Revenue Recognition (Note)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

DISAGGREGATED REVENUE

	2023
Reportable Segments	Industrial Packaging		Global Cellulose Fibers		Corporate & Intersegment		Total
Primary Geographical Markets (a)
United States	$	13,340	$	2,570	$	430	$	16,340
EMEA	1,398		96		—		1,494
Pacific Rim and Asia	37		224		—		261
Americas, other than U.S.	821		—		—		821
Total	$	15,596	$	2,890	$	430	$	18,916
Operating Segments
North American Industrial Packaging	$	14,293	$	—	$	—	$	14,293
EMEA Industrial Packaging	1,398		—		—		1,398
Global Cellulose Fibers	—		2,890		—		2,890
Intrasegment Eliminations	(95)		—		—		(95)
Corporate & Intersegment Sales	—		—		430		430
Total	$	15,596	$	2,890	$	430	$	18,916

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

	2022
Reportable Segments	Industrial Packaging		Global Cellulose Fibers		Corporate & Intersegment		Total
Primary Geographical Markets (a)
United States	$	14,970	$	3,032	$	480	$	18,482
EMEA	1,572		121		—		1,693
Pacific Rim and Asia	46		74		3		123
Americas, other than U.S.	863		—		—		863
Total	$	17,451	$	3,227	$	483	$	21,161
Operating Segments
North American Industrial Packaging	$	16,011	$	—	$	—	$	16,011
EMEA Industrial Packaging	1,572		—		—		1,572
Global Cellulose Fibers	—		3,227		—		3,227
Intrasegment Eliminations	(132)		—		—		(132)
Corporate & Intersegment Sales	—		—		483		483
Total	$	17,451	$	3,227	$	483	$	21,161

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

	2021
Reportable Segments	Industrial Packaging		Global Cellulose Fibers		Corporate & Intersegment		Total
Primary Geographical Markets (a)
United States	$	14,006	$	2,510	$	253	$	16,769
EMEA	1,506		109		(4)		1,611
Pacific Rim and Asia	59		113		35		207
Americas, other than U.S.	755		—		21		776
Total	$	16,326	$	2,732	$	305	$	19,363
Operating Segments
North American Industrial Packaging	$	14,944	$	—	$	—	$	14,944
EMEA Industrial Packaging	1,508		—		—		1,508
Global Cellulose Fibers	—		2,732		—		2,732
Intrasegment Eliminations	(126)		—		—		(126)
Corporate & Intersegment Sales	—		—		305		305
Total	$	16,326	$	2,732	$	305	$	19,363

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

REVENUE CONTRACT BALANCES

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. Current liabilities of $32 million and $38 million are included in Other current liabilities in the accompanying consolidated balance sheet as of December 31, 2023 and 2022, respectively. The Company also recorded a contract liability of $115 million related to a previous acquisition. The balance of this contract liability was $92 million and $99 million at December 31, 2023 and 2022, respectively, and is recorded in Other current liabilities and Other Liabilities in the accompanying consolidated balance sheet.

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 prepayment from the customer, respectively.

PERFORMANCE OBLIGATIONS AND SIGNIFICANT JUDGMENTS

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