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Revenue Recognition
 3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The majority of our revenues relate to customer orders that typically contain a single commitment of goods or services which have lead times under a year. Longer lead time, more complex contracts with our customers typically have multiple commitments of goods and services, including any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services and parts related to the performance of such products. Control transfers over time when the customer is able to direct the use of and obtain substantially all of the benefits of our work as we perform.
Our primary method for recognizing revenue over time is the percentage of completion ("POC") method. Revenue from products and services transferred to customers over time accounted for approximately 18% and 23% of total revenue for the three month periods ended March 31, 2021 and 2020, respectively. If control does not transfer over time, then control transfers at a point in time. We recognize revenue at a point in time at the level of each performance obligation based on the evaluation of certain indicators of control transfer, such as title transfer, risk of loss transfer, customer acceptance and physical possession. Revenue from products and services transferred to customers at a point in time accounted for approximately 82% and 77% of total revenue for the three month periods ended March 31, 2021 and 2020, respectively. Refer to Note 3 to our consolidated financial statements included in our 2020 Annual Report for a more comprehensive discussion of our policies and accounting practices of revenue recognition.
Disaggregated Revenue
We conduct our operations through two business segments based on the type of product and how we manage the business:
•Flowserve Pump Division ("FPD") for custom, highly-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and
•Flow Control Division ("FCD") designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products, boiler controls and related equipment.
Our revenue sources are derived from our original equipment manufacturing and our aftermarket sales and services. Our original equipment revenues are generally related to originally designed, manufactured, distributed and installed equipment that
can range from pre-configured, short-cycle products to more customized, highly-engineered equipment ("Original Equipment"). Our aftermarket sales and services are derived from sales of replacement equipment, as well as maintenance, advanced diagnostic, repair and retrofitting services ("Aftermarket"). Each of our two business segments generate Original Equipment and Aftermarket revenues.

The following table presents our customer revenues disaggregated by revenue source:

Three Months Ended March 31, 2021
(Amounts in thousands)FPDFCDTotal
Original Equipment$214,164 $192,720 $406,884 
Aftermarket388,002 62,422 450,424 
$602,166 $255,142 $857,308 
Three Months Ended March 31, 2020
FPDFCDTotal
Original Equipment$252,732 $198,619 $451,351 
Aftermarket382,394 59,768 442,162 
$635,126 $258,387 $893,513 
Our customer sales are diversified geographically. The following table presents our revenues disaggregated by geography, based on the shipping addresses of our customers:
Three Months Ended March 31, 2021
(Amounts in thousands)FPDFCDTotal
North America(1)$223,975 $90,247 $314,222 
Latin America(1)42,040 6,818 48,858 
Middle East and Africa 82,541 27,687 110,228 
Asia Pacific124,648 78,661 203,309 
Europe128,962 51,729 180,691 
$602,166 $255,142 $857,308 
Three Months Ended March 31, 2020
FPDFCDTotal
North America(1)$267,524 $123,118 $390,642 
Latin America(1)42,187 5,511 47,698 
Middle East and Africa97,168 26,663 123,831 
Asia Pacific112,455 54,563 167,018 
Europe115,792 48,532 164,324 
$635,126 $258,387 $893,513 
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(1) North America represents the United States and Canada; Latin America includes Mexico.
On March 31, 2021, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $573 million. We estimate recognition of approximately $390 million of this amount as revenue in the remainder of 2021 and an additional $183 million in 2022 and thereafter.

Contract Balances
We receive payment from customers based on a contractual billing schedule and specific performance requirements as established in our contracts. We record billings as accounts receivable when an unconditional right to consideration exists. A contract asset represents revenue recognized in advance of our right to receive payment under the terms of a contract. A contract liability represents our right to receive payment in advance of revenue recognized for a contract.
The following tables present beginning and ending balances of contract assets and contract liabilities, current and long-term, for the three months ended March 31, 2021 and 2020:
(Amounts in thousands) Contract Assets, net (Current)Long-term Contract Assets, net(1)Contract Liabilities (Current)Long-term Contract Liabilities(2)
Beginning balance, January 1, 2021$277,734 1,139 $194,227 $822 
Revenue recognized that was included in contract liabilities at the beginning of the period— — (78,713)— 
Revenue recognized in the period in excess of billings164,246 55 — — 
Billings arising during the period in excess of revenue recognized— — 82,712 — 
Amounts transferred from contract assets to receivables(156,805)— — — 
Currency effects and other, net(10,988)(98)1,312 (30)
Ending balance, March 31, 2021$274,187 $1,096 $199,538 $792 
(Amounts in thousands)Contract Assets, net (Current)Long-term Contract Assets, net(1)Contract Liabilities (Current)Long-term Contract Liabilities(2)
Beginning balance, January 1, 2020$272,914 $9,280 $221,095 $1,652 
Revenue recognized that was included in contract liabilities at the beginning of the period— — (90,190)(634)
Revenue recognized in the period in excess of billings203,856 504 — — 
Billings arising during the period in excess of revenue recognized— — 100,121 — 
Amounts transferred from contract assets to receivables(185,456)(93)— — 
Currency effects and other, net(15,387)(7,229)(1,896)(53)
Ending balance, March 31, 2020$275,927 $2,462 $229,130 $965 
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(1) Included in other assets, net.
(2) Included in retirement obligations and other liabilities.