The net change for the three months ended March 31, 2020

was primarily driven by the receipt of advance payments from customers exceeding the recognition of revenue as performance obligations were satisfied prior to billing. For the three months

ended March 31, 2020 and 2019, the Company recognized revenue of $87.4 million and $77.2 million, respectively, that was previously included in the beginning balance of contract liabilities.

Contract assets are reported as a component of Other current assets in the consolidated balance sheet. At March 31, 2020 and December 31, 2019, $19.5 million and $10.6 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets.

Applying the practical expedient available under ASC 606, the remaining performance obligations exceeding one year as of March 31, 2020 and December 31, 2019 were $208.6 million and $233.3 million, respectively. Remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from the balance sheet date, for which the performance obligation is unsatisfied or partially unsatisfied. These performance obligations will be substantially satisfied within two to three years.

Geographic Areas

Information about the Company’s operations in different geographic areas for the three months ended March 31, 2020 is shown below. Net sales were attributed to geographic areas based on the location of the customer.


	Three months ended March 31, 2020
	EIG		EMG		Total
	(In thousands)
United States	$	406,545	$	234,689	$	641,234

International (1) :
United Kingdom		14,793		33,138		47,931
European Union countries		105,676		88,766		194,442
Asia		164,745		43,830		208,575
Other foreign countries		82,466		27,570		110,036

Total international		367,680		193,304		560,984

Consolidated net sales	$	774,225	$	427,993	$	1,202,218

(1)	Includes U.S. export sales of $305.2 million.

Information about the Company’s operations in different geographic areas for the three months ended March 31, 2019 is shown below. Net sales were attributed to geographic areas based on the location of the customer.


	Three months ended March 31, 2019
	EIG		EMG		Total
	(In thousands)
United States	$	403,392	$	260,754	$	664,146

International (1) :
United Kingdom		15,427		33,888		49,315
European Union countries		102,785		106,419		209,204
Asia		193,847		47,111		240,958
Other foreign countries		91,460		32,608		124,068

Total international		403,519		220,026		623,545

Consolidated net sales	$	806,911	$	480,780	$	1,287,691

(1)	Includes U.S. export sales of $325.4 million.

Major Products and Services

The Company’s major products and services in the reportable segments were as follows:


	Three months ended March 31, 2020
	EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	548,440	$	—	$	548,440
Aerospace and power		225,785		127,251		353,036
Automation and engineered solutions		—		300,742		300,742

Consolidated net sales	$	774,225	$	427,993	$	1,202,218


	Three months ended March 31, 2019
	EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	577,340	$	—	$	577,340
Aerospace and power		229,571		118,878		348,449
Automation and engineered solutions		—		361,902		361,902

Consolidated net sales	$	806,911	$	480,780	$	1,287,691

Timing of Revenue Recognition


	Three months ended March 31, 2020
	EIG		EMG		Total
	(In thousands)
Products transferred at a point in time	$	633,540	$	379,059	$	1,012,599
Products and services transferred over time		140,685		48,934		189,619

Consolidated net sales	$	774,225	$	427,993	$	1,202,218


	Three months ended March 31, 2019
	EIG		EMG		Total
	(In thousands)
Products transferred at a point in time	$	677,833	$	435,605	$	1,113,438
Products and services transferred over time		129,078		45,175		174,253

Consolidated net sales	$	806,911	$	480,780	$	1,287,691

Product Warranties

The Company provides limited warranties in connection with the sale of its products. The warranty periods for products sold vary among the Company’s operations, but the majority do not exceed one year. The Company calculates its warranty expense provision based on its historical warranty experience and adjustments are made periodically to reflect actual warranty expenses. Product warranty obligations are reported as a component of Accrued liabilities

and other

in the consolidated balance sheet.

Changes in the accrued product warranty obligation were as follows:


	Three Months Ended
	March 31,
	2020			2019
	(In thousands)
Balance at the beginning of the period	$	27,611		$	23,482
Accruals for warranties issued during the period		3,252			5,003
Settlements made during the period		(4,217	)		(4,789	)
Warranty accruals related to acquired businesses and other during the period		288			(81	)

Balance at the end of the period	$	26,934		$	23,615

Accounts Receivable

The Company maintains allowances for estimated losses resulting from the inability of customers to meet their financial obligations to the Company. The Company recognizes an allowance for doubtful accounts, on all accounts receivable, which considers the length of time receivables are past due, customers’ billing exposure, ability to pay, and contract terms. The Company also considers general and market business conditions, country, and political risk. Balances are written off when determined to be uncollectible.

At March 31, 2020, the Company recorded $712.2 million of accounts and notes receivable, net of allowances of $11.9 million. Changes in the allowance were not material for the three months ended March 31, 2020.