Revenue

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Note 4. Revenue

We account for revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers, which became effective January 1, 2018. As part of the adoption of ASC 606, we applied the new standard on a modified retrospective basis analyzing open contracts as of January 1, 2018. However, no cumulative effect adjustment to retained earnings was necessary as no revenue recognition differences were identified when comparing the revenue recognition criteria under ASC 606 to previous requirements.

We generate substantially all of our revenues through sales of inventory in the open market and via long-term supply agreements. At contract inception, we assess the goods promised in our contracts and identify a performance obligation for each promise to transfer to the customer a good that is distinct. In substantially all cases, a contract has a single performance

obligation to deliver a promised good to the customer. Revenue is recognized when the performance obligations under the terms of our contracts are satisfied. Generally, this occurs at the time of shipping, at which point the control of the goods transfers to the customer. Further, in determining whether control has transferred, we consider if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. Revenue is measured as the amount of consideration we expect to receive in exchange for transferred goods. Sales, value-added, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. We have elected to account for all shipping and handling activities as fulfillment costs. We recognize these costs for shipping and handling when control over products have transferred to the customer as an expense in cost of goods sold. We have also elected to expense commissions when incurred as the amortization period of the commission asset that we would have otherwise recognized is less than one year.

The following table disaggregates our revenue by major geographical region for the years ended December 31, 2019, 2018 and 2017:


	2019												2018									2017
	Titanium Dioxide			Performance Additives			Total			Titanium Dioxide			Performance Additives			Total			Titanium Dioxide		Performance Additives	Total
Europe	$	786	$	182	$	968		$	828	$	206	$	1,034	$	794		$	194	$	988
North America	320			226			546			296			277			573			281		301	582
Asia	343			87			430			368			98			466			349		97	446
Other	165			21			186			174			18			192			180		13	193
Total Revenues	$	1,614	$	516	$	2,130		$	1,666	$	599	$	2,265	$	1,604		$	605	$	2,209

The following table disaggregates our revenue by major product line for the years ended December 31, 2019, 2018 and 2017:


	2019												2018									2017
	Titanium Dioxide			Performance Additives			Total			Titanium Dioxide			Performance Additives			Total			Titanium Dioxide		Performance Additives	Total
TiO₂	$	1,614	$	—	$	1,614		$	1,666	$	—	$	1,666	$	1,604		$	—	$	1,604
Color Pigments	—			258			258			—			294			294			—		302	302
Functional Additives	—			118			118			—			140			140			—		130	130
Timber Treatment	—			118			118			—			142			142			—		151	151
Water Treatment	—			22			22			—			23			23			—		22	22
Total Revenues	$	1,614	$	516	$	2,130		$	1,666	$	599	$	2,265	$	1,604		$	605	$	2,209

The amount of consideration we receive and revenue we recognize is based upon the terms stated in the sales contract, which may contain variable consideration such as discounts or rebates. We also give our customers a limited right to return products that have been damaged, do not satisfy their specifications, or other specific reasons. Payment terms on product sales to our customers typically range from 30 days to 90 days. Although certain exceptions exist where standard payment terms are exceeded, these instances are infrequent and do not exceed one year. Discounts are allowed for some customers for early payment or if a certain volume is met. As our standard payment terms are less than one year, we have elected to not assess whether a contract has a significant financing component. In order to estimate the applicable variable consideration at the time of revenue recognition, we use historical and current trend information to estimate the amount of discounts, rebates, or returns to which customers are likely to be entitled. Historically, actual discount or rebate adjustments relative to those estimated and accrued at the point of which revenue is recognized have not materially differed.