Future net cash distribution

[Table of Contents](#i988dd6b5140d4a1b8c6b4c50f020743f_10)[NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#i988dd6b5140d4a1b8c6b4c50f020743f_148)  
[NOTE 1 SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES](#i988dd6b5140d4a1b8c6b4c50f020743f_151)  
NATURE OF BUSINESS  
International Paper (the "Company") is a global corrugated packaging company with primary markets and manufacturing operations in North America and Europe and additional markets and manufacturing operations in Latin America, North Africa and Asia. Substantially all of our businesses have experienced, and are likely to continue to experience, cycles relating to available industry capacity and general economic conditions.  
FINANCIAL STATEMENTS  
On March 11, 2020 the World Health Organization (WHO) declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. During 2021, there continued to be a large number of COVID-19 cases and deaths in the United States and throughout the world, and restrictive measures, including masks and vaccine requirements were implemented or reinstituted by various governmental authorities and private businesses. Economic recovery in the United States and various other regions of the world has continued but may be threatened by the continued adverse effects of COVID-19 and other factors. Most of our manufacturing and converting facilities have remained open and operational during the pandemic and at the current time our manufacturing and converting facilities are generally operational. The health and safety of our employees and contractors is our most important responsibility as we manage through the COVID-19 pandemic. We have implemented work-systems across the Company to maintain the health and safety of our employees including social distancing, site cleaning, contract tracing and other measures as recommended by the CDC and WHO.   
There continue to be significant uncertainties associated with the COVID-19 pandemic. The impacts of the pandemic had an adverse effect on our operations in 2021, and could have a material adverse effect on our financial condition, results of operations and cash flows if public health and/or global economic conditions deteriorate.  
These 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.  
Printing Papers Spinoff  
On October 1, 2021, the Company completed the previously announced spin-off of its Printing Papers segment along with certain mixed-use coated paperboard and pulp businesses in North America, France and Russia into a standalone, publicly-traded company, Sylvamo Corporation. The transaction was implemented through the distribution of shares of the standalone company to International Paper's shareholders (the "Distribution"). As a result of the Distribution, Sylvamo Corporation is an independent public company that trades on the New York Stock Exchange under the symbol "SLVM".  
The Distribution was made to the Company's stockholders of record as of the close of business on September 15, 2021 (the "Record Date"), and such stockholders received one share of Sylvamo Corporation common stock for every 11 shares of International Paper common stock held as of the close of business on the Record Date. The Company retained 19.9% of the shares of Sylvamo at the time of the separation and this retained investment is discussed further in [Note 9 - Supplementary Financial](#i988dd6b5140d4a1b8c6b4c50f020743f_175) [Statement](#i988dd6b5140d4a1b8c6b4c50f020743f_175) [Info](#i988dd6b5140d4a1b8c6b4c50f020743f_175)[rmation](#i988dd6b5140d4a1b8c6b4c50f020743f_175). In the third quarter of 2021, Sylvamo incurred $1.5 billion in debt in anticipation of a net cash distribution of $1.4 billion that was made to the Company as part of the spin-off. At the time of the spin, the Company distributed $130 million of cash to Sylvamo Corporation.  
In addition to the spin-off of Sylvamo Corporation, the Company completed the sale of its Kwidzyn, Poland mill on August 6, 2021. See [Note 8 - Divestitures and Impairments of Businesses](#i988dd6b5140d4a1b8c6b4c50f020743f_172) for further details  
All current and historical operating results of the Sylvamo Corporation businesses and Kwidzyn mill are presented as Discontinued Operations, net of tax, in the consolidated statement of operations. 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 as of December 31, 2020. The spin-off was tax-free for the Company and its shareholders for U.S. federal income tax purposes.   
In connection with the Distribution, on September 29, 2021, the Company and Sylvamo Corporation entered into a separation and distribution agreement as well as various other agreements that govern the52
