Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

3.   Revenue Recognition

We track our revenue by product and by geography. See Note 16—Segment Disclosures for our revenue by reportable segment, which are ammonia, granular urea, UAN, AN and Other. The following table summarizes our revenue by product and by geography (based on destination of our shipment) for the three and nine months ended September 30, 2020 and 2019:

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Three months ended September 30, 2020
North America	$	116	$	222	$	221	$	41	$	56	$	656
Europe and other	49		27		27		68		20		191
Total revenue	$	165	$	249	$	248	$	109	$	76	$	847
Three months ended September 30, 2019
North America	$	152	$	289	$	278	$	41	$	63	$	823
Europe and other	35		38		31		95		16		215
Total revenue	$	187	$	327	$	309	$	136	$	79	$	1,038

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Nine months ended September 30, 2020
North America	$	614	$	865	$	739	$	138	$	171	$	2,527
Europe and other	108		50		52		205		80		495
Total revenue	$	722	$	915	$	791	$	343	$	251	$	3,022
Nine months ended September 30, 2019
North America	$	755	$	1,037	$	866	$	141	$	190	$	2,989
Europe and other	92		66		68		248		78		552
Total revenue	$	847	$	1,103	$	934	$	389	$	268	$	3,541

As of September 30, 2020 and December 31, 2019, we had $143 million and $119 million, respectively, in customer advances on our consolidated balance sheets. During the nine months ended September 30, 2020 and 2019, substantially all of the customer advances on our consolidated balance sheet at the beginning of each respective period were recognized as revenue.

We offer cash incentives to certain customers that do not provide an option to the customer for additional product. The balances of customer incentives accrued at September 30, 2020 and December 31, 2019 were not material.

We have certain customer contracts with performance obligations where if the customer does not take the required amount of product specified in the contract, then the customer is required to make a payment to us, which may vary based upon the terms and conditions of the applicable contract. As of September 30, 2020, excluding contracts with original durations of less than one year, and based on the minimum product tonnage to be sold and current market price estimates, our remaining performance obligations under these contracts are approximately $892 million. We expect to recognize approximately 13% of these performance obligations as revenue in the remainder of 2020, approximately 49% as revenue during 2021 and 2022, and approximately 38% as revenue during 2023 and 2024. Subject to the terms and conditions of the applicable contracts, if these customers do not satisfy their purchase obligations under such contracts, the minimum amount that they would be required to pay to us under these contracts, in the aggregate, is approximately $225 million as of September 30, 2020. We monitor the ability of our customers to meet their purchase obligations, which could be impacted by the ongoing coronavirus disease 2019 (COVID-19) pandemic. Other than the performance obligations described above, any performance obligations with our customers that were unfulfilled or partially filled at December 31, 2019 were satisfied in 2020.