REVENUE (Notes)

6 Months Ended

Jun. 30, 2021

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 EES, CSS and UBS 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:

	Three Months Ended				Six Months Ended
	June 30				June 30
(In thousands)	2021		2020		2021		2020
EES	$	1,923,011	$	1,043,294	$	3,643,824	$	2,157,766
CSS	1,461,120		341,470		2,711,735		565,185
UBS	1,211,659		701,942		2,281,708		1,332,402
Total by segment	$	4,595,790	$	2,086,706	$	8,637,267	$	4,055,353

	Three Months Ended				Six Months Ended
	June 30				June 30
(In thousands)	2021		2020		2021		2020
United States	$	3,318,311	$	1,587,063	$	6,248,747	$	3,065,557
Canada	703,135		352,719		1,310,887		730,134
Other International(1)	574,344		146,924		1,077,633		259,662
Total by geography(2)	$	4,595,790	$	2,086,706	$	8,637,267	$	4,055,353

(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 June 30, 2021 and December 31, 2020, $43.0 million and $24.3 million, respectively, of deferred revenue was recorded as a component of other current liabilities in the Condensed 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 three months ended June 30, 2021 and 2020 by approximately $112.4 million and $31.7 million, respectively, and by approximately $217.8 million and $54.9 million for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021 and December 31, 2020, the Company's estimated product return obligation was $39.6 million and $38.9 million, respectively.

Shipping and handling activities are recognized in net sales when they are billed to 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 $62.7 million and $20.9 million for the three months ended June 30, 2021 and 2020, respectively, and $116.0 million and $38.9 million for the six months ended June 30, 2021 and 2020, respectively