Revenues Revenues (Notes)

12 Months Ended

Dec. 31, 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 18 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 years ended December 31, 2019, 2018, and 2017.



Year Ended December 31, 2019 (In millions)	North America		Europe Middle East Africa (EMEA)		Asia Pacific		Latin America		Total
Refining Catalysts	$	291.4	$	288.4	$	171.7	$	39.9	$	791.4
Polyolefin and Chemical Catalysts	191.4		283.0		213.7		17.2		705.3
Total Catalysts Technologies	$	482.8	$	571.4	$	385.4	$	57.1	$	1,496.7
Consumer/Pharma	$	45.2	$	59.1	$	20.1	$	20.2	$	144.6
Coatings	25.9		67.8		36.9		9.2		139.8
Chemical process	38.1		79.1		32.3		6.6		156.1
Other	5.8		14.2		0.7		0.2		20.9
Total Materials Technologies	$	115.0	$	220.2	$	90.0	$	36.2	$	461.4
Total Grace	$	597.8	$	791.6	$	475.4	$	93.3	$	1,958.1



Year Ended December 31, 2018 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
Refining Catalysts	$	282.8	$	266.0	$	193.4	$	59.8	$	802.0
Polyolefin and Chemical Catalysts	192.6		255.4		193.2		20.3		661.5
Total Catalysts Technologies	$	475.4	$	521.4	$	386.6	$	80.1	$	1,463.5
Consumer/Pharma	$	36.2	$	58.0	$	19.0	$	19.4	$	132.6
Coatings	28.1		75.3		43.3		8.7		155.4
Chemical process	35.2		81.6		32.2		8.3		157.3
Other	6.8		15.9		0.4		0.2		23.3
Total Materials Technologies	$	106.3	$	230.8	$	94.9	$	36.6	$	468.6
Total Grace	$	581.7	$	752.2	$	481.5	$	116.7	$	1,932.1



Year Ended December 31, 2017 (In millions)	North America		EMEA		Asia Pacific		Latin America		Total
Refining Catalysts	$	269.5	$	236.4	$	199.3	$	52.9	$	758.1
Polyolefin and Chemical Catalysts	117.4		218.1		166.4		16.5		518.4
Total Catalysts Technologies	$	386.9	$	454.5	$	365.7	$	69.4	$	1,276.5
Consumer/Pharma	$	38.2	$	48.3	$	17.8	$	19.0	$	123.3
Coatings	26.0		66.9		41.3		8.0		142.2
Chemical process	28.5		83.7		34.8		6.5		153.5
Other	6.4		14.3		0.2		0.1		21.0
Total Materials Technologies	$	99.1	$	213.2	$	94.1	$	33.6	$	440.0
Total Grace(1)	$	486.0	$	667.7	$	459.8	$	103.0	$	1,716.5

___________________________________________________________________________________________________________________


(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 December 31, 2019 and 2018:



	December 31,
(In millions)	2019		2018
Current	$	35.0	$	40.6
Noncurrent	29.5		29.2
Total	$	64.5	$	69.8

Grace records deferred revenues when cash payments are received or 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 $27.1 million of revenue recognized that was included in the deferred revenue balance as of December 31, 2018.

The noncurrent portion of the deferred revenue will be recognized as performance obligations under the technology licensing agreements are satisfied, which is expected to be over the next 5 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 $130 million as of December 31, 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
2020	25	%
2021	27	%
2022	20	%
2023	14	%
Thereafter through 2027	14	%
	100	%

For the years ended December 31, 2019, 2018, and 2017, 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.