Asset Impairment Charges

[Table of Contents](#i988dd6b5140d4a1b8c6b4c50f020743f_10)Footnotes to Interim Financial Results  
(a) Includes the following pre-tax charges (gains):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 2021 |
| In millions |  | Q1 |  | Q2 |  | Q3 |  | Q4 |
| Debt extinguishment costs |  | $ | 18  |  |  | $ | 170  |  |  | $ | 35  |  |  | $ | 238  |  |
| EMEA Packaging business optimization |  | 12  |  |  | —  |  |  | —  |  |  | —  |  |
| Building a Better IP |  | —  |  |  | —  |  |  | —  |  |  | 29  |  |
| Legal reserve adjustment |  | —  |  |  | —  |  |  | —  |  |  | (5) |  |
| Environmental remediation reserve adjustment |  | —  |  |  | 5  |  |  | 5  |  |  | —  |  |
| Gain on sale of equity investment in Graphic Packaging |  | (74) |  |  | (130) |  |  | —  |  |  | —  |  |
| EMEA Packaging impairment - Turkey |  | 2  |  |  | (9) |  |  | —  |  |  | —  |  |
| Sylvamo investment - fair value adjustment |  | —  |  |  | —  |  |  | —  |  |  | 32  |  |
| Real estate - office impairment |  | —  |  |  | 21  |  |  | —  |  |  | —  |  |
| Other items |  | —  |  |  | 11  |  |  | 9  |  |  | 1  |  |
| Non-operating pension expense |  | (52) |  |  | (51) |  |  | (50) |  |  | (47) |  |
| Total |  | $ | (94) |  |  | $ | 17  |  |  | $ | (1) |  |  | $ | 248  |  |
|  |  |  |  |  |  |  |  |  |

(b) Includes the operating earnings of the Printing Papers business for the full year. Also includes the following charges (gains):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |
| In millions | Q1 |  | Q2 |  | Q3 |  | Q4 |
| Printing Papers spin-off expenses | $ | 20  |  |  | $ | 20  |  |  | $ | 47  |  |  | $ | 5  |  |
| Gain on sale of Kwidzyn, Poland mill | —  |  |  | —  |  |  | (350) |  |  | 6  |  |
| Gain on sale of La Mirada, CA distribution center | —  |  |  | —  |  |  | (65) |  |  | —  |  |
| Foreign value-added tax credit | —  |  |  | (47) |  |  | 10  |  |  | —  |  |
| Foreign and state taxes related to spin-off of Printing Papers business | —  |  |  | —  |  |  | 27  |  |  | (3) |  |
| Non-operating pension expense | (1) |  |  | (1) |  |  | —  |  |  | —  |  |
| Total | $ | 19  |  |  | $ | (28) |  |  | $ | (331) |  |  | $ | 8  |  |

(c) Includes the following tax expenses (benefits): 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |
| In millions | Q1 |  | Q2 |  | Q3 |  | Q4 |
| Tax impact of other special items | 12  |  |  | (14) |  |  | (12) |  |  | (73) |  |
| Tax impact of non-operating pension expense | 13  |  |  | 13  |  |  | 12  |  |  | 11  |  |
| Total | $ | 25  |  |  | $ | (1) |  |  | $ | —  |  |  | $ | (62) |  |

(d) Includes the allocation of income to noncontrolling interest of $1 million for the three months ended June 30, 2021 related to the gain on the sale of our EMEA Packaging business in Turkey.  
(e) Includes the following pre-tax charges (gains):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 2020 |
| In millions |  | Q1 |  | Q2 |  | Q3 |  | Q4 |
| Brazil Packaging impairment |  | $ | 344  |  |  | $ | 8  |  |  | $ | (4) |  |  | $ | —  |  |
| India investment |  | 17  |  |  | (6) |  |  | —  |  |  | —  |  |
| Asbestos litigation reserve adjustment |  | —  |  |  | 43  |  |  | —  |  |  | —  |  |
| Environmental remediation reserve adjustment |  | 41  |  |  | —  |  |  | —  |  |  | —  |  |
| Gain on sale of equity investment in Graphic Packaging |  | (33) |  |  | —  |  |  | —  |  |  | —  |  |
| Abandoned property removal |  | 9  |  |  | 5  |  |  | —  |  |  | —  |  |
| Riverdale mill conversion accelerated depreciation |  | 1  |  |  | —  |  |  | —  |  |  | —  |  |
| Debt extinguishment costs |  | 8  |  |  | 18  |  |  | 105  |  |  | 65  |  |
| EMEA Packaging impairment - Turkey |  | —  |  |  | —  |  |  | —  |  |  | 123  |  |
| Other items |  | (3) |  |  | —  |  |  | 1  |  |  | —  |  |
| Non-operating pension expense |  | (6) |  |  | (14) |  |  | (11) |  |  | (10) |  |
| Total |  | $ | 378  |  |  | $ | 54  |  |  | $ | 91  |  |  | $ | 178  |  |

  
(f) Includes the operating earnings of the Printing Papers business for the full year. Also includes the following charges (gains):  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2020 |
| In millions | Q1 |  | Q2 |  | Q3 |  |  | Q4 |
| Printing Papers spin-off expenses | $ | —  |  |  | $ | —  |  |  | $ | —  |  |  |  | $ | 8  |  |
| Environmental remediation reserve adjustment | —  |  |  | —  |  |  | 6  |  |  |  | —  |  |
| Tax benefit related to settlement of tax audits | —  |  |  | —  |  |  | —  |  |  |  | (9) |  |
| Other items | —  |  |  | —  |  |  | (1) |  |  |  | 3  |  |
| Total | $ | —  |  |  | $ | —  |  |  | $ | 5  |  |  |  | $ | 2  |  |

(g) Includes the following tax expenses (benefits):  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2020 |
| In millions | Q1 |  | Q2 |  | Q3 |  |  | Q4 |
| Tax benefit related to settlement of tax audits | $ | —  |  |  | $ | —  |  |  | $ | —  |  |  |  | $ | (23) |  |
| Tax impact of other special items | (12) |  |  | (18) |  |  | (24) |  |  |  | (16) |  |
| Tax impact of non-operating pension expense | 1  |  |  | 3  |  |  | 4  |  |  |  | 2  |  |
| Total | $ | (11) |  |  | $ | (15) |  |  | $ | (20) |  |  |  | $ | (37) |  |

  
92
