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REVENUE | 9 Months Ended
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Sep. 30, 2022
Revenue from Contract with Customer [Abstract] |
REVENUE | REVENUE Revenue by segment and geography for the three and nine months ended September 30, 2022 and 2021 is as follows:
| For the Three Months Ended September 30, 2022
Segment | Europe |  | Domestic |  | Latin America |  | Asia |  | Total
Pharma | $ | 212,751 |  |  | $ | 105,542 |  |  | $ | 6,309 |  |  | $ | 18,795 |  |  | $ | 343,397 |
Beauty + Home | 189,963 |  |  | 98,216 |  |  | 44,573 |  |  | 27,071 |  |  | 359,823 |
Food + Beverage | 34,119 |  |  | 76,052 |  |  | 12,399 |  |  | 11,070 |  |  | 133,640 |
Total | $ | 436,833 |  |  | $ | 279,810 |  |  | $ | 63,281 |  |  | $ | 56,936 |  |  | $ | 836,860 |
| For the Three Months Ended September 30, 2021
Segment | Europe |  | Domestic |  | Latin America |  | Asia |  | Total
Pharma | $ | 202,893 |  |  | $ | 89,620 |  |  | $ | 5,318 |  |  | $ | 15,394 |  |  | $ | 313,225 |
Beauty + Home | 193,772 |  |  | 109,103 |  |  | 40,441 |  |  | 30,772 |  |  | 374,088 |
Food + Beverage | 36,824 |  |  | 81,514 |  |  | 11,991 |  |  | 7,800 |  |  | 138,129 |
Total | $ | 433,489 |  |  | $ | 280,237 |  |  | $ | 57,750 |  |  | $ | 53,966 |  |  | $ | 825,442 |
| For the Nine Months Ended September 30, 2022
Segment | Europe |  | Domestic |  | Latin America |  | Asia |  | Total
Pharma | $ | 632,876 |  |  | $ | 320,297 |  |  | $ | 20,503 |  |  | $ | 52,414 |  |  | $ | 1,026,090 |
Beauty + Home | 601,322 |  |  | 296,386 |  |  | 122,275 |  |  | 79,385 |  |  | 1,099,368 |
Food + Beverage | 102,731 |  |  | 231,934 |  |  | 37,389 |  |  | 28,823 |  |  | 400,877 |
Total | $ | 1,336,929 |  |  | $ | 848,617 |  |  | $ | 180,167 |  |  | $ | 160,622 |  |  | $ | 2,526,335 |
| For the Nine Months Ended September 30, 2021
Segment | Europe |  | Domestic |  | Latin America |  | Asia |  | Total
Pharma | $ | 623,060 |  |  | $ | 272,442 |  |  | $ | 15,982 |  |  | $ | 40,916 |  |  | $ | 952,400 |
Beauty + Home | 575,383 |  |  | 311,589 |  |  | 113,665 |  |  | 80,643 |  |  | 1,081,280 |
Food + Beverage | 97,728 |  |  | 220,551 |  |  | 33,129 |  |  | 28,140 |  |  | 379,548 |
Total | $ | 1,296,171 |  |  | $ | 804,582 |  |  | $ | 162,776 |  |  | $ | 149,699 |  |  | $ | 2,413,228 |
We perform our obligations under a contract with a customer by transferring goods and/or services in exchange for consideration from the customer. The timing of performance will sometimes differ from the timing of the invoicing for the associated consideration from the customer, thus resulting in the recognition of a contract asset or a contract liability. We recognize a contract asset when we transfer control of goods or services to a customer prior to invoicing for the related performance obligation. The contract asset is transferred to accounts receivable when the product is shipped and invoiced to the customer. We recognize a contract liability if the customer's payment of consideration precedes the entity's performance. The opening and closing balances of our contract asset and contract liabilities are as follows:
| Balance as of December 31, 2021 |  | Balance as of September 30, 2022 |  | Increase/ (Decrease)
Contract asset (current) | $ | 16,878 |  |  | $ | 12,495 |  |  | $ | (4,383) |
Contract liability (current) | 86,340 |  |  | 89,573 |  |  | 3,233 |
Contract liability (long-term) | 21,905 |  |  | 24,225 |  |  | 2,320 |
The differences in the opening and closing balances of our contract asset and contract liabilities are primarily the result of timing differences between our performance and the invoicing. The total amount of revenue recognized during the current year against contract liabilities is $96.1 million, including $52.8 million relating to contract liabilities at the beginning of the year. Current contract assets and long-term contract assets are included within the Prepaid and Other and Miscellaneous assets, respectively, while current contract liabilities and long-term contract liabilities are included within Accounts payable, accrued and other liabilities and deferred and other non-current liabilities, respectively, within our Condensed Consolidated Balance Sheets. Determining the Transaction Price In most cases, the transaction price for each performance obligation is stated in the contract. In determining the variable amounts of consideration within the transaction price (such as volume-based customer rebates), we include an estimate of the expected amount of consideration as revenue. We apply the expected value method based on all of the information (historical, current, and forecast) that is reasonably available and identify reasonable estimates based on this information. We apply the method consistently throughout the contract when estimating the effect of an uncertainty on the amount of variable consideration to which we will be entitled. Product Sales We primarily manufacture and sell drug delivery, consumer product dispensing and active material science solutions. The amount of consideration is typically fixed for customers. At the time of delivery, the customer is invoiced at the agreed-upon price. Revenue from product sales is typically recognized upon manufacture or shipment, when control of the goods transfers to the customer. To determine when the control transfers, we typically assess, among other things, the shipping terms of the contract, shipping being one of the indicators of transfer of control. For a majority of product sales, control of the goods transfers to the customer at the time of shipment of the goods. Once the goods are shipped, we are precluded from redirecting the shipment to another customer. Therefore, our performance obligation is satisfied at the time of shipment. For sales in which control transfers upon delivery, shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs and revenue is recorded upon final delivery to the customer location. We have elected to account for shipping and handling costs that occur after the customer has obtained control of a good as fulfillment costs rather than as a promised service. We do not have any material significant payment terms as payment is typically received shortly after the point of sale. There also exist instances where we manufacture highly customized products that have no alternative use to us and for which we have an enforceable right to payment for performance completed to date. For these products, we transfer control and recognize revenue over time by measuring progress towards completion using the output method based on the number of products produced. As we normally make our products to a customer’s order, the time between production and shipment of our products is typically within a few weeks. We believe this measurement provides a faithful depiction of the transfer of goods as the costs incurred reflect the value of the products produced. As a part of our customary business practice, we offer a standard warranty that the products will materially comply with the technical specifications and will be free from material defects. Because such warranties are not sold separately, do not provide for any service beyond a guarantee of a product’s initial specifications, and are not required by law, there is no revenue deferral for these types of warranties. Tooling Sales We also build or contract for molds and other tools (collectively defined as “tooling”) necessary to produce our products. As with product sales, we recognize revenue when control of the tool transfers to the customer. If the tooling is highly customized with no alternative use to us and we have an enforceable right to payment for performance completed to date, we transfer control and recognize revenue over time by measuring progress towards completion using the input method based on costs incurred relative to total estimated costs to completion. Otherwise, revenue for the tooling is recognized at the point in time when the customer approves the tool. We do not have any material significant payment terms as payment is typically either received during the mold-build process or shortly after completion. In certain instances, we offer extended warranties on our tools above and beyond the normal standard warranties. We normally receive payment at the inception of the contract and recognize revenue over the term of the contract. We do not have any material extended warranties as of September 30, 2022 or December 31, 2021. Service Sales We also provide services to our pharmaceutical customers. As with product sales, we recognize revenue based on completion of each performance obligation of the service contract. Milestone deliverables and upfront payments are tied to specific performance obligations and recognized upon satisfaction of the individual performance obligation. Contract Costs We do not incur significant costs to obtain or fulfill revenue contracts. Credit Risk We are exposed to credit losses primarily through our product sales, tooling sales and services to our customers. We assess each customer’s ability to pay for the products we sell by conducting a credit review. The credit review considers our expected billing exposure and timing for payment and the customer’s established credit rating or our assessment of the customer’s creditworthiness based on our analysis of their financial statements when a credit rating is not available. We also consider contract terms and conditions, country and political risks, and business strategy in our evaluation. A credit limit is established for each customer based on the outcome of this review. We monitor our ongoing credit exposure through active review of customer balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution and payment confirmation. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. Current uncertainty in credit and market conditions due to the COVID-19 pandemic, the war in Ukraine, rising interest rates and inflation may slow our collection efforts if customers experience significant difficulty accessing credit and paying their obligations. Imposed sanctions delay payment, which may lead to higher than normal accounts receivable and increased CECL charges.

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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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