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Net Sales
 12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Net Sales

Note 5. Net Sales

 

Disaggregation of Net Sales

 

The following table sets forth a disaggregation of the Company’s net sales by geographic region and segment and product group for the years ended December 31, 2020, 2019, and 2018.

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Net sales by geographic region (1)

 

 

 

 

 

 

 

 

 

 

 

 

North America:

 

 

 

 

 

 

 

 

 

 

 

 

Titanium Technologies

 

$

776

 

 

$

727

 

 

$

894

 

Thermal & Specialized Solutions

 

 

520

 

 

 

592

 

 

 

619

 

Advanced Performance Materials

 

 

407

 

 

 

512

 

 

 

524

 

Chemical Solutions

 

 

211

 

 

 

313

 

 

 

341

 

Total North America

 

 

1,914

 

 

 

2,144

 

 

 

2,378

 

Asia Pacific:

 

 

 

 

 

 

 

 

 

 

 

 

Titanium Technologies

 

 

778

 

 

 

809

 

 

 

964

 

Thermal & Specialized Solutions

 

 

134

 

 

 

166

 

 

 

160

 

Advanced Performance Materials

 

 

450

 

 

 

507

 

 

 

515

 

Chemical Solutions

 

 

22

 

 

 

61

 

 

 

81

 

Total Asia Pacific

 

 

1,384

 

 

 

1,543

 

 

 

1,720

 

Europe, the Middle East, and Africa:

 

 

 

 

 

 

 

 

 

 

 

 

Titanium Technologies

 

 

528

 

 

 

474

 

 

 

842

 

Thermal & Specialized Solutions

 

 

331

 

 

 

408

 

 

 

555

 

Advanced Performance Materials

 

 

202

 

 

 

258

 

 

 

270

 

Chemical Solutions

 

 

25

 

 

 

23

 

 

 

18

 

Total Europe, the Middle East, and Africa

 

 

1,086

 

 

 

1,163

 

 

 

1,685

 

Latin America (2):

 

 

 

 

 

 

 

 

 

 

 

 

Titanium Technologies

 

 

320

 

 

 

335

 

 

 

474

 

Thermal & Specialized Solutions

 

 

120

 

 

 

152

 

 

 

163

 

Advanced Performance Materials

 

 

45

 

 

 

53

 

 

 

56

 

Chemical Solutions

 

 

100

 

 

 

136

 

 

 

162

 

Total Latin America

 

 

585

 

 

 

676

 

 

 

855

 

Total net sales

 

$

4,969

 

 

$

5,526

 

 

$

6,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales by segment and product group

 

 

 

 

 

 

 

 

 

 

 

 

Titanium Technologies:

 

 

 

 

 

 

 

 

 

 

 

 

Titanium dioxide and other minerals

 

$

2,402

 

 

$

2,345

 

 

$

3,174

 

Thermal & Specialized Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Refrigerants

 

 

889

 

 

 

1,086

 

 

 

1,238

 

Foam, propellants, and other

 

 

216

 

 

 

232

 

 

 

259

 

Advanced Performance Materials:

 

 

 

 

 

 

 

 

 

 

 

 

Fluoropolymers and advanced materials

 

 

1,104

 

 

 

1,330

 

 

 

1,365

 

Chemical Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Mining solutions

 

 

203

 

 

 

268

 

 

 

289

 

Performance chemicals and intermediates

 

 

155

 

 

 

265

 

 

 

313

 

Total net sales

 

$

4,969

 

 

$

5,526

 

 

$

6,638

 

 

(1)

Net sales are attributed to countries based on customer location.

 

(2)

Latin America includes Mexico.

 

Substantially all of the Company’s net sales are derived from goods and services transferred at a point in time. The Company’s net sales from trademark licensing royalties were not significant for the years ended December 31, 2020, 2019, and 2018.

 

Contract Balances

 

The Company’s assets and liabilities from contracts with customers constitute accounts receivable - trade, deferred revenue, and customer rebates. An amount for accounts receivable - trade is recorded when the right to consideration under a contract becomes unconditional. An amount for deferred revenue is recorded when consideration is received prior to the conclusion that a contract exists, or when a customer transfers consideration prior to the Company satisfying its performance obligations under a contract. Customer rebates represent an expected refund liability to a customer based on a contract. In contracts with customers where a rebate is offered, it is generally applied retroactively based on the achievement of a certain sales threshold. As revenue is recognized, the Company estimates whether or not the sales threshold will be achieved to determine the amount of variable consideration to include in the transaction price.

 

The following table sets forth the Company’s contract balances from contracts with customers at December 31, 2020 and 2019.

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

Accounts receivable - trade, net (1)

 

$

449

 

 

$

602

 

Deferred revenue

 

 

12

 

 

 

15

 

Customer rebates

 

 

69

 

 

 

72

 

 

(1)

Accounts receivable - trade, net includes trade notes receivable of less than $1 and is net of allowances for doubtful accounts of $7 and $5 at December 31, 2020 and 2019, respectively. Such allowances are equal to the estimated uncollectible amounts.

 

Changes in the Company’s deferred revenue balances resulting from additions for advance payments and deductions for amounts recognized in net sales during the years ended December 31, 2020 and 2019 were not significant. For the years ended December 31, 2020 and 2019, the amount of net sales recognized from performance obligations satisfied in prior periods (e.g., due to changes in transaction price) was not significant.

 

Contract asset balances or capitalized costs associated with obtaining or fulfilling customer contracts were not significant as of December 31, 2020 and 2019.

 

Remaining Performance Obligations

 

Certain of the Company’s MSAs or other arrangements contain take-or-pay clauses, whereby customers are required to purchase a fixed minimum quantity of product during a specified period, or pay the Company for such orders, even if not requested by the customer. The Company considers these take-or-pay clauses to be an enforceable contract, and as such, the legally-enforceable minimum amounts under such an arrangement are considered to be outstanding performance obligations on contracts with an original expected duration greater than one year. At December 31, 2020, Chemours had $71 of remaining performance obligations. The Company expects to recognize approximately 20% of its remaining performance obligations as revenue in 2021, an approximate additional 16% in 2022, and the balance thereafter. The Company applies the allowable practical expedient and does not include remaining performance obligations that have original expected durations of one year or less, or amounts for variable consideration allocated to wholly-unsatisfied performance obligations or wholly-unsatisfied distinct goods that form part of a single performance obligation, if any. Amounts for contract renewals that are not yet exercised by December 31, 2020 are also excluded.