Third Quarter 2022 | Second Quarter 2022 | Third Quarter 2021 | ||||||||||||||||||
Net Earnings (Loss) Attributable to International Paper | $ | 2.64 | $ | 1.38 | $ | 2.20 | ||||||||||||||
Less – Discontinued Operations (Gain) Loss | — | — | (1.10) | |||||||||||||||||
Net Earnings (Loss) from Continuing Operations | 2.64 | 1.38 | 1.10 | |||||||||||||||||
Add Back – Non-Operating Pension Expense (Income) | (0.13) | (0.13) | (0.12) | |||||||||||||||||
Add Back – Net Special Items Expense (Income) | 0.32 | 0.05 | 0.12 | |||||||||||||||||
Income Tax Effect - Non-Operating Pension and Net Special Items Expense | (1.82) | (0.06) | — | |||||||||||||||||
Adjusted Operating Earnings* | $ | 1.01 | $ | 1.24 | $ | 1.10 |
(In millions) | Third Quarter 2022 | Second Quarter 2022 | Third Quarter 2021 | |||||||||||||||||
Net Sales | $ | 5,402 | $ | 5,389 | $ | 4,914 | ||||||||||||||
Net Earnings (Loss) Attributable to International Paper | 951 | 511 | 864 | |||||||||||||||||
Business Segment Operating Profit | 464 | 585 | 490 | |||||||||||||||||
Adjusted Operating Earnings | 364 | 459 | 431 | |||||||||||||||||
Cash Provided By (Used For) Operations | 435 | 390 | 645 | |||||||||||||||||
Free Cash Flow* | 197 | 204 | 519 |
(In millions) | Third Quarter 2022 | Second Quarter 2022 | Third Quarter 2021 | |||||||||||||||||
Net Sales by Business Segment | ||||||||||||||||||||
Industrial Packaging | $ | 4,385 | $ | 4,491 | $ | 4,111 | ||||||||||||||
Global Cellulose Fibers | 887 | 788 | 740 | |||||||||||||||||
Corporate and Inter-segment Sales | 130 | 110 | 63 | |||||||||||||||||
Net Sales | $ | 5,402 | $ | 5,389 | $ | 4,914 | ||||||||||||||
Operating Profit (Loss) by Business Segment | ||||||||||||||||||||
Industrial Packaging | $ | 369 | $ | 560 | $ | 414 | ||||||||||||||
Global Cellulose Fibers | 95 | 25 | 76 | |||||||||||||||||
Total Business Segment Operating Profit | $ | 464 | $ | 585 | $ | 490 |
Third Quarter 2022 | Second Quarter 2022 | Third Quarter 2021 | ||||||||||||||||||||||||||||||||||||
(In millions) | Before Tax | After Tax | Before Tax | After Tax | Before Tax | After Tax | ||||||||||||||||||||||||||||||||
Restructuring and other charges, net: | ||||||||||||||||||||||||||||||||||||||
Debt extinguishment costs | $ | 93 | $ | 70 | $ | — | $ | — | $ | 35 | $ | 26 | ||||||||||||||||||||||||||
Other | — | — | — | — | 4 | 3 | ||||||||||||||||||||||||||||||||
Total restructuring and other charges, net | 93 | 70 | — | — | 39 | 29 | ||||||||||||||||||||||||||||||||
Environmental remediation reserve adjustment | — | — | 15 | 11 | 5 | 4 | ||||||||||||||||||||||||||||||||
Sylvamo investment (a) | (16) | (12) | (3) | (2) | — | — | ||||||||||||||||||||||||||||||||
Legal settlement | (15) | (11) | — | — | — | — | ||||||||||||||||||||||||||||||||
Tax benefit related to timber monetization settlement, net of interest (b) | 55 | (563) | — | — | — | — | ||||||||||||||||||||||||||||||||
Tax benefit related to exchange of Sylvamo shares (c) | — | (35) | — | (31) | — | — | ||||||||||||||||||||||||||||||||
Other | — | — | 6 | 5 | 5 | 4 | ||||||||||||||||||||||||||||||||
Total special items, net | $ | 117 | $ | (551) | $ | 18 | $ | (17) | $ | 49 | $ | 37 |
(a) | See note (c) on the Consolidated Statement of Operations included later in this release. | ||||
(b) | See notes (d) and (e) on the Consolidated Statement of Operations included later in this release. | ||||
(c) | See note (e) on the Consolidated Statement of Operations included later in this release. |
Third Quarter 2021 | ||||||||||||||
(In millions) | Before Tax | After Tax | ||||||||||||
Printing Papers spin-off | 52 | 47 | ||||||||||||
Foreign value-added tax credit (including interest) | 15 | 10 | ||||||||||||
Gain on sale of Kwidzyn, Poland mill | (360) | (350) | ||||||||||||
Gain on sale of La Mirada, CA distribution center | (86) | (65) | ||||||||||||
Foreign and state taxes related to Printing Papers spin-off | — | 27 | ||||||||||||
Total | $ | (379) | $ | (331) |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | ||||||||||||||||||||||||||||
Net Sales | $ | 5,402 | $ | 4,914 | $ | 5,389 | $ | 16,028 | $ | 14,277 | ||||||||||||||||||||||
Costs and Expenses | ||||||||||||||||||||||||||||||||
Cost of products sold | 3,830 | (a) | 3,423 | (f) | 3,806 | (a) | 11,475 | (a) | 10,173 | (f) | ||||||||||||||||||||||
Selling and administrative expenses | 337 | 343 | (g) | 300 | 978 | 1,041 | (g) | |||||||||||||||||||||||||
Depreciation, amortization and cost of timber harvested | 261 | 280 | 267 | 789 | 820 | |||||||||||||||||||||||||||
Distribution expenses | 471 | 365 | 442 | 1,337 | 1,042 | |||||||||||||||||||||||||||
Taxes other than payroll and income taxes | 38 | 35 | 36 | 110 | 106 | |||||||||||||||||||||||||||
Restructuring and other charges, net | 93 | (b) | 39 | (h) | — | 93 | (b) | 243 | (h) | |||||||||||||||||||||||
Net (gains) losses on sales and impairments of businesses | — | — | — | — | (7) | (i) | ||||||||||||||||||||||||||
Net (gains) losses on sales of equity method investments | — | — | — | — | (204) | (j) | ||||||||||||||||||||||||||
Net (gains) losses on mark to market investments | (16) | (c) | — | (3) | (c) | (65) | (c) | — | ||||||||||||||||||||||||
Interest expense, net | 123 | (d) | 82 | 74 | 266 | (d) | 261 | |||||||||||||||||||||||||
Non-operating pension expense (income) | (48) | (50) | (47) | (144) | (153) | |||||||||||||||||||||||||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 313 | 397 | 514 | 1,189 | 955 | |||||||||||||||||||||||||||
Income tax provision (benefit) | (575) | (e) | 59 | 96 | (e) | (384) | (e) | 193 | ||||||||||||||||||||||||
Equity earnings (loss), net of taxes | 63 | 94 | 93 | 249 | 247 | |||||||||||||||||||||||||||
Earnings (Loss) From Continuing Operations | 951 | 432 | 511 | 1,822 | 1,009 | |||||||||||||||||||||||||||
Discontinued operations, net of taxes | — | 432 | (k) | — | — | 638 | (k) | |||||||||||||||||||||||||
Net Earnings (Loss) | 951 | 864 | 511 | 1,822 | 1,647 | |||||||||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | — | — | — | — | 2 | (l) | ||||||||||||||||||||||||||
Net Earnings (Loss) Attributable to International Paper Company | $ | 951 | $ | 864 | $ | 511 | $ | 1,822 | $ | 1,645 | ||||||||||||||||||||||
Basic Earnings Per Common Share Attributable to International Paper Common Shareholders | ||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 2.66 | $ | 1.11 | $ | 1.39 | $ | 4.97 | $ | 2.58 | ||||||||||||||||||||||
Discontinued operations | — | 1.11 | — | — | 1.63 | |||||||||||||||||||||||||||
Net earnings (loss) | $ | 2.66 | $ | 2.22 | $ | 1.39 | $ | 4.97 | $ | 4.21 | ||||||||||||||||||||||
Diluted Earnings Per Common Share Attributable to International Paper Common Shareholders | ||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 2.64 | $ | 1.10 | $ | 1.38 | $ | 4.92 | $ | 2.55 | ||||||||||||||||||||||
Discontinued operations | — | 1.10 | — | — | 1.61 | |||||||||||||||||||||||||||
Net earnings (loss) | $ | 2.64 | $ | 2.20 | $ | 1.38 | $ | 4.92 | $ | 4.16 | ||||||||||||||||||||||
Average Shares of Common Stock Outstanding - Diluted | 360.4 | 392.6 | 370.7 | 370.7 | 395.3 |
(a) | Includes pre-tax income of $15 million ($11 million after taxes) for the three months and nine months ended September 30, 2022 for a legal settlement, a pre-tax charge of $15 million ($11 million after taxes) for the three months ended June 30, 2022 and the nine months ended September 30, 2022 for an environmental remediation reserve adjustment and a pre-tax charge of $6 million ($5 million after taxes) for the three months ended June 30, 2022 and the nine months ended September 30, 2022 for other costs. | ||||
(b) | Includes a pre-tax charge of $93 million ($70 million after taxes) for the three months and nine months ended September 30, 2022 for debt extinguishment costs. | ||||
(c) | Includes pre-tax net gains of $16 million ($12 million after taxes), $3 million ($2 million after taxes) and $65 million ($49 million after taxes) for the three months ended September 30, 2022 and June 30, 2022 and the nine months ended September 30, 2022, respectively, related to our investment in Sylvamo Corporation. |
(d) | Includes a pre-tax charge of $55 million ($41 million after taxes) for the three months and nine months ended September 30, 2022 related to the previously announced settlement of the timber monetization restructuring tax matter. |
(e) | Includes a tax benefit of $604 million for the three months and nine months ended September 30, 2022 related to the previously announced settlement of the timber monetization restructuring tax matter and a tax benefit of $35 million, $31 million and $66 million for the three months ended September 30, 2022 and June 30, 2022 and the nine months ended September 30, 2022, respectively, related to the tax-free exchange of our shares of Sylvamo Corporation. |
(f) | Includes pre-tax charges of $5 million ($4 million after taxes) and $10 million ($7 million after taxes) for the three months and nine months ended September 30, 2021, respectively, for environmental remediation reserve adjustments and a pre-tax charge of $21 million ($16 million after taxes) for the nine months ended September 30, 2021 related to the impairment of real estate. |
(g) | Includes pre-tax charges of $5 million ($4 million after taxes) and $9 million ($7 million after taxes) for the three months and nine months ended September 30, 2021, respectively, for costs associated with our Building a Better IP initiative and a pre-tax charge of $3 million ($2 million after taxes) for the nine months ended September 30, 2021 for other costs. |
(h) | Includes pre-tax charges of $35 million ($26 million after taxes) and $223 million ($168 million after taxes) for the three months and nine months ended September 30, 2021, respectively, for debt extinguishment costs, a pre-tax charge of $12 million ($10 million after taxes) for the nine months ended September 30, 2021 for severance related to the optimization of our EMEA Packaging business and pre-tax charges of $4 million ($3 million after taxes) and $8 million ($6 million after taxes) for the three months and nine months ended September 30, 2021, respectively, for other costs. | ||||
(i) | Includes a net pre-tax gain of $7 million ($1 million after taxes) for the nine months ended September 30, 2021 related to the sale of our EMEA Packaging business in Turkey. | ||||
(j) | Includes a pre-tax gain of $204 million ($154 million after taxes) for the nine months ended September 30, 2021 related to the monetization of our equity investment in Graphic Packaging. | ||||
(k) | Includes a net pre-tax gain of $360 million ($350 million after taxes) for the three months and nine months ended September 30, 2021 related to the sale of our Kwidzyn, Poland mill, a pre-tax gain of $86 million ($65 million after taxes) for the three months and nine months ended September 30, 2021 related to the sale of our La Mirada, California distribution center, pre-tax charges of $52 million ($47 million after taxes) and $101 million ($87 million after taxes) for the three months and nine months ended September 30, 2021, respectively, for costs associated with the spin-off of our Printing Papers business, a pre-tax charge of $15 million ($10 million after taxes) and pre-tax income of $55 million ($37 million after taxes) for the three months and nine months ended September 30, 2021, respectively, for the accrual of a foreign value-added tax credit which transferred to Sylvamo Corporation effective with the spin-off on October 1, 2021 and tax expense of $27 million for the three months and nine months ended September 30, 2021 for foreign and state taxes associated with the spin-off of our Printing Papers business. | ||||
(l) | Includes the allocation of income to noncontrolling interest of $1 million (before and after taxes) for the nine months ended September 30, 2021 associated with the sale of our EMEA Packaging business in Turkey. |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Net Earnings (Loss) Attributable to International Paper Company | $ | 951 | $ | 864 | $ | 511 | $ | 1,822 | $ | 1,645 | |||||||||||||||||||||||||
Less: Discontinued operations (gain) loss | — | (432) | — | — | (638) | ||||||||||||||||||||||||||||||
Earnings (Loss) from Continuing Operations Attributable to International Paper Company | 951 | 432 | 511 | 1,822 | 1,007 | ||||||||||||||||||||||||||||||
Add back: Non-operating pension expense (income) | (48) | (50) | (47) | (144) | (153) | ||||||||||||||||||||||||||||||
Add back: Net special items expense (income) | 117 | 49 | 18 | 89 | 76 | ||||||||||||||||||||||||||||||
Income tax effect - Non-operating pension and net special items expense | (656) | — | (23) | (656) | 24 | ||||||||||||||||||||||||||||||
Adjusted Operating Earnings | $ | 364 | $ | 431 | $ | 459 | $ | 1,111 | $ | 954 | |||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Diluted Earnings per Common Share as Reported | $ | 2.64 | $ | 2.20 | $ | 1.38 | $ | 4.92 | $ | 4.16 | |||||||||||||||||||||||||
Less: Discontinued operations (gain) loss | — | (1.10) | — | — | (1.61) | ||||||||||||||||||||||||||||||
Continuing Operations | 2.64 | 1.10 | 1.38 | 4.92 | 2.55 | ||||||||||||||||||||||||||||||
Add back: Non-operating pension expense (income) | (0.13) | (0.12) | (0.13) | (0.39) | (0.39) | ||||||||||||||||||||||||||||||
Add back: Net special items expense (income) | 0.32 | 0.12 | 0.05 | 0.24 | 0.19 | ||||||||||||||||||||||||||||||
Income tax effect per share - Non-operating pension and net special items expense | (1.82) | — | (0.06) | (1.77) | 0.06 | ||||||||||||||||||||||||||||||
Adjusted Operating Earnings per Share | $ | 1.01 | $ | 1.10 | $ | 1.24 | $ | 3.00 | $ | 2.41 |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Industrial Packaging | $ | 4,385 | $ | 4,111 | $ | 4,491 | $ | 13,282 | $ | 12,071 | |||||||||||||||||||||||||
Global Cellulose Fibers | 887 | 740 | 788 | 2,385 | 2,015 | ||||||||||||||||||||||||||||||
Corporate and Inter-segment Sales | 130 | 63 | 110 | 361 | 191 | ||||||||||||||||||||||||||||||
Net Sales | $ | 5,402 | $ | 4,914 | $ | 5,389 | $ | 16,028 | $ | 14,277 | |||||||||||||||||||||||||
Operating Profit (Loss) by Business Segment | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Industrial Packaging | $ | 369 | $ | 414 | $ | 560 | $ | 1,326 | $ | 1,224 | |||||||||||||||||||||||||
Global Cellulose Fibers | 95 | 76 | 25 | 71 | (4) | ||||||||||||||||||||||||||||||
Total Business Segment Operating Profit | $ | 464 | $ | 490 | $ | 585 | $ | 1,397 | $ | 1,220 | |||||||||||||||||||||||||
Earnings (Loss) Before Income Taxes and Equity Earnings | $ | 313 | $ | 397 | $ | 514 | $ | 1,189 | $ | 955 | |||||||||||||||||||||||||
Interest expense, net | 123 | (a) | 82 | 74 | 266 | (a) | 261 | ||||||||||||||||||||||||||||
Adjustment for less than wholly owned subsidiaries (f) | (1) | (1) | (1) | (2) | (3) | (c) | |||||||||||||||||||||||||||||
Corporate expenses, net | 15 | 13 | 27 | 54 | 85 | ||||||||||||||||||||||||||||||
Corporate net special items | 62 | (b) | 49 | (d) | 18 | (b) | 34 | (b) | 70 | (d) | |||||||||||||||||||||||||
Business net special items | — | — | — | — | 5 | (e) | |||||||||||||||||||||||||||||
Non-operating pension expense (income) | (48) | (50) | (47) | (144) | (153) | ||||||||||||||||||||||||||||||
Business Segment Operating Profit (g) | $ | 464 | $ | 490 | $ | 585 | $ | 1,397 | $ | 1,220 | |||||||||||||||||||||||||
Equity Earnings (Loss) in Ilim S.A., Net of Taxes | $ | 64 | $ | 95 | $ | 95 | $ | 252 | $ | 245 | |||||||||||||||||||||||||
Equity Earnings (Loss) in Graphic Packaging International Partners, LLC | $ | — | $ | — | $ | — | $ | — | $ | 4 |
(a) | Includes a charge of $55 million for the three months and nine months ended September 30, 2022 related to the previously announced settlement of the timber monetization restructuring tax matter. | ||||
(b) | Includes a charge of $93 million for the three months and nine months ended September 30, 2022 for debt extinguishment costs, net gains of $16 million, $3 million and $65 million for the three months ended September 30, 2022 and June 30, 2022 and the nine months ended September 30, 2022, respectively, related to our investment in Sylvamo Corporation, income of $15 million for the three months and nine months ended September 30, 2022 for a legal settlement, a charge of $15 million for the three months ended June 30, 2022 and the nine months ended September 30, 2022 for an environmental remediation reserve adjustment and a charge of $6 million for the three months ended June 30, 2022 and the nine months ended September 30, 2022 for other costs. | ||||
(c) | Includes the allocation of income to noncontrolling interest of $1 million for the nine months ended September 30, 2021 associated with the sale of our EMEA Packaging business in Turkey. | ||||
(d) | Includes charges of $35 million and $223 million for the three months and nine months ended September 30, 2021, respectively, for debt extinguishment costs, charges of $5 million and $9 million for the three months and nine months ended September 30, 2021, respectively, for costs associated with our Building a Better IP Initiative, charges of $5 million and $10 million for the three months and nine months ended September 30, 2021, respectively, for environmental remediation reserve adjustments, a charge of $21 million for the nine months ended September 30, 2021 related to the impairment of real estate, a gain of $204 million for the nine months ended September 30, 2021 related to the monetization of our equity investment in Graphic Packaging and charges of $4 million and $11 million for the three months and nine months ended September 30, 2021, respectively, for other costs. | ||||
(e) | Related to Industrial Packaging, includes a net gain of $7 million for the nine months ended September 30, 2021 partially offset by the allocation of gain to noncontrolling interest of $1 million for the nine months ended September 30, 2021 related to the sale of our EMEA Packaging business in Turkey and a charge of $12 million for the nine months ended September 30, 2021 for severance related to the optimization of our EMEA Packaging business. | ||||
(f) | Operating profits for business 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 adjusted here to present consolidated earnings before income taxes and equity earnings. |
(g) | As set forth in the chart above, business segment operating profit is defined as earnings (loss) from continuing operations before income taxes and equity earnings, but including the impact of less than wholly owned subsidiaries, and excluding interest expense, net, corporate expenses, net, corporate net special items, business net special items and non-operating pension expense. Business segment operating profit is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments and is presented in our financial statement footnotes in accordance with ASC 280. |
Three Months Ended September 30, | Three Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Industrial Packaging (In thousands of short tons) | |||||||||||||||||||||||||||||||||||
Corrugated Packaging (b) | 2,522 | 2,689 | 2,619 | 7,759 | 8,106 | ||||||||||||||||||||||||||||||
Containerboard | 677 | 710 | 707 | 2,096 | 2,118 | ||||||||||||||||||||||||||||||
Recycling | 546 | 521 | 535 | 1,645 | 1,647 | ||||||||||||||||||||||||||||||
Saturated Kraft | 51 | 45 | 51 | 146 | 140 | ||||||||||||||||||||||||||||||
Gypsum /Release Kraft | 66 | 56 | 64 | 184 | 179 | ||||||||||||||||||||||||||||||
EMEA Packaging (b) | 297 | 334 | 354 | 1,019 | 1,179 | ||||||||||||||||||||||||||||||
Industrial Packaging | 4,159 | 4,355 | 4,330 | 12,849 | 13,369 | ||||||||||||||||||||||||||||||
Global Cellulose Fibers (In thousands of metric tons) (c) | 750 | 748 | 720 | 2,182 | 2,246 |
(a) | Sales volumes include third party and inter-segment sales and exclude sales of equity investees. |
(b) | Volumes for corrugated box sales reflect consumed tons sold (CTS). Board sales by these businesses reflect invoiced tons. |
(c) | Includes North American volumes and internal sales to mills. |
September 30, 2022 | December 31, 2021 | |||||||||||||
Assets | ||||||||||||||
Current Assets | ||||||||||||||
Cash and Temporary Investments | $ | 511 | $ | 1,295 | ||||||||||
Accounts and Notes Receivable, Net | 3,453 | 3,232 | ||||||||||||
Contract Assets | 514 | 378 | ||||||||||||
Inventories | 1,976 | 1,814 | ||||||||||||
Current Investments | — | 245 | ||||||||||||
Other | 168 | 132 | ||||||||||||
Total Current Assets | 6,622 | 7,096 | ||||||||||||
Plants, Properties and Equipment, Net | 10,219 | 10,441 | ||||||||||||
Investments | 926 | 751 | ||||||||||||
Long-Term Financial Assets of Variable Interest Entities | 2,289 | 2,275 | ||||||||||||
Goodwill | 3,116 | 3,130 | ||||||||||||
Overfunded Pension Plan Assets | 772 | 595 | ||||||||||||
Right of Use Assets | 387 | 365 | ||||||||||||
Deferred Charges and Other Assets | 534 | 590 | ||||||||||||
Total Assets | $ | 24,865 | $ | 25,243 | ||||||||||
Liabilities and Equity | ||||||||||||||
Current Liabilities | ||||||||||||||
Notes Payable and Current Maturities of Long-Term Debt | $ | 616 | $ | 196 | ||||||||||
Accounts Payable and Other Current Liabilities | 4,189 | 3,948 | ||||||||||||
Total Current Liabilities | 4,805 | 4,144 | ||||||||||||
Long-Term Debt | 4,766 | 5,383 | ||||||||||||
Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities | 2,105 | 2,099 | ||||||||||||
Deferred Income Taxes | 1,806 | 2,618 | ||||||||||||
Underfunded Pension Benefit Obligation | 359 | 377 | ||||||||||||
Postretirement and Postemployment Benefit Obligation | 189 | 205 | ||||||||||||
Long-Term Lease Obligations | 251 | 236 | ||||||||||||
Other Liabilities | 1,096 | 1,099 | ||||||||||||
Equity | ||||||||||||||
Common Stock | 449 | 449 | ||||||||||||
Paid-in Capital | 4,702 | 4,668 | ||||||||||||
Retained Earnings | 10,340 | 9,029 | ||||||||||||
Accumulated Other Comprehensive Loss | (1,586) | (1,666) | ||||||||||||
13,905 | 12,480 | |||||||||||||
Less: Common Stock Held in Treasury, at Cost | 4,417 | 3,398 | ||||||||||||
Total Equity | 9,488 | 9,082 | ||||||||||||
Total Liabilities and Equity | $ | 24,865 | $ | 25,243 |
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Operating Activities | ||||||||||||||
Net earnings (loss) | $ | 1,822 | $ | 1,647 | ||||||||||
Depreciation, amortization and cost of timber harvested | 789 | 933 | ||||||||||||
Deferred income tax expense (benefit), net | (816) | (151) | ||||||||||||
Restructuring and other charges, net | 93 | 243 | ||||||||||||
Net (gains) losses on mark to market investments | (65) | — | ||||||||||||
Net (gains) losses on sales and impairments of businesses | — | (367) | ||||||||||||
Net (gains) losses on sales of equity method investments | — | (205) | ||||||||||||
Net (gains) losses on sales of fixed assets | — | (86) | ||||||||||||
Equity method dividends received | 204 | 149 | ||||||||||||
Equity (earnings) losses, net | (249) | (247) | ||||||||||||
Periodic pension (income) expense, net | (87) | (84) | ||||||||||||
Other, net | 126 | 129 | ||||||||||||
Changes in current assets and liabilities | ||||||||||||||
Accounts and notes receivable | (294) | (510) | ||||||||||||
Contract assets | (138) | (74) | ||||||||||||
Inventories | (217) | (133) | ||||||||||||
Accounts payable and accrued liabilities | 218 | 716 | ||||||||||||
Interest payable | 50 | 9 | ||||||||||||
Other | (23) | (46) | ||||||||||||
Cash Provided By (Used For) Operating Activities | 1,413 | 1,923 | ||||||||||||
Investment Activities | ||||||||||||||
Invested in capital projects, net of insurance recoveries | (609) | (348) | ||||||||||||
Acquisitions, net of cash acquired | — | (80) | ||||||||||||
Proceeds from sales of equity method investments | — | 843 | ||||||||||||
Proceeds from sales of businesses, net of cash divested | — | 827 | ||||||||||||
Proceeds from exchange of equity securities | 311 | — | ||||||||||||
Proceeds from settlement of Variable Interest Entity installment notes | — | 4,850 | ||||||||||||
Proceeds from sale of fixed assets | 11 | 95 | ||||||||||||
Other | (6) | (3) | ||||||||||||
Cash Provided By (Used For) Investment Activities | (293) | 6,184 | ||||||||||||
Financing Activities | ||||||||||||||
Repurchases of common stock and payments of restricted stock tax withholding | (1,093) | (425) | ||||||||||||
Issuance of debt | 752 | 1,511 | ||||||||||||
Reduction of debt | (954) | (1,132) | ||||||||||||
Change in book overdrafts | — | 29 | ||||||||||||
Dividends paid | (509) | (602) | ||||||||||||
Net debt tender premiums paid | (89) | (221) | ||||||||||||
Reduction of Variable Interest Entity loans | — | (4,220) | ||||||||||||
Other | (2) | (14) | ||||||||||||
Cash Provided By (Used for) Financing Activities | (1,895) | (5,074) | ||||||||||||
Effect of Exchange Rate Changes on Cash and Temporary Investments | (9) | (7) | ||||||||||||
Change in Cash and Temporary Investments | (784) | 3,026 | ||||||||||||
Cash and Temporary Investments | ||||||||||||||
Beginning of the period | 1,295 | 595 | ||||||||||||
End of the period | $ | 511 | $ | 3,621 | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Cash Provided By (Used For) Operating Activities | $ | 435 | $ | 645 | $ | 1,413 | $ | 1,923 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Cash invested in capital projects, net of insurance recoveries | (238) | (126) | (609) | (348) | ||||||||||||||||||||||
Free Cash Flow | $ | 197 | $ | 519 | $ | 804 | $ | 1,575 |