v3.21.2
Sales and Other Operating Revenues (Policy)
 9 Months Ended
Sep. 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
they 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 September 30, 2021, the “Accounts
 
and notes receivable” line on our consolidated
 
balance sheet, includes
trade receivables of $
4,262
 
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.