Revenue

12 Months Ended

Dec. 31, 2019

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 primarily relates to revenue that is recognized over time for one-year software license contracts. Refer to Note 7 for deferred revenue balances at December 31, 2018 and 2019. Approximately $600 million of the December 31, 2018 balance was recognized as revenue during the year ended December 31, 2019, while approximately $500 million of the December 31, 2017 balance was recognized as revenue during the year ended December 31, 2018.

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)	2019		2018		2017
Abrasives	$	1,414	$	1,533	$	1,498
Automotive Aftermarket		1,243		1,374		1,388
Closure and Masking Systems		1,111		1,224		1,259
Communication Markets		—		175		387
Electrical Markets		1,200		1,243		1,196
Industrial Adhesives and Tapes		2,737		2,880		2,773
Personal Safety		3,508		3,606		2,960
Roofing Granules		366		353		372
Other Safety and Industrial		28		106		113
Total Safety and Industrial Business Segment	$	11,607	$	12,494	$	11,946
Advanced Materials	$	1,246	$	1,236	$	1,123
Automotive and Aerospace		1,943		2,109		2,047
Commercial Solutions		1,760		1,829		1,743
Electronics		3,710		3,965		3,842
Transportation Safety		949		957		1,103
Other Transportation and Electronics		(6)		10		3
Total Transportation and Electronics Business Segment	$	9,602	$	10,106	$	9,861
Drug Delivery	$	406	$	444	$	486
Food Safety		341		328		303
Health Information Systems		1,177		837		791
Medical Solutions		3,406		3,036		2,934
Oral Care		1,321		1,353		1,322
Separation and Purification Sciences		790		822		797
Other Health Care		(10)		6		2
Total Health Care Business Group	$	7,431	$	6,826	$	6,635
Consumer Health Care	$	383	$	391	$	425
Home Care		991		1,012		1,028
Home Improvement		2,305		2,233		2,118
Stationery and Office		1,373		1,396		1,386
Other Consumer		37		54		49
Total Consumer Business Group	$	5,089	$	5,086	$	5,006
Corporate and Unallocated	$	110	$	50	$	2
Elimination of Dual Credit		(1,703)		(1,797)		(1,793)
Total Company	$	32,136	$	32,765	$	31,657

	Year ended December 31, 2019
Net Sales (Millions)		United States		Asia Pacific		Europe, Middle East and Africa		Latin America and Canada		Other Unallocated		Worldwide
Safety and Industrial		$	4,643	$	2,877	$	2,672	$	1,419	$	(4)	$	11,607
Transportation and Electronics			2,304		5,228		1,472		601		(3)		9,602
Health Care			3,597		1,490		1,743		603		(2)		7,431
Consumer			3,119		984		545		442		(1)		5,089
Corporate and Unallocated			100		—		1		9		—		110
Elimination of Dual Credit			(604)		(783)		(207)		(109)		—		(1,703)
Total Company		$	13,159	$	9,796	$	6,226	$	2,965	$	(10)	$	32,136

	Year ended December 31, 2018
Net Sales (Millions)		United States		Asia Pacific		Europe, Middle East and Africa		Latin America and Canada		Other Unallocated		Worldwide
Safety and Industrial		$	4,921	$	3,099	$	3,001	$	1,476	$	(3)	$	12,494
Transportation and Electronics			2,406		5,514		1,578		610		(2)		10,106
Health Care			3,039		1,458		1,733		596		—		6,826
Consumer			3,045		1,021		574		447		(1)		5,086
Corporate and Unallocated			48		—		—		3		(1)		50
Elimination of Dual Credit			(619)		(838)		(232)		(108)		—		(1,797)
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
Safety and Industrial		$	4,605	$	2,981	$	2,869	$	1,497	$	(6)	$	11,946
Transportation and Electronics			2,372		5,328		1,550		615		(4)		9,861
Health Care			3,037		1,346		1,667		587		(2)		6,635
Consumer			2,943		1,029		585		450		(1)		5,006
Corporate and Unallocated			6		(1)		1		(4)		—		2
Elimination of Dual Credit			(591)		(874)		(216)		(112)		—		(1,793)
Total Company		$	12,372	$	9,809	$	6,456	$	3,033	$	(13)	$	31,657