Revenue Recognition

9 Months Ended

Sep. 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 September 30, 2021, the Company had $622 million of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $88 million of its remaining performance obligations as Net sales in 2021, $227 million in 2022, $148 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 September 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 September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
	(In $ millions)
Engineered Materials
North America	194	147	546	420
Europe and Africa	282	222	882	665
Asia-Pacific	185	141	518	381
South America	23	16	65	43
Total	684	526	2,011	1,509
Acetate Tow
North America	24	24	77	72
Europe and Africa	64	64	204	203
Asia-Pacific	39	40	99	101
South America	1	1	5	9
Total	128	129	385	385
Acetyl Chain
North America	405	246	1,046	728
Europe and Africa	458	251	1,188	753
Asia-Pacific	540	243	1,530	640
South America	51	16	102	49
Total(1)	1,454	756	3,866	2,170

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(1)Excludes intersegment sales of $35 million and $20 million for the three months ended September 30, 2021 and 2020, respectively. Excludes intersegment sales of $88 million and $67 million for the nine months ended September 30, 2021 and 2020, respectively.