Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Note 3. Revenue

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 distinct good. 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 revenues by major geographical region for the three and six months ended June 30, 2022 and 2021:

	Three months ended June 30, 2022						Six months ended June 30, 2022
	Titanium Dioxide		Performance Additives		Total		Titanium Dioxide		Performance Additives		Total
Europe	$	236	$	52	$	288	$	500	$	109	$	609
North America	105		76		181		201		141		342
Asia	98		24		122		200		46		246
Other	47		4		51		95		9		104
Total Revenues	$	486	$	156	$	642	$	996	$	305	$	1,301

	For the Three Months Ended June 30, 2021						For the Six Months Ended June 30, 2021
	Titanium Dioxide		Performance Additives		Total		Titanium Dioxide		Performance Additives		Total
Europe	$	216	$	61	$	277	$	430	$	115	$	545
North America	81		63		144		155		120		275
Asia	81		24		105		164		47		211
Other	37		4		41		80		9		89
Total Revenues	$	415	$	152	$	567	$	829	$	291	$	1,120

The following table disaggregates our revenues by major product line for the three and six months ended June 30, 2022 and 2021:

	Three months ended June 30, 2022						For the Six Months Ended June 30, 2022
	Titanium Dioxide		Performance Additives		Total		Titanium Dioxide		Performance Additives		Total
TiO2	$	486	$	—	$	486	$	996	$	—	$	996
Color Pigments	—		86		86		—		165		165
Functional Additives	—		35		35		—		73		73
Timber Treatment	—		35		35		—		67		67
Total Revenues	$	486	$	156	$	642	$	996	$	305	$	1,301

	For the Three Months Ended June 30, 2021						For the Six Months Ended June 30, 2021
	Titanium Dioxide		Performance Additives		Total		-		Performance Additives		Total
TiO2	$	415	$	—	$	415	$	829	$	—	$	829
Color Pigments	—		81		81		—		148		148
Functional Additives	—		35		35		—		71		71
Timber Treatment	—		32		32		—		63		63
Water Treatment 1	—		4		4		—		9		9
Total Revenues	$	415	$	152	$	567	$	829	$	291	$	1,120

1 Water treatment business was sold in May 2021.

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 for 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 certain volume commitments are 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.