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Revenues
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The outstanding contract asset and liability accounts were as follows:
20202019
(In thousands)
Contract assets—January 1$73,039 $58,266 
Contract assets – September 3068,157 78,010 
Change in contract assets – (decrease) increase(4,882)19,744 
Contract liabilities – January 1167,306 146,162 
Contract liabilities – September 30198,660 152,897 
Change in contract liabilities – increase(31,354)(6,735)
Net change$(36,236)$13,009 
The net change for the nine months ended September 30, 2020 was primarily driven by the receipt of advance payments from customers exceeding the recognition of revenue as performance obligations were satisfied. For the nine months ended September 30, 2020 and 2019, the Company recognized revenue of $120.6 million and $123.6 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 September 30, 2020 and December 31, 2019, $22.9 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 September 30, 2020 and December 31, 2019 were $322.0 million and $233.3 million, respectively. Remaining performance obligations represent the transaction price of firm, non-cancelable 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 and nine months ended September 30, 2020 is shown below. Net sales were attributed to geographic areas based on the location of the customer.
Three months ended September 30, 2020Nine months ended September 30, 2020
EIG
EMG
Total
EIGEMGTotal
(In thousands)
United States$379,744 $198,440 $578,184 $1,125,046 $622,498 $1,747,544 
International(1):
United Kingdom11,488 28,657 40,145 39,708 84,547 124,255 
European Union countries97,028 78,851 175,879 282,605 246,944 529,549 
Asia188,254 47,496 235,750 514,189 138,862 653,051 
Other foreign countries71,858 25,126 96,984 208,931 77,752 286,683 
Total international368,628 180,130 548,758 1,045,433 548,105 1,593,538 
Consolidated net sales$748,372 $378,570 $1,126,942 $2,170,479 $1,170,603 $3,341,082 
________________
(1)    Includes U.S. export sales of $303.2 million and $866.3 million for the three and nine months ended September 30, 2020, respectively.
Information about the Company’s operations in different geographic areas for the three and nine months ended September 30, 2019 is shown below. Net sales were attributed to geographic areas based on the location of the customer.
Three months ended September 30, 2019Nine months ended September 30, 2019
EIGEMGTotalEIGEMGTotal
(In thousands)
United States$421,629 $252,343 $673,972 $1,250,564 $764,001 $2,014,565 
International(1):
United Kingdom19,538 34,319 53,857 47,885 100,657 148,542 
European Union countries99,180 98,357 197,537 302,800 308,138 610,938 
Asia190,419 46,347 236,766 569,553 142,035 711,588 
Other foreign countries84,786 29,715 114,501 271,908 96,195 368,103 
Total international393,923 208,738 602,661 1,192,146 647,025 1,839,171 
Consolidated net sales$815,552 $461,081 $1,276,633 $2,442,710 $1,411,026 $3,853,736 
______________
(1)    Includes U.S. export sales of $317.6 million and $965.1 million for the three and nine months ended September 30, 2019, respectively.
Major Products and Services
The Company’s major products and services in the reportable segments were as follows:
Three months ended September 30, 2020Nine months ended September 30, 2020
EIGEMGTotalEIGEMGTotal
(In thousands)
Process and analytical instrumentation$557,570 $— $557,570 $1,589,550 $— $1,589,550 
Aerospace and power190,802 116,126 306,928 580,929 347,510 928,439 
Automation and engineered solutions— 262,444 262,444 — 823,093 823,093 
Consolidated net sales$748,372 $378,570 $1,126,942 $2,170,479 $1,170,603 $3,341,082 
Three months ended September 30, 2019Nine months ended September 30, 2019
EIGEMGTotalEIGEMGTotal
(In thousands)
Process and analytical instrumentation$586,430 $— $586,430 $1,747,708 $— $1,747,708 
Aerospace and power229,122 123,228 352,350 695,002 362,498 1,057,500 
Automation and engineered solutions—337,853 337,853 — 1,048,528 1,048,528 
Consolidated net sales$815,552 $461,081 $1,276,633 $2,442,710 $1,411,026 $3,853,736 
Timing of Revenue Recognition
Three months ended September 30, 2020Nine months ended September 30, 2020
EIG
EMG
Total
EIGEMGTotal
(In thousands)
Products transferred at a point in time$603,602 $346,237 $949,839 $1,762,310 $1,049,798 $2,812,108 
Products and services transferred over time144,770 32,333 177,103 408,169 120,805 528,974 
Consolidated net sales$748,372 $378,570 $1,126,942 $2,170,479 $1,170,603 $3,341,082 

Three months ended September 30, 2019Nine months ended September 30, 2019
EIG
EMG
Total
EIGEMGTotal
(In thousands)
Products transferred at a point in time$652,950 $416,280 $1,069,230 $1,984,938 $1,286,060 $3,270,998 
Products and services transferred over time162,602 44,801 207,403 457,772 124,966 582,738 
Consolidated net sales$815,552 $461,081 $1,276,633 $2,442,710 $1,411,026 $3,853,736 
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:
Nine Months Ended September 30,
20202019
(In thousands)
Balance at the beginning of the period$27,611 $23,482 
Accruals for warranties issued during the period9,766 14,342 
Settlements made during the period(11,513)(13,335)
Warranty accruals related to acquired businesses and other during the period2,594 617 
Balance at the end of the period$28,458 $25,106 
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 September 30, 2020, the Company recorded $614.8 million of accounts and notes receivable, net of allowances of $12.6 million. Changes in the allowance were not material for the three and nine months ended September 30, 2020.