Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

The Company has certain contracts that represent take-or-pay revenue arrangements in which the Company's performance obligations extend over multiple years. As of June 30, 2019, the Company had $712 million of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $154 million of its remaining performance obligations as Net sales in 2019, $203 million in 2020, $151 million in 2021 and the balance thereafter.

Contract Balances

Contract liabilities primarily relate to advances or deposits received from the Company's customers before revenue is recognized. These amounts are recorded as deferred revenue and are included in Noncurrent Other liabilities in the unaudited consolidated balance sheets (Note 9).

The Company does not have any material contract assets as of June 30, 2019.

Disaggregated Revenue

In general, the Company's business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment's results of operations.

The Company manages its Engineered Materials business segment through its project management pipeline, which is comprised of a broad range of projects which are solutions-based and are tailored to each customers' unique needs. Projects are identified and selected based on success rate and may involve a number of different polymers per project for use in multiple end-use applications. Therefore, the Company is agnostic toward products and end-use markets for the Engineered Materials business segment.

Within the Acetate Tow business segment, the Company's primary product is acetate tow, which is managed through contracts with a few major tobacco companies and accounts for a significant amount of filters used in cigarette production worldwide.

The Company manages its Acetyl Chain business segment by leveraging its ability to sell chemicals externally to end-use markets or downstream to its emulsion polymers business. Decisions to sell externally and geographically or downstream and along the Acetyl Chain are based on market demand, trade flows and maximizing the value of its chemicals. Therefore, the Company's strategic focus is on executing within this integrated chain model and less on driving product-specific revenue.

Further disaggregation of Net sales by business segment and geographic destination is as follows:



	Three Months Ended June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
	(In $ millions)
Engineered Materials
North America	180	191	376	370
Europe and Africa	269	331	571	668
Asia-Pacific	126	126	274	258
South America	18	16	35	33
Total	593	664	1,256	1,329

Acetate Tow
North America	33	33	67	68
Europe and Africa	67	48	130	118
Asia-Pacific	56	68	116	119
South America	8	13	17	25
Total	164	162	330	330

Acetyl Chain
North America	278	285	564	575
Europe and Africa	282	339	576	656
Asia-Pacific	252	362	508	740
South America	23	32	45	65
Total⁽¹⁾	835	1,018	1,693	2,036

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Excludes intersegment sales of $30 million and $31 million for the three months ended June 30, 2019 and 2018, respectively. Excludes intersegment sales of $61 million and $64 million for the six months ended June 30, 2019 and 2018, respectively.