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Revenue Recognition | 12 Months Ended
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Dec. 31, 2023
Revenue Recognition and Deferred Revenue [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 and 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. Service-related revenues do not typically represent a significant portion contracts with our customers and do not meet the thresholds requiring separate disclosure. Revenue from products and services transferred to customers over time accounted for approximately 16%, 13% and 15% of total revenue for the years ended December 31, 2023, 2022 and 2021, respectively. Our primary method for recognizing revenue over time is the POC method. 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 84%, 87% and 85% of total revenue for the years ended December 31, 2023, 2022 and 2021, respectively. Disaggregated Revenue We conduct our operations through two business segments based on the type of product and how we manage the business: •FPD designs and manufactures custom, highly-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and •FCD designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products 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 generates Original Equipment and Aftermarket revenues. The following table presents our customer revenues disaggregated by revenue source:
| December 31, 2023
(Amounts in thousands) | FPD |  | FCD |  | Total
Original Equipment | $ | 1,147,906 |  |  | $ | 938,790 |  |  | $ | 2,086,696 |
Aftermarket | 1,913,087 |  |  | 320,794 |  |  | 2,233,881 |
| $ | 3,060,993 |  |  | $ | 1,259,584 |  |  | $ | 4,320,577 |
| December 31, 2022
(Amounts in thousands) | FPD |  | FCD |  | Total
Original Equipment | $ | 881,061 |  |  | $ | 825,508 |  |  | $ | 1,706,569 |
Aftermarket | 1,636,939 |  |  | 271,612 |  |  | 1,908,551 |
| $ | 2,518,000 |  |  | $ | 1,097,120 |  |  | $ | 3,615,120 |
| December 31, 2021
(Amounts in thousands) | FPD |  | FCD |  | Total
Original Equipment | $ | 899,519 |  |  | $ | 804,744 |  |  | $ | 1,704,263 |
Aftermarket | 1,568,579 |  |  | 268,218 |  |  | 1,836,797 |
| $ | 2,468,098 |  |  | $ | 1,072,962 |  |  | $ | 3,541,060 |
Our customer sales are diversified geographically. The following table presents our revenues disaggregated by geography, based on the shipping addresses of our customers:
| December 31, 2023
(Amounts in thousands) | FPD |  | FCD |  | Total
North America(1) | $ | 1,264,673 |  |  | $ | 556,208 |  |  | $ | 1,820,881 |
Latin America(1) | 273,126 |  |  | 30,126 |  |  | 303,252 |
Middle East and Africa | 538,037 |  |  | 146,552 |  |  | 684,589 |
Asia Pacific | 436,813 |  |  | 302,700 |  |  | 739,513 |
Europe | 548,344 |  |  | 223,998 |  |  | 772,342 |
| $ | 3,060,993 |  |  | $ | 1,259,584 |  |  | $ | 4,320,577 |
| December 31, 2022
(Amounts in thousands) | FPD |  | FCD |  | Total
North America(1) | $ | 1,060,393 |  |  | $ | 472,467 |  |  | $ | 1,532,860 |
Latin America(1) | 222,878 |  |  | 23,575 |  |  | 246,453 |
Middle East and Africa | 372,148 |  |  | 101,017 |  |  | 473,165 |
Asia Pacific | 389,366 |  |  | 305,193 |  |  | 694,559 |
Europe | 473,215 |  |  | 194,868 |  |  | 668,083 |
| $ | 2,518,000 |  |  | $ | 1,097,120 |  |  | $ | 3,615,120 |
| December 31, 2021
(Amounts in thousands) | FPD |  | FCD |  | Total
North America(1) | $ | 955,283 |  |  | $ | 389,766 |  |  | $ | 1,345,049 |
Latin America(1) | 211,150 |  |  | 30,554 |  |  | 241,704 |
Middle East and Africa | 311,161 |  |  | 107,533 |  |  | 418,694 |
Asia Pacific | 482,596 |  |  | 333,513 |  |  | 816,109 |
Europe | 507,908 |  |  | 211,596 |  |  | 719,504 |
| $ | 2,468,098 |  |  | $ | 1,072,962 |  |  | $ | 3,541,060 |
_____________________________________ (1) North America represents United States and Canada; Latin America includes Mexico. On December 31, 2023, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations related to contracts having an original expected duration in excess of one year was approximately $772 million. We estimate recognition of approximately $583 million of this amount as revenue in 2024 and an additional $189 million in 2025 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 bill the customer under the terms of a contract. A contract liability represents our contractual billings in advance of revenue recognized for a contract. The following table presents opening and closing balances of contract assets and contract liabilities, current and long-term, for the years ended December 31, 2023 and 2022:
( Amounts in thousands) | Contract Assets, net (Current) |  | Long-term Contract Assets, net(1) |  | Contract Liabilities (Current) |  | Long-term Contract Liabilities(2) |
Balance — January 1, 2022 | $ | 195,598 |  |  | $ | 426 |  |  | $ | 202,965 |  |  | $ | 464 |  |
Revenue recognized that was included in contract liabilities at the beginning of the period | — |  |  | — |  |  | (143,736) |  |  | — |  |
Increase due to revenue recognized in the period in excess of billings | 660,039 |  |  | — |  |  | — |  |  | — |  |
Increase due to billings arising during the period in excess of revenue recognized | — |  |  | — |  |  | 203,711 |  |  | — |  |
Amounts transferred from contract assets to receivables | (603,422) |  |  | (1,338) |  |  | — |  |  | — |  |
Currency effects and other, net | (18,758) |  |  | 1,209 |  |  | (5,977) |  |  | 595 |  |
Balance — December 31, 2022 | $ | 233,457 |  |  | $ | 297 |  |  | $ | 256,963 |  |  | $ | 1,059 |  |
Revenue recognized that was included in contract liabilities at the beginning of the period | — |  |  | — |  |  | (209,560) |  |  | — |  |
Increase due to revenue recognized in the period in excess of billings | 890,150 |  |  | 932 |  |  | — |  |  | — |  |
Increase due to billings arising during the period in excess of revenue recognized | — |  |  | — |  |  | 238,683 |  |  | 1,043 |  |
Amounts transferred from contract assets to receivables | (842,780) |  |  | (435) |  |  | — |  |  | — |  |
Currency effects and other, net | (599) |  |  | 240 |  |  | 1,611 |  |  | (559) |  |
Balance — December 31, 2023 | $ | 280,228 |  |  | $ | 1,034 |  |  | $ | 287,697 |  |  | $ | 1,543 |  |
_____________________________________ (1) Included in other assets, net. (2) Included in retirement obligations and other liabilities.

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