Revenue From Contracts With Customers

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

The following tables represent a disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2018:


	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Sales by Application



Materials processing	$	334,498	$	1,065,712
Other applications	21,848		64,111
Total	$	356,346	$	1,129,823


	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Sales by Product



High Power Continuous Wave ("CW") Lasers	$	227,462	$	724,111
Medium Power CW Lasers	15,825		65,092
Low Power CW Lasers	3,276		10,380
Pulsed Lasers	35,408		115,243
Quasi-Continuous Wave ("QCW") Lasers	18,276		54,568
Other Revenue including Amplifiers, Laser Systems, Service, Parts, Accessories and Change in Deferred Revenue	56,099		160,429
Total	$	356,346	$	1,129,823


Sales by Geography


United States and other North America	$	53,762	$	140,704
Europe:
Germany	21,714		86,939
Other including Eastern Europe/CIS	66,392		225,717
Asia and Australia:
China	158,853		511,852
Japan	21,871		60,927
Other	31,953		99,476

Rest of World	1,801		4,208
Total	$	356,346	$	1,129,823


Timing of Revenue Recognition



Goods and services transferred at a point in time	$	355,191	$	1,126,285
Services transferred over time	1,155		3,538
Total	$	356,346	$	1,129,823

The Company enters into contracts to sell lasers and spare parts, for which revenue is generally recognized upon shipment or delivery, depending on the terms of the contract. The Company also provides installation services and extended warranties. The Company frequently receives consideration from a customer prior to transferring goods to the customer under the terms of a sales contract. The Company records customer deposits related to these prepayments, which represent a contract liability. The Company also records deferred revenue related to installation services when consideration is received before the services have been performed. The Company recognizes customer deposits and deferred revenue as net sales after control of the goods or services has been transferred to the customer and all revenue recognition criteria is met. The Company bills customers for extended warranties upon entering into the agreement with the customer, resulting in deferred revenue. Revenue is recognized ratably over the term of the extended warranty agreement as the customer receives and consumes the benefits of such services.

Before the transition date (under ASC 605, Revenue Recognition), the Company deferred revenue for installation services in an amount equal to the greater of the cash received or the fair value for installation. Under the new revenue standard, the standalone selling price for installation services is deferred until control has transferred. The standalone selling price for installation services is determined based on the estimated number of days of service technician time required for installation at standard service rates. The impact of applying ASC 606 was a decrease in revenue recognized during the three months ended September 30, 2018 of $37 and a decrease for the nine months ended September 30, 2018 of $84 as compared to revenue accounted for under ASC 605.

The following table reflects the changes in the Company's contract liabilities for the nine months ended September 30, 2018:


	September 30,		January 1,
	2018		2018		Change



Contract liabilities
Customer deposits	$	36,967	$	36,937	$	30	0.1	%
Deferred revenue - current	11,307		9,571		1,736		18.1	%
Deferred revenue - long-term	1,374		182		1,192		654.9	%

During the three and nine months ended September 30, 2018, the Company recognized revenue of $3,355 and $38,885, respectively, that was included in the customer deposits and deferred revenue balances at the beginning of the period.

The following table represents the Company's remaining performance obligations for sales of installation services and extended warranties and contracts with customer acceptance provisions included in deferred revenue as of September 30, 2018:


	Remaining Performance Obligations
	2018		2019		2020		2021		2022		2023		Total
Revenue expected to be recognized upon customer acceptance	$	7,443	$	24	$	3	$	—	$	—	$	—	$	7,470
Revenue expected to be recognized on contracts for installation services	246		236		—		—		—		—		482
Revenue expected to be recognized for extended warranty agreements	1,165		1,910		576		349		178		60		4,238
Revenue deferred based on volume discount incentives	—		491		—		—		—		—		491
Total	$	8,854	$	2,661	$	579	$	349	$	178	$	60	$	12,681