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Revenues | 3 Months Ended
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Mar. 31, 2023
Revenue from Contract with Customer [Abstract] |
Revenues | Revenues The outstanding contract asset and liability accounts were as follows:
| 2023 |  | 2022
| (In thousands)
Contract assets—January 1 | $ | 119,741 |  |  | $ | 95,274 |
Contract assets – March 31 | 127,412 |  |  | 102,703 |
Change in contract assets – increase (decrease) | 7,671 |  |  | 7,429 |
Contract liabilities – January 1 | 398,692 |  |  | 328,816 |
Contract liabilities – March 31 | 432,695 |  |  | 351,053 |
Change in contract liabilities – (increase) decrease | (34,003) |  |  | (22,237) |
Net change | $ | (26,332) |  |  | $ | (14,808) |
The net change for the three months ended March 31, 2023 was primarily driven by contract liabilities, specifically growth in advance payments from customers. For the three months ended March 31, 2023 and 2022, the Company recognized revenue of $199.3 million and $181.6 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 March 31, 2023 and December 31, 2022, $54.8 million and $41.0 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, 2023 and December 31, 2022 were $570.4 million and $526.0 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, 2023 |  |
| EIG |  | EMG |  | Total |  |  |  |  |  |
| (In thousands)
United States | $ | 561,896 |  |  | $ | 247,119 |  |  | $ | 809,015 |  |  |  |  |  |  |
International(1): |  |  |  |  |  |  |  |  |  |  |
United Kingdom | 28,038 |  |  | 31,062 |  |  | 59,100 |  |  |  |  |  |  |
European Union countries | 135,658 |  |  | 116,807 |  |  | 252,465 |  |  |  |  |  |  |
Asia | 283,892 |  |  | 50,905 |  |  | 334,797 |  |  |  |  |  |  |
Other foreign countries | 107,763 |  |  | 33,977 |  |  | 141,740 |  |  |  |  |  |  |
Total international | 555,351 |  |  | 232,751 |  |  | 788,102 |  |  |  |  |  |  |
Consolidated net sales | $ | 1,117,247 |  |  | $ | 479,870 |  |  | $ | 1,597,117 |  |  |  |  |  |  |
________________ (1) Includes U.S. export sales of $434.2 million for the three months ended March 31, 2023.
| Three months ended March 31, 2022 |  |
| EIG |  | EMG |  | Total |  |  |  |  |  |
| (In thousands)
United States | $ | 483,626 |  |  | $ | 230,641 |  |  | $ | 714,267 |  |  |  |  |  |  |
International(1): |  |  |  |  |  |  |  |  |  |  |
United Kingdom | 27,955 |  |  | 28,757 |  |  | 56,712 |  |  |  |  |  |  |
European Union countries | 120,714 |  |  | 114,149 |  |  | 234,863 |  |  |  |  |  |  |
Asia | 256,420 |  |  | 63,406 |  |  | 319,826 |  |  |  |  |  |  |
Other foreign countries | 99,044 |  |  | 33,813 |  |  | 132,857 |  |  |  |  |  |  |
Total international | 504,133 |  |  | 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. Major Products and Services The Company’s major products and services in the reportable segments were as follows:
| Three months ended March 31, 2023 |  |
| EIG |  | EMG |  | Total |  |  |  |  |  |
| (In thousands)
Process and analytical instrumentation | $ | 794,433 |  |  | $ | — |  |  | $ | 794,433 |  |  |  |  |  |  |
Aerospace and power | 322,814 |  |  | 143,050 |  |  | 465,864 |  |  |  |  |  |  |
Automation and engineered solutions | — |  |  | 336,820 |  |  | 336,820 |  |  |  |  |  |  |
Consolidated net sales | $ | 1,117,247 |  |  | $ | 479,870 |  |  | $ | 1,597,117 |  |  |  |  |  |  |
| Three months ended March 31, 2022 |  |
| EIG |  | EMG |  | Total |  |  |  |  |  |
| (In thousands)
Process and analytical instrumentation | $ | 692,692 |  |  | $ | — |  |  | $ | 692,692 |  |  |  |  |  |  |
Aerospace and power | 295,067 |  |  | 126,742 |  |  | 421,809 |  |  |  |  |  |  |
Automation and engineered solutions | — |  |  | 344,024 |  |  | 344,024 |  |  |  |  |  |  |
Consolidated net sales | $ | 987,759 |  |  | $ | 470,766 |  |  | $ | 1,458,525 |  |  |  |  |  |  |
Timing of Revenue Recognition
| Three months ended March 31, 2023 |  |
| EIG |  | EMG |  | Total |  |  |  |  |  |
| (In thousands)
Products transferred at a point in time | $ | 935,308 |  |  | $ | 413,601 |  |  | $ | 1,348,909 |  |  |  |  |  |  |
Products and services transferred over time | 181,939 |  |  | 66,269 |  |  | 248,208 |  |  |  |  |  |  |
Consolidated net sales | $ | 1,117,247 |  |  | $ | 479,870 |  |  | $ | 1,597,117 |  |  |  |  |  |  |
| 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 time | 174,811 |  |  | 58,112 |  |  | 232,923 |  |  |  |  |  |  |
Consolidated net sales | $ | 987,759 |  |  | $ | 470,766 |  |  | $ | 1,458,525 |  |  |  |  |  |  |
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,
| 2023 |  | 2022
| (In thousands)
Balance at the beginning of the period | $ | 26,487 |  |  | $ | 27,478 |
Accruals for warranties issued during the period | 3,411 |  |  | 2,753 |
Settlements made during the period | (3,224) |  |  | (3,023) |
Warranty accruals related to acquired businesses and other during the period | 133 |  |  | (166) |
Balance at the end of the period | $ | 26,807 |  |  | $ | 27,042 |
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, 2023, the Company had $901.5 million of accounts receivable, net of allowances of $13.3 million. Changes in the allowance were not material for the three months ended March 31, 2023.

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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 https://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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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