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Revenue from Contracts with Customers (Notes)
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
3.
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 did 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 December 31, 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 twelve months ended December 31:
Twelve months ended December 31, 2019
U.S. Operations
 
Swiss Operations
 
Western European Operations
 
Chinese Operations
 
Other Operations
 
Total
Product Revenue
$
801,181

 
$
110,390

 
$
500,978

 
$
495,579

 
$
438,717

 
$
2,346,845

Service Revenue:


 


 


 


 


 


Point in time
207,707

 
20,968

 
135,612

 
37,370

 
109,802

 
511,459

Over time
48,227

 
8,141

 
64,151

 
11,767

 
18,062

 
150,348

Total
$
1,057,115

 
$
139,499

 
$
700,741

 
$
544,716

 
$
566,581

 
$
3,008,652

Twelve months ended December 31, 2018
U.S. Operations
 
Swiss Operations
 
Western European Operations
 
Chinese Operations
 
Other Operations
 
Total
Product Revenue
$
769,971

 
$
106,400

 
$
517,855

 
$
475,025

 
$
430,824

 
$
2,300,075

Service Revenue:
 
 
 
 
 
 
 
 
 
 
 
Point in time
196,314

 
19,430

 
134,052

 
38,528

 
100,638

 
488,962

Over time
41,512

 
8,234

 
66,881

 
11,556

 
18,366

 
146,549

Total
$
1,007,797

 
$
134,064

 
$
718,788

 
$
525,109

 
$
549,828

 
$
2,935,586

The Company's global revenue mix by product category is laboratory (52% of sales), industrial (41% of sales), and retail (7% 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, which is largely comprised of laboratory products while the Company's Chinese Operations has a slightly higher percentage of industrial products. A breakdown of the Company's sales by product category for the year ended December 31 follows:
 
2019
 
2018
Laboratory
$
1,578,625

 
$
1,504,600

Industrial
1,233,970

 
1,211,362

Retail
196,057

 
219,624

Total net sales
$
3,008,652

 
$
2,935,586

    
A breakdown of net sales to external customers by geographic customer destination, net for the year ended December 31 follows:
 
2019
 
2018
Americas
$
1,165,847

 
$
1,105,956

Europe
892,092

 
908,773

Asia/Rest of World
950,713

 
920,857

Total
$
3,008,652

 
$
2,935,586


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 not yet billed to the customer. Unbilled revenue as of December 31, 2019 and 2018 was $17.4 million and $12.4 million, respectively, 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:
 
 
2019
 
2018
Beginning balances as of January 1
 
$
105,381

 
$
107,166

Customer pre-payments/deferred revenue
 
633,190

 
619,257

Revenue recognized
 
(615,957
)
 
(618,002
)
Foreign currency translation
 
(125
)
 
(3,040
)
Ending balance as of December 31
 
$
122,489

 
$
105,381



The Company generally expenses sales commissions when incurred because the contract 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 as most contracts have an expected length of one year or less and amounts greater than one year are immaterial.