REVENUE (Notes)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Policy Text Block]

3. REVENUE

WESCO distributes products and provides services to customers globally within the following end markets: (1) industrial, (2) construction, (3) utility, and (4) commercial, institutional and government. Revenue is measured as the amount of consideration WESCO expects to receive in exchange for transferring goods or providing services.

The following tables disaggregate WESCO’s net sales by end market and geography:



	Year Ended December 31,
(In thousands)	2019		2018		2017
Industrial	$	3,000,253	$	2,983,062	$	2,852,357
Construction	2,743,852		2,684,844		2,546,261
Utility	1,347,448		1,303,697		1,181,704
Commercial, Institutional and Government	1,267,364		1,204,998		1,098,699
Total by end market	$	8,358,917	$	8,176,601	$	7,679,021



	Year Ended December 31,
(In thousands)	2019		2018		2017
United States	$	6,234,119	$	6,089,130	$	5,775,988
Canada ⁽¹⁾	1,647,066		1,647,933		1,521,378
Other International ⁽¹⁾	477,732		439,538		381,655
Total by geography	$	8,358,917	$	8,176,601	$	7,679,021


⁽¹⁾	The prior periods has been reclassified to confirm to the current period's presentation.

In accordance with certain contractual arrangements, WESCO receives payment from its customers in advance and recognizes such payment as deferred revenue. Revenue for advance payment is recognized when the performance obligation has been satisfied and control has transferred to the customer, which is generally upon shipment. Deferred revenue is usually recognized within a year or less from the date of the customer’s advance payment. At December 31, 2019 and 2018, $12.3 million and $11.8 million, respectively, of deferred revenue was recorded as a component of other current liabilities in the Consolidated Balance Sheets.

WESCO’s revenues are adjusted for variable consideration, which includes customer volume rebates, returns, and discounts. WESCO measures variable consideration by estimating expected outcomes using analysis and inputs based upon historical data, as well as current and forecasted information. Variable consideration is reviewed by management on a monthly basis and revenue is adjusted accordingly. Variable consideration reduced revenue for the years ended December 31, 2019, 2018 and 2017 by approximately $106.6 million, $107.4 million and $91.1 million, respectively.

Shipping and handling costs are recognized in net sales when they are billed to the customer. These costs are recognized as a component of selling, general and administrative expenses when WESCO does not bill the customer. WESCO has elected to recognize shipping and handling costs as a fulfillment cost. Shipping and handling costs recorded as a component of selling, general and administrative expenses totaled $71.7 million, $74.1 million and $61.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.