Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue Recognition and Deferred Revenue [Abstract]

Revenue

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 September 30, 2020, the Company had $596 million of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $53 million of its remaining performance obligations as Net sales in 2020, $198 million in 2021, $139 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 Current and Noncurrent Other liabilities in the unaudited consolidated balance sheets (Note 7).

The Company does not have any material contract assets as of September 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 September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
	(In $ millions)
Engineered Materials
North America	147	195	420	571
Europe and Africa	222	251	665	822
Asia-Pacific	141	126	381	400
South America	16	19	43	54
Total	526	591	1,509	1,847
Acetate Tow
North America	24	30	72	97
Europe and Africa	64	63	203	193
Asia-Pacific	40	60	101	176
South America	1	5	9	22
Total	129	158	385	488
Acetyl Chain
North America	246	273	728	837
Europe and Africa	251	280	753	856
Asia-Pacific	243	264	640	772
South America	16	20	49	65
Total(1)	756	837	2,170	2,530

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⁽¹⁾Excludes intersegment sales of $20 million and $30 million for the three months ended September 30, 2020 and 2019, respectively. Excludes intersegment sales of $67 million and $91 million for the nine months ended September 30, 2020 and 2019, respectively.