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Equity Method Investements (Notes) | 12 Months Ended
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Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments | 9. Equity Method Investments LACC, LLC Joint Venture In 2015, Eagle US 2 LLC ("Eagle"), a wholly-owned subsidiary of the Company, and Lotte Chemical USA Corporation, a subsidiary of Lotte Chemical Corporation ("Lotte"), formed a joint venture, LACC, LLC ("LACC"), to design, build and operate an ethylene facility with 2.2 billion pounds per year of ethylene production capacity. Pursuant to a contribution and subscription agreement between Eagle and LACC, Eagle contributed $225 to LACC to fund construction costs of the ethylene plant, representing approximately 12% of the membership interests in LACC. On November 12, 2019, we, through Eagle, completed the acquisition of an additional 34.8% of the membership interests in LACC from Lotte for approximately $817. As of December 31, 2020, the Company's investment exceeded the underlying equity in net assets by approximately $166 which was assigned to goodwill and not amortized. The ethylene plant was built adjacent to the Company's chlor-alkali facility in Lake Charles. During the third quarter of 2019, the ethylene plant began commercial operations. The Company accounts for its investment in LACC under the equity method of accounting. The LACC joint venture is a cost-sharing arrangement between the members of LACC. The members of LACC receive their proportionate shares of ethylene offtake each month and fund cash operating costs, excluding depreciation and amortization. As a result, LACC recognizes net losses equal to depreciation and amortization each period. The Company's equity in losses from LACC, which is equal to its share of depreciation and amortization expenses, is recognized in cost of sales in the consolidated statements of operations. The Company's investment in LACC is recorded as a component of equity method investments in the consolidated balance sheets. The Company's capital contributions to fund its share of capital expenditures are classified within investing activities in the consolidated statements of cash flows. The Company's ethylene offtake from LACC was approximately 787 million pounds during the year ended December 31, 2020. Changes in the Company's investment in LACC for the years ended December 31, 2020 and 2019 were as follows:
|  | Investment in LACC
Balance at December 31, 2018 |  | $ | 183 |
Cash contributions |  | 45 |
Additional interest purchased |  | 817 |
Depreciation and amortization |  | (7) |
Return of investment |  | — |
Balance at December 31, 2019 |  | 1,038 |
Cash contributions |  | 4 |
Additional interest purchased |  | — |
Depreciation and amortization |  | (37) |
Return of investment |  | (44) |
Balance at December 31, 2020 |  | $ | 961 |
Services Provided to LACC and Lotte The Company provides certain utilities and other services to LACC and Lotte. Pursuant to a construction and reimbursement agreement, LACC and Lotte agreed to reimburse the Company for construction costs over a 6.5-year period beginning in 2020. In addition to the reimbursements for construction costs, the Company charges LACC and Lotte certain fixed fees under an operating, maintenance and logistics agreement. The Company accounts for the reimbursement of construction costs and the fixed fees as components of the total transaction price and recognizes it ratably in net sales over approximately 25 years. The remaining performance obligations at December 31, 2020, representing these fixed components of the transaction price, totaled $57 and $78 from LACC and Lotte, respectively. The associated contract liabilities recorded from LACC and Lotte totaled $10 and $12 as of December 31, 2020, respectively, and $5 and $7 as of December 31, 2019, respectively. In addition to the reimbursements for construction costs and other fixed fees, the Company charges LACC and Lotte certain variable fees. Other Equity Method Investments In addition to LACC, the Company has other equity method investments amounting to $98 and $74 as of December 31, 2020 and 2019, respectively. See Note 20 for more detailed information.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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