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: