Revenue Recognition

6 Months Ended

Jun. 30, 2021

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 June 30, 2021, the Company had $584 million of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $147 million of its remaining performance obligations as Net sales in 2021, $202 million in 2022, $126 million in 2023 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 June 30, 2021.

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, redispersible powders and ethylene vinyl acetate ("EVA") polymers businesses. 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,
	2021	2020	2021	2020
	(In $ millions)
Engineered Materials
North America	188	111	352	273
Europe and Africa	304	183	600	443
Asia-Pacific	169	117	333	240
South America	21	9	42	27
Total	682	420	1,327	983
Acetate Tow
North America	25	27	53	48
Europe and Africa	72	68	140	139
Asia-Pacific	38	29	60	61
South America	3	3	4	8
Total	138	127	257	256
Acetyl Chain
North America	360	208	641	482
Europe and Africa	420	236	730	502
Asia-Pacific	567	190	990	397
South America	31	12	51	33
Total(1)	1,378	646	2,412	1,414

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(1)Excludes intersegment sales of $31 million and $16 million for the three months ended June 30, 2021 and 2020, respectively. Excludes intersegment sales of $53 million and $47 million for the six months ended June 30, 2021 and 2020, respectively.