REVENUE (Notes)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE

Revenue Recognition

The majority of the Company's revenue is derived from product sales. The Company's revenue related to product sales was 99 percent for the three months ended March 31, 2023 and March 31, 2022. The remaining sales were primarily related to the Company's insurance operations and licensing of patents and technologies. Product sales consist of sales of the Company's products to manufacturers and distributors. The Company considers order confirmations or purchase orders, which in some cases are governed by master supply agreements, to be contracts with a customer. The Company enters into licensing arrangements in which it licenses certain rights of its patents and technology to customers. Revenue from the Company’s licenses for patents and technology is derived from sales-based royalties and licensing arrangements based on billing schedules established in each contract.

Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to unsatisfied or partially unsatisfied performance obligations. At March 31, 2023, the Company had unfulfilled performance obligations of $963 million ($840 million at December 31, 2022) related to the licensing of technology. The Company expects revenue to be recognized for the remaining performance obligations over the next seven years.

The remaining performance obligations are for product sales that have expected durations of one year or less, product sales of materials delivered through a pipeline for which the Company has elected the right to invoice practical expedient, or variable consideration attributable to royalties for licenses of patents and technology. The Company has received advance payments from customers related to long-term supply agreements that are deferred and recognized over the life of the contract, with remaining contract terms that range up to 17 years. The Company will have rights to future consideration for revenue recognized when product is delivered to the customer. These payments are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets.

Disaggregation of Revenue

The Company disaggregates its revenue from contracts with customers by operating segment and business, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See details in the tables below:

Net Trade Sales by Segment and Business	Three Months Ended
In millions	Mar 31, 2023		Mar 31, 2022
Hydrocarbons & Energy	$	1,874	$	2,416
Packaging and Specialty Plastics	4,240		5,211
Packaging & Specialty Plastics	$	6,114	$	7,627
Industrial Solutions	$	1,139	$	1,515
Polyurethanes & Construction Chemicals	2,234		3,005
Other	5		4
Industrial Intermediates & Infrastructure	$	3,378	$	4,524
Coatings & Performance Monomers	$	858	$	1,075
Consumer Solutions	1,418		1,974
Performance Materials & Coatings	$	2,276	$	3,049
Corporate	$	83	$	64
Total	$	11,851	$	15,264

Net Trade Sales by Geographic Region	Three Months Ended
In millions	Mar 31, 2023		Mar 31, 2022
U.S. & Canada	$	4,450	$	5,537
EMEAI 1	4,053		5,512
Asia Pacific	2,047		2,753
Latin America	1,301		1,462
Total	$	11,851	$	15,264

1.Europe, Middle East, Africa and India.

Contract Assets and Liabilities

The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company's contractual right to consideration for completed performance obligations not yet invoiced. Contract liabilities include payments received in advance of performance under the contract and are recognized in revenue when the performance obligations are met. "Contract liabilities - current" primarily reflects deferred revenue from prepayments from customers for product to be delivered in 12 months or less and royalty payments that are deferred and will be recognized in 12 months or less. "Contract liabilities - noncurrent" includes advance payments that the Company has received from customers related to long-term supply agreements and royalty payments that are deferred and recognized over the life of the contract.

Revenue recognized in the first three months of 2023 from amounts included in contract liabilities at the beginning of the period was approximately $40 million (approximately $65 million in the first three months of 2022). In the first three months of 2023, the amount of contract assets reclassified to receivables as a result of the right to the transaction consideration becoming unconditional was approximately $30 million (insignificant in the first three months of 2022).

The following table summarizes contract assets and liabilities at March 31, 2023 and December 31, 2022:

Contract Assets and Liabilities	Balance Sheet Classification	Mar 31, 2023		Dec 31, 2022
In millions
Accounts and notes receivable - trade	Accounts and notes receivable - trade	$	5,740	$	5,611
Contract assets - current	Other current assets	$	21	$	48
Contract assets - noncurrent	Deferred charges and other assets	$	16	$	16
Contract liabilities - current	Accrued and other current liabilities	$	293	$	275
Contract liabilities - noncurrent	Other noncurrent obligations	$	1,740	$	1,725