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Revenue from Contracts with Customer | 3 Months Ended
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Mar. 31, 2018
Revenue from Contract with Customer [Abstract] |
Revenue from Contract with Customer | 3. Revenue from Contracts with Customers: Revenue Recognition Model In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the contract with the customer; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company identifies a contract when an agreement with a customer creates legally enforceable rights and obligations, which occurs when a contract has been approved by both parties, both parties are committed to perform their respective obligations, each party’s rights are clearly identified, payment terms are identified, commercial substance exists and it is probable that the Company will collect consideration to which it is entitled. The Company and its customers typically enter into master service agreements (“MSA”), which establish the terms, including prices, under which orders to purchase goods may be placed. In these instances, the Company’s contract with a customer is the purchase order issued under the MSA. Certain of the Company’s MSA agreements contain provisions regarding the purchase of a minimum quantity of goods. Under these circumstances, the Company considers the MSA to be a legally enforceable contract. The Company identifies a performance obligation in a contract for each promised good that is separately identifiable from other promises in the contract and for which the customer can benefit from the good on its own or together with other resources that are available to the customer. The majority of the Company’s contracts have a single performance obligation, which is the promise to transfer individual goods to the customer. The Company has certain contracts that include multiple performance obligations to which the purchase price for each distinct performance obligation is defined in the contract. These distinct performance obligations may include stand-ready provisions, which are arrangements to provide a customer assurance that they will have access to the Company’s manufacturing facilities, or monthly reservation of capacity fees. As described above, the Company’s MSAs with its customers outline prices for individual products or contract provisions. MSAs in the Company’s performance chemicals and refining services product groups may contain provisions whereby raw material costs may be passed-through to the customer per the terms of their contract, which constitutes a form of variable consideration. The Company’s exposure to fluctuations in raw material prices is limited, as the majority of pass-through contract provisions reset based on fluctuations in the underlying raw material price. MSAs in the Company’s refining services product group also contain take-or-pay arrangements, whereby the customer would incur a penalty in the form of a shortfall volume fee. Currently there is no history in which customers fail to meet the contractual minimum. Revenue from product sales are recorded at the net sales price, which includes estimates of variable consideration for which reserves are established and which result from discounts, returns or other allowances that are offered within contracts between the Company and its customers. The Company recognizes revenues when performance obligations under the terms of a contract with its customer are satisfied, which generally occurs at a point in time by transferring control of a product to the customer. The Company determines the point in time when a customer obtains control of a product and the Company satisfies the performance obligation by considering when the Company has a right to payment for the product, the customer has legal title to the product, the Company has transferred possession of the product, the customer has assumed the risks and rewards of ownership of the product or the customer has accepted the product. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. The Company does not have any significant payment terms as payment is received at, or shortly after, the point of sale. Contract Assets and Contract Liabilities A contract asset is a right to consideration in exchange for goods that the Company has transferred to a customer when that right is conditional on something other than the passage of time. A contract liability exists when the Company receives consideration in advance of performance obligations. The Company has not recorded any contract assets or contract liabilities on its condensed consolidated balance sheets as of March 31, 2018 or December 31, 2017. Practical Expedients and Accounting Policy Elections The Company has elected to use certain practical expedients and has made certain accounting policy elections as permitted under the new revenue recognition guidance. Certain of the Company’s contracts with customers are based on an individual purchase order, thus the duration of most contracts are for one year or less. The Company has elected to apply certain practical expedients and omit certain disclosures related to remaining performance obligations for contracts which have an initial term of one year or less. When the Company performs shipping and handling activities after the transfer of control to the customer (e.g. when control transfers prior to delivery), they are considered fulfillment activities and, accordingly, the costs are accrued for when the related revenue is recognized. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that the Company would have recognized is one year or less. Sales, value add and other taxes the Company collects concurrent with revenue producing activities are excluded from revenues. Disaggregated Revenue The Company’s primary means of disaggregating revenues is by product group, which can be found in Note 17 to these condensed consolidated financial statements. The Company’s portfolio of products are integrated into a variety of end uses, which are described in the table below.
Key End Uses | Key Products
Industrial & process chemicals | • Silicate precursors for the tire industry
| • Silicate for water treatment
| • Glass beads, or microspheres, for metal finishing end uses
Fuels & emission control | • Refinery catalysts
| • Emission control catalysts
| • Catalyst recycling services
Packaging & engineered plastics | • Catalysts for high-density polyethlene and chemicals syntheses
| • Antiblocks for film packaging
| • Solid and hollow microspheres for composite plastics
Highway safety & construction | • Reflective markings for roadways and airports
| • Hollow glass beads, or microspheres, for cement additives
Consumer products | • Silica gels for edible oil and beer clarification
| • Precipitated silicas and zeolites for the surface coating, dentifrice, and
| dishwasher and laundry detergent applications
Natural resources | • Silicates for drilling muds
| • Hollow glass beads, or microspheres, for oil well cements
| • Sulfur derivatives for copper mining
| • Bleaching aids for paper
The following table disaggregates the Company’s sales, by segment and end use, for the three months months ended March 31, 2018:
|  | Three months ended March 31, 2018
|  | Environmental Catalysts & Services |  | Performance Materials & Chemicals |  | Total
Industrial & process chemicals |  | $ | 17,039 |  |  | $ | 75,271 |  |  | $ | 92,310 |
Fuels & emission control (1) |  | 55,997 |  |  | — |  |  | 55,997 |
Packaging & engineered plastics |  | 28,243 |  |  | 31,808 |  |  | 60,051 |
Highway safety & construction (1) |  | — |  |  | 47,145 |  |  | 47,145 |
Consumer products |  | — |  |  | 76,730 |  |  | 76,730 |
Natural resources |  | 15,908 |  |  | 18,868 |  |  | 34,776 |
Total |  | 117,187 |  |  | 249,822 |  |  | 367,009 |
Inter-segment sales eliminations |  | (812 | ) |  | — |  |  | (812 | )
Total segment sales |  | $ | 116,375 |  |  | $ | 249,822 |  |  | $ | 366,197 |
(1) | As described in Note 1, the Company experiences seasonal sales fluctuations to customers in the fuels and emission control and highway safety and construction end uses.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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