Revenue Recognition

6 Months Ended

Jun. 30, 2020

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, 2020, the Company had $619 million of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $99 million of its remaining performance obligations as Net sales in 2020, $186 million in 2021, $126 million in 2022 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 7).

The Company does not have any material contract assets as of June 30, 2020.

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,
	2020	2019	2020	2019
	(In $ millions)
Engineered Materials
North America	111	180	273	376
Europe and Africa	183	269	443	571
Asia-Pacific	117	126	240	274
South America	9	18	27	35
Total	420	593	983	1,256

Acetate Tow
North America	27	33	48	67
Europe and Africa	68	67	139	130
Asia-Pacific	29	56	61	116
South America	3	8	8	17
Total	127	164	256	330

Acetyl Chain
North America	208	278	482	564
Europe and Africa	236	282	502	576
Asia-Pacific	190	252	397	508
South America	12	23	33	45
Total⁽¹⁾	646	835	1,414	1,693

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Excludes intersegment sales of $16 million and $30 million for the three months ended June 30, 2020 and 2019, respectively. Excludes intersegment sales of $47 million and $61 million for the six months ended June 30, 2020 and 2019, respectively.