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Revenues | 12 Months Ended
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Dec. 31, 2021
Revenue from Contract with Customer [Abstract] |
Revenues | Revenues The majority of the Company’s revenues on product sales are recognized at a point in time when the customer obtains control of the product. The Company determined that revenues from certain of its customer contracts met the criteria of satisfying its performance obligations over time, primarily in the areas of the manufacture of custom-made equipment and for service repairs of customer-owned equipment. Recognizing revenue over time for custom-manufactured equipment is based on the Company’s judgment that, in certain contracts, the product does not have an alternative use and the Company has an enforceable right to payment for performance completed to date. The Company recognizes incremental cost of obtaining contracts as an expense when incurred if the amortization period of the contract cost assets that the Company would have otherwise recognized is one year or less. These costs are included in Selling, general and administrative expenses in the consolidated statement of income. The determination of the revenue to be recognized in each period for performance obligations satisfied over time is based on the input method. The Company recognizes revenue over time as it performs on these contracts because the transfer of control to the customer occurs over time. Revenue is recognized based on the extent of progress towards completion of the performance obligation. The Company generally uses the total cost-to-cost input method of progress because it best depicts the transfer of control to the customer that occurs as costs are incurred. Under the cost-to-cost method, the extent of progress towards completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation. On certain contracts, labor hours are used as the measure of progress when it is determined to be a better depiction of the transfer of control to the customer due to the timing and pattern of labor hours incurred. Performance obligations also include post-delivery service, installation and training. Post-delivery service revenues are recognized over the contract term. Installation and training revenues are recognized over the period the service is provided. Warranty terms in customer contracts can also be considered separate performance obligations if the warranty provides services beyond assurance that a product complies with agreed-upon specification or if a warranty can be purchased separately. The Company does not incur significant obligations for customer returns and refunds. The Company has certain contracts with variable consideration in the form of volume discounts, rebates and early payment options, which may affect the transaction price used as the basis for revenue recognition. In these contracts, the amount of the variable consideration is allocated among the various performance obligations in the customer contract based on the relative standalone selling price of each performance obligation to the total standalone value of all the performance obligations. Payment terms generally begin upon shipment of the product. The Company does have contracts with multiple billing terms that are all due within one year from when the product is delivered. No significant financing component exists. Payment terms are generally 30-60 days from the time of shipment or customer acceptance, but terms can be shorter or longer, not exceeding one year. For customer contracts that have revenue recognized over time, revenue is generally recognized prior to a payment being due from the customer. In such cases, the Company recognizes a contract asset at the time the revenue is recognized. When payment becomes due based on the contract terms, the Company reduces the contract asset and records a receivable. In contracts with billing milestones or in other instances with a long production cycle or concerns about credit, customer advance payments are received. The Company may receive a payment in excess of revenue recognized to that date. In these circumstances, a contract liability is recorded. Contract liabilities are derecognized when the performance obligations are satisfied, and revenue is recognized. The outstanding contract asset and liability accounts were as follows:
| 2021 |  | 2020
| (In thousands)
Contract assets – January 1 | $ | 68,971 |  |  | $ | 73,039 |
Contract assets – December 31 | 95,274 |  |  | 68,971 |
Change in contract assets – (decrease) increase | 26,303 |  |  | (4,068) |
Contract liabilities – January 1 | 215,093 |  |  | 167,306 |
Contract liabilities – December 31 | 328,816 |  |  | 215,093 |
Change in contract liabilities – increase | (113,723) |  |  | (47,787) |
Net change | $ | (87,420) |  |  | $ | (51,855) |
The net change in 2021 and 2020 was primarily driven by the receipt of advance payments from customers significantly exceeding the recognition of revenue and customer advance payments from acquired businesses. For the years ended December 31, 2021 and 2020, the Company recognized revenue of $184 million and $133 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 December 31, 2021 and 2020, $30.1 million and $20.5 million, respectively, of Customer advanced payments (contract liabilities) were recorded in Other long-term liabilities in the consolidated balance sheet. The remaining performance obligations exceeding one year as of December 31, 2021 and 2020 were $342.5 million and $300.8 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 Net sales were attributed to geographic areas based on the location of the customer. Information about the Company’s operations in different geographic areas was as follows for the year ended December 31:
| 2021
| EIG |  | EMG |  | Total
| (In thousands)
United States | $ | 1,910,203 |  |  | $ | 890,737 |  |  | $ | 2,800,940 |
International(1): |  |  |  |  |
United Kingdom | 96,206 |  |  | 121,290 |  |  | 217,496 |
European Union countries | 482,426 |  |  | 403,890 |  |  | 886,316 |
Asia | 927,027 |  |  | 254,370 |  |  | 1,181,397 |
Other foreign countries | 347,896 |  |  | 112,469 |  |  | 460,365 |
Total international | 1,853,555 |  |  | 892,019 |  |  | 2,745,574 |
Consolidated net sales | $ | 3,763,758 |  |  | $ | 1,782,756 |  |  | $ | 5,546,514 |
_________________ (1)Includes U.S. export sales of $1,475.6 million.
| 2020
| EIG |  | EMG |  | Total
| (In thousands)
United States | $ | 1,513,967 |  |  | $ | 816,159 |  |  | $ | 2,330,126 |
International(1): |  |  |  |  |
United Kingdom | 54,158 |  |  | 117,469 |  |  | 171,627 |
European Union countries | 371,884 |  |  | 324,203 |  |  | 696,087 |
Asia | 769,532 |  |  | 189,987 |  |  | 959,519 |
Other foreign countries | 280,387 |  |  | 102,283 |  |  | 382,670 |
Total international | 1,475,961 |  |  | 733,942 |  |  | 2,209,903 |
Consolidated net sales | $ | 2,989,928 |  |  | $ | 1,550,101 |  |  | $ | 4,540,029 |
_________________ (1)Includes U.S. export sales of $1,196.4 million.
| 2019
| EIG |  | EMG |  | Total
| (In thousands)
United States | $ | 1,685,369 |  |  | $ | 998,317 |  |  | $ | 2,683,686 |
International(1): |  |  |  |  |
United Kingdom | 64,423 |  |  | 132,485 |  |  | 196,908 |
European Union countries | 434,072 |  |  | 392,283 |  |  | 826,355 |
Asia | 773,034 |  |  | 186,535 |  |  | 959,569 |
Other foreign countries | 365,983 |  |  | 126,056 |  |  | 492,039 |
Total international | 1,637,512 |  |  | 837,359 |  |  | 2,474,871 |
Consolidated net sales | $ | 3,322,881 |  |  | $ | 1,835,676 |  |  | $ | 5,158,557 |
_________________ (1)Includes U.S. export sales of $1,306.2 million Major Products and Services The Company’s major products and services in the reportable segments were as follows for the year ended December 31:
| 2021
| EIG |  | EMG |  | Total
| (In thousands)
Process and analytical instrumentation | $ | 2,627,476 |  |  | $ | — |  |  | $ | 2,627,476 |
Aerospace and power | 1,136,282 |  |  | 506,925 |  |  | 1,643,207 |
Automation and engineered solutions | — |  |  | 1,275,831 |  |  | 1,275,831 |
Consolidated net sales | $ | 3,763,758 |  |  | $ | 1,782,756 |  |  | $ | 5,546,514 |
| 2020
| EIG |  | EMG |  | Total
| (In thousands)
Process and analytical instrumentation | $ | 2,199,167 |  |  | $ | — |  |  | $ | 2,199,167 |
Aerospace and power | 790,761 |  |  | 466,343 |  |  | 1,257,104 |
Automation and engineered solutions | — |  |  | 1,083,758 |  |  | 1,083,758 |
Consolidated net sales | $ | 2,989,928 |  |  | $ | 1,550,101 |  |  | $ | 4,540,029 |
| 2019
| EIG |  | EMG |  | Total
| (In thousands)
Process and analytical instrumentation | $ | 2,393,587 |  |  | $ | — |  |  | $ | 2,393,587 |
Aerospace and power | 929,294 |  |  | 491,171 |  |  | 1,420,465 |
Automation and engineered solutions | — |  |  | 1,344,505 |  |  | 1,344,505 |
Consolidated net sales | $ | 3,322,881 |  |  | $ | 1,835,676 |  |  | $ | 5,158,557 |
Timing of Revenue Recognition The Company’s timing of revenue recognition was as follows for the year ended December 31:
| 2021
| EIG |  | EMG |  | Total
| (In thousands)
Products transferred at a point in time | $ | 3,048,819 |  |  | $ | 1,596,911 |  |  | $ | 4,645,730 |
Products and services transferred over time | 714,939 |  |  | 185,845 |  |  | 900,784 |
Consolidated net sales | $ | 3,763,758 |  |  | $ | 1,782,756 |  |  | $ | 5,546,514 |
| 2020
| EIG |  | EMG |  | Total
| (In thousands)
Products transferred at a point in time | $ | 2,427,254 |  |  | $ | 1,390,574 |  |  | $ | 3,817,828 |
Products and services transferred over time | 562,674 |  |  | 159,527 |  |  | 722,201 |
Consolidated net sales | $ | 2,989,928 |  |  | $ | 1,550,101 |  |  | $ | 4,540,029 |
| 2019
| EIG |  | EMG |  | Total
| (In thousands)
Products transferred at a point in time | $ | 2,680,296 |  |  | $ | 1,670,448 |  |  | $ | 4,350,744 |
Products and services transferred over time | 642,585 |  |  | 165,228 |  |  | 807,813 |
Consolidated net sales | $ | 3,322,881 |  |  | $ | 1,835,676 |  |  | $ | 5,158,557 |
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:
| 2021 |  | 2020 |  | 2019
| (In thousands)
Balance at the beginning of the year | $ | 27,839 |  |  | $ | 27,611 |  |  | $ | 23,482 |
Accruals for warranties issued during the year | 11,518 |  |  | 12,000 |  |  | 21,145 |
Settlements made during the year | (13,669) |  |  | (14,602) |  |  | (19,637) |
Warranty accruals related to acquired businesses and other during the year | 1,790 |  |  | 2,830 |  |  | 2,621 |
Balance at the end of the year | $ | 27,478 |  |  | $ | 27,839 |  |  | $ | 27,611 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 + Details
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