XML 20 R10.htm IDEA: XBRL DOCUMENT v3.20.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company has two main sources of revenue: product sales and materials conversion. The Company recognizes product sales revenues when control of a product is transferred to the customer. For the majority of product sales, transfer of control occurs when the products are shipped from one of the Company’s manufacturing facilities to the customer. The cost of delivering finished goods to the Company’s customers is recorded as a component of cost of products sold. Those costs include the amounts paid to a third party to deliver the finished goods. Any freight costs billed to and paid by a customer are included in net sales. The Company also provides services to customers through the conversion of customer-owned raw materials into processed finished goods. In these transactions, the Company generally recognizes revenue as processing is completed.

Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which generally occurs when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Generally, the Company considers collectability of amounts due under a contract to be probable upon inception of a sale based on an evaluation of the credit worthiness of each customer. If collectability is not considered to be probable, the Company defers recognition of revenue on satisfied performance obligations until the uncertainty is resolved. We record estimates for bad debts based on our expectations for the collectability of amounts due from customers, considering historical collection history, expectations for future activity and other discrete events as applicable.

Variable consideration, such as discounts or price concessions, is set forth in the terms of the contract at inception and is included in the assessment of the transaction price at the outset of the arrangement. The transaction price is allocated to the individual performance obligations due under the contract based on the relative stand-alone fair value of the performance obligations identified in the contract. The Company typically uses an observable price to determine the stand-alone selling price for separate performance obligations.

The Company does not typically include extended payment terms or significant financing components in its contracts with customers. Certain product sales contracts may include cash-based incentives (volume rebates or credits), which are accounted for as variable consideration.  We estimate these amounts at least quarterly based on the expected forecast quantities to be provided to customers and reduce revenues recognized accordingly. Incidental items that are immaterial in the context of the contract are recognized as expense in the period incurred. The Company generally expenses sales commissions when incurred because the amortization period is one year or less. These costs are recorded within sales and marketing expenses. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. As a practical expedient, the Company treats shipping and handling activities that occur after control of the good transfers as fulfillment activities, and therefore, does not account for shipping and handling costs as a separate performance obligation.

Following is the Company’s Net sales disaggregated by revenue source ($ in millions). Sales and usage-based taxes are excluded from Net sales.
Three Months Ended
June 30, 2020June 30, 2019
AMSEPTotalAMSEPTotal
Product revenues$127.1  $109.9  $237.0  $122.7  $128.3  $251.0  
Materials conversion revenues5.0  10.1  15.1  2.0  13.8  15.8  
Other revenues0.7  1.4  2.1  2.0  1.1  3.1  
Total revenues (1)
$132.8  $121.4  $254.2  $126.7  $143.2  $269.9  
         (1) Revenues include net hedging gains and losses for the three months ended June 30, 2020 and 2019.
Six Months Ended
June 30, 2020June 30, 2019
AMSEPTotalAMSEPTotal
Product revenues$244.1  $234.6  $478.7  $240.2  $249.5  $489.7  
Materials conversion revenues8.8  23.0  31.8  3.9  28.7  32.6  
Other revenues2.8  2.4  5.2  3.1  2.5  5.6  
Total revenues (1)$255.7  $260.0  $515.7  $247.2  $280.7  $527.9  

(1) Revenues include net hedging gains and losses for the six months ended June 30, 2020 and 2019.


Net sales are attributed to the following geographic locations based on the location of the Company’s direct customers ($ in millions):
Three Months Ended
June 30, 2020June 30, 2019
AMSEPTotalAMSEPTotal
United States$88.8  $38.7  $127.5  $87.4  $50.9  $138.3  
Europe and the former Commonwealth of Independent States
11.1  39.8  50.9  13.4  41.0  54.4  
Asia/Pacific (including China)25.7  24.0  49.7  20.5  27.5  48.0  
Latin America2.5  9.6  12.1  1.5  12.3  13.8  
Other foreign countries4.7  9.3  14.0  3.9  11.5  15.4  
Total revenues (1)
$132.8  $121.4  $254.2  $126.7  $143.2  $269.9  
        (1) Revenues include net hedging gains and losses for the three months ended June 30, 2020 and 2019.

Six Months Ended
June 30, 2020June 30, 2019
AMSEPTotalAMSEPTotal
United States$172.1  82.6  $254.7  $170.7  98.3  $269.0  
Europe and the former Commonwealth of Independent States23.7  83.3  107.0  26.6  86.1  112.7  
Asia/Pacific (including China)46.4  52.8  99.2  37.7  47.9  85.6  
Latin America4.8  20.6  25.4  3.5  23.4  26.9  
Other foreign countries8.7  20.7  29.4  8.7  25.0  33.7  
Total revenues (1)
$255.7  $260.0  $515.7  $247.2  $280.7  $527.9  

(1) Revenues include net hedging gains and losses for the six months ended June 30, 2020 and 2019.