INTERNATIONAL PAPER CO /NEW/ | 2013 | FY | 3


TEMPORARY INVESTMENTS 
In millions at December 31
2013

2012

Temporary Investments
$
1,398

$
934



ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net of allowances, by classification were: 
In millions at December 31
2013

2012

Accounts and notes receivable:
 
 
Trade
$
3,497

$
3,316

Other
259

246

Total
$
3,756

$
3,562



INVENTORIES 
In millions at December 31
2013

2012

Raw materials
$
372

$
360

Finished pulp, paper and packaging products
1,834

1,728

Operating supplies
572

588

Other
47

54

Inventories
$
2,825

$
2,730



The last-in, first-out inventory method is used to value most of International Paper’s U.S. inventories. Approximately 75% of total raw materials and finished products inventories were valued using this method. If the first-in, first-out method had been used, it would have increased total inventory balances by approximately $417 million and $381 million at December 31, 2013 and 2012, respectively.

PLANTS, PROPERTIES AND EQUIPMENT 
In millions at December 31
2013

2012

Pulp, paper and packaging facilities
 
 
Mills
$
22,105

$
23,625

Packaging plants
10,163

7,184

Other plants, properties and equipment
1,478

2,074

Gross cost
33,746

32,883

Less: Accumulated depreciation
20,074

18,934

Plants, properties and equipment, net
$
13,672

$
13,949


 
In millions
2013

2012

2011

Depreciation expense
$
1,423

$
1,399

$
1,263



INTEREST

Cash payments related to interest were as follows: 
In millions
2013

2012

2011

Interest payments
$
751

$
740

$
629



Amounts related to interest were as follows: 
In millions
2013

2012

2011

Interest expense (a)
$
669

$
743

$
596

Interest income (a)
57

71

55

Capitalized interest costs
17

37

22


(a)
Interest expense and interest income exclude approximately $45 million, $49 million and $49 million in 2013, 2012 and 2011, respectively, related to investments in and borrowings from variable interest entities for which the Company has a legal right of offset (see Note 12).

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