In the majority of instances 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. Revenue is recognized when performance obligations under terms of a contract with a customer have been satisfied, which is predominantly at a point in time. With the 2018 adoption of ASU 2014-09, revenue is currently recognized when a customer obtains control of a product as compared to the “risk and rewards” criteria used in prior years. However, in 2018, the adoption of ASU 2014-09 did not have a material impact on the Company’s financial position or results of operations.

Payment terms on sales of product typically range from 30 to 60 days. As a result, the Company has concluded it does not provide any significant benefits of financing to its customers.

The Company has elected to account for shipping and handling as activities to fulfill a promise to transfer the good. As such, shipping and handling fees billed to customers in a sales transaction are recorded in Net Sales and shipping and handling costs incurred are recorded in Cost of Sales. The Company has elected to exclude from Net Sales any value added, sales and other taxes that it collects concurrently with revenue producing activities. These accounting policy elections are consistent with the manner in which the Company has historically recorded shipping and handling fees and taxes.

In some instances, a customer may qualify for a rebate based on the volume of purchases made over a specified period of time, typically a quarterly or annual period. The Company accrues these rebates for each customer under the most likely amount method by estimating the expected volume of total purchases for each customer using actual volumes, customer projections and historical order patterns. These estimated rebates are treated as a reduction to Net Sales with the offset being recognized within Current Liabilities. This methodology is consistent with the manner in which the Company has historically estimated and recorded volume based rebates. In other instances, discounts for early payments are offered to certain customers. These discounts are principally accrued for based the historical use of discounts for all customers using the expected-value method. These estimated early payment discounts are accounted for as a reduction to Net Sales similarly to volume rebates. These forms of variable consideration are considered part of the transaction price.

The Company typically warrants its products from defects. The Company has concluded that these represent assurance-type warranties as opposed to service-type warranties. Product defects are rare in occurrence. As a result, the Company does not maintain any warranty accruals until such time as it is probable a product defect exists.

As of December 31, 2019, the Company had $350,000 of contract liabilities and no contract assets. A contract liability would typically arises 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 would maintain a deferred revenue liability until the time a performance obligation has been satisfied. The Company did not recognize any revenue in the current period from any pre-existing contract liability balance.

The tables below provide a geographic disaggregation of net sales for the years ended December 31, 2019, 2018 and 2017. 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.

	2019
(In thousands)	Surfactants		Polymers		Specialty Products		Total
Geographic Market
North America	$	766,341	$	314,549	$	61,501	$	1,142,391
Europe		240,711		158,455		12,174		411,340
Latin America		212,405		3,304		—		215,709
Asia		53,266		36,039		—		89,305
Total	$	1,272,723	$	512,347	$	73,675	$	1,858,745

	2018
(In thousands)	Surfactants		Polymers		Specialty Products		Total
Geographic Market
North America	$	831,592	$	323,360	$	68,201		1,223,153
Europe		276,742		172,632		12,304		461,678
Latin America		212,824		3,463		—		216,287
Asia		64,774		27,965		—		92,739
Total	$	1,385,932	$	527,420	$	80,505	$	1,993,857

	2017
(In thousands)	Surfactants		Polymers		Specialty Products		Total
Geographic Market
North America	$	763,044	$	329,629	$	66,906		1,159,579
Europe		275,121		188,244		13,912		477,277
Latin America		190,802		4,451		—		195,253
Asia		68,588		24,310		—		92,898
Total	$	1,297,555	$	546,634	$	80,818	$	1,925,007