REVENUE RECOGNITION

9 Months Ended

Sep. 30, 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 business segment:

	Three Months Ended September 30				Nine Months Ended September 30
In millions	2022		2021		2022		2021
Europe
Uncoated Papers	$	103	$	62	$	305	$	184
Market Pulp	27		18		77		61
Europe	130		80		382		245
Latin America
Uncoated Papers	249		187		673		520
Market Pulp	—		13		—		37
Latin America	249		200		673		557
North America
Uncoated Papers	569		429		1,582		1,194
Market Pulp	20		22		64		54
North America	589		451		1,646		1,248
Total	$	968	$	731	$	2,701	$	2,050

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 $1 million each are included in “Other current liabilities” as of September 30, 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.