Deferred Income taxes

[Table of Contents](#i988dd6b5140d4a1b8c6b4c50f020743f_10)public company that trades on the New York Stock Exchange under the symbol "SLVM".  
All current and historical operating results of the Sylvamo Corporation businesses and Kwidzyn are presented as Discontinued Operations, net of tax, in the consolidated statement of operations. Kwidzyn was previously part of the Printing Papers business prior to its sale in August 2021. See Kwidzyn Mill section below for further details regarding this sale. 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 Sylvamo Corporation businesses and Kwidzyn for all prior periods presented in the consolidated statement of operations:  


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| In millions | 2021 | 2020 | 2019 |
| Net Sales | $ | 2,417  |  | $ | 3,015  |  | $ | 4,059  |  |
| Costs and Expenses |  |  |  |
| Cost of products sold | 1,508  |  | 2,036  |  | 2,597  |  |
| Selling and administrative expenses | 224  |  | 165  |  | 199  |  |
| Depreciation, amortization and cost of timber harvested | 113  |  | 196  |  | 234  |  |
| Distribution expenses | 229  |  | 264  |  | 310  |  |
| Taxes other than payroll and income taxes | 24  |  | 35  |  | 38  |  |
| Restructuring and other charges, net | —  |  | —  |  | 6  |  |
| Net (gains) losses on sales of fixed assets | (86) |  | —  |  | —  |  |
| Net (gains) losses on sales and impairments of businesses | (351) |  | —  |  | —  |  |
| Interest expense, net | (19) |  | (2) |  | (7) |  |
| Earnings (Loss) Before Income Taxes and Equity Earnings | 775  |  | 321  |  | 682  |  |
| Income tax provision (benefit) | 145  |  | 69  |  | 156  |  |
| Discontinued Operations, Net of Taxes | $ | 630  |  | $ | 252  |  | $ | 526  |  |

  
All historical assets and liabilities of the Sylvamo Corporation businesses and Kwidzyn are classified as current and long-term assets of discontinued operations and current and long-term liabilities of discontinued operations in the accompanying balance sheet. The following summarizes the major classes of assets and liabilities of the Sylvamo Corporation businesses and Kwidzyn reconciled to current assets and long-term assets of discontinued operations and current liabilities and long-term liabilities ofdiscontinued operations in the accompanying consolidated balance sheet:   


|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| In millions | 2020 |
| Cash and temporary investments | $ | 127  |  |
| Accounts and notes receivable | 432  |  |
| Contract assets | 24  |  |
| Inventories | 424  |  |
| Other current assets | 43  |  |
| Current assets of discontinued operations | $ | 1,050  |  |
| Plants, Properties and Equipment | $ | 1,272  |  |
| Forestlands | 293  |  |
| Goodwill | 200  |  |
| Right of Use Assets | 73  |  |
| Deferred Charges and Other Assets | 116  |  |
| Long-Term Assets of Discontinued Operations | $ | 1,954  |  |
| Notes payable and current maturities of long-term debt | $ | 4  |  |
| Accounts payable | 285  |  |
| Accrued payroll and benefits | 56  |  |
| Other current liabilities | 150  |  |
| Current liabilities of discontinued operations | $ | 495  |  |
| Long-Term Debt | $ | 22  |  |
| Deferred Income taxes | 171  |  |
| Pension Benefit Obligation | 24  |  |
| Postretirement and Postemployment Benefit Obligation | 17  |  |
| Long-Term Lease Obligations | 59  |  |
| Other Liabilities | 76  |  |
| Long-Term Liabilities of Discontinued Operations | $ | 369  |  |

  
  
The following summarizes the total cash provided by operations and total cash used for investing activities related to the Sylvamo Corporation businesses and Kwidzyn and included in the consolidated statement of cash flows:  


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| In millions | 2021 | 2020 | 2019 |
| Cash Provided by (Used For) Operating Activities | $ | 290  |  | $ | 463  |  | $ | 831  |  |
| Cash Provided by (Used For) Investment Activities | $ | 757  |  | $ | (111) |  | $ | (147) |  |

In anticipation of the spin-off, Sylvamo incurred $1.5 billion in debt during the third quarter of 2021 with the proceeds used for a distribution to the Company and other expenses associated with the transaction. The62
