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Nature of Operations and Summary of Significant Accounting Policies (Tables) | 3 Months Ended
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Mar. 31, 2021
Accounting Policies [Abstract] |
Reconciliation of Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Company's statement of cash flows periods ended March 31, 2021 and March 31, 2020 to the amounts reported in the Company's balance sheet as at March 31, 2021, December 31, 2020, March 31, 2020 and December 31, 2019.
(DOLLARS IN MILLIONS) | March 31, 2021 |  | December 31, 2020 |  | March 31, 2020 |  | December 31, 2019
Current assets |  |  |  |  |  |  |
Cash and cash equivalents | $ | 872 |  |  | $ | 650 |  |  | $ | 433 |  |  | $ | 607 |
Restricted cash | 7 |  |  | 7 |  |  | 10 |  |  | 17 |
Noncurrent assets |  |  |  |  |  |  |
Restricted cash included in Other assets | 2 |  |  | 3 |  |  | 5 |  |  | — |
Cash, cash equivalents and restricted cash | $ | 881 |  |  | $ | 660 |  |  | $ | 448 |  |  | $ | 624 |
Contract Asset and Accounts Receivable | Contract Assets With respect to a small number of contracts for the sale of compounds, the Company has an “enforceable right to payment for performance to date” and as the products do not have an alternative use, the Company recognizes revenue for these contracts over time and records a contract asset using the output method. The output method recognizes revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract. For the periods ended March 31, 2021 and December 31, 2020, the Company's gross accounts receivable was $2.063 billion and $950 million, respectively. The Company's contract assets and contract liabilities for the periods ended March 31, 2021 and December 31, 2020 were not material.
Schedule of Bad Debt Reserve | Expected Credit Losses The Company is exposed to credit losses primarily through its sales of products. To determine the appropriate allowance for expected credit losses, the Company considers certain credit quality indicators, such as aging, collection history, and creditworthiness of debtors. Regional and Global Credit committees review and approve specific customer allowance reserves. The allowance for expected credit losses is primarily based on two primary factors: i) the aging of the different categories of trade receivables, and ii) a specific reserve for accounts identified as uncollectible. The Company also considers current and future economic conditions in the determination of the allowance. At March 31, 2021, the Company reported $2.023 billion of trade receivables, net of allowances of $40 million. Based on the aging analysis as of March 31, 2021, approximately 91% of our accounts receivable were current based on the payment terms of the invoice. Receivables that are past due by over 365 days account for approximately 1% of our accounts receivable. The following is a rollforward of the Company's allowances for bad debts for the three months ended March 31, 2021, with the bad debt expense and write-offs both being under $1 million, which were not material:
(DOLLARS IN MILLIONS) | Allowances for Bad Debts
Balance at December 31, 2020 | $ | 21 |
Other adjustments(1) | 20 |
Foreign exchange | (1) |
Balance at March 31, 2021 | $ | 40 |

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- Definition Tabular disclosure of allowance for credit loss on accounts receivable. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=119407570&loc=SL82919249-210447 + Details
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- Definition Tabular disclosure of contract balances and changes in contract balances. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=118956577&loc=SL49130551-203045 + Details
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- Definition Tabular disclosure of the components of cash and cash equivalents. + References No definition available. + Details
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