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Revenue Recognition | 9 Months Ended
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Sep. 30, 2021
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition We track our revenue by product and by geography. See Note 17—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, 2021 and 2020:
| Ammonia |  | Granular Urea |  | UAN |  | AN |  | Other |  | Total
| (in millions)
Three months ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |
North America | $ | 279 |  |  | $ | 386 |  |  | $ | 324 |  |  | $ | 48 |  |  | $ | 94 |  |  | $ | 1,131 |
Europe and other | 65 |  |  | — |  |  | 66 |  |  | 70 |  |  | 30 |  |  | 231 |
Total revenue | $ | 344 |  |  | $ | 386 |  |  | $ | 390 |  |  | $ | 118 |  |  | $ | 124 |  |  | $ | 1,362 |
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 |
Nine months ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |
North America | $ | 878 |  |  | $ | 1,218 |  |  | $ | 949 |  |  | $ | 144 |  |  | $ | 263 |  |  | $ | 3,452 |
Europe and other | 131 |  |  | — |  |  | 107 |  |  | 215 |  |  | 93 |  |  | 546 |
Total revenue | $ | 1,009 |  |  | $ | 1,218 |  |  | $ | 1,056 |  |  | $ | 359 |  |  | $ | 356 |  |  | $ | 3,998 |
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 |
As of September 30, 2021 and December 31, 2020, we had $375 million and $130 million, respectively, in customer advances on our consolidated balance sheets. During the nine months ended September 30, 2021 and 2020, substantially all of the customer advances at the beginning of each respective period were recognized as revenue. We offer cash incentives to certain customers generally based on the volume of their purchases over the fertilizer year ending June 30. Our cash incentives do not provide an option to the customer for additional product. The balances of customer incentives accrued as of September 30, 2021 and December 31, 2020 were not material. From time to time, we will enter the marketplace to purchase product in order to satisfy obligations under contracts with our customers. When we purchase product for this purpose, we are the principal in the transaction and recognize revenue on a gross basis. As discussed in Note 8—Equity Method Investment, we have transactions in the normal course of business with Point Lisas Nitrogen Limited (PLNL), reflecting our obligation to purchase 50% of the ammonia produced by PLNL at current market prices. During the nine months ended September 30, 2021, in addition to products purchased from PLNL, we recognized $68 million of revenue from sales of granular urea, which we purchased in order to satisfy obligations under contracts with our customers due to lower production experienced as a result of Winter Storm Uri. For the nine months ended September 30, 2020, other than products purchased from PLNL, products purchased in the marketplace in order to satisfy obligations under contracts with our customers 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, 2021, 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 $898 million. We expect to recognize approximately 13% of these performance obligations as revenue in the remainder of 2021, approximately 59% as revenue during 2022 and 2023, approximately 24% as revenue during 2024 and 2025, and the remainder thereafter. 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 $181 million as of September 30, 2021. Other than the performance obligations described above, any performance obligations with our customers that were unfulfilled or partially fulfilled at December 31, 2020 were satisfied in 2021.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 + Details
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