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Revenue
 12 Months Ended
Dec. 31, 2018
Revenue  
Revenue

Note 2.  Revenue

 

The Company adopted ASU No. 2014-09 and related standards (collectively, ASC 606, Revenue from Contracts with Customers), on January 1, 2018 using the modified retrospective method of adoption. Prior periods have not been restated. Due to the cumulative net impact of adopting ASC 606, the January 1, 2018 balance of retained earnings was increased by less than $2 million, primarily relating to the accelerated recognition for software installation service and training revenue. This cumulative impact reflects retrospective application of ASC 606 only to contracts that were not completed as of January 1, 2018. Further, the Company applied the practical expedient permitting the effect of all contract modifications that occurred before January 1, 2018 to be aggregated in the transition accounting. The impact of applying ASC 606 as compared with previous guidance applied to revenues and costs was not material for the year ended December 31, 2018.

 

Contract Balances:

Deferred revenue (current portion) as of December 31, 2018 and December 31, 2017 was $617 million and $513 million, respectively, and primarily relates to revenue that is recognized over time for one-year software license contracts, the changes in balance of which are related to the satisfaction or partial satisfaction of these contracts. The balance also contains a deferral for goods that are in-transit at period end for which control transfers to the customer upon delivery. Approximately $500 million of the December 31, 2017 balance was recognized as revenue during the year ended December 31, 2018. The amount of noncurrent deferred revenue is not significant.

 

Disaggregated revenue information:

The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended 

 

 

 

December 31,

 

Net Sales (Millions)

 

2018

    

2017

    

2016

 

Abrasives

 

$

1,804

 

$

1,746

 

$

1,626

 

Adhesives and Tapes

 

 

4,607

 

 

4,468

 

 

4,239

 

Advanced Materials

 

 

1,239

 

 

1,124

 

 

1,039

 

Automotive and Aerospace

 

 

2,063

 

 

1,994

 

 

1,871

 

Automotive Aftermarket

 

 

1,642

 

 

1,645

 

 

1,590

 

Separation and Purification

 

 

913

 

 

886

 

 

859

 

Other Industrial

 

 

(1)

 

 

 3

 

 

(7)

 

Total Industrial Business Group

 

$

12,267

 

$

11,866

 

$

11,217

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Solutions

 

$

1,842

 

$

1,759

 

$

1,751

 

Personal Safety

 

 

3,681

 

 

3,012

 

 

2,597

 

Roofing Granules

 

 

353

 

 

372

 

 

344

 

Transportation Safety

 

 

950

 

 

1,091

 

 

1,259

 

Other Safety and Graphics

 

 

 1

 

 

 1

 

 

(3)

 

Total Safety and Graphics Business Group

 

$

6,827

 

$

6,235

 

$

5,948

 

 

 

 

 

 

 

 

 

 

 

 

Drug Delivery

 

$

444

 

$

486

 

$

451

 

Food Safety

 

 

332

 

 

306

 

 

280

 

Health Information Systems

 

 

837

 

 

791

 

 

780

 

Medical Solutions

 

 

3,049

 

 

2,947

 

 

2,824

 

Oral Care

 

 

1,353

 

 

1,322

 

 

1,274

 

Other Health Care

 

 

 6

 

 

 1

 

 

(3)

 

Total Health Care Business Group

 

$

6,021

 

$

5,853

 

$

5,606

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

$

3,974

 

$

3,850

 

$

3,304

 

Energy

 

 

1,487

 

 

1,645

 

 

1,616

 

Other Electronics and Energy

 

 

11

 

 

 6

 

 

 6

 

Total Electronics and Energy Business Group

 

$

5,472

 

$

5,501

 

$

4,926

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Health Care

 

$

389

 

$

421

 

$

382

 

Home Care

 

 

1,012

 

 

1,028

 

 

1,000

 

Home Improvement

 

 

1,961

 

 

1,858

 

 

1,723

 

Stationery and Office

 

 

1,383

 

 

1,377

 

 

1,435

 

Other Consumer

 

 

51

 

 

47

 

 

38

 

Total Consumer Business Group

 

$

4,796

 

$

4,731

 

$

4,578

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Unallocated

 

$

50

 

$

 3

 

$

 6

 

Elimination of Dual Credit

 

 

(2,668)

 

 

(2,532)

 

 

(2,172)

 

Total Company

 

$

32,765

 

$

31,657

 

$

30,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2018

 

Net Sales (Millions)

    

United States

 

Asia Pacific

    

Europe, Middle East and Africa

    

Latin America and Canada

    

Other Unallocated

    

Worldwide

 

Industrial

 

$

4,538

 

$

3,554

 

$

2,939

 

$

1,238

 

$

(2)

 

$

12,267

 

Safety and Graphics

 

 

2,699

 

 

1,688

 

 

1,658

 

 

784

 

 

(2)

 

 

6,827

 

Health Care

 

 

2,830

 

 

1,148

 

 

1,488

 

 

556

 

 

(1)

 

 

6,021

 

Electronics and Energy

 

 

900

 

 

3,866

 

 

462

 

 

245

 

 

(1)

 

 

5,472

 

Consumer

 

 

2,868

 

 

961

 

 

535

 

 

432

 

 

 —

 

 

4,796

 

Corporate and Unallocated

 

 

47

 

 

 —

 

 

 —

 

 

 3

 

 

 —

 

 

50

 

Elimination of Dual Credit

 

 

(1,042)

 

 

(963)

 

 

(428)

 

 

(234)

 

 

(1)

 

 

(2,668)

 

Total Company

 

$

12,840

 

$

10,254

 

$

6,654

 

$

3,024

 

$

(7)

 

$

32,765

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2017

 

Net Sales (Millions)

    

United States

 

Asia Pacific

    

Europe, Middle East and Africa

    

Latin America and Canada

    

Other Unallocated

    

Worldwide

 

Industrial

 

$

4,382

 

$

3,405

 

$

2,822

 

$

1,261

 

$

(4)

 

$

11,866

 

Safety and Graphics

 

 

2,427

 

 

1,578

 

 

1,468

 

 

765

 

 

(3)

 

 

6,235

 

Health Care

 

 

2,835

 

 

1,041

 

 

1,433

 

 

546

 

 

(2)

 

 

5,853

 

Electronics and Energy

 

 

929

 

 

3,731

 

 

571

 

 

273

 

 

(3)

 

 

5,501

 

Consumer

 

 

2,767

 

 

983

 

 

547

 

 

436

 

 

(2)

 

 

4,731

 

Corporate and Unallocated

 

 

 6

 

 

 —

 

 

 1

 

 

(5)

 

 

 1

 

 

 3

 

Elimination of Dual Credit

 

 

(974)

 

 

(929)

 

 

(386)

 

 

(243)

 

 

 —

 

 

(2,532)

 

Total Company

 

$

12,372

 

$

9,809

 

$

6,456

 

$

3,033

 

$

(13)

 

$

31,657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2016

 

Net Sales (Millions)

    

United States

 

Asia Pacific

    

Europe, Middle East and Africa

    

Latin America and Canada

    

Other Unallocated

    

Worldwide

 

Industrial

 

$

4,251

 

$

3,133

 

$

2,649

 

$

1,181

 

$

 3

 

$

11,217

 

Safety and Graphics

 

 

2,397

 

 

1,434

 

 

1,355

 

 

760

 

 

 2

 

 

5,948

 

Health Care

 

 

2,733

 

 

959

 

 

1,412

 

 

500

 

 

 2

 

 

5,606

 

Electronics and Energy

 

 

918

 

 

3,183

 

 

559

 

 

264

 

 

 2

 

 

4,926

 

Consumer

 

 

2,761

 

 

874

 

 

535

 

 

407

 

 

 1

 

 

4,578

 

Corporate and Unallocated

 

 

 6

 

 

 —

 

 

 1

 

 

(1)

 

 

 —

 

 

 6

 

Elimination of Dual Credit

 

 

(878)

 

 

(736)

 

 

(348)

 

 

(210)

 

 

 —

 

 

(2,172)

 

Total Company

 

$

12,188

 

$

8,847

 

$

6,163

 

$

2,901

 

$

10

 

$

30,109