Revenues

Revenue Recognition

The Company recognizes revenue upon the transfer of goods or services to customers at amounts that reflect the consideration expected to be received. AdvanSix primarily recognizes revenues when title transfers from the Company to the customer. Outbound shipping costs incurred by the Company are not included in revenues but are reflected as freight expense in Costs of goods sold in the Consolidated Statements of Operations.

Globally, we serve more than 500 customers in a wide variety of industries located in more than 40 countries on an annual basis. In the three months ended March 31, 2018 and 2017, the Company's 10 largest customers accounted for approximately 47% and 43% of total sales, respectively. We typically sell to customers under contracts, with one- to two-year terms on average, or by purchase orders. We have historically experienced low customer turnover.

Each of the Company’s product lines represented the following approximate percentage of total sales for the three months ended March 31, 2018 and 2017:



	Three Months Ended March 31,
	2018	2017
Nylon	28%	29%
Caprolactam	18%	21%
Ammonium Sulfate Fertilizers	19%	18%
Chemical Intermediates	35%	32%

The Company's revenues by geographic area for the three months ended March 31, 2018 and 2017 were as follows:



	Three Months Ended March 31,
	2018		2017
United States	$	297,648	$	300,049
International	61,590		76,655
Total	$	359,238	$	376,704

Deferred Income and Customer Advances

The Company defers revenues when cash payments are received in advance of our performance. Customer advances relate primarily to sales from the ammonium sulfate business. Below is a roll-forward of Deferred Income and Customer Advances for the three months ended March 31, 2018:



Opening balance January 1, 2018	$	17,194
Additional cash advances	2,107
Less amounts recognized in revenues	(2,175		)
Ending balance March 31, 2018	$	17,126

The Company expects to recognize as revenue the March 31, 2018 ending balance of Deferred Income and Customer Advances within one year or less.

Practical Expedients

There were several practical expedients in ASU 2014-09 which the Company utilized upon adoption including the elections to avoid both assessing whether a contract has a significant financing component and capitalizing incremental costs of obtaining a contract.