Revenue

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

REVENUE

Contract Liabilities

Contract liabilities relate to the following: (1) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to extended warranty contracts and where the performance obligation is satisfied over time, (2) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to certain grain storage and protein production systems and where the performance obligation is satisfied over time and (3) unrecognized revenues where advance payment consideration precedes the Company’s performance with respect to technology services and where the performance obligation is satisfied over time.

Significant changes in the balance of contract liabilities for the years ended December 31, 2019 and 2018 were as follows (in millions):



	Year Ended December 31, 2019			Year Ended December 31, 2018⁽¹⁾
Balance at beginning of period	$	76.8		$	82.6
Advance consideration received	147.7			124.9
Revenue recognized during the period for extended warranty contracts	(33.8		)	(29.0		)
Revenue recognized during the period related to installation of grain storage and protein production systems	(87.4		)	(100.9		)
Foreign currency translation	0.7			(0.8		)
Balance as of December 31, 2019	$	104.0		$	76.8

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(1) The beginning of the period is from the date of adoption of ASU 2014-09 or January 1, 2018.

The contract liabilities are classified as either “Other current liabilities” and "Other noncurrent liabilities" or “Accrued expenses” in the Company’s Consolidated Balance Sheets.

Remaining Performance Obligations

The estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2019 are $37.7 million in 2020, $27.4 million in 2021, $16.2 million in 2022, $8.2 million in 2023 and $2.2 million thereafter, and relate primarily to extended warranty contracts. The Company applied the practical expedient in ASU 2014-09 and has not disclosed information about remaining performance obligations that have original expected durations of 12 months or less.

Disaggregated Revenue

Net sales for the year ended December 31, 2019 disaggregated by primary geographical markets and major products consisted of the following (in millions):



	North America		South America		Europe/Middle East		Asia/Pacific/Africa		Consolidated
Primary geographical markets:
United States	$	1,799.7	$	—	$	—	$	—	$	1,799.7
Canada	289.7		—		—		—		289.7
Germany	—		—		1,194.3		—		1,194.3
France	—		—		1,097.6		—		1,097.6
United Kingdom and Ireland	—		—		561.9		—		561.9
Finland and Scandinavia	—		—		772.8		—		772.8
Other Europe	—		—		1,629.0		—		1,629.0
South America	—		789.7		—		—		789.7
Middle East and Algeria	—		—		73.2		—		73.2
Africa	—		—		—		116.2		116.2
Asia	—		—		—		344.7		344.7
Australia and New Zealand	—		—		—		257.7		257.7
Mexico, Central America and Caribbean	102.4		12.5		—		—		114.9
	$	2,191.8	$	802.2	$	5,328.8	$	718.6	$	9,041.4

Major products:
Tractors	$	662.4	$	447.7	$	3,772.0	$	300.6	$	5,182.7
Replacement parts	310.2		88.2		874.8		74.6		1,347.8
Grain storage and protein production systems	547.9		79.5		172.8		234.6		$	1,034.8
Other machinery	671.3		186.8		509.2		108.8		1,476.1
	$	2,191.8	$	802.2	$	5,328.8	$	718.6	$	9,041.4

Net sales for the year ended December 31, 2018 disaggregated by primary geographical markets and major products consisted of the following (in millions):



	North America		South America		Europe/Middle East⁽¹⁾		Asia/Pacific/Africa		Consolidated⁽¹⁾
Primary geographical markets:
United States	$	1,723.6	$	—	$	—	$	—	$	1,723.6
Canada	329.0		—		—		—		329.0
Germany	—		—		1,213.6		—		1,213.6
France	—		—		1,002.9		—		1,002.9
United Kingdom and Ireland	—		—		614.4		—		614.4
Finland and Scandinavia	—		—		826.5		—		826.5
Other Europe	—		—		1,627.8		—		1,627.8
South America	—		943.1		—		—		943.1
Middle East and Algeria	—		—		100.0		—		100.0
Africa	—		—		—		135.5		135.5
Asia	—		—		—		414.5		414.5
Australia and New Zealand	—		—		—		277.8		277.8
Mexico, Central America and Caribbean	127.5		15.9		—		—		143.4
	$	2,180.1	$	959.0	$	5,385.1	$	827.8	$	9,352.0

Major products:
Tractors	$	665.8	$	599.1	$	3,743.0	$	353.2	$	5,361.1
Replacement parts	298.7		91.0		880.3		76.0		1,346.0
Grain storage and protein production systems	570.3		70.1		187.6		285.5		1,113.5
Other machinery	645.3		198.8		574.3		113.1		1,531.5
	$	2,180.1	$	959.0	$	5,385.1	$	827.8	$	9,352.0

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(1)	Rounding may impact summation of amounts.

Net sales for the year ended December 31, 2017 disaggregated by primary geographical markets and major products consisted of the following (in millions):



	North America⁽¹⁾		South America		Europe/Middle East		Asia/Pacific/Africa⁽¹⁾		Consolidated
Primary geographical markets:
United States	$	1,445.7	$	—	$	—	$	—	$	1,445.7
Canada	296.9		—		—		—		296.9
Germany	—		—		997.4		—		997.4
France	—		—		815.7		—		815.7
United Kingdom and Ireland	—		—		512.6		—		512.6
Finland and Scandinavia	—		—		721.3		—		721.3
Other Europe	—		—		1,396.0		—		1,396.0
South America	—		1,039.2		—		—		1,039.2
Middle East and Algeria	—		—		171.3		—		171.3
Africa	—		—		—		138.1		138.1
Asia	—		—		—		366.4		366.4
Australia and New Zealand	—		—		—		247.4		247.4
Mexico, Central America and Caribbean	134.2		24.3		—		—		158.5
	$	1,876.7	$	1,063.5	$	4,614.3	$	752.0	$	8,306.5

Major products:
Tractors	$	624.8	$	673.5	$	3,149.7	$	337.2	$	4,785.2
Replacement parts	287.0		108.4		835.3		74.3		1,305.0
Grain storage and protein production systems	537.2		72.9		182.9		256.6		1,049.6
Other machinery	427.7		208.7		446.4		83.9		1,166.7
	$	1,876.7	$	1,063.5	$	4,614.3	$	752.0	$	8,306.5

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(1)

Rounding may impact summation of amounts.