REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

External Net Sales by Product

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

	Three Months Ended March 31,
In millions	2022		2021
Europe
Uncoated Papers	$	207	$	180
Coated Paperboard / Other	26		25
Market Pulp	40		39
Europe	273		244
Latin America
Uncoated Papers	196		143
Market Pulp	—		13
Latin America	196		156
North America
Uncoated Papers	486		362
Market Pulp	22		16
North America	508		378
Total	$	977	$	778

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. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months. Contract liabilities of $11 million and $17 million are included in “Other current liabilities” as of March 31, 2022 and December 31, 2021, respectively.

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 which we have an unconditional right to payment or receive pre-payment from the customer, respectively.