Revenues

6 Months Ended

Jun. 30, 2019

Grace generates revenues from customer arrangements primarily by manufacturing and delivering specialty chemicals, specialty materials and the licensing of technology 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 six months ended June 30, 2019 and 2018.



Three Months Ended June 30, 2019 (In millions)	North America		Europe Middle East Africa (EMEA)		Asia Pacific		Latin America		Total
Refining Catalysts	$	71.9	$	73.7	$	50.1	$	12.6	$	208.3
Polyolefin and Chemical Catalysts	52.8		86.2		44.6		3.8		187.4
Total Catalysts Technologies	124.7		159.9		94.7		16.4		395.7
Coatings	7.0		17.6		9.1		1.9		35.6
Consumer/Pharma	12.6		13.8		6.4		5.0		37.8
Chemical process	9.1		19.7		8.1		1.4		38.3
Other	2.5		3.1		0.4		0.2		6.2
Total Materials Technologies	31.2		54.2		24.0		8.5		117.9
Total Grace	$	155.9	$	214.1	$	118.7	$	24.9	$	513.6



Six Months Ended June 30, 2019 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
Refining Catalysts	$	144.1	$	140.3	$	85.8	$	19.9	$	390.1
Polyolefin and Chemical Catalysts	98.6		151.1		97.0		8.6		355.3
Total Catalysts Technologies	242.7		291.4		182.8		28.5		745.4
Coatings	14.0		37.3		18.5		4.0		73.8
Consumer/Pharma	21.9		32.8		10.4		9.7		74.8
Chemical process	18.1		39.6		15.8		3.7		77.2
Other	3.7		7.6		0.4		0.2		11.9
Total Materials Technologies	57.7		117.3		45.1		17.6		237.7
Total Grace	$	300.4	$	408.7	$	227.9	$	46.1	$	983.1



Three Months Ended June 30, 2018 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
Refining Catalysts	$	67.2	$	61.0	$	53.4	$	14.5	$	196.1
Polyolefin and Chemical Catalysts	51.6		66.6		45.2		4.9		168.3
Total Catalysts Technologies	118.8		127.6		98.6		19.4		364.4
Coatings	7.7		19.7		11.4		2.4		41.2
Consumer/Pharma	8.9		13.5		5.9		4.7		33.0
Chemical process	10.1		20.9		8.0		2.3		41.3
Other	1.9		3.7		0.2		—		5.8
Total Materials Technologies	28.6		57.8		25.5		9.4		121.3
Total Grace	$	147.4	$	185.4	$	124.1	$	28.8	$	485.7



Six Months Ended June 30, 2018 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
Refining Catalysts	$	137.1	$	122.3	$	92.2	$	27.9	$	379.5
Polyolefin and Chemical Catalysts	83.8		125.0		83.2		8.7		300.7
Total Catalysts Technologies	220.9		247.3		175.4		36.6		680.2
Coatings	14.8		40.2		23.2		$	4.7	$	82.9
Consumer/Pharma	16.6		26.7		10.2		9.4		62.9
Chemical process	17.5		41.7		15.2		4.6		79.0
Other	3.6		8.2		0.3		0.1		12.2
Total Materials Technologies	52.5		116.8		48.9		18.8		237.0
Total Grace	$	273.4	$	364.1	$	224.3	$	55.4	$	917.2

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 June 30, 2019, and December 31, 2018:



(In millions)	June 30, 2019		December 31, 2018
Current	$	34.4	$	40.6
Noncurrent	24.3		29.2
Total	$	58.7	$	69.8

Grace records deferred revenues when cash payments are received or billed and due in advance of performance. The change in deferred revenue reflects cash payments from customers received or due in advance of satisfying performance obligations, offset by $7.0 million and $16.6 million of revenue recognized for the three and six months ended June 30, 2019, that was included in the deferred revenue balance as of December 31, 2018.

The noncurrent portion of deferred revenue will be recognized as performance obligations under the technology licensing agreements are satisfied, which is expected to be 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 $114 million as of June 30, 2019, and includes certain amounts reported as deferred revenue above. In accordance with the available practical expedient, Grace does not disclose information about remaining performance obligations that have original expected durations of one year or less, which generally relate to customer prepayments on product sales and are generally satisfied in less than one year. 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
2019	16	%
2020	25	%
2021	23	%
Thereafter through 2027	36	%
	100	%

For the three and six months ended June 30, 2019 and 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.