Contract Liabilities

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Contract Liabilities [Text Block]

NOTE 5: CONTRACT LIABILITIES

(In Millions)	Jun 30, 2018		Opening Balance as of Dec 31, 2017
Contract liabilities from prepaid supply agreements	$	2,704	$	105
Contract liabilities from software, services and other	115		195
Total contract liabilities	$	2,819	$	300

Contract liabilities are primarily related to partial prepayments received from customers on long term supply agreements towards future NSG product delivery. As new prepaid supply agreements are entered into and performance obligations are negotiated, this component of the contract liability balance will increase, and as customers purchase product and utilize their prepaid balances, the balance will decrease. The short-term portion of prepayments from supply agreements is reported on the consolidated condensed balance sheets within other accrued liabilities.

The following table shows the changes in contract liability balances relating to prepaid supply agreements during the first six months of 2018:

(In Millions)
Prepaid supply agreements balance as of Dec 31, 2017	$	105
Additions and adjustments	2,723
Revenue recognized	(124		)
Prepaid supply agreements balance as of Jun 30, 2018	$	2,704

Additions in the first six months of 2018 include a $1.0 billionreclassification from customer deposits previously included in other long-term liabilities. The long-term supply agreements represent $5.0 billion in future anticipated revenues with 4% expected to be recognized during the current year and the remainder ratably over the next five years.