Sylvamo次季轉盈為虧錄淨虧損1100萬美元 下調全年EBITDA指引

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

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________
FORM 10-Q
________________

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2026

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From              to            
______________________________
Commission File Number 001-40718
________________
SYLVAMO CORPORATION
(Exact Name of Registrant as Specified in its Charter)
________________

Delaware86-2596371
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)

6077 Primacy Parkway
Memphis, Tennessee
38119
(Address of Principal Executive Offices)(Zip Code)

901-519-8000
(Registrant’s Telephone Number, Including Area Code)

 N/A                 
(Former name, former address and and former fiscal year if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)Name of each exchange on which
registered

Common Stock, par value $1.00 per shareSLVMNew York Stock Exchange
Preferred Stock Purchase RightsSLVMNew York Stock Exchange
________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒     No ☐  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (paragraph 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ☒   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange 
Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes ☐    No  ☒
The number of shares outstanding of the registrant’s common stock, par value $1.00 per share, as of July 31, 2026 was 39,760,243.

INDEX

PAGE NO.
PART I. FINANCIAL INFORMATION

Item 1.
Financial Statements

Condensed Consolidated Statements of Operations - Three and Six Months Ended June 30, 2026 and 2025
1

Condensed Consolidated Statements of Comprehensive Income (Loss) - Three and Six Months Ended June 30, 2026 and 2025
2

Condensed Consolidated Balance Sheets - June 30, 2026 and December 31, 2025
3

Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2026 and 2025
4

Notes to Condensed Consolidated Financial Statements
5

Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
21

Item 3.
Quantitative and Qualitative Disclosures About Market Risk
30

Item 4.
Controls and Procedures
30

PART II. OTHER INFORMATION

Item 1.
Legal Proceedings
31

Item 1A.
Risk Factors
31

Item 2.Purchases of Equity Securities by the Issuer and Affiliated Purchasers
31

Item 6.
Exhibits
32

Signatures
33

ITEM 1.    FINANCIAL STATEMENTS

SYLVAMO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per share amounts)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
NET SALES
$806 $794 $1,561 $1,615 
COSTS AND EXPENSES 

Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)
674 640 1,304 1,302 
Selling and administrative expenses
69 72 142 145 
Depreciation, amortization and cost of timber harvested
43 45 84 85 
Taxes other than payroll and income taxes
8 7 16 11 
Interest expense, net
11 10 20 19 
INCOME (LOSS) BEFORE INCOME TAXES
1 20 (5)53 
Income tax provision
12 5 9 11 
NET INCOME (LOSS)$(11)$15 $(14)$42 
EARNINGS (LOSS) PER SHARE
Basic$(0.28)$0.37 $(0.35)$1.03 
Diluted$(0.28)$0.37 $(0.35)$1.02 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
1

SYLVAMO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(In millions)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
NET INCOME (LOSS)
$(11)$15 $(14)$42 
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

Defined benefit pension and postretirement adjustments:

Amortization of pension and postretirement net loss— 1 1 1 
Pension and postretirement liability adjustments— (1)— (1)
Change in cumulative foreign currency translation adjustment
— 69 33 147 
Net gains/losses on cash flow hedging derivatives:

Net gains (losses) arising during the period (less tax of $1, $0, $3 and $3)
3 — 7 5 
Reclassification adjustment for (gains) losses included in net earnings (less tax of $1, $1, $2 and $2)
(2)(2)(4)(5)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
1 67 37 147 
COMPREHENSIVE INCOME (LOSS)
$(10)$82 $23 $189 

The accompanying notes are an integral part of these condensed consolidated financial statements.
2

SYLVAMO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)

June 30,
2026December 31, 2025
(unaudited)
ASSETS

Current Assets

Cash and temporary investments
$123 $135 
Accounts and notes receivable, net
366 424 
Contract assets
26 19 
Inventories
503 418 
Other current assets
89 80 
Total Current Assets
1,107 1,076 
Plants, Properties and Equipment, net
1,093 1,047 
Forestlands
393 364 
Goodwill
121 114 
Right of Use Assets
60 48 
Deferred Charges and Other Assets
101 114 
TOTAL ASSETS
$2,875 $2,763 
LIABILITIES AND EQUITY

Current Liabilities

Accounts payable
$422 $381 
Notes payable and current maturities of long-term debt
121 90 
Accrued payroll and benefits
52 55 
Other current liabilities
157 190 
Total Current Liabilities
752 716 
Long-Term Debt
843 763 
Deferred Income Taxes
171 175 
Other Liabilities
154 143 
Commitments and Contingent Liabilities (Note 11)

Equity

Common stock $1.00 par value, 200.0 shares authorized, 46.0 shares and 45.6 shares issued and 39.8 shares and 39.4 shares outstanding at June 30, 2026 and December 31, 2025, respectively
46 46 
Paid-in capital97 89 
Retained earnings2,464 2,514 
Accumulated other comprehensive loss
(1,316)(1,353)
1,291 1,296 
Less: Common stock held in treasury, at cost, 6.2 shares and 6.2 shares at June 30, 2026 and December 31, 2025, respectively
(336)(330)
Total Equity955 966 
TOTAL LIABILITIES AND EQUITY
$2,875 $2,763 

The accompanying notes are an integral part of these condensed consolidated financial statements.
3

SYLVAMO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)

Six Months Ended June 30,
20262025
OPERATING ACTIVITIES

Net income (loss)
$(14)$42 
Adjustments to reconcile net income (loss) to cash provided by operating activities:

Depreciation, amortization, and cost of timber harvested
84 85 
Deferred income tax provision (benefit), net
— (5)
Stock-based compensation
6 13 
Foreign exchange gain on intercompany note(20)— 
Changes in operating assets, liabilities and other:

Accounts and notes receivable
65 77 
Inventories
(76)— 
Accounts payable and accrued liabilities
(2)(79)
Other
(15)(46)
CASH PROVIDED BY OPERATING ACTIVITIES 
28 87 
INVESTMENT ACTIVITIES

Invested in capital projects
(110)(114)
Other
1 — 
CASH USED FOR INVESTMENT ACTIVITIES 
(109)(114)
FINANCING ACTIVITIES

Dividends paid(36)(36)
Issuance of debt571 48 
Reduction of debt
(469)(40)
Repurchases of common stock— (40)
Other2 (8)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 
68 (76)
Effect of Exchange Rate Changes on Cash
1 11 
Change in Cash and Temporary Investments 
(12)(92)
Cash and Temporary Investments 

Beginning of the period
135 205 
End of the period
$123 $113 

The accompanying notes are an integral part of these condensed consolidated financial statements.
4

SYLVAMO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of Sylvamo Corporation’s ("Sylvamo's", "the Company’s" or "our") financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first six months of the year may not necessarily be indicative of full year results due to factors such as the Company’s planned maintenance outage schedule at its mills. All intercompany transactions have been eliminated. You should read these condensed consolidated financial statements in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report" or “2025 Form 10-K”), which have previously been filed with the Securities and Exchange Commission. 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.

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are described in Note 2 Significant Accounting Policies to the audited consolidated financial statements included in our 2025 Form 10-K. There have been no material changes to the significant accounting policies for the six months ended June 30, 2026, with the exception of the below policies that were updated or added. 

Revenue Recognition

Generally, the Company recognizes revenue on a point-in-time basis when the Company transfers control of the goods to the customer. Control typically transfers upon shipment or delivery, depending on the applicable shipping terms, at which point the customer obtains legal title and assumes the risks and rewards for the goods. For customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time, which is as the goods are produced and have no alternative use.

The Company’s revenue is primarily derived from fixed consideration; however, we do have contract terms that give rise to variable consideration, primarily volume rebates, early payment discounts and other customer refunds. The Company estimates its volume rebates at the individual customer level based upon the terms of the arrangement and expected volume purchases over the contract period, consistent with the most likely amount method outlined in ASC 606. The Company estimates early payment discounts and other customer refunds based on the historical experience across the Company’s portfolio of customers to record reductions in revenue which is consistent with the expected value method outlined in ASC 606. Management has concluded that these methods result in the best estimate of the consideration the Company will be entitled to from its customers. 

The Company has elected to present all sales taxes on a net basis, account for shipping and handling activities as fulfillment activities, and not record interest income or interest expense when the difference in timing of control or transfer and customer payment is one year or less. See Note 3 Revenue Recognition for further details. 

Inventories

Inventories are valued at the lower of cost or market value and include costs directly associated with manufacturing products: materials, labor, first leg freight and manufacturing overhead. In the United States, costs of raw materials and finished paper and pulp products are generally determined using the last-in, first-out method. Other inventories are valued using the first-in, first-out or average cost methods and are held at the lower of cost or net realizable value. See Note 7 Supplementary Financial Statement Information for further details.

Forestlands

The Company owns approximately 250,000 acres of forestlands in Brazil. Forestlands include owned property as well as certain timber harvesting rights with terms of one or more years, and are stated at cost, less cost of timber harvested. Costs related to acquiring and growing timber, including site preparation, seedlings, planting, fertilization, forest management and other direct 
5

support costs, are capitalized. Depletion costs attributable to a specific timber plot are recorded within “Cost of timber harvested” as timber is cut. The depletion rates for timber plots are determined annually based on the relationship of incurred costs to estimated recoverable timber volume. See Note 7 Supplementary Financial Statement Information for further details.

Recently Issued Accounting Pronouncements Not Yet Adopted

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This guidance requires disaggregated disclosure of certain income statement captions for public business entities into specified categories within the footnotes to the financial statements. Additional disclosures are required in tabular format for each relevant expense caption on the face of the income statement that includes any of the following natural expenses: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion and amortization recognized as part of oil-and gas-producing activities or other types of depletion expenses. This update does not change or remove existing expense disclosure requirements; however, it may affect where that information appears in the footnotes to the financial statements. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the provisions of this guidance.

NOTE 3 REVENUE RECOGNITION

External Net Sales by Product

External net sales by major products were as follows by business segment:

Three Months Ended June 30,Six Months Ended June 30,
In millions
2026202520262025
Europe

Uncoated Papers
$168 $162 $333 $332 
Market Pulp
24 19 47 39 
Europe
192 181 380 371 
Latin America

Uncoated Papers
193 181 360 361 
Market Pulp
10 13 20 26 
Latin America
203 194 380 387 
North America

Uncoated Papers
398 398 772 814 
Market Pulp
13 21 29 43 
North America
411 419 801 857 
Total
$806 $794 $1,561 $1,615 
 
Revenue Contract Balances

A contract asset is created when the Company recognizes revenue on its customized products for which we have an enforceable right to payment. 

A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the customer. The contract liability is reduced when control of the goods is transferred to the customer, satisfying our performance obligation. Contract liabilities of $3 million and $3 million are included in “Other current liabilities” as of June 30, 2026 and December 31, 2025, respectively.

6

The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the difference between the price and quantity at comparable points in time for goods for which we have an unconditional right to payment or receive pre-payment from the customer, respectively.

NOTE 4 EQUITY

A summary of changes in equity for the three and six months ended June 30, 2026 and 2025 is provided below:

Three Months Ended June 30, 2026
In millions
SharesCommon StockPaid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)
Common Stock Held In Treasury, At Cost
Total Equity

Balance, March 31, 2026
46 $46 $93 $2,493 $(1,317)$(336)$979 
Stock-based employee compensation
— — 4 — — — 4 
Share repurchases— — — — — — — 
Dividends ($0.45 per share)
— — — (18)— — (18)
Comprehensive income (loss)
— — — (11)1 — (10)
Balance, June 30, 202646 $46 $97 $2,464 $(1,316)$(336)$955 

Six Months Ended June 30, 2026
In millions
SharesCommon StockPaid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)
Common Stock Held In Treasury, At Cost
Total Equity

Balance, December 31, 2025
46 $46 $89 $2,514 $(1,353)$(330)$966 
Stock-based employee compensation
— — 8 — — (6)2 
Share repurchases— — — — — — 0 
Dividends ($0.90 per share)
— — — (36)— — (36)
Comprehensive income (loss)
— — — (14)37 — 23 
Balance, June 30, 202646 $46 $97 $2,464 $(1,316)$(336)$955 

Three Months Ended June 30, 2025
In millions
SharesCommon StockPaid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)
Common Stock Held In Treasury, At Cost
Total Equity

Balance, March 31, 2025
45 $45 $78 $2,463 $(1,410)$(268)$908 
Stock-based employee compensation
— — 7 — — — 7 
Share repurchases— — — — — (20)(20)
Dividends ($0.45 per share)
— — — (18)— — (18)
Comprehensive income (loss)
— — — 15 67 — 82 
Balance, June 30, 202545 $45 $85 $2,460 $(1,343)$(288)$959 

Six Months Ended June 30, 2025
In millions
SharesCommon StockPaid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)
Common Stock Held In Treasury, At Cost
Total Equity

Balance, December 31, 2024
45 $45 $71 $2,455 $(1,490)$(234)$847 
Share-based employee compensation
— — 14 — — (14)— 
Share repurchases— — — — — (40)(40)
Dividends ($0.90 per share)
— — — (37)— — (37)
Comprehensive income (loss)
— — — 42 147 — 189 
Balance, June 30, 202545 $45 $85 $2,460 $(1,343)$(288)$959 

7

NOTE 5 OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the changes in Accumulated Other Comprehensive Income (Loss) (“AOCI”), net of taxes, reported in the condensed consolidated financial statements:

Three Months Ended June 30,Six Months Ended June 30,
In millions
2026202520262025
Defined Benefit Pension and Postretirement Adjustments

Balance at beginning of period
$(66)$(72)$(67)$(72)
Other comprehensive income (loss) before reclassifications— (1)— (1)
Amounts reclassified from accumulated other comprehensive income (loss)
— 1 1 1 
Balance at end of period
(66)(72)(66)(72)
Change in Cumulative Foreign Currency Translation Adjustments

Balance at beginning of period
(1,253)(1,342)(1,286)(1,420)
Other comprehensive income (loss) before reclassifications
— 69 33 147 
Balance at end of period
(1,253)(1,273)(1,253)(1,273)
Net Gains and Losses on Cash Flow Hedging Derivatives

Balance at beginning of period
2 4 — 2 
Other comprehensive income (loss) before reclassifications
3 — 7 5 
Amounts reclassified from accumulated other comprehensive income (loss)(2)(2)(4)(5)
Balance at end of period
3 2 3 2 
Total Accumulated Other Comprehensive Income (Loss) at End of Period
$(1,316)$(1,343)$(1,316)$(1,343)

NOTE 6 EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potentially dilutive shares of common stock been issued. The dilutive effect of restricted stock units is reflected in diluted earnings (loss) per share by applying the treasury stock method. 

There are no adjustments required to be made to net income (loss) for purposes of computing basic and diluted earnings (loss) per share. 

Basic and diluted earnings (loss) per share are calculated as follows:

Three Months Ended June 30,Six Months Ended June 30,
In millions, except per share amounts
2026202520262025
Net income (loss)
$(11)$15 $(14)$42 
Weighted average common shares outstanding
39.840.639.740.6
Effect of dilutive securities (a)
—0.5—0.7
Weighted average common shares outstanding - assuming dilution
39.841.139.741.3
Earnings (loss) per share - basic
$(0.28)$0.37 $(0.35)$1.03 
Earnings (loss) per share - diluted
$(0.28)$0.37 $(0.35)$1.02 
Anti-dilutive shares (b)
0.50.20.40.1

8

(a)    For the three months and six months ended June 30, 2026, 0.2 million and 0.3 million weighted average shares, respectively, were excluded because their inclusion would have an anti-dilutive effect on net loss per share.
(b) Common stock related to service-based restricted stock units and performance-based restricted stock units were outstanding but excluded from the computation of diluted earnings (loss) per share because their effect would be anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met. 

NOTE 7 SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

Temporary Investments

Temporary investments with an original maturity of three months or less and money market funds with greater than three-month maturities but with the right to redeem without notice are treated as cash equivalents and are stated at cost. Temporary investments totaled $64 million and $63 million at June 30, 2026 and December 31, 2025, respectively.

Accounts and Notes Receivable, Net

Accounts and notes receivable, net, by classification were:

In millions
June 30, 2026December 31, 2025
Accounts and notes receivable:

Trade
$342 $399 
Notes and other
24 25 
Total
$366 $424 

The allowance for expected credit losses was $18 million and $17 million at June 30, 2026 and December 31, 2025, respectively. Based on the Company’s accounting estimates and the facts and circumstances available as of the reporting date, we believe our allowance for expected credit losses is adequate. 

Inventories

In millions
June 30, 2026December 31, 2025
Raw materials
$70 $69 
Finished paper and pulp products
299 217 
Operating supplies
124 122 
Other
10 10 
Total
$503 $418 

Plants, Properties and Equipment, Net

Accumulated depreciation was $4.0 billion and $3.9 billion at June 30, 2026 and December 31, 2025, respectively. Depreciation expense was $33 million and $33 million for the three months and $66 million and $66 million for the six months ended June 30, 2026 and 2025, respectively.

Additions to plants, property and equipment included within “Accounts payable” were $18 million and $20 million at June 30, 2026 and December 31, 2025, respectively.

9

Forestlands

Depletion expense, recorded within “Depreciation, amortization and cost of timber harvested”, was $10 million and $11 million for the three months and $17 million and $18 million for the six months ended June 30, 2026 and 2025, respectively.

Accounts Payable

The Company maintains supplier finance agreements with third-party financial institutions. These agreements allow the Company’s participating suppliers to sell their receivables to such third-party financial institutions to receive payment earlier than the negotiated commercial terms between the supplier and the Company. Such sales are at the sole discretion of the supplier, and on terms and conditions that are negotiated between the supplier and the respective financial institution. The terms and conditions of the supplier invoice, including payment terms and amounts due, are not impacted by a supplier’s participation in the program. Pursuant to the supplier finance agreements, the Company has agreed to pay financial institutions on the original due date of the applicable invoice. There are no guarantees associated with these programs. The Company's outstanding obligations to financial institutions related to supplier financing programs were $10 million and $3 million as of June 30, 2026 and December 31, 2025, respectively.

Interest Expense, Net

Interest payments of $26 million and $24 million were made during the six months ended June 30, 2026 and 2025, respectively. 

Amounts related to interest were as follows:

Three Months Ended June 30,Six Months Ended June 30,
In millions
2026202520262025
Interest expense (a)
$15 $12 $27 $24 
Interest income
(2)(1)(4)(3)
Capitalized interest costs
(2)(1)(3)(2)
Total
$11 $10 $20 $19 

(a) Interest expense for the three and six months ended June 30, 2026 includes $2 million of debt extinguishment cost related to the repayment of Term Loan F. 

Asset Retirement Obligations

As of June 30, 2026 and December 31, 2025, we have recorded liabilities of $29 million and $29 million, respectively, related to asset retirement obligations. These amounts are included in “Other liabilities.” For asset retirement obligations which are conditional upon future events, we cannot reasonably estimate the current fair value of those potential obligations due to the uncertainty as to the timing or amounts that may be incurred.

NOTE 8 LEASES 

The Company 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 15 years. Total lease cost was $16 million and $15 million for the three months and $31 million and $30 million for the six months ended June 30, 2026 and 2025, respectively.

10

Supplemental Balance Sheet Information Related to Leases

In millions
Classification
June 30,
2026December 31, 2025
Assets

Operating lease assets
Right of use assets$60 $48 
Finance lease assets
Plants, properties, and equipment, net (a)
19 20 
Total leased assets
$79 $68 
Liabilities

Current

Operating
Other current liabilities$21 $21 
Finance
Notes payable and current maturities of long-term debt3 3 
Noncurrent

Operating
Other Liabilities45 34 
Finance
Long-term debt11 12 
Total lease liabilities
$80 $70 

(a)Finance leases are recorded net of accumulated amortization of $22 million and $20 million as of June 30, 2026 and December 31, 2025, respectively.

NOTE 9 GOODWILL

The following table presents changes in the goodwill balance as allocated to each business segment for the six months ended June 30, 2026:

In millions
Europe
Latin 
America
North 
America
Total

Balance as of December 31, 2025
Goodwill
$13 $114 $— $127 
Accumulated impairment losses
(13)— — (13)
— 114 — 114 
Currency translation and other 
— 7 — 7 
Balance as of June 30, 2026
Goodwill
13 121 — 134 
Accumulated impairment losses
(13)— — (13)
Total
$— $121 $— $121 

 NOTE 10 INCOME TAXES
An income tax provision of $12 million and $9 million was recorded for the three and six months ended June 30, 2026, respectively, and the reported effective income tax rate was 1200% and (180)%, respectively. The effective income tax rate for these periods was primarily driven by a $12 million valuation allowance on certain foreign deferred tax assets which are not expected to be realized due to a planned internal merger. An income tax provision of $5 million and $11 million was recorded for the three and six months ended June 30, 2025, respectively, and the reported effective income tax rate was 25% and 21%, respectively.

The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by International Paper do Brasil Ltda., now named Sylvamo do Brasil Ltda. (“Sylvamo Brasil”), a wholly-owned subsidiary of the Company (the “Brazil Tax Dispute”). Sylvamo Brasil received assessments for the tax years 2007-2015 totaling approximately $113 million in tax, and $321 million in interest, penalties and fees as of June 30, 2026 (adjusted for variation in currency exchange rates). International Paper challenged and is managing the litigation of this matter pursuant to the Tax Matters Agreement between us and International Paper. After a previous favorable ruling challenging the basis for these 
11

assessments, Sylvamo Brasil received other subsequent unfavorable decisions from the Brazilian Administrative Council of Tax Appeals. These decisions are being appealed. The appeal involves several separate cases. In October 2024, at the first level of appeal in the Brazilian federal court system, the court ruled in favor of Sylvamo Brasil in cases covering approximately two thirds of the disputed amounts. The Brazilian tax authorities have appealed the favorable ruling. One third of the disputed amounts was under challenge at the Brazilian administrative court level and was not part of the ruling. In November 2025, the administrative court upheld the assessments for the remaining one third of the disputed amounts. In January 2026, Sylvamo Brasil’s challenge of the administrative ruling was filed in the Brazilian federal court system. This tax litigation matter may take