Revenues

9 Months Ended

Sep. 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 nine months ended September 30, 2019 and 2018.



Three Months Ended September 30, 2019 (In millions)	North America		Europe Middle East Africa (EMEA)		Asia Pacific		Latin America		Total
Refining Catalysts	$	69.9	$	70.3	$	48.1	$	7.6	$	195.9
Polyolefin and Chemical Catalysts	41.7		71.6		48.6		3.6		165.5
Total Catalysts Technologies	111.6		141.9		96.7		11.2		361.4
Coatings	6.0		16.5		8.4		2.8		33.7
Consumer/Pharma	8.8		12.6		5.0		4.8		31.2
Chemical process	10.1		21.1		7.2		1.1		39.5
Other	1.0		3.5		0.2		—		4.7
Total Materials Technologies	25.9		53.7		20.8		8.7		109.1
Total Grace	$	137.5	$	195.6	$	117.5	$	19.9	$	470.5



Nine Months Ended September 30, 2019 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
Refining Catalysts	$	214.0	$	210.6	$	133.9	$	27.5	$	586.0
Polyolefin and Chemical Catalysts	140.3		222.7		145.6		12.2		520.8
Total Catalysts Technologies	354.3		433.3		279.5		39.7		1,106.8
Coatings	20.0		53.8		26.9		6.8		107.5
Consumer/Pharma	30.7		45.4		15.4		14.5		106.0
Chemical process	28.2		60.7		23.0		4.8		116.7
Other	4.7		11.1		0.6		0.2		16.6
Total Materials Technologies	83.6		171.0		65.9		26.3		346.8
Total Grace	$	437.9	$	604.3	$	345.4	$	66.0	$	1,453.6



Three Months Ended September 30, 2018 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
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 Catalysts Technologies	125.3		128.8		101.8		22.3		378.2
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 Materials Technologies	27.6		59.1		21.7		8.3		116.7
Total Grace	$	152.9	$	187.9	$	123.5	$	30.6	$	494.9



Nine Months Ended September 30, 2018 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
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 Catalysts Technologies	346.2		376.1		277.2		58.9		1,058.4
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 Materials Technologies	80.1		175.9		70.6		27.1		353.7
Total Grace	$	426.3	$	552.0	$	347.8	$	86.0	$	1,412.1

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, 2019, and December 31, 2018:



(In millions)	September 30, 2019		December 31, 2018
Current	$	36.1	$	40.6
Noncurrent	28.8		29.2
Total	$	64.9	$	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 $5.2 million and $21.8 million of revenue recognized for the three and nine months ended September 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 $137 million as of September 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	7	%
2020	26	%
2021	24	%
2022	17	%
Thereafter through 2027	26	%
	100	%

For the three and nine months ended September 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.