Revenue from Contracts With Customers

6 Months Ended

Jun. 30, 2024

Revenue from Contracts with Customers

Revenue from Contracts with Customers

5.     Revenue from Contracts with Customers

The following table disaggregates the company’s net sales based on the timing of transfer of control:

	Three Months Ended June 30,						Six Months Ended June 30,
($ in millions)	Point in Time		Over Time		Total		Point in Time		Over Time		Total
2024	$	627	$	2,332	$	2,959	$	1,183	$	4,650	$	5,833
2023		557		2,510		3,067		1,099		4,949		6,048

Contract Balances

The company did not have any contract assets at either June 30, 2024, or December 31, 2023. Unbilled receivables, which are not classified as contract assets, represent arrangements in which sales have been recorded prior to billing and right to payment is unconditional.

The opening and closing balances of the company’s current and noncurrent contract liabilities are as follows:

	Contract		Contract
	Liabilities		Liabilities
($ in millions)	(Current)		(Noncurrent)
Balance at December 31, 2023	$	114	$	3
Increase (decrease)		(38)		(1)
Balance at June 30, 2024	$	76	$	2

During the six months ended June 30, 2024, contract liabilities decreased by $39 million, which is net of cash received of $84 million and amounts recognized as sales of $123 million, the majority of which related to current contract liabilities. The amount of sales recognized in the six months ended June 30, 2024, that was included in the opening contract liabilities balance, was $114 million, all of which related to current contract liabilities. The difference between the opening and closing balances of the company’s contract liabilities primarily results from timing differences between the company’s performance and the customer’s payments. Current contract liabilities are classified within other current liabilities on the unaudited condensed consolidated balance sheets and noncurrent contract liabilities are classified within other liabilities.