XML 19 R9.htm IDEA: XBRL DOCUMENT v3.23.2
Revenues
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The outstanding contract asset and liability accounts were as follows:
20232022
(In thousands)
Contract assets—January 1$119,741 $95,274 
Contract assets – June 30137,444 107,902 
Change in contract assets – increase (decrease)17,703 12,628 
Contract liabilities – January 1398,692 328,816 
Contract liabilities – June 30443,768 369,926 
Change in contract liabilities – (increase) decrease(45,076)(41,110)
Net change$(27,373)$(28,482)
The net change for the six months ended June 30, 2023 was primarily driven by contract liabilities, specifically growth in advance payments from customers. For the six months ended June 30, 2023 and 2022, the Company recognized revenue of $268.0 million and $219.3 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 June 30, 2023 and December 31, 2022, $61.2 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 June 30, 2023 and December 31, 2022 were $573.0 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 and six months ended June 30:
Three months ended June 30, 2023Six months ended June 30, 2023
EIG
EMG
Total
EIGEMGTotal
(In thousands)
United States$575,281 $284,611 $859,892 $1,137,177 $531,730 $1,668,907 
International(1):
United Kingdom23,150 28,402 51,552 51,188 59,464 110,652 
European Union countries130,811 110,876 241,687 266,469 227,683 494,152 
Asia290,636 52,753 343,389 574,528 103,658 678,186 
Other foreign countries114,768 34,823 149,591 222,531 68,800 291,331 
Total international559,365 226,854 786,219 1,114,716 459,605 1,574,321 
Consolidated net sales$1,134,646 $511,465 $1,646,111 $2,251,893 $991,335 $3,243,228 
________________
(1)    Includes U.S. export sales of $439.1 million and $873.3 million for the three and six months ended June 30, 2023, respectively.

Three months ended June 30, 2022Six months ended June 30, 2022
EIGEMGTotalEIGEMGTotal
(In thousands)
United States$551,967 $240,436 $792,403 $1,035,593 $471,813 $1,507,406 
International(1):
United Kingdom19,050 31,620 50,670 47,005 60,251 107,256 
European Union countries109,425 108,031 217,456 230,139 222,193 452,332 
Asia255,232 70,225 325,457 511,652 133,064 644,716 
Other foreign countries92,574 35,992 128,566 191,618 69,749 261,367 
Total international476,281 245,868 722,149 980,414 485,257 1,465,671 
Consolidated net sales$1,028,248 $486,304 $1,514,552 $2,016,007 $957,070 $2,973,077 
______________
(1)    Includes U.S. export sales of $394.7 million and $801.2 million for the three and six months ended June 30, 2022, respectively.

Major Products and Services
The Company’s major products and services in the reportable segments were as follows:
Three months ended June 30, 2023Six months ended June 30, 2023
EIGEMGTotalEIGEMGTotal
(In thousands)
Process and analytical instrumentation$798,667 $— $798,667 $1,593,100 $— $1,593,100 
Aerospace and power335,979 149,792 485,771 658,793 292,842 951,635 
Automation and engineered solutions— 361,673 361,673 — 698,493 698,493 
Consolidated net sales$1,134,646 $511,465 $1,646,111 $2,251,893 $991,335 $3,243,228 
Three months ended June 30, 2022Six months ended June 30, 2022
EIGEMGTotalEIGEMGTotal
(In thousands)
Process and analytical instrumentation$768,261 $— $768,261 $1,460,953 $— $1,460,953 
Aerospace and power259,987 137,340 397,327 555,054 264,082 819,136 
Automation and engineered solutions— 348,964 348,964 — 692,988 692,988 
Consolidated net sales$1,028,248 $486,304 $1,514,552 $2,016,007 $957,070 $2,973,077 
Timing of Revenue Recognition
Three months ended June 30, 2023Six months ended June 30, 2023
EIG
EMG
Total
EIGEMGTotal
(In thousands)
Products transferred at a point in time$936,934 $463,618 $1,400,552 $1,872,242 $877,219 $2,749,461 
Products and services transferred over time197,712 47,847 245,559 379,651 114,116 493,767 
Consolidated net sales$1,134,646 $511,465 $1,646,111 $2,251,893 $991,335 $3,243,228 

Three months ended June 30, 2022Six months ended June 30, 2022
EIG
EMG
Total
EIGEMGTotal
(In thousands)
Products transferred at a point in time$839,948 $423,506 $1,263,454 $1,652,896 $836,160 $2,489,056 
Products and services transferred over time188,300 62,798 251,098 363,111 120,910 484,021 
Consolidated net sales$1,028,248 $486,304 $1,514,552 $2,016,007 $957,070 $2,973,077 

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:
Six Months Ended June 30,
20232022
(In thousands)
Balance at the beginning of the period$26,487 $27,478 
Accruals for warranties issued during the period9,397 5,143 
Settlements made during the period(7,289)(6,023)
Warranty accruals related to acquired businesses and other during the period244 (632)
Balance at the end of the period$28,839 $25,966 
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 June 30, 2023, the Company had $936.9 million of accounts receivable, net of allowances of $14.3 million. Changes in the allowance were not material for the three and six months ended June 30, 2023.