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Revenues
 12 Months Ended
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:
20212020
(In thousands)
Contract assets – January 1$68,971 $73,039 
Contract assets – December 3195,274 68,971 
Change in contract assets – (decrease) increase26,303 (4,068)
Contract liabilities – January 1215,093 167,306 
Contract liabilities – December 31328,816 215,093 
Change in contract liabilities – increase(113,723)(47,787)
Net change$(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
EIGEMGTotal
(In thousands)
United States$1,910,203 $890,737 $2,800,940 
International(1):
United Kingdom96,206 121,290 217,496 
European Union countries482,426 403,890 886,316 
Asia927,027 254,370 1,181,397 
Other foreign countries347,896 112,469 460,365 
Total international1,853,555 892,019 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
EIGEMGTotal
(In thousands)
United States$1,513,967 $816,159 $2,330,126 
International(1):
United Kingdom54,158 117,469 171,627 
European Union countries371,884 324,203 696,087 
Asia769,532 189,987 959,519 
Other foreign countries280,387 102,283 382,670 
Total international1,475,961 733,942 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
EIGEMGTotal
(In thousands)
United States$1,685,369 $998,317 $2,683,686 
International(1):
United Kingdom64,423 132,485 196,908 
European Union countries434,072 392,283 826,355 
Asia773,034 186,535 959,569 
Other foreign countries365,983 126,056 492,039 
Total international1,637,512 837,359 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
EIGEMGTotal
(In thousands)
Process and analytical instrumentation$2,627,476 $— $2,627,476 
Aerospace and power1,136,282 506,925 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
EIGEMGTotal
(In thousands)
Process and analytical instrumentation$2,199,167 $— $2,199,167 
Aerospace and power790,761 466,343 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
EIGEMGTotal
(In thousands)
Process and analytical instrumentation$2,393,587 $— $2,393,587 
Aerospace and power929,294 491,171 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
EIGEMGTotal
(In thousands)
Products transferred at a point in time$3,048,819 $1,596,911 $4,645,730 
Products and services transferred over time714,939 185,845 900,784 
Consolidated net sales$3,763,758 $1,782,756 $5,546,514 
2020
EIGEMGTotal
(In thousands)
Products transferred at a point in time$2,427,254 $1,390,574 $3,817,828 
Products and services transferred over time562,674 159,527 722,201 
Consolidated net sales$2,989,928 $1,550,101 $4,540,029 
2019
EIGEMGTotal
(In thousands)
Products transferred at a point in time$2,680,296 $1,670,448 $4,350,744 
Products and services transferred over time642,585 165,228 807,813 
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:
202120202019
(In thousands)
Balance at the beginning of the year$27,839 $27,611 $23,482 
Accruals for warranties issued during the year11,518 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 year1,790 2,830 2,621 
Balance at the end of the year$27,478 $27,839 $27,611