Revenue Recognition

3 Months Ended

Mar. 31, 2022

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 March 31, 2022, the Company had $797 million of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $224 million of its remaining performance obligations as Net sales in 2022, $209 million in 2023, $164 million in 2024 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.

The Company does not have any material contract assets as of March 31, 2022.

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 March 31,
	2022	2021
	(In $ millions)
Engineered Materials
North America	289	164
Europe and Africa	377	296
Asia-Pacific	221	164
South America	23	21
Total	910	645
Acetate Tow
North America	25	28
Europe and Africa	59	68
Asia-Pacific	40	22
South America	1	1
Total	125	119
Acetyl Chain
North America	400	281
Europe and Africa	533	310
Asia-Pacific	521	423
South America	49	20
Total(1)	1,503	1,034

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(1)Excludes intersegment sales of $35 million and $22 million for the three months ended March 31, 2022 and 2021, respectively.