XML 24 R10.htm IDEA: XBRL DOCUMENT v3.22.1
Revenues
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The outstanding contract asset and liability accounts were as follows:
20222021
(In thousands)
Contract assets—January 1$95,274 $68,971 
Contract assets – March 31102,703 71,415 
Change in contract assets – increase (decrease)7,429 2,444 
Contract liabilities – January 1328,816 215,093 
Contract liabilities – March 31351,053 253,047 
Change in contract liabilities – (increase) decrease(22,237)(37,954)
Net change$(14,808)$(35,510)
The net change for the three months ended March 31, 2022 was primarily driven by contract liabilities, specifically broad-based growth in advance payments from customers. For the three months ended March 31, 2022 and 2021, the Company recognized revenue of $181.6 million and $132.0 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, 2022 and December 31, 2021, $28.3 million and $30.1 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets.
The remaining performance obligations not expected to be completed within one year as of March 31, 2022 and December 31, 2021 were $305.9 million and $342.5 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 three months ended March 31:
Three months ended March 31, 2022
EIG
EMG
Total
(In thousands)
United States$483,626 $230,641 $714,267 
International(1):
United Kingdom27,955 28,757 56,712 
European Union countries120,714 114,149 234,863 
Asia256,420 63,406 319,826 
Other foreign countries99,044 33,813 132,857 
Total international504,133 240,125 744,258 
Consolidated net sales$987,759 $470,766 $1,458,525 
________________
(1)    Includes U.S. export sales of $409.2 million for the three months ended March 31, 2022.

Three months ended March 31, 2021
EIGEMGTotal
(In thousands)
United States$388,901 $210,182 $599,083 
International(1):
United Kingdom21,947 30,051 51,998 
European Union countries103,665 95,297 198,962 
Asia197,561 61,194 258,755 
Other foreign countries78,850 28,094 106,944 
Total international402,023 214,636 616,659 
Consolidated net sales$790,924 $424,818 $1,215,742 
______________
(1)    Includes U.S. export sales of $331.2 million for the three months ended March 31, 2021.
Major Products and Services
The Company’s major products and services in the reportable segments were as follows:
Three months ended March 31, 2022
EIGEMGTotal
(In thousands)
Process and analytical instrumentation$692,692 $— $692,692 
Aerospace and power295,067 126,742 421,809 
Automation and engineered solutions— 344,024 344,024 
Consolidated net sales$987,759 $470,766 $1,458,525 
Three months ended March 31, 2021
EIGEMGTotal
(In thousands)
Process and analytical instrumentation$576,559 $— $576,559 
Aerospace and power214,365 122,173 336,538 
Automation and engineered solutions— 302,645 302,645 
Consolidated net sales$790,924 $424,818 $1,215,742 
Timing of Revenue Recognition
Three months ended March 31, 2022
EIG
EMG
Total
(In thousands)
Products transferred at a point in time$812,948 $412,654 $1,225,602 
Products and services transferred over time174,811 58,112 232,923 
Consolidated net sales$987,759 $470,766 $1,458,525 

Three months ended March 31, 2021
EIG
EMG
Total
(In thousands)
Products transferred at a point in time$647,252 $383,031 $1,030,283 
Products and services transferred over time143,672 41,787 185,459 
Consolidated net sales$790,924 $424,818 $1,215,742 
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,
20222021
(In thousands)
Balance at the beginning of the period$27,478 $27,839 
Accruals for warranties issued during the period2,753 2,780 
Settlements made during the period(3,023)(3,292)
Warranty accruals related to acquired businesses and other during the period(166)(99)
Balance at the end of the period$27,042 $27,228 
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 credit losses, on all accounts receivable and contract assets, which considers risk of future credit losses based on factors such as historical experience, contract terms, as well as general and market business conditions, country, and political risk. Balances are written off when determined to be uncollectible.
At March 31, 2022, the Company had $854.5 million of accounts receivable, net of allowances of $10.9 million. Changes in the allowance were not material for the three months ended March 31, 2022.