Revenue From Contracts With Customers

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERSSales are derived from products for different applications: fiber lasers, diode lasers, diodes and systems for materials processing, fiber lasers and amplifiers for advanced applications, fiber amplifiers for communications applications, and fiber

lasers for medical applications. The following tables represent a disaggregation of revenue from contracts with customers for the year ended December 31, 2018.



Sales by application



Materials processing	$	1,374,448
Other applications	85,426
Total	$	1,459,874



Sales by product



High Power Continuous Wave ("CW") Lasers	$	909,726
Medium and Low Power CW Lasers	95,764
Pulsed Lasers	162,048
Quasi-Continuous Wave ("QCW") Lasers	66,700
Laser Systems	59,330
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue	166,306
Total	$	1,459,874


Sales by geography


North America	$	202,743
Europe:
Germany	111,259
Other including Eastern Europe/CIS	296,917
Asia and Australia:
China	629,079
Japan	87,619
Other	127,251

Rest of World	5,006
Total	$	1,459,874


Timing of revenue recognition



Goods and services transferred at a point in time	$	1,447,343
Services transferred over time	12,531
Total	$	1,459,874

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. The timing of customer payments on contracts for the sale of customized robotic systems generally differs from the timing of revenue recognized, resulting in contract assets and liabilities. Contract assets are included within prepaid expense and other current assets on the

consolidated balance sheets. Contract liabilities are included within accrued expenses and other current liabilities on the consolidated balance sheets.

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 following table reflects the changes in the Company's contract assets and liabilities for the year ended December 31, 2018:


	December 31,	January 1,
	2018	2018	Change
Contract assets
Contract assets	10,102	—	10,102	100.0	%
Contract liabilities
Contract liabilities - current	52,606	46,508	6,098	13.1	%
Contract liabilities - long-term	1,413	182	1,231	676.4	%

During the year ended December 31, 2018, the Company recognized revenue of $40,944 that was included in the contract liabilities at the beginning of the period.

The Company has elected the practical expedient in ASC 606-10-50-14, whereby the performance obligations for contracts with an original expected duration of one year or less are not disclosed. The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of December 31, 2018:


	Remaining Performance Obligations
	2019		2020		2021		2022		2023		2024		Total
Revenue expected to be recognized for extended warranty agreements	3,302		760		375		203		71		4		4,715

Revenue to be earned over time from contracts to sell robotic systems	38,038		1,700		—		—		—		—		39,738
Total	$	41,340	$	2,460	$	375	$	203	$	71	$	4	$	44,453