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Revenue From Contracts with Customers | 6 Months Ended
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Jun. 30, 2020
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue The following table provides information about disaggregated revenue by type of product and contract for the three and six months ended months ended June 30, 2020 and 2019:
| For the Three Months Ended June 30, |  |  |  | For the Six Months Ended June 30, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
| (Dollars in thousands) |  |  |  |  |  |
Graphite Electrodes - Three-to-five-year take-or-pay contracts | $ | 245,010 |  |  | $ | 377,605 |  |  | $ | 521,389 |  |  | $ | 773,645 |
Graphite Electrodes - Short-term agreements and spot sales | 30,111 |  |  | 76,249 |  |  | 60,929 |  |  | 123,545 |
By-products and other | 5,597 |  |  | 26,536 |  |  | 17,046 |  |  | 58,194 |
Total Revenues | $ | 280,718 |  |  | $ | 480,390 |  |  | $ | 599,364 |  |  | $ | 955,384 |
The Graphite Electrodes revenue categories include only graphite electrodes manufactured by GrafTech. The revenue category “By-products and Other” includes re-sales of low-grade electrodes purchased from third party suppliers, which represent a minimal contribution to our profitability. Contract Balances Receivables, net of allowances for doubtful accounts, were $181.3 million as of June 30, 2020 and $247.1 million as of December 31, 2019. Accounts receivables are recorded when the right to consideration becomes unconditional. Payment terms on invoices range from 30 to 120 days depending on the customary business practices of the jurisdictions in which we do business. Certain short-term and longer-term sales contracts require up-front payments prior to the Company’s fulfillment of any performance obligation. These contract liabilities are recorded as current or long-term deferred revenue, depending on the lag between the pre-payment and the expected delivery of the related products. Additionally, under ASC 606, deferred revenue originates from contracts where the allocation of the transaction price to the performance obligations based on their relative stand-alone selling prices results in the timing of revenue recognition being different from the timing of the invoicing. In this case, deferred revenue is amortized into revenue based on the transaction price allocated to the remaining performance obligations. Current deferred revenue is included in "Other accrued liabilities" and long-term deferred revenue is included in "Other long-term obligations" on the Condensed Consolidated Balance Sheets. The following table provides information about deferred revenue from contracts with customers (in thousands):
| Current deferred revenue |  | Long-Term deferred revenue
| (Dollars in thousands) |  |
Balance as of December 31, 2019 | $ | 11,776 |  |  | $ | 3,858 |
Increases due to cash received | 9,691 |  |  | — |
Revenue recognized | (2,327) |  |  | — |
Foreign currency impact | (870) |  |  | — |
Balance as of June 30, 2020 | $ | 18,270 |  |  | $ | 3,858 |
Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2019, under its long-term take-or-pay contracts, the Company expected to record revenues of $1,251 million for 2020. We now estimate that our long-term contract revenue in 2020 will be in the range of $950 million to $1,100 million. We recorded $521 million in the first six months and we expect to record approximately $430 million to $580 million for the remainder of 2020. The decreased expectation for 2020 includes the impact of the force majeure notices associated with the COVID-19 induced shutdowns of customers’ facilities as well as non-performance by certain other customers struggling with the impact of reduced steel demand. We expect that some of this decrease in 2020 long-term contract revenue will be recovered in future years. Our contractual revenue for future years is $1,210 million for 2021, $1,144 million for 2022 and $49 million for 2023 and thereafter. The majority of the long-term take-or-pay contracts are defined as pre-determined fixed annual volume contracts while a small portion are defined with a specified volume range. For the year 2021 and beyond, the contractual revenue amounts above are based upon the mid-point of the volume range for those contracts with specified ranges. The actual revenue realized from these contracted volumes may vary in timing and total due to the credit risk associated with certain customers facing financial challenges, non-performance on contracts, as well as customer demand related to contracted volume ranges.
Disaggregation of Revenue [Table Text Block] | The following table provides information about disaggregated revenue by type of product and contract for the three and six months ended months ended June 30, 2020 and 2019:
| For the Three Months Ended June 30, |  |  |  | For the Six Months Ended June 30, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
| (Dollars in thousands) |  |  |  |  |  |
Graphite Electrodes - Three-to-five-year take-or-pay contracts | $ | 245,010 |  |  | $ | 377,605 |  |  | $ | 521,389 |  |  | $ | 773,645 |
Graphite Electrodes - Short-term agreements and spot sales | 30,111 |  |  | 76,249 |  |  | 60,929 |  |  | 123,545 |
By-products and other | 5,597 |  |  | 26,536 |  |  | 17,046 |  |  | 58,194 |
Total Revenues | $ | 280,718 |  |  | $ | 480,390 |  |  | $ | 599,364 |  |  | $ | 955,384 |

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- Definition Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045 + Details
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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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