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Sales and Other Operating Revenues
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
Note 24—Sales and Other Operating Revenues
 
 
Revenue from Contracts with Customers
 
The following table provides further disaggregation
 
of our consolidated sales and other operating revenues:
Millions of Dollars
2019
2018
2017
Revenue from contracts with customers
$
26,106
28,098
20,525
Revenue from contracts outside the scope of ASC
 
Topic 606
Physical contracts meeting the definition of a derivative
6,558
8,218
8,669
Financial derivative contracts
(97)
101
(88)
Consolidated sales and other operating revenues
$
32,567
36,417
29,106
Revenues from contracts outside the scope of ASC
 
Topic 606 relate primarily to physical gas contracts at
market prices which qualify as derivatives accounted
 
for under ASC Topic 815, “Derivatives and Hedging,”
and for which we have not elected NPNS.
 
There is no significant difference in contractual terms
 
or the policy
for recognition of revenue from these contracts
 
and those within the scope of ASC Topic 606.
 
The following
disaggregation of revenues is provided in conjunction
 
with Note 25—Segment Disclosures and Related
Information:
Millions of Dollars
2019
2018
2017
Revenue from Outside the Scope of ASC Topic 606
by Segment
Lower 48
$
4,989
6,358
6,302
Canada
691
629
864
Europe, Middle East and North Africa
878
1,231
1,503
Physical contracts meeting the definition of a derivative
$
6,558
8,218
8,669
Millions of Dollars
2019
2018
2017
Revenue from Outside the Scope of ASC Topic 606
by Product
Crude oil
$
804
1,112
588
Natural gas
5,313
6,734
7,811
Other
441
372
270
Physical contracts meeting the definition of a derivative
$
6,558
8,218
8,669
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 from Contracts with Customers
At December 31, 2019, the “Accounts and notes receivable”
 
line on our consolidated balance sheet
 
included
trade receivables of $
2,372
 
million compared with $
2,889
 
million at December 31, 2018, and included 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
 
with 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.
Millions of
Dollars
Contract Liabilities
At December 31, 2018
$
206
Contractual payments received
73
Revenue recognized
(199)
At December 31, 2019
$
80
We expect to recognize the contract liabilities as of December 31, 2019, as revenue during 2021 and 2022.