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)	2018		2017		2016
Industrial	$	2,983,062	$	2,852,357	$	2,644,442
Construction	2,684,844		2,546,261		2,482,624
Utility	1,303,697		1,181,704		1,158,651
Commercial, Institutional and Government	1,204,998		1,098,699		1,050,300
Total by end market	$	8,176,601	$	7,679,021	$	7,336,017



	Year Ended December 31,
(In thousands)	2018		2017		2016
United States	$	6,089,130	$	5,775,988	$	5,635,803
Other ⁽¹⁾	2,087,471		1,903,033		1,700,214
Total by geography	$	8,176,601	$	7,679,021	$	7,336,017


⁽¹⁾	Other primarily includes net sales originating in Canada.

The amount of revenue recognized for integrated supply services totaled $23.3 million, $26.2 million, and $27.1 million in 2018, 2017 and 2016, respectively.

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, 2018 and 2017, $11.8 million and $15.5 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, 2018, 2017 and 2016 by approximately $107.4 million, $91.1 million and $79.9 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 $74.1 million, $61.8 million and $57.9 million for the years ended December 31, 2018, 2017 and 2016, respectively.