company recorded a net gain of $46 million in Net (gains) losses on sales and impairments of businesses in the accompanying condensed consolidated statement of operations during the year ended December 31, 2025.
Global Cellulose Fibers: On January 23, 2026, the Company completed the sale of its Global Cellulose Fibers business to AIP for cash consideration of $1.1 billion and the issuance of preferred stock with an aggregate initial liquidation preference of $168 million, subject to final working capital and net debt adjustments. The Company’s preferred stock investment does not have a readily determinable fair value and, accordingly, is measured using the measurement alternative. Under this approach, the investment is carried at cost and adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer, as well as for any indicators of impairment. The fair value of the preferred stock was $168 million on the transaction closing date, and the Company did not identify any observable price changes or indicators of impairment as of March 31, 2026. In connection with the completed sale, the Company recorded a net loss on the sale of the business of $3 million in Discontinued Operations, net of taxes in the accompanying condensed consolidated statement of operations for the three months ended March 31, 2026.
All current and historical operating results of the Global Cellulose Fibers business are presented as Discontinued Operations, net of tax, in the condensed consolidated statement of operations. All historical assets and liabilities of the Global Cellulose Fibers business are classified as Assets held for sale and Liabilities held for sale in the accompanying consolidated balance sheet as of December 31, 2025.
The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued Operations, net of tax, related to the Global Cellulose Fibers business for all current and prior periods presented in the condensed consolidated statement of operations:
| Three Months Ended March 31, | ||||||||
| In millions | 2026 | 2025 | ||||||
| Net Sales | $ | 115 | $ | 637 | ||||
| Costs and Expenses | ||||||||
| Cost of products sold | 93 | 454 | ||||||
| Selling and administrative expenses | 6 | 42 | ||||||
| Depreciation and amortization | — | 51 | ||||||
| Distribution expenses | 13 | 66 | ||||||
| Taxes other than payroll and income taxes | 2 | 7 | ||||||
| Net (gains) losses on sales and impairment of business | 3 | — | ||||||
| Interest expense, net | — | (3) | ||||||
| Non-operating pension expense (income) | 19 | — | ||||||
| Earnings (Loss) Before Income Taxes and Equity Earnings (Loss) | (21) | 20 | ||||||
| Income tax provision (benefit) | (5) | 1 | ||||||
| Discontinued Operations, Net of Taxes | $ | (16) | $ | 19 |
The following summarizes the major classes of assets and liabilities of the Global Cellulose Fibers business and reconciled to Assets held for sale and Liabilities held for sale as of December 31, 2025 in the accompanying condensed consolidated balance sheet:
| In millions | December 31, 2025 | ||||
| Cash and temporary investments | $ | 10 | |||
| Accounts and notes receivable, net | 537 | ||||
| Contract assets | 38 | ||||
| Inventories | 270 | ||||
| Other current assets | 15 | ||||
| Plants, Properties and Equipment | 1,761 | ||||
| Right of Use Assets | 36 | ||||
| Deferred Charges and Other Assets | 116 | ||||
| 2,783 | |||||
| Impairment charge | (1,070) | ||||
| Assets held for sale | 1,713 | ||||
| Notes payable and current maturities of long-term debt | 2 | ||||
| Accounts payable | 239 | ||||
| Accrued payroll and benefits | 68 | ||||
| Other current liabilities | 60 | ||||
| Long-Term Debt | 4 | ||||
| Deferred Income Taxes | 42 | ||||
| Long-Term Lease Obligations | 19 | ||||
| Other Liabilities | 63 | ||||
| Liabilities held for sale | $ | 497 |
The following summarizes the cash provided by (used for) operations and cash provided by (used for) investment activities related to the Global Cellulose Fibers business and included in the condensed consolidated statement of cash flows:
| In millions | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | ||||||
| Cash Provided By (Used For) Operating Activities | $ | 68 | $ | 38 | ||||
| Cash Provided By (Used For) Investment Activities | $ | (45) | $ | (36) |
NOTE 10 - SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION
Temporary Investments
Temporary investments with an original maturity of three months or less and money market funds with greater than three month maturities but with the right to redeem without notices are treated as cash equivalents and stated at cost which approximates fair value. Temporary investments totaled $599 million and $477 million at March 31, 2026 and December 31, 2025, respectively.
Restricted Cash
A reconciliation of Cash and temporary investments and Restricted cash in the condensed consolidated balance sheet to Cash and temporary investments and restricted cash in the condensed consolidated statement of cash flows for the three months ended March 31, 2026 is below:
| In millions | March 31, 2026 | |||||||
| Cash and temporary investments | $ | 1,236 | ||||||
| Restricted cash | 63 | |||||||
| Cash included in assets held for sale | 8 | |||||||
| Cash and Temporary Investments and Restricted Cash | $ | 1,307 |
The Company's restricted cash at March 31, 2026 consists of cash proceeds of $63 million from the sale of the GCF business completed in January 2026. The restricted cash was released in the second quarter of 2026. See Note 9 - Divestitures for further details regarding the total consideration received for the sale of the GCF.
Accounts and Notes Receivable, Net
| In millions | March 31, 2026 | December 31, 2025 | |||||||||
| Trade (less allowances of $72 and $70, respectively) | $ | 3,519 | $ | 3,355 | |||||||
| Other | 503 | 436 | |||||||||
| Total | $ | 4,022 | $ | 3,791 |
As a result of the DS Smith acquisition, IP has a trade receivable factoring program that allows the Company to sell trade receivables without recourse.
Inventories
| In millions | March 31, 2026 | December 31, 2025 | |||||||||
| Raw materials | $ | 407 | $ | 447 | |||||||
| Finished packaging products | 724 | 792 | |||||||||
| Operating supplies | 697 | 691 | |||||||||
| Other | 74 | 82 | |||||||||
| Total | $ | 1,902 | $ | 2,012 |
Plants, Properties and Equipment
Accumulated depreciation was $18.6 billion and $18.4 billion at March 31, 2026 and December 31, 2025, respectively. Depreciation expense was $410 million and $472 million for the three months ended March 31, 2026 and 2025, respectively. Depreciation expense for the three months ended March 31, 2026 and 2025 includes $16 million and $197 million, respectively, of accelerated depreciation related to mill and plant closures.
Non-cash additions to plants, properties and equipment included within accounts payable were $180 million and $240 million at March 31, 2026 and December 31, 2025, respectively.
Accounts Payable
Under supplier finance programs, International Paper agrees to pay the relevant banks the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices. International Paper or the relevant banks may
terminate the agreement on notice periods from 28 to 90 days. The supplier invoices that have been confirmed as valid under the program require payment in full on the due date with no terms exceeding 180 days. The accounts payable balance included $389 million and $368 million of supplier finance program liabilities as of March 31, 2026 and December 31, 2025, respectively.
Interest
Interest payments made during the three months ended March 31, 2026 and 2025 were $104 million and $97 million, respectively.
Amounts related to interest were as follows:
| Three Months Ended March 31, | |||||||||||
| In millions | 2026 | 2025 | |||||||||
| Interest expense | $ | 132 | $ | 135 | |||||||
| Interest income | 56 | 51 | |||||||||
| Capitalized interest costs | 10 | 5 |
Asset Retirement Obligations
The Company recorded liabilities in Other Liabilities in the accompanying condensed consolidated balance sheet of $191 million and $193 million related to asset retirement obligations at March 31, 2026 and December 31, 2025, respectively.
International Paper leases various real estate, including certain operating facilities, warehouses, office space and land. The Company also leases material handling equipment, vehicles, and certain other equipment. The Company's leases have a remaining lease term of up to 27 years. Total lease costs were $115 million and $96 million for the three months ended March 31, 2026 and 2025, respectively.
Supplemental Balance Sheet Information Related to Leases
| In millions | Classification | March 31, 2026 | December 31, 2025 | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Operating lease assets | Right-of-use assets | $ | 652 | $ | 697 | |||||||||||||||
| Finance lease assets | Plants, properties and equipment, net (a) | 70 | 70 | |||||||||||||||||
| Total leased assets | $ | 722 | $ | 767 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Current | ||||||||||||||||||||
| Operating | Other current liabilities | $ | 216 | $ | 221 | |||||||||||||||
| Finance | Notes payable and current maturities of long-term debt | 17 | 17 | |||||||||||||||||
| Noncurrent | ||||||||||||||||||||
| Operating | Long-term lease obligations | 450 | 486 | |||||||||||||||||
| Finance | Long-term debt | 53 | 54 | |||||||||||||||||
| Total lease liabilities | $ | 736 | $ | 778 |
(a)Finance leases are recorded net of accumulated amortization of $68 million and $69 million as of March 31, 2026 and December 31, 2025, respectively.
NOTE 12 - GOODWILL AND OTHER INTANGIBLES
Goodwill
The following table presents changes in goodwill balances as allocated to each business segment for the three months ended March 31, 2026:
| In millions | PS NA | PS EMEA | Total | ||||||||||||||
| Balance as of January 1, 2026 | |||||||||||||||||
| Goodwill | $ | 3,968 | $ | 3,960 | $ | 7,928 | |||||||||||
| Accumulated impairment losses | (59) | (2,543) | (2,602) | ||||||||||||||
| Total | 3,909 | 1,417 | 5,326 | ||||||||||||||
| Goodwill additions/reductions | — | — | — | ||||||||||||||
| Currency translation | — | (29) | (29) | ||||||||||||||
| Balance as of March 31, 2026 | |||||||||||||||||
| Goodwill | 3,968 | 3,931 | 7,899 | ||||||||||||||
| Accumulated impairment losses | (59) | (2,543) | (2,602) | ||||||||||||||
| Total | $ | 3,909 | $ | 1,388 | $ | 5,297 |
Other Intangibles
Identifiable intangible assets comprised of the following:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| In millions | Gross Carrying Amount | Accumulated Amortization | Net Intangible Assets | Gross Carrying Amount | Accumulated Amortization | Net Intangible Assets | |||||||||||||||||||||||||||||
| Customer relationships and lists | $ | 4,156 | $ | 594 | $ | 3,562 | $ | 4,063 | $ | 535 | $ | 3,528 | |||||||||||||||||||||||
| Trade names | 397 | 25 | 372 | 398 | 21 | 377 | |||||||||||||||||||||||||||||
| Software (a) | 141 | 43 | 98 | 142 | 39 | 103 | |||||||||||||||||||||||||||||
| Other | 96 | 68 | 28 | 102 | 67 | 35 | |||||||||||||||||||||||||||||
| Total | $ | 4,790 | $ | 730 | $ | 4,060 | $ | 4,705 | $ | 662 | $ | 4,043 |
(a) Of this balance, $69 million and $76 million has been placed in service at March 31, 2026 and December 31, 2025, respectively.
The Company recognized the following amounts as amortization expense related to intangible assets:
| Three Months Ended March 31, | |||||||||||
| In millions | 2026 | 2025 | |||||||||
| Amortization expense related to intangible assets | $ | 79 | $ | 48 |
International Paper received net income tax refunds of $236 million and made income tax payments, net of refunds, of $45 million for the three months ended March 31, 2026 and 2025, respectively.
During the first quarter of 2026, the Company received a $281 million refund from the Internal Revenue Service consisting of $270 million of tax and $11 million of interest. This refund was related to the capital loss carryback claim filed in the fourth quarter of 2025.
NOTE 14 - COMMITMENTS AND CONTINGENCIES
General
The Company is involved in various inquiries, administrative proceedings and litigation relating to environmental and safety matters, personal injury, product liability, labor and employment, contracts, sales of property, intellectual property, tax, and other matters, that arise in the normal course of business. These matters may raise difficult and complicated legal issues and may be subject to many uncertainties and complexities. Moreover, some of these matters allege substantial or indeterminate monetary damages.
International Paper reviews inquiries, administrative proceedings and litigation, including with respect to environmental matters, on an ongoing basis and establishes an estimated liability for specific legal proceedings and other loss contingencies when it determines that the likelihood of an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. In addition, if the likelihood of an unfavorable outcome with respect to material loss contingencies is reasonably possible and International Paper is able to determine an estimate of the possible loss or range of loss, whether in excess of a
related accrued liability or where there is no accrued liability, International Paper will disclose the estimate of the possible loss or range of loss. When no amount in a range of loss is more likely than any other amount in the range, the low end of the range is used as the estimate of the possible loss. International Paper’s assessment of whether a loss is probable is based on management’s assessment of the ultimate outcome of the matter.
Assessments of lawsuits and claims and the estimates reflected herein, are subject to significant judgments about future events, rely heavily on estimates and assumptions, and are otherwise subject to significant known and unknown uncertainties. The matters underlying such estimates may change from time to time and actual losses may vary significantly from current estimates. Additionally, the estimated liability for loss contingencies does not include matters or losses that are not reasonably estimable and probable.
Based on information currently known to International Paper, management believes that loss contingencies arising from pending matters, including the matters described herein, will not have a material adverse effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in such 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 materially adverse to the Company's results of operations or cash flows in any particular reporting period.
Environmental
The Company has been named as a potentially responsible party ("PRP") in environmental remediation actions under various U.S. federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended ("CERCLA"). Many involve cleanup of hazardous substances at large commercial landfills that received waste from multiple sources. Liability for CERCLA cleanups is typically allocated among the PRPs. There are other remediation costs typically associated with the cleanup of hazardous substances at the Company’s current, closed and formerly-owned facilities, and recorded as liabilities in the consolidated balance sheets.
Remediation costs are recorded in the consolidated financial statements when they become probable and reasonably estimable. Reserve amounts may decline as remediation spending occurs. International Paper’s estimated probable liability for these environmental matters, totaled approximately $271 million and $270 million in the aggregate as of March 31, 2026 and December 31, 2025, respectively.
Cass Lake: One matter involves a closed wood-treatment facility located in Cass Lake, Minnesota . The Company is performing remedial action ("RA") and continues to cooperate with the U.S. Environmental Protection Agency (“EPA”) on the remaining remediation goals. The estimated liability for the Cass Lake superfund site was $48 million and $47 million as of March 31, 2026 and December 31, 2025, respectively.
Kalamazoo River: The Company is a PRP for the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund Site in Michigan, related to polychlorinated biphenyls contamination linked in part to a paper mill formerly owned by St. Regis Paper Company ("St. Regis"), to which the Company is a successor.
-
Operable Unit 5, Area 1 (“OU5”): In 2016, the EPA issued a special notice letter and a unilateral administrative order ("UAO") directing PRPs to perform the remedy and seeking $37 million in reimbursement costs. The Company continues to comply with the UAO while preserving defenses.
-
Operable Unit 1 ("OU1"): The EPA issued a Record of Decision (“ROD”) in 2016 and initiated RA activities in 2021. The Company received a UAO in 2022 and began performing the RA in 2023. Reserves of $27 million were established in 2022, increased by $27 million in 2024, and increased by $7 million in 2025 to account for the reasonably estimable costs for the next phases of the RA.
The total combined reserve for liabilities for OU5, Area 1 and OU1 was $18 million and $20 million as of March 31, 2026 and December 31, 2025, respectively.
The Company, along with NCR Corporation and Weyerhauser, was named as a defendant by Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC (collectively, "GP") in a contribution and cost recovery action for alleged pollution at the site related to the Company's potential CERCLA liability. The lawsuit seeks contribution under CERCLA for approximately $79 million in past cleanup costs and unspecified future remediation costs. Although a district court initially fixed the past cost amount at approximately $50 million (plus interest to be determined) with 15% of those past
costs allocated to the Company, the Sixth Circuit Court of Appeals (the "Sixth Circuit") ultimately found the lawsuit was time-barred. GP attempted further appeals, but the U.S. Supreme Court declined review. GP later sought a ruling that all parties were jointly and severally liable for future costs. The District Court agreed, but on appeal the Sixth Circuit vacated that decision as well. The U.S. Supreme Court denied GP’s petition for certiorari in October 2025, making the Sixth Circuit’s ruling final.
Harris County: International Paper and McGinnis Industrial Maintenance Corporation ("MIMC"), a subsidiary of Waste Management, Inc. ("WMI"), are PRPs at the San Jacinto River Waste Pits Superfund Site in Harris County, Texas. The PRPs actively participate in activities at the site and share costs.
The Company initially reserved $65 million for estimated remediation costs: (a) $10 million for the southern impoundment; and (b) $55 million for the northern impoundment. The reserve represented the Company's 50% share of our estimate of the low end of the range of probable remediation costs. Reserves increased from 2020-2025 as completion of engineering estimates and higher than expected southern impoundment waste volumes increased projected costs. The Company substantially completed the RA for the southern impoundment in 2024.
With respect to the northern impoundment, design revisions in 2024 and 2025 resulted in an increase to the reserve of $27 million. The total estimated liability for the southern and northern impoundment was $97 million as of both March 31, 2026 and December 31, 2025. The current reserve primarily reflects the Company’s 50% share of our estimate of the low end of the range of probable costs for the northern impoundment. Additional losses in excess of our recorded liability are possible due to uncertainties in future cost, timing and the development of additional site technical data pertaining to geotechnical, hydrological and other environmental conditions. The EPA on April 28, 2026 issued a unilateral administrative order, requiring implementation of the RA for the site's northern impoundment and sand separation area. As of the date of this filing, the Company is evaluating the requirements and potential implications of the unilateral administrative order.
Versailles Pond: The Company is a responsible party for the investigation and remediation of Versailles Pond, a 57-acre dammed river impoundment in Sprague, Connecticut contaminated with polychlorinated biphenyls, mercury, and metals. A preliminary remediation plan was developed in 2023 and a $30 million reserve established. Negotiations with state and federal governmental officials about scope and timing of the remediation are ongoing. The total estimated liability for Versailles Pond was $29 million as both of March 31, 2026 and December 31, 2025.
Asbestos-Related Matters
We have been named as a defendant in various asbestos-related personal injury litigation, in both U.S. state and federal court, primarily in relation to the prior operations of certain companies previously acquired by the Company. The Company's total recorded liability with respect to these pending and future asbestos-related claims was $110 million and $103 million net of insurance recoveries as of March 31, 2026 and December 31, 2025, respectively. While it is reasonably possible that the Company may incur losses in excess of its recorded liability with respect to these asbestos-related matters, we are unable to estimate any loss or range of loss in excess of such liability, and do not believe additional material losses are probable.
Antitrust
On July 29, 2025, 12 containerboard producers, including International Paper, were named as defendants in a purported class action complaint that alleges a civil violation of Sections 1 and 3 of the Sherman Act. The suit is captioned Artuso Pastry Foods Corp v. Packaging Corp. of America (N.D. Ill.). The complaint alleges that the defendants, beginning in November 1, 2020 through the time of filing, conspired to fix, raise, maintain, and/or stabilize prices of containerboard products and finished packaging products made from containerboard. The alleged class is formed from persons who purchased containerboard products directly from one or more defendants for use or delivery in the United States during the period November 1, 2020 to the present. The complaint seeks to recover an unspecified amount of treble damages, injunctive relief, attorneys’ fees and actual damages on behalf of the purported class.
Given the early stage of the claim and our intention to defend robustly against such claim, it is too early to predict or reasonably estimate the overall outcome or ultimate potential liability (if any) that might be incurred. There can be no guarantee that the aggregate of possible damages could not have a material impact on our financial condition.
In March 2017, the Italian Competition Authority ("ICA") commenced an investigation into the Italian packaging industry to determine whether producers of corrugated sheets and boxes violated the applicable European competition law. In April 2019, the ICA concluded its investigation and issued initial findings alleging that over 30 producers, including International Paper's Italian packaging subsidiary ("IP Italy") and certain subsidiaries of DS Smith operating in Italy ("DS Smith Italy"), improperly
coordinated the production and sale of corrugated sheets and boxes. In August 2019, the ICA issued its decision and assessed IP Italy a fine of €29 million (approximately $31 million at the then-current exchange rates) for participation in the boxes coordination, which was recorded in the third quarter of 2019. Following a series of appeals by IP Italy to the Italian Council of State, IP Italy's fine was reduced by €6 million (approximately $6 million). As of March 31, 2026, after giving effect to this development, the Company did not have any remaining liability related to IP Italy's fine. DS Smith Italy was also subject to the ICA decision but not fined, given its position as leniency applicant. IP Italy, DS Smith Italy, and other producers also have been named in lawsuits, and we have received other claims, by a number of customers for damages associated with the alleged anticompetitive conduct. Given the various stages, facts and circumstances of these claims and the intention of the Company to defend robustly against such claims, it is not possible to predict the overall outcome and ultimate potential liability that might be incurred in connection therewith, and there can be no guarantee that the aggregate of possible damages against IP Italy and DS Smith Italy could not, together, have a material impact on the Company’s financial condition.
Guarantees
In connection with sales of businesses, property, equipment, forestlands and other assets, International Paper commonly makes representations and warranties relating to such businesses or assets, and may agree to indemnify buyers with respect to tax and environmental liabilities, breaches of representations and warranties, and other matters. Where liabilities for such matters are determined to be probable and reasonably estimable, accrued liabilities are recorded at the time of sale as a cost of the transaction.
Brazil Goodwill Tax Matter:
The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by Sylvamo do Brasil Ltda. ("Sylvamo Brazil"), which was a wholly owned subsidiary of the Company until the October 1, 2021 spin-off of the Printing Papers business, after which it became a subsidiary of Sylvamo Corporation ("Sylvamo"). Sylvamo Brazil received assessments for the tax years 2007-2015 totaling approximately $113 million (adjusted for variation in currency exchange rates) in tax, plus interest, penalties and fees. The interest, penalties and fees currently total approximately $313 million (adjusted for variation in currency exchange rates). Accordingly, the assessments currently total approximately $426 million (adjusted for variation in currency exchange rates). After an initial favorable ruling challenging the basis for these assessments, Sylvamo Brazil received subsequent unfavorable decisions from the Brazilian Administrative Council of Tax Appeals. Sylvamo Brazil appealed these decisions. On October 11, 2024, the federal regional court issued a ruling favorable to Sylvamo Brazil in the first stage of judicial review on the assessments for tax years 2007 and 2008-2012, comprising approximately $269 million of the total $426 million as of March 31, 2026. On December 18, 2024, the Brazilian Federal Revenue Service appealed this ruling. This tax litigation matter may take many years to resolve. Sylvamo Brazil and International Paper believe the transaction underlying these assessments was appropriately evaluated, and that Sylvamo Brazil's tax position should be sustained, based on Brazilian tax law.
This matter pertains to a business that was conveyed to Sylvamo on October 1, 2021, as part of our spin-off transaction. Pursuant to the terms of the tax matters agreement entered into between the Company and Sylvamo, the Company will pay 60% and Sylvamo will pay 40%, on up to $300 million of any assessment related to this matter, and the Company will pay all amounts of the assessment over $300 million. Under the terms of the tax matters agreement, decisions concerning the conduct of the litigation related to this matter, including strategy, settlement, pursuit and abandonment, will be made by the Company. Sylvamo thus has no control over any decision related to this ongoing litigation. The Company intends to vigorously defend this historical tax position against the current assessments and any similar assessments that may be issued for tax years subsequent to 2015. The Brazilian government may enact a tax amnesty program that would allow Sylvamo Brazil to resolve this dispute for less than the assessed amount. As of October 1, 2021, in connection with the recording of the distribution of assets and liabilities resulting from the spin-off transaction, the Company established a liability representing the initial fair value of the contingent liability under the tax matters agreement. The contingent liability was determined in accordance with ASC 460 "Guarantees" based on the probability weighting of various possible outcomes. The initial fair value estimate and recorded liability as of December 31, 2021 was $48 million and remains this amount at March 31, 2026. This liability will not be increased in subsequent periods unless facts and circumstances change such that an amount greater than the initial recognized liability becomes probable and estimable.
NOTE 15 - VARIABLE INTEREST ENTITIES
Variable Interest Entities
As of March 31, 2026, the fair value of the Timber Notes and Extension Loans for the 2007 Financing Entities was $2.4 billion and $2.1 billion, respectively. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 1 in the Company’s Annual Report.
The Timber Notes of $2.4 billion and the Extension Loans of $2.1 billion both mature in 2027 and are shown in Long-term nonrecourse financial assets of variable interest entities and Long-term nonrecourse financial liabilities of variable interest entities, respectively, on the accompanying condensed consolidated balance sheet.
Activity between the Company and the 2007 Financing Entities was as follows:
| Three Months Ended March 31, | |||||||||||
| In millions | 2026 | 2025 | |||||||||
| Revenue (a) | $ | 29 | $ | 33 | |||||||
| Expense (b) | 26 | 29 | |||||||||
| Cash receipts (c) | 25 | 30 | |||||||||
| Cash payments (d) | 25 | 30 |
(a)The revenue is included in interest expense, net in the accompanying statement of operations and includes approximately $5 million for both the three months ended March 31, 2026 and 2025 of accretion income for the amortization of the basis difference adjustment on the Long-term financial assets of variable interest entities.
(b)The expense is included in interest expense, net in the accompanying statement of operations and includes approximately $2 million for both the three months ended March 31, 2026 and 2025 of accretion expense for the amortization of the basis difference adjustment on the Long-term nonrecourse financial liabilities of variable interest entities.
(c)The cash receipts are interest received on the Long-term financial assets of variable interest entities.
(d)The cash payments are interest paid on Long-term nonrecourse financial liabilities of variable interest entities.
The borrowing capacity of the Company's commercial paper program is $1.0 billion supported by its $1.4 billion credit agreement. Under the terms of the program, individual maturities on borrowings may vary, but not exceed one year from the date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. There were no borrowings outstanding as of March 31, 2026 under the program.
At March 31, 2026, the Company's credit facilities totaled $1.9 billion, excluding the DS Smith credit facilities discussed below. The credit facilities generally provide for interest rates at a floating rate index plus a pre-determined margin dependent upon International Paper’s credit rating. The credit facilities included a $1.4 billion contractually committed bank facility with a maturity date of June 2028. The liquidity facilities also include a $500 million of uncommitted financings based on eligible receivables balances under a receivables securitization program that expires in June 2026. At March 31, 2026, the Company had no borrowings outstanding under the receivables securitization program.
Following the DS Smith acquisition, International Paper assumed foreign denominated debt of DS Smith in various currencies with an approximated value of $3.6 billion. In March 2025, the Company amended and restated DS Smith's credit facility agreements and entered into agreements to guarantee the outstanding notes of DS Smith.
Below is a table of the foreign denominated credit facilities:
| In millions | March 31, 2026 | |||||||||||||
| Credit Facilities | Borrowing Currency | USD Equivalent Capacity | USD Equivalent Outstanding | |||||||||||
| 2.834% Amortizing credit facility - due 2026-2029 | EUR | $ | 173 | $ | 173 | |||||||||
| Floating rate instruments: | ||||||||||||||
| Committed bank facility maturing May 2027 | GBP, EUR, USD | 1,653 | 511 | |||||||||||
| Uncommitted facility | GBP, EUR, USD | 66 | 64 | |||||||||||
| Committed bank facility maturing December 2026 | GBP, EUR, USD | 69 | — |
The Company repaid approximately $648 million under these foreign denominated credit facilities in the first three months of 2026.
The Company’s financial covenants require the maintenance of a minimum net worth, as defined in our debt agreements, of $9 billion and a total debt-to-capital ratio of less than 60%. Net worth is defined as the sum of common stock, paid-in capital and retained earnings, less treasury stock plus any cumulative goodwill impairment charges. The calculation also excludes accumulated other comprehensive income/loss and both the current and long-term Nonrecourse Financial Liabilities of Variable Interest Entities. The total debt-to-capital ratio is defined as total debt divided by the sum of total debt plus net worth. As of March 31, 2026, we were in compliance with our debt covenants.
At March 31, 2026, the fair value of International Paper’s $9.1 billion of debt was approximately $8.7 billion. The fair value of the Company’s long-term debt is estimated based on the quoted market prices for the same or similar issues. International Paper’s long-term debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 1 in the Company’s Annual Report.
NOTE 17 - DERIVATIVES AND HEDGING ACTIVITIES
As a multinational company, International Paper is exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices.
International Paper periodically uses derivatives and other financial instruments to hedge exposures to interest rate, commodity and currency risks. International Paper does not hold or issue financial instruments for trading purposes. For hedges that meet the hedge accounting criteria at inception, International Paper formally designates and documents the instrument as a fair value hedge, a cash flow hedge or a net investment hedge of a specific underlying exposure.
The notional amounts of financial instruments used in hedging transactions were as follows:
| In millions | March 31, 2026 | December 31, 2025 | |||||||||
| Electricity contracts (MWh) | 1.6 | 1.9 | |||||||||
| Natural gas contracts (MWh) | 9.2 | 12.1 | |||||||||
| Carbon credit contracts (tons) | 0.2 | 0.1 | |||||||||
| External debt (EUR) | € | 2,725 | € | 3,293 | |||||||
The following table shows gains or losses recognized in AOCL, net of tax, related to derivative instruments:
| Gain (Loss) Recognized in AOCL on Derivatives | ||||||||||||||
| Three Months Ended March 31, | ||||||||||||||
| In millions | 2026 | 2025 | ||||||||||||
| Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||
| Commodity contracts | $ | 137 | $ | (52) | ||||||||||
| Derivatives in Net Investment Hedging Relationships: | ||||||||||||||
| External debt | $ | 22 | $ | 8 | ||||||||||
Based on our valuation at March 31, 2026, and assuming market rates remain constant through contract maturities, we expect transfers to earnings of the existing gain or losses reported in AOCL on cash flow hedges during the next 12 months to correspond with the current assets and liabilities portion of the derivative as disclosed below.
The amounts of gains and losses recognized in the statement of operations on financial instruments used in hedging transactions were as follows:
| Gain (Loss) Reclassified from AOCL Into Income | Location of Gain (Loss) Reclassified from AOCL | ||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| In millions | 2026 | 2025 | |||||||||||||||
| Derivatives in Cash Flow Hedging Relationships: | |||||||||||||||||
| Commodity contracts | $ | (1) | $ | 1 | Cost of products sold | ||||||||||||
| Gain (Loss) Recognized in Income | Location of Gain (Loss) In Statement of Operations | ||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| In millions | 2026 | 2025 | |||||||||||||||
| Derivatives in Cash Flow Hedging Relationships: | |||||||||||||||||
| Commodity contracts | $ | 3 | $ | 5 | Cost of products sold | ||||||||||||
| Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||
| Commodity contracts | $ | (18) | $ | (6) | Cost of products sold | ||||||||||||
Fair Value Measurements
The Company has not changed its valuation techniques for measuring the fair value of any financial assets or liabilities during the year. Transfers between levels, if any, are recognized at the end of the reporting period. International Paper’s derivatives are classified as Level 2 within the fair value hierarchy. Fair value hierarchies are further defined in Note 1 in the Company’s Annual Report.
The following table provides a summary of the impact of our derivative instruments in the balance sheet:
| Assets | Liabilities | |||||||||||||||||||||||||
| In millions | March 31, 2026 | December 31, 2025 | March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Derivatives designated as hedging instruments | ||||||||||||||||||||||||||
| Commodity contracts – cash flow | $ | 50 | $ | 2 | $ | 2 | $ | 63 | ||||||||||||||||||
| Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
| Commodity contracts | 174 | 67 | 83 | 27 | ||||||||||||||||||||||
| Total derivatives | $ | 224 | (a) | $ | 69 | (b) | $ | 85 | (c) | $ | 90 | (d) |
(a)Includes $164 million recorded in Other current assets and $60 million recorded in Deferred charges and other assets in the accompanying condensed consolidated balance sheet.
(b)Includes $47 million recorded in Other current assets and $22 million recorded in Deferred charges and other assets in the accompanying condensed consolidated balance sheet.
(c)Includes $72 million recorded in Other current liabilities and $13 million recorded in Other liabilities in the accompanying condensed consolidated balance sheet.
(d)Includes $73 million recorded in Other current liabilities and $17 million recorded in Other liabilities in the accompanying condensed consolidated balance sheet.
The above contracts are subject to enforceable master netting arrangements that provide rights of offset with each counterparty when amounts are payable on the same date in the same currency or in the case of certain specified defaults. Management has made an accounting policy election to not offset the fair value of recognized derivative assets and derivative liabilities in the balance sheet. The amounts owed to the counterparties and owed to the Company are considered immaterial with respect to each counterparty and in the aggregate with all counterparties.
International Paper operates both defined benefit and defined contribution pension plans as well as other post retirement benefit plans throughout our operations in accordance with local conditions and practice.
We sponsor and maintain the Retirement Plan of International Paper Company (the "Pension Plan"), a tax-qualified defined benefit pension plan that provides retirement benefits to substantially all hourly and union employees who work at a participating business unit. The Pension Plan was frozen as of January 1, 2019 for salaried participants.
The Pension Plan provides defined pension benefits based on years of credited service and either final average earnings (salaried employees and hourly employees receiving salaried benefits), hourly job rates or specified benefit rates (hourly and union employees).
In connection with our acquisition, International Paper acquired the existing DS Smith Group Pension Scheme (the "Group Scheme"), a U.K. funded defined benefit plan providing pension benefits and lump sum benefits to members and dependents. The Group Scheme closed to new entrants and future accruals as of April 30, 2011. International Paper also acquired various non-U.S. retirement benefit arrangements as part of the acquisition, some of which are considered to be defined benefit pension plans for accounting purposes.
Net periodic pension expense (income) for our qualified and nonqualified defined benefit plans and the Group Scheme, is comprised of the following:
| Three Months Ended March 31, | |||||||||||
| In millions | 2026 | 2025 | |||||||||
| Service cost | $ | 12 | $ | 10 | |||||||
| Interest cost | 124 | 124 | |||||||||
| Expected return on plan assets | (159) | (151) | |||||||||
| Actuarial loss | 12 | 18 | |||||||||
| Amortization of prior service cost | 3 | 4 | |||||||||
| Settlement | — | 8 | |||||||||
| Net periodic pension expense (income) | $ | (8) | $ | 13 |
The components of net periodic pension expense (income) other than the Service cost component are included in Non-operating pension expense (income) in the condensed consolidated statement of operations.
The Company’s funding policy for our pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that the Company may determine to be appropriate considering the funded status of the plan, tax deductibility, the cash flows generated by the Company, and other factors. The Company made no voluntary cash contributions to the qualified pension plan in the first three months of 2026 or 2025. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $5 million and $33 million for the three months ended March 31, 2026 and 2025, respectively.
NOTE 19 - STOCK-BASED COMPENSATION
International Paper's 2024 Long-Term Incentive Compensation Plan (the "2024 LTICP') 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, 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 (the “MDCC”). Effective January 1, 2025, performance stock unit awards granted pursuant to the 2024 LTICP use 100% relative total shareholder return ("TSR") as the sole performance metric. As of March 31, 2026, 4.9 million shares were available for grant under the LTICP.
Stock-based compensation expense and related income tax benefits were as follows:
| Three Months Ended March 31, | |||||||||||
| In millions | 2026 | 2025 | |||||||||
| Total stock-based compensation expense (selling and administrative) | $ | 29 | $ | 30 | |||||||
| Income tax benefits related to stock-based compensation | 14 | 35 |
At March 31, 2026, $137 million, net of estimated forfeitures, of compensation cost related to time-based and performance-based shares and restricted stock attributable to future service had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 1.8 years.
During the first three months of 2026, the Company granted 1.3 million performance units at an average grant date fair value of $48.18 and 1.0 million time-based units at an average grant date fair value of $39.39.
NOTE 20 - BUSINESS SEGMENT INFORMATION
PS NA and PS EMEA are primarily focused on producing fiber-based packaging. We produce linerboard, medium, whitetop, recycled linerboard and recycled medium of which a majority of our production is converted into corrugated packaging and
other packaging. The revenue for our PS NA and PS EMEA segments are derived from selling these products to our customers.
The CODM assesses performance for these segments and decides how to allocate resources based on business segment operating profit, which is defined as earnings (loss) before income taxes and equity earnings (losses), including the impact of less than wholly owned subsidiaries and excluding interest expense, net, corporate expenses, net, net special items and non-operating pension expense. Business segment operating profits (losses) are also used by International Paper's CODM to measure the earnings performance of its businesses and to focus on on-going operations.
INFORMATION BY BUSINESS SEGMENT
The following tables illustrate reportable segment revenue, significant segment expenses, and measures of a segment’s profit or loss for the three months ended March 31, 2026 and 2025. Certain prior year amounts have been expanded to align with current year presentation. The table also reconciles these amounts to Earnings (loss) before income taxes and equity earnings (loss).
| Three Months Ended March 31, 2026 | ||||||||||||||||||||
| In millions | PS NA | PS EMEA | Total | |||||||||||||||||
| Net sales from external customers | $ | 3,597 | $ | 2,323 | $ | 5,920 | ||||||||||||||
| Intersegment sales | 29 | — | 29 | |||||||||||||||||
| 3,626 | 2,323 | 5,949 | ||||||||||||||||||
| Other external sales | 51 | |||||||||||||||||||
| Elimination of intersegment sales | (29) | |||||||||||||||||||
| Total Net Sales | 5,971 | |||||||||||||||||||
| Less: | ||||||||||||||||||||
| Cost of products sold | 2,507 | 1,712 | ||||||||||||||||||
| Selling and administrative expenses | 333 | 157 | ||||||||||||||||||
| Depreciation and amortization | 230 | 259 | ||||||||||||||||||
| Distribution expenses | 276 | 237 | ||||||||||||||||||
| Other segment items (a) | 32 | 9 | ||||||||||||||||||
| Business Segment Operating Profit (Loss) | 248 | (51) | 197 | |||||||||||||||||
| Interest Expense, net | 76 | |||||||||||||||||||
| Adjustment for less than wholly owned subsidiaries (b) | (1) | |||||||||||||||||||
| Corporate expenses, net | 10 | |||||||||||||||||||
| Net special items (i) | 37 | |||||||||||||||||||
| Non-operating pension (income) expense | (18) | |||||||||||||||||||
| Earnings (loss) from continuing operations before income taxes and equity earnings (loss) | $ | 93 |
(i)Includes a charge of $11 million for costs associated with the strategic separation of our PS EMEA packaging business, a charge of $7 million for costs related to the closure of our Riceboro, Georgia containerboard mill, a charge of $16 million for restructuring charges related to resource and asset realignment and a charge of $3 million for other items.
| Three Months Ended March 31, 2025 | ||||||||||||||||||||
| In millions | PS NA | PS EMEA | Total | |||||||||||||||||
| Net sales from external customers | $ | 3,668 | $ | 1,550 | $ | 5,218 | ||||||||||||||
| Intersegment sales | 34 | — | 34 | |||||||||||||||||
| 3,702 | 1,550 | 5,252 | ||||||||||||||||||
| Other external sales | 46 | |||||||||||||||||||
| Elimination of intersegment sales | (34) | |||||||||||||||||||
| Total Net Sales | 5,264 | |||||||||||||||||||
| Less: | ||||||||||||||||||||
| Cost of products sold | 2,569 | 1,147 | ||||||||||||||||||
| Selling and administrative expenses | 282 | 93 | ||||||||||||||||||
| Depreciation and amortization | 413 | 107 | ||||||||||||||||||
| Distribution expenses | 266 | 151 | ||||||||||||||||||
| Other segment items (a) | 30 | 6 | ||||||||||||||||||
| Business Segment Operating Profit (Loss) | 142 | 46 | 188 | |||||||||||||||||
| Interest Expense, net | 84 | |||||||||||||||||||
| Adjustment for less than wholly owned subsidiaries (b) | (1) | |||||||||||||||||||
| Corporate expenses, net | 20 | |||||||||||||||||||
| Net special items (i) | 237 | |||||||||||||||||||
| Non-operating pension (income) expense | 3 | |||||||||||||||||||
| Earnings (loss) from continuing operations before income taxes and equity earnings (loss) | $ | (155) |
(i)Includes a charge of $221 million for transaction and other costs related to the DS Smith acquisition, a charge of $78 million for severance and other costs related to the closure of our Red River containerboard mill in Campti, Louisiana, a net gain of $67 million related to the sale of fixed assets primarily associated with our permanently closed Orange, TX containerboard mill and a net charge of $5 million for other items.
Assets
| In millions | March 31, 2026 | December 31, 2025 | |||||||||||||||
| PS NA | $ | 16,718 | $ | 16,498 | |||||||||||||
| PS EMEA | 15,351 | 15,439 | |||||||||||||||
| Corporate and other (c) | 4,365 | 6,027 | |||||||||||||||
| Assets | $ | 36,434 | $ | 37,964 |
Capital Expenditures
| In millions | March 31, 2026 | March 31, 2025 | |||||||||||||||
| PS NA | $ | 384 | $ | 182 | |||||||||||||
| PS EMEA | 83 | 106 | |||||||||||||||
| Subtotal | 467 | 288 | |||||||||||||||
| Corporate and other (d) | 50 | 42 | |||||||||||||||
| Capital Expenditures | $ | 517 | $ | 330 |
*(a)*Other segment items includes Taxes other than payroll.
*(b)*Operating profits for industry segments include each segment’s percentage share of the profits of subsidiaries included in that segment that are less than wholly-owned. The pre-tax earnings for these subsidiaries is added here to present consolidated earnings from continuing operations before income taxes and equity earnings.
*(c)*Includes corporate assets and held for sale assets related to the GCF business.
*(d)*Includes capital expenditures for corporate and the GCF business.
On April 16, 2026, the Company announced that it had entered into an agreement to acquire North Pacific Paper Company ("NORPAC"), a U.S. based paper manufacturer, for an aggregate purchase price of $360 million, subject to customary regulatory approvals.
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