REVENUE

On January 1, 2018, the Company adopted ASC 606 "Revenue from Contracts with Customers" and all the related amendments using the modified retrospective method, whereby the adoption does not impact any prior periods. The effect of adopting the new standard did not require any cumulative effect adjustment to retained earnings as of January 1, 2018. There was no impact to our consolidated statements of operations, balance sheet, or statement of cash flows as of and for the period ended June 30, 2018.

The Company disaggregates revenue from contracts with customers by product, service, timing of revenue recognition and geography. A summary by the Company’s reportable segments follows for the three and six months ended June 30, 2018:



Three months ended June 30, 2018	U.S. Operations		Swiss Operations		Western European Operations		Chinese Operations		Other Operations		Total
Product Revenue	$	191,511	$	25,163	$	124,336	$	119,709	$	101,757	$	562,476
Service Revenue:
Point in time	49,985		4,919		33,081		10,885		24,969		123,839
Over time	9,978		2,072		16,355		2,678		4,598		35,681
Total	$	251,474	$	32,154	$	173,772	$	133,272	$	131,324	$	721,996



Six months ended June 30, 2018	U.S. Operations		Swiss Operations		Western European Operations		Chinese Operations		Other Operations		Total
Product Revenue	$	364,012	$	50,728	$	241,268	$	224,002	$	193,412	$	1,073,422
Service Revenue:
Point in time	97,605		9,748		62,966		18,012		49,208		237,539
Over time	19,602		4,143		34,910		5,188		8,013		71,856
Total	$	481,219	$	64,619	$	339,144	$	247,202	$	250,633	$	1,382,817

A summary of revenue by major geographic destination for the three and six months ended June 30 follows:



	Three months ended June 30, 2018		Six months ended June 30, 2018
Americas	$	274,328	$	526,607
Europe	220,718		426,558
Asia / Rest of World	226,950		429,652
Total	$	721,996	$	1,382,817

The Company's global revenue mix by product category is laboratory (51% of sales), industrial (41% of sales) and retail (8% of sales). The Company's product revenue by reportable segment is proportionately similar to the Company's global mix except the Company's Swiss Operations is largely comprised of laboratory products while the Company's Chinese Operations has a slightly higher percentage of industrial products. A summary of the Company’s revenue by product category for the three and six months ended June 30, 2018 is as follows:



	Three months ended June 30, 2018		Six months ended June 30, 2018
Laboratory	$	361,726	$	706,885
Industrial	305,277		567,933
Retail	54,993		107,999
Total	$	721,996	$	1,382,817

The payment terms in the Company’s contracts with customers do not exceed one year and therefore contracts do not contain a significant financing component. In most cases, after appropriate credit evaluations, payments are due in arrears and are recognized as receivables. Unbilled revenue is recorded when performance obligations have been satisfied, but the Company does not have right to receive payment. Unbilled revenue as of June 30, 2018 was $16.7 million and is included within accounts receivable. Deferred revenue and customer prepayments are recorded when cash payments are received or due in advance of the performance obligation being satisfied. Deferred revenue primarily includes prepaid service contracts, as well as deferred installation.

Changes in the components of deferred revenue and customer prepayments during the period are as follows:



	Deferred Revenue and Customer Pre-payments
Beginning balances as of December 31, 2017	$	107,166
Customer pre-payments/deferred revenue	282,446
Revenue recognized	(260,280		)
Foreign currency translation	(2,497		)
Ending balance as of June 30, 2018	$	126,835

The Company generally expenses sales commissions when incurred because the amortization period is one year or less. These costs are recorded within selling, general, and administrative expenses. The Company has not disclosed the value of unsatisfied performance obligations other than customer prepayments and deferred revenue above as most contracts have an expected length of one year or less and amounts greater than one year are immaterial.