Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

21. Revenue from Contracts with Customers

The Company deems a contract with a customer to exist when a purchase order is received from a customer for a specified quantity of product or products and the Company acknowledges receipt of such purchase order. In some instances the Company has entered into manufacturing supply agreements with customers but these agreements typically do not bind a customer to any purchase volume requirements and thus an obligation is not created until the customer submits a purchase order to the Company. The Company’s contracts typically have a single performance obligation that is satisfied at the time product is shipped and control passes to the customer. For a small portion of the business, performance obligations are deemed satisfied when product is delivered to a customer location.

As of December 31, 2022, the Company had $739,000 of contract liabilities and no contract assets. A contract liability would typically arise when an advance or deposit is received from a customer before the Company recognizes revenue. In practice, this is rare as it would require a customer to make a payment prior to a performance obligation being satisfied. When such situations do arise, the Company maintains a deferred revenue liability until the time a performance obligation has been satisfied. The Company recognized $1,376,000 of revenue in 2022 from pre-existing contract liabilities at December 31, 2021. During 2020 the Company recorded $10,709,000 of long-term deferred revenue associated with a payment received to defray the cost of capital expenditures necessary to service a customer’s future product needs. On December 31, 2022, $8,762,000 was classified as long-term and $1,947,000 was classified as short-term. This deferred revenue will be recognized over the period of the contract. As of December 31, 2022, no revenue has been recognized from this contract.

The tables below provide a geographic disaggregation of net sales for the years ended December 31, 2022, 2021 and 2020. The Company’s business segmentation by geographic region most effectively captures the nature and economic characteristics of the Company’s revenue streams impacted by economic factors.

	2022
(In thousands)	Surfactants		Polymers		Specialty Products		Total
Geographic Market
North America	$	1,099,616	$	437,312	$	83,807	$	1,620,735
Europe		349,651		307,441		16,118		673,210
Latin America		363,799		4,629		1,520		369,948
Asia		69,679		39,698		—		109,377
Total	$	1,882,745	$	789,080	$	101,445	$	2,773,270

	2021
(In thousands)	Surfactants		Polymers		Specialty Products		Total
Geographic Market
North America	$	904,469	$	364,382	$	59,461		1,328,312
Europe		288,735		302,137		9,152		600,024
Latin America		299,601		3,823		1,118		304,542
Asia		69,990		43,098		—		113,088
Total	$	1,562,795	$	713,440	$	69,731	$	2,345,966

	2020
(In thousands)	Surfactants		Polymers		Specialty Products		Total
Geographic Market
North America	$	826,841	$	265,700	$	56,455		1,148,996
Europe		234,631		147,289		9,332		391,252
Latin America		234,568		2,498		—		237,066
Asia		55,646		36,790		—		92,436
Total	$	1,351,686	$	452,277	$	65,787	$	1,869,750