Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

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, 2023, the Company had $1.3 billion of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $272 million of its remaining performance obligations as Net sales in 2023, $481 million in 2024, $324 million in 2025 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, 2023.

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 customer's 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.

The Company manages its Acetyl Chain business segment by leveraging its ability to sell chemicals externally to end-use markets or downstream to its acetate tow, intermediate chemistry, emulsion polymers, redispersible powders and ethylene vinyl acetate 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,
	2023	2022	2023	2022
	(In $ millions)
Engineered Materials
North America	471	284	950	573
Europe and Africa	519	380	1,079	757
Asia-Pacific	554	256	1,102	477
South America	41	28	84	51
Total	1,585	948	3,215	1,858
Acetyl Chain
North America	361	451	726	876
Europe and Africa	437	545	897	1,137
Asia-Pacific	379	510	746	1,071
South America	33	32	64	82
Total(1)	1,210	1,538	2,433	3,166

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(1)Excludes intersegment sales of $23 million and $21 million for the three months ended June 30, 2023 and 2022, respectively. Excludes intersegment sales of $50 million and $45 million for the six months ended June 30, 2023 and 2022, respectively.