Revenue Recognition (Note)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

DISAGGREGATED REVENUE

A geographic disaggregation of revenues across our company segmentation in the following tables provides information to assist in evaluating the nature, timing and uncertainty of revenue and cash flows and how they may be impacted by economic factors.

	2019
Reportable Segments	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate & Intersegment			Total
Primary Geographical Markets (a)
United States	$	12,668		$	2,148	$	1,912		$	220		$	16,948
EMEA	1,692			254		1,323			(11		)	3,258
Pacific Rim and Asia	65			149		189			12			415
Americas, other than U.S.	901			—		867			(13		)	1,755
Total	$	15,326		$	2,551	$	4,291		$	208		$	22,376
Operating Segments
North American Industrial Packaging	$	13,509		$	—	$	—		$	—		$	13,509
EMEA Industrial Packaging	1,335			—		—			—			1,335
Brazilian Industrial Packaging	235			—		—			—			235
European Coated Paperboard	365			—		—			—			365
Global Cellulose Fibers	—			2,551		—			—			2,551
North American Printing Papers	—			—		1,956			—			1,956
Brazilian Papers	—			—		967			—			967
European Papers	—			—		1,250			—			1,250
Indian Papers	—			—		160			—			160
Intra-segment Eliminations	(118		)	—		(42		)	—			(160		)
Corporate & Inter-segment Sales	—			—		—			208			208
Total	$	15,326		$	2,551	$	4,291		$	208		$	22,376

(a) Net sales are attributed to countries based on the location of the reportable segment making the sale.

	2018
Reportable Segments	Industrial Packaging			Global Cellulose Fibers		Printing Papers			Corporate & Intersegment			Total
Primary Geographical Markets (a)
United States	$	13,167		$	2,336	$	1,903		$	203		$	17,609
EMEA	1,704			304		1,330			(17		)	3,321
Pacific Rim and Asia	142			179		245			39			605
Americas, other than U.S.	887			—		897			(13		)	1,771
Total	$	15,900		$	2,819	$	4,375		$	212		$	23,306
Operating Segments
North American Industrial Packaging	$	14,187		$	—	$	—		$	—		$	14,187
EMEA Industrial Packaging	1,355			—		—			—			1,355
Brazilian Industrial Packaging	232			—		—			—			232
European Coated Paperboard	359			—		—			—			359
Global Cellulose Fibers	—			2,819		—			—			2,819
North American Printing Papers	—			—		1,956			—			1,956
Brazilian Papers	—			—		978			—			978
European Papers	—			—		1,252			—			1,252
Indian Papers	—			—		202			—			202
Intra-segment Eliminations	(233		)	—		(13		)	—			(246		)
Corporate & Inter-segment Sales	—			—		—			212			212
Total	$	15,900		$	2,819	$	4,375		$	212		$	23,306

(a) Net sales are attributed to countries based on the location of the reportable segment making the sale.

REVENUE CONTRACT BALANCES

The opening and closing balances of the Company's contract assets and current contract liabilities are as follows:

In millions	Contract Assets (Short-Term)			Contract Liabilities (Short-Term)
Beginning Balance - January 1, 2019	$	395		$	56
Ending Balance - December 31, 2019	393			56
Increase / (Decrease)	$	(2	)	$	—

A contract asset is created when the Company recognizes revenue on its customized products prior to having an unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes to the customer.

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 once control of the goods is transferred to the customer. 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.

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.

PERFORMANCE OBLIGATIONS AND SIGNIFICANT JUDGEMENTS

International Paper's principal business is to manufacture and sell fiber-based packaging, pulp and paper goods. As a general rule, none of our businesses provide equipment installation or other ancillary services outside of producing and shipping packaging, pulp and paper goods to customers.

The nature of the Company's contracts can vary based on the business, customer type and region; however, in all instances it is International Paper's customary business practice to receive a valid order from the

customer, in which each parties' rights and related payment terms are clearly identifiable.

Contracts or purchase orders with customers could include a single type of product or it could include multiple types/grades of products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contracts or purchase orders. The Company does not

bundle prices; however, we do negotiate with customers

on pricing and rebates for the same products based on a variety of factors (e.g. level of contractual volume, geographical location, etc.). Management has concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product.