DEBT |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT | DEBT The borrowing capacity of the Company's commercial paper program is $1.0 billion supported by its $1.4 billion credit agreement. Under the terms of the program, individual maturities on borrowings may vary, but not exceed one year from the date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. As of September 30, 2026, the Company had $450 million outstanding under the commercial paper program. At September 30, 2026, the Company's credit facilities totaled $1.9 billion, excluding the DS Smith credit facilities discussed below. The credit facilities generally provide for interest rates at a floating rate index plus a pre-determined margin dependent upon International Paper’s credit rating. The credit facilities included a $1.4 billion contractually committed bank facility with a maturity date of June 2028. The liquidity facilities also include up to $500 million of uncommitted financings based on eligible receivables balances under a receivables securitization program that expires in June 2027. At September 30, 2026, the Company had $170 million outstanding under the receivables securitization program. Following the DS Smith acquisition, International Paper assumed foreign denominated debt of DS Smith in various currencies with an approximated value of $3.6 billion. In March 2025, the Company amended and restated DS Smith's credit facility agreements and entered into agreements to guarantee the outstanding notes of DS Smith. Below is a table of the foreign denominated credit facilities:
At September 30, 2026, the Company had $1.2 billion outstanding under its revolving credit facility, which matures in May 2027. Of this amount, $950 million is classified as Long-Term Debt in the accompanying condensed consolidated balance sheet as of September 30, 2026, based on the Company's intent and ability to refinance the obligation through available committed bank credit arrangements extending beyond one year from the balance sheet date. In September of 2026, the Company repaid $692 million of euro denominated bonds with an interest rate of 0.875% that matured in September of 2026. In April of 2026, the Company issued approximately $72 million of environmental development bonds (EDBs) with an interest rate of 4.0% and a maturity date of April 1, 2033. The proceeds were used to repay approximately $72 million of EDBs with interest rates of 4.0% that matured on April 1, 2026. The Company also issued approximately $20 million of industrial development bonds with an interest rate of 3.7% and a maturity date of April 1, 2034. The Company’s financial covenants require the maintenance of a minimum net worth, as defined in our debt agreements, of $9 billion and a total debt-to-capital ratio of less than 60%. Net worth is defined as the sum of common stock, paid-in capital and retained earnings, less treasury stock plus any cumulative goodwill impairment charges. The calculation also excludes accumulated other comprehensive income/loss and both the current and long-term Nonrecourse Financial Liabilities of Variable Interest Entities. The total debt-to-capital ratio is defined as total debt divided by the sum of total debt plus net worth. As of September 30, 2026, we were in compliance with our debt covenants. At September 30, 2026, the fair value of International Paper’s $9.7 billion of debt was approximately $9.0 billion. The fair value of the Company’s long-term debt is estimated based on the quoted market prices for the same or similar issues. International Paper’s long-term debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 1 in the Company’s Annual Report.
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