Revenue From Contracts With Customers

12 Months Ended

Dec. 31, 2021

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 Year Ended December 31,
	2021		2020		2019
	(Dollars in thousands)
Graphite Electrodes - LTAs	$	1,040,214	$	1,069,772	$	1,437,354
Graphite Electrodes - Non-LTAs	258,426		123,845		260,979
By-products and other	47,148		30,744		92,460
Total Revenues	$	1,345,788	$	1,224,361	$	1,790,793

    The Graphite Electrodes revenue categories include only graphite electrodes manufactured by GrafTech. The revenue category “By-products and other" also includes re-sales of low-grade electrodes purchased from third-party suppliers, which represent a minimal contribution to our profitability.

Contract Balances

Substantially all the Company's receivables relate to contracts with customers. 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, deferred revenue or contract assets originate 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 and contract assets are realized through the contract invoicing.

    Contract assets as of December 31, 2021 were $1.2 million, which are included in "Prepaid expenses and other current assets", on the Consolidated Balance Sheets. Contract assets as of December 31, 2020 were $2.7 million, of which $1.5 million and $1.2 million are included in "Prepaid expenses and other current assets" and "Other assets," respectively, on the Consolidated Balance Sheets.

The following table provides information about deferred revenue from contracts with customers. Current deferred revenue is included in "Other accrued liabilities" and long-term deferred revenue is included in "Other long-term obligations" on the Consolidated Balance Sheets.

	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	10,110		—
Revenue recognized	(6,270)		—
Reclassification between long-term and current	(1,804)		1,804
Foreign currency impact	(756)		—
Balance as of December 31, 2020	13,056		5,662
Increases due to cash received	32,466		—
Revenue recognized	(37,030)		—
Reclassification between long-term and current	1,359		(1,359)
Foreign currency impact	(11)		—
Balance as of December 31, 2021	$	9,840	$	4,303

Transaction Price Allocated to the Remaining Performance Obligations

The following table presents estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of reporting period. The estimated revenues do not include contracts with original duration of one year or less. The remaining revenue associated with our LTAs is expected to be approximately as follows:

	2022	2023 through 2024
Estimated LTA revenue	$910-$1,010	$350-$450(1)

(1) Includes expected termination fees from a few customers that have failed to meet certain obligations under their LTAs.

The majority of the LTAs are defined as pre-determined fixed annual volume contracts while a small portion are defined with a specified volume range. For the year 2022 and beyond, the contractual revenue amounts above are based upon the minimum volume for those contracts with specified ranges. The actual revenue realized from these contracted volumes may vary in timing and total due to contract non-performance, arbitrations, credit risk associated with certain customers facing financial challenges and customer demand related to contracted volume ranges.

    In addition to the expected remaining revenue to be recognized with the LTAs, the Company recorded $1,040.2 million, $1,069.8 million and $1,437.4 million of revenue pursuant to these contracts in the year ended December 31, 2021, 2020 and 2019, respectively.