Revenue Recognition

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenues are recognized when control of goods is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. Control passes either upon shipment or delivery, depending on the agreed sales terms with customers.

Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and reduce revenues recognized. There were no significant changes to its estimates of variable consideration upon adoption.

The Company reports its business in three operating segments: Food, Health, and Nutrition; Industrial Specialties; and Other. The Company has three principal product lines within these operating segments: (i) Specialty Ingredients; (ii) Core Ingredients; and (iii) Co-Products and Other. Revenue recognition is measured on the same basis across these segments, products, markets, and geographic countries, with the performance obligation being the transfer of control of goods at a single point in time.



	Three Months Ended September 30, 2019
	U.S.		Canada		Mexico		Other Countries		Total
Specialty Ingredients	$	98,909	$	3,773	$	8,438	$	16,534	$	127,654
Core Ingredients	15,626		2,137		23,493		10,097		51,353
Co-Products & Other	9,044		178		1,100		20		10,342
Total	$	123,579	$	6,088	$	33,031	$	26,651	$	189,349



	Three Months Ended September 30, 2018
	U.S.		Canada		Mexico		Other Countries		Total
Specialty Ingredients	$	105,127	$	6,726	$	9,754	$	17,682	$	139,289
Core Ingredients	14,431		1,704		21,005		8,152		45,292
Co-Products & Other	10,568		123		1,517		145		12,353
Total	$	130,126	$	8,553	$	32,276	$	25,979	$	196,934



	Nine Months Ended September 30, 2019
	U.S.		Canada		Mexico		Other Countries		Total
Specialty Ingredients	$	292,772	$	12,950	$	25,904	$	55,912	$	387,538
Core Ingredients	46,694		6,832		69,471		21,568		144,565
Co-Products & Other	26,810		397		6,188		303		33,698
Total	$	366,276	$	20,179	$	101,563	$	77,783	$	565,801



	Nine Months Ended September 30, 2018
	U.S.		Canada		Mexico		Other Countries		Total
Specialty Ingredients	$	332,525	$	19,005	$	26,472	$	57,511	$	435,513
Core Ingredients	43,120		5,947		60,988		27,366		137,421
Co-Products & Other	24,764		256		10,574		571		36,165
Total	$	400,409	$	25,208	$	98,034	$	85,448	$	609,099

Revenues for the geographic information are attributed to geographic areas based on the destination of the sale.

The Company's payment terms vary by geography and location of its customer and the products offered. Invoices are generated upon shipment of the goods, with the term between invoicing and when payment is due being insignificant.

Food, Health, and Nutrition and Industrial Specialties

The Food, Health and Nutrition reporting segment, as well as the Industrial Specialties reporting segment, consists of products in the Specialty Ingredients and Core Ingredients product lines.

Specialty Ingredients are the most value adding products in our portfolio. Specialty Ingredients consist of specialty phosphate products, specialty phosphoric acids, including polyphosphoric acid, and a range of other mineral, enzyme and botanical based specialty ingredients. The Company's Specialty Ingredients products have a wide range of applications, including:


•	flavor enhancers in beverages;


•	electrolytes in sports drinks;


•	texture modifiers in cheeses;


•	leavening agents in baked goods;


•	calcium and phosphorus fortification in food and beverages;


•	moisture and color retention in seafood, poultry and meat;


•	mineral, enzyme and botanical sources for a wide variety of fortified foods, beverages and dietary supplements;


•	excipients in vitamins, minerals, nutritional supplements and pharmaceuticals; and


•	abrasives in toothpaste.

Each product typically has a number of different applications and end uses. For example, the Company's dicalcium phosphate product can be used as an excipient for pharmaceutical and dietary supplements, a leavening agent in bakery products and as an abrasive in oral care products. The Company often works directly with customers to tailor products to their required specifications for their finished product application.

The Company's Core Ingredients product line includes food grade purified phosphoric acid, or PPA, technical grade PPA, sodium tripolyphosphate, or STPP, and detergent grade PPA. Food grade PPA can be used to produce phosphate salts and has a variety of applications in food and beverages. Technical grade PPA has applications in water treatment. The Company also sells technical grade PPA in the merchant market to third-party phosphate derivative producers. STPP is a key ingredient in cleaning products, including industrial and institutional cleaners and automatic dishwashing detergents and consumer laundry detergents outside the United States. In addition to its use in cleaning products, STPP is also used in water treatment, clay processing, and copper ore processing. The end use market for STPP is largely derived from consumer product applications. Detergent Grade PPA is a lower grade form of PPA used primarily in the production of STPP.

Other

The Other reporting segment consists of products in the Co-Products and Other product line.

The Company's Co-Products and Other product line includes granular triple super phosphate, or GTSP, and merchant green phosphoric acid, or MGA. GTSP is generated at the Company's Coatzacoalcos facility in Mexico as a co-product of its purified wet acid manufacturing process. GTSP is a fertilizer product used throughout Latin America for increasing crop yields in a wide range of agricultural sectors. The Company sells MGA in the merchant market to third party manufacturers of fertilizer products.

Practical Expedients and Exemptions

Management reviewed the practical expedients which a Company may utilize when implementing Topic 606 - Revenue from Contracts with Customers. As such, the Company has applied the practical expedient related to significant financing components and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.