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Revenue | 6 Months Ended
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Jun. 30, 2024
Revenue from Contract with Customer [Abstract] |
Revenue | Revenue The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for products, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with products is recognized at a point in time when the product is shipped to the customer, with a relatively small amount of transactions, primarily in the Utility Solutions segment, recognized upon delivery of the product at the destination. The Company also has performance obligations, primarily within the Utility Solutions segment, that are recognized over time due to the customized nature of the product and the Company's enforceable right to receive payment for work performed to date in the event of a cancellation. The Company uses an input measure to determine the extent of progress towards completion of the performance obligation, which the Company believes best depicts the transfer of control to the customer. Under this method, revenue recognition is primarily based upon the ratio of costs incurred to date compared with estimated total costs to complete. Revenue from service contracts and post-shipment performance obligations are approximately two percent of total annual consolidated net revenue and those service contracts and post-shipment obligations are primarily within the Utility Solutions segment. Revenue from service contracts and post-shipment performance obligations is recognized when or as those obligations are satisfied. The Company primarily offers assurance-type standard warranties that do not represent separate performance obligations and on occasion will separately offer and price extended warranties that are separate performance obligations for which the associated revenue is recognized over-time based on the extended warranty period. The Company records amounts billed to customers for reimbursement of shipping and handling costs within revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold. Sales taxes and other usage-based taxes are excluded from revenue. Certain of our businesses require a portion of the transaction price to be paid in advance of transfer of control. Advance payments are not considered a significant financing component as they are received less than one year before the related performance obligations are satisfied. In addition, in the Utility Solutions segment, certain businesses offer annual maintenance service contracts that require payment at the beginning of the contract period. These payments are treated as a contract liability and are classified in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Condensed Consolidated Statements of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Condensed Consolidated Statements of Income on a straight-line basis over the expected term of the contract. The following table presents disaggregated revenue by business group. On January 1, 2024, we internally reorganized certain businesses within our Utility Solutions segment to streamline the organization and align the organization to better serve our customers. This change had no impact to our reportable segments. In conjunction with this change, prior period amounts have been reclassified to conform to the organizational changes within the Utility Solutions segment. In addition, the residential lighting business, included in the Retail and Builder section below, was sold in the first quarter of 2024.
| Three Months Ended June 30, | Six Months Ended June 30, |
in millions | 2024 | 2023 | 2024 | 2023 |
Net sales |  |  |  |  |
Grid Infrastructure | $ | 654.5 |  | $ | 583.1 |  | $ | 1,267.3 |  | $ | 1,144.8 |  |
Grid Automation | 272.0 |  | 247.7 |  | 553.2 |  | 467.6 |  |
Total Utility Solutions | $ | 926.5 |  | $ | 830.8 |  | $ | 1,820.5 |  | $ | 1,612.4 |  |
Electrical Products | $ | 223.1 |  | $ | 213.0 |  | $ | 434.6 |  | $ | 417.0 |  |
Connection and Bonding | 192.3 |  | 165.7 |  | 367.8 |  | 319.6 |  |
Industrial Controls | 110.6 |  | 109.1 |  | 207.5 |  | 203.0 |  |
Retail and Builder | — |  | 47.3 |  | 21.2 |  | 99.3 |  |
Total Electrical Solutions | $ | 526.0 |  | $ | 535.1 |  | $ | 1,031.1 |  | $ | 1,038.9 |  |
TOTAL | $ | 1,452.5 |  | $ | 1,365.9 |  | $ | 2,851.6 |  | $ | 2,651.3 |  |
The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions):
| Three Months Ended June 30, | Six Months Ended June 30,
in millions | 2024 | 2023 | 2024 | 2023
Net sales |  |  |  |
United States | $ | 879.7 |  | $ | 786.6 |  | $ | 1,732.9 |  | $ | 1,526.9 |
International | 46.8 |  | 44.2 |  | 87.6 |  | 85.5 |
Total Utility Solutions | $ | 926.5 |  | $ | 830.8 |  | $ | 1,820.5 |  | $ | 1,612.4 |
United States | $ | 447.9 |  | $ | 465.2 |  | $ | 882.1 |  | $ | 904.2 |
International | 78.1 |  | 69.9 |  | 149.0 |  | 134.7 |
Total Electrical Solutions | $ | 526.0 |  | $ | 535.1 |  | $ | 1,031.1 |  | $ | 1,038.9 |
TOTAL | $ | 1,452.5 |  | $ | 1,365.9 |  | $ | 2,851.6 |  | $ | 2,651.3 |
Contract Balances Our contract liabilities consist of advance payments for products as well as deferred revenue on service obligations and extended warranties. Deferred revenue is included in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Contract liabilities were $148.5 million as of June 30, 2024 compared to $118.6 million as of December 31, 2023. The $29.9 million increase in our contract liabilities balance was primarily due to a $82.0 million net increase in current year deferrals primarily due to timing of advance payments on certain orders, partially offset by the recognition of $52.1 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2024. The ending balance of contract assets as of June 30, 2024 and December 31, 2023, was $28.7 million and $41.6 million, respectively, with the decrease being driven by billings in excess of revenue recognized. Impairment losses recognized on our receivables and contract assets were immaterial for the three and six months ended June 30, 2024. Unsatisfied Performance Obligations As of June 30, 2024, the Company had approximately $100 million of unsatisfied performance obligations for contracts with an original expected length of greater than one year, primarily relating to long-term contracts of the Utility Solutions segment to deliver and install meters, metering communications and grid monitoring sensor technology. The Company expects that a majority of the unsatisfied performance obligations will be completed and recognized over the next two years.

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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 -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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