Revenue Recognition

6 Months Ended

Jun. 30, 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 June 30, 2022, the Company had $1.2 billion of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $155 million of its remaining performance obligations as Net sales in 2022, $284 million in 2023, $259 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 June 30, 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 June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
	(In $ millions)
Engineered Materials
North America	284	188	573	352
Europe and Africa	380	304	757	600
Asia-Pacific	256	169	477	333
South America	28	21	51	42
Total	948	682	1,858	1,327
Acetate Tow
North America	26	25	51	53
Europe and Africa	57	72	116	140
Asia-Pacific	34	38	74	60
South America	2	3	3	4
Total	119	138	244	257
Acetyl Chain
North America	425	360	825	641
Europe and Africa	488	420	1,021	730
Asia-Pacific	476	567	997	990
South America	30	31	79	51
Total(1)	1,419	1,378	2,922	2,412

______________________________

(1)Excludes intersegment sales of $37 million and $31 million for the three months ended June 30, 2022 and 2021, respectively. Excludes intersegment sales of $72 million and $53 million for the six months ended June 30, 2022 and 2021, respectively.