REVENUE

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

3. REVENUE

WESCO distributes products and provides services to customers globally in various end markets within its business segments. The segments, which consist of Electrical & Electronic Solutions, Communications & Security Solutions, and Utility & Broadband Solutions operate in the United States, Canada and various other international countries.

The following tables disaggregate WESCO’s net sales by segment and geography for the periods presented:

	Year Ended December 31,
(In thousands)	2020		2019		2018
Electrical & Electronic Solutions	$	5,479,760	$	4,860,541	$	4,878,836
Communications & Security Solutions	3,323,264		909,496		857,481
Utility & Broadband Solutions	3,522,971		2,588,880		2,440,284
Total by segment	$	12,325,995	$	8,358,917	$	8,176,601

	Year Ended December 31,
(In thousands)	2020		2019		2018
United States	$	9,110,453	$	6,234,119	$	6,089,130
Canada	1,892,321		1,647,066		1,647,933
Other International (1)	1,323,221		477,732		439,538
Total by geography (2)	$	12,325,995	$	8,358,917	$	8,176,601

(1)     No individual other international country's net sales are material.

(2)    WESCO attributes revenues from external customers to individual countries on the basis of point of sale.

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, 2020 and 2019, $24.3 million and $12.3 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, 2020, 2019 and 2018 by approximately $269.5 million, $106.6 million and $107.4 million, respectively. As of December 31, 2020 and 2019, the Company's estimated product return obligation was $38.9 million and $4.4 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 $149.3 million, $71.7 million and $74.1 million for the years ended December 31, 2020, 2019 and 2018, respectively.