LEASES
International Paper leases various real estate, including certain operating facilities, warehouses, office space and
land. The Company also leases material handling equipment, vehicles, and certain other equipment. The
Company's leases have remaining lease terms of up to 28 years.
COMPONENTS OF LEASE EXPENSE
In millions
2025
2024
2023
Operating lease costs, net
$258
$172
$168
Variable lease costs
50
51
37
Short-term lease costs, net
112
61
56
Finance lease cost
Amortization of lease assets
15
9
9
Interest on lease liabilities
3
2
2
Total lease cost, net
$438
$295
$272
SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES
In millions
Classification
2025
2024
Assets
Operating lease assets
Right of use assets
$697
$402
Finance lease assets
Plants, properties and equipment, net (a)
70
31
Total leased assets
$767
$433
Liabilities
Current
Operating
Other current liabilities
$221
$144
Finance
Notes payable and current maturities of
long-term debt
17
9
Noncurrent
Operating
Long-term lease obligations
486
269
Finance
Long-term debt
54
31
Total lease liabilities
$778
$453
(a)  Finance leases are recorded net of accumulated amortization of $69 million and $59 million at December 31, 2025 and 2024, respectively.
LEASE TERM AND DISCOUNT RATE
In millions
2025
2024
Weighted average remaining lease term (years)
Operating leases
4.8
3.6
Finance leases
6.0
7.2
Weighted average discount rate
Operating leases
4.23%
4.34%
Finance leases
4.19%
4.93%
SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES
In millions
2025
2024
2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases
$296
$202
$180
Operating cash flows related to financing leases
5
3
3
Financing cash flows related to finance leases
19
9
13
Right of use assets obtained in exchange for lease liabilities
Operating leases
582
185
216
Finance leases
35
6
12
MATURITY OF LEASE LIABILITIES
In millions
Operating Leases 
Financing Leases
Total
2026
$245
$20
$265
2027
190
25
215
2028
124
12
136
2029
72
10
82
2030
46
4
50
Thereafter
100
12
112
Total lease payments
777
83
860
Less imputed interest
70
12
82
Present value of lease liabilities
$707
$71
$778

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 21, 2025
2023Feb 16, 2024
2022Feb 17, 2023
2021Feb 18, 2022
2020Feb 19, 2021
2019Feb 19, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.