Grace generates revenues from customer arrangements primarily by manufacturing and delivering specialty chemicals and specialty materials through its two reportable segments. See Note 14 for additional information about Grace’s reportable segments.

Disaggregation of Revenue The following tables present Grace's revenues by geography and product group, within its respective reportable segments, for the three and nine months ended September 30, 2018 and 2017.



Three Months Ended September 30, 2018 (In millions)	North America		Europe Middle East Africa (EMEA)		Asia Pacific		Latin America		Total
Catalysts Technologies:
Refining Catalysts	$	71.7	$	67.4	$	49.6	$	16.2	$	204.9
Polyolefin and Chemical Catalysts	53.6		61.4		52.2		6.1		173.3
Total	$	125.3	$	128.8	$	101.8	$	22.3	$	378.2
Materials Technologies:
Coatings	$	7.5	$	19.0	$	9.4	$	1.8	$	37.7
Consumer/Pharma	9.5		16.2		4.3		4.8		34.8
Chemical process	9.1		19.9		8.0		1.7		38.7
Other	1.5		4.0		—		—		5.5
Total	$	27.6	$	59.1	$	21.7	$	8.3	$	116.7



Nine Months Ended September 30, 2018 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
Catalysts Technologies:
Refining Catalysts	$	208.8	$	189.7	$	141.8	$	44.1	$	584.4
Polyolefin and Chemical Catalysts	137.4		186.4		135.4		14.8		474.0
Total	$	346.2	$	376.1	$	277.2	$	58.9	$	1,058.4
Materials Technologies:
Coatings	$	22.3	$	59.2	$	32.6	$	6.5	$	120.6
Consumer/Pharma	26.1		42.9		14.5		14.2		97.7
Chemical process	26.6		61.6		23.2		6.3		117.7
Other	5.1		12.2		0.3		0.1		17.7
Total	$	80.1	$	175.9	$	70.6	$	27.1	$	353.7



Three Months Ended September 30, 2017 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
Catalysts Technologies:
Refining Catalysts	$	71.0	$	65.5	$	54.3	$	5.7	$	196.5
Polyolefin and Chemical Catalysts	25.7		52.6		39.0		3.7		121.0
Total	$	96.7	$	118.1	$	93.3	$	9.4	$	317.5
Materials Technologies:
Coatings	$	7.0	$	16.6	$	11.5	$	2.1	$	37.2
Consumer/Pharma	6.3		12.3		5.2		4.4		28.2
Chemical process	7.3		22.1		9.6		2.0		41.0
Other	1.5		4.1		—		—		5.6
Total(1)	$	22.1	$	55.1	$	26.3	$	8.5	$	112.0

___________________________________________________________________________________________________________________


(1)	Under the modified retrospective method, prior-period information has not been adjusted and continues to be reported in accordance with Grace’s historical accounting under ASC 605.



Nine Months Ended September 30, 2017 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
Catalysts Technologies:
Refining Catalysts	$	197.6	$	173.5	$	146.2	$	44.3	$	561.6
Polyolefin and Chemical Catalysts	83.7		152.1		122.2		12.2		370.2
Total	$	281.3	$	325.6	$	268.4	$	56.5	$	931.8
Materials Technologies:
Coatings	$	20.1	$	51.1	$	30.1	$	6.1	$	107.4
Consumer/Pharma	27.7		34.9		12.6		13.6		88.8
Chemical process	21.7		63.8		23.8		4.6		113.9
Other	4.5		10.4		0.1		0.1		15.1
Total(1)	$	74.0	$	160.2	$	66.6	$	24.4	$	325.2

___________________________________________________________________________________________________________________


(1)	Under the modified retrospective method, prior-period information has not been adjusted and continues to be reported in accordance with Grace’s historical accounting under ASC 605.

Contract Balances Grace invoices customers for product sales once performance obligations have been satisfied, generally at the point of delivery, at which point payment becomes unconditional. Accordingly, Grace's product sales contracts generally do not give rise to material contract assets or liabilities under ASC 606; however, from time to time certain customers may pay in advance. In the technology licensing business, Grace invoices licensees based on milestones achieved but has obligations to provide services in future periods, which results in contract liabilities.

The following table presents Grace’s deferred revenue balances as of September 30, 2018, and December 31, 2017:



(In millions)	September 30, 2018		December 31, 2017
Current	$	43.9	$	19.5
Noncurrent	18.7		14.9
Total	$	62.6	$	34.4

These amounts are included as deferred revenue in “other current liabilities” and “other liabilities” in Grace's Consolidated Balance Sheets. Grace records deferred revenues when cash payments are received or due in advance of performance. The increase in deferred revenue reflects cash payments from customers received or due in advance of satisfying performance obligations, offset by $14.1 million of revenue recognized that was included in the deferred revenue balance as of December 31, 2017, and the $3.2 million cumulative adjustment recorded to “retained earnings” as part of the adoption of ASC 606.

The noncurrent portion of the technology licensing revenue will be recognized as performance obligations under the technology licensing agreements are satisfied; the noncurrent balance is expected to be recognized over the next four years.

Remaining performance obligations represent the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $113 million as of September 30, 2018, and includes certain amounts reported as deferred revenue above. In accordance with the practical expedient in ASC 606-10-50-14, Grace does not disclose information about remaining performance obligations that have original expected durations of one year or less. Grace expects to recognize revenue related to remaining performance obligations over several years, as follows:



Year	Approximate percentage of revenue related to remaining performance obligations recognized
2018	8	%
2019	30	%
2020	21	%
Thereafter through 2025	41	%
	100	%

For the three and nine months ended September 30, 2018, revenue recognized from performance obligations related to prior periods was not material. Grace has not capitalized any costs to obtain or fulfill contracts with customers under ASC 606. No material impairment losses have been recognized on any receivables or contract assets arising from contracts with customers.