v3.21.2
Sales and Other Operating Revenue (Policy)
 6 Months Ended
Jun. 30, 2021
Sales and Other Operating Revenues [Abstract]  
Practical Expedients
Practical Expedients
Typically,
 
our commodity sales contracts are less than
 
12 months in duration; however, in certain specific
cases may extend longer, which may be out to the end of
 
field life.
 
We have long-term commodity sales
contracts which use prevailing market prices at the time of delivery, and under these contracts, the market-
based variable consideration for each performance obligation (i.e., delivery of commodity) is allocated to each
wholly unsatisfied performance obligation within the contract.
 
Accordingly,
we have applied the practical
expedient allowed in ASC Topic 606 and do not disclose the aggregate amount of the transaction price
allocated to performance obligations or when we expect to recognize revenues that are unsatisfied (or partially
unsatisfied) as of the end of the reporting period.
Receivables and Contract Liabilities
Receivables and Contract Liabilities
Receivables from Contracts with Customers
At June 30, 2021, the “Accounts and notes receivable”
 
line on our consolidated balance sheet,
 
includes trade
receivables of $
3,504
 
million compared with $
1,827
 
million at December 31, 2020, and includes
 
both
contracts with customers within the scope of ASC
 
Topic 606 and those that are outside the scope of ASC
Topic 606.
 
We typically receive payment within 30 days or less (depending on the terms of the invoice) once
delivery is made.
 
Revenues that are outside the scope of ASC Topic 606 relate primarily to
 
physical gas sales
contracts at market prices for which we do not
 
elect NPNS and are therefore accounted for
 
as a derivative
under ASC Topic 815.
 
There is little distinction in the nature
 
of the customer or credit quality of trade
receivables associated with gas sold under contracts
 
for which NPNS has not been elected
 
compared to trade
receivables where NPNS has been elected.
 
Contract Liabilities from Contracts with Customers
We have entered into contractual arrangements where we license proprietary technology
 
to customers related
to the optimization process for operating LNG
 
plants.
 
The agreements typically provide for negotiated
payments to be made at stated milestones.
 
The payments are not directly related to our
 
performance under the
contract and are recorded as deferred revenue
 
to be recognized as revenue when the customer
 
can utilize and
benefit from their right to use the license.
 
Payments are received in installments over the construction period.