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Revenue From Contracts With Customers | 9 Months Ended
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Sep. 30, 2022
Revenue from Contract with Customer [Abstract] |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Sales are derived from products for different applications: fiber lasers, diode lasers, systems and accessories for materials processing; fiber lasers, diodes and amplifiers for advanced applications; fiber amplifiers and transceivers for communications applications and fiber lasers, systems and fibers for medical applications. The following tables represent a disaggregation of revenue from contracts with customers:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Sales by Application |  |  |  |  |  |  |
Materials processing | $ | 312,546 |  |  | $ | 346,045 |  |  | $ | 994,866 |  |  | $ | 1,008,939 |
Other applications | 36,460 |  |  | 33,105 |  |  | 101,142 |  |  | 87,454 |
Total | $ | 349,006 |  |  | $ | 379,150 |  |  | $ | 1,096,008 |  |  | $ | 1,096,393 |
Sales by Product |  |  |  |  |  |  |
High Power Continuous Wave ("CW") Lasers | $ | 152,767 |  |  | $ | 177,787 |  |  | $ | 483,455 |  |  | $ | 538,013 |
Medium Power CW Lasers | 20,639 |  |  | 24,520 |  |  | 63,230 |  |  | 58,579 |
Pulsed Lasers | 55,216 |  |  | 59,051 |  |  | 192,000 |  |  | 176,219 |
Quasi-Continuous Wave ("QCW") Lasers | 11,353 |  |  | 16,312 |  |  | 38,212 |  |  | 45,503 |
Laser and Non-Laser Systems | 35,930 |  |  | 32,523 |  |  | 108,970 |  |  | 89,236 |
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue | 73,101 |  |  | 68,957 |  |  | 210,141 |  |  | 188,843 |
Total | $ | 349,006 |  |  | $ | 379,150 |  |  | $ | 1,096,008 |  |  | $ | 1,096,393 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Sales by Geography |  |  |  |  |  |  |
North America | $ | 82,119 |  |  | $ | 81,605 |  |  | $ | 247,495 |  |  | $ | 221,123 |
Europe: |  |  |  |  |  |  |
Germany | 20,622 |  |  | 26,832 |  |  | 70,831 |  |  | 74,840 |
Other including Eastern Europe/CIS | 72,332 |  |  | 79,777 |  |  | 227,739 |  |  | 212,709 |
Asia and Australia: |  |  |  |  |  |  |
China | 117,952 |  |  | 137,211 |  |  | 385,080 |  |  | 436,119 |
Japan | 11,220 |  |  | 14,286 |  |  | 38,847 |  |  | 35,485 |
Other | 39,130 |  |  | 35,844 |  |  | 111,500 |  |  | 106,608 |
Rest of World | 5,631 |  |  | 3,595 |  |  | 14,516 |  |  | 9,509 |
Total | $ | 349,006 |  |  | $ | 379,150 |  |  | $ | 1,096,008 |  |  | $ | 1,096,393 |
Timing of Revenue Recognition |  |  |  |  |  |  |
Goods and services transferred at a point in time | $ | 337,648 |  |  | $ | 364,677 |  |  | $ | 1,056,318 |  |  | $ | 1,054,554 |
Goods and services transferred over time | 11,358 |  |  | 14,473 |  |  | 39,690 |  |  | 41,839 |
Total | $ | 349,006 |  |  | $ | 379,150 |  |  | $ | 1,096,008 |  |  | $ | 1,096,393 |
One of the Company's customers accounted for 13% and 22% of the Company's net accounts receivable as of September 30, 2022 and December 31, 2021, respectively. 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 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 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 are met. The Company bills customers for extended warranties upon entering into the agreement with the customer, resulting in deferred revenue that is recognized over the period of the extended warranty contract. The Company recognizes revenue over time on contracts for the sale of large scale materials processing systems. The timing of customer payments on these contracts generally differs from the timing of revenue recognized. If revenue recognized exceeds customer payments, a contract asset is recorded and if customer payments exceed revenue recognized, a contract liability is recorded. Contract assets are included within prepaid expense and other current assets on the condensed consolidated balance sheets. Contract liabilities are included within accrued expenses and other current liabilities on the condensed consolidated balance sheets. Certain deferred revenues related to extended warranties in excess one year from the balance sheet date are included within other long-term liabilities and deferred income taxes on the condensed consolidated balance sheets. The following table reflects the changes in the Company's contract assets and liabilities for the nine months ended September 30, 2022 and 2021:
| September 30, |  | January 1, |  |  |  | September 30, |  | January 1, |  |  |
| 2022 |  | 2022 |  | Change |  | 2021 |  | 2021 |  | Change |
Contract assets |  |  |  |  |  |  |  |  |  |  |  |
Contract assets | $ | 8,995 |  |  | $ | 9,345 |  |  | $ | (350) |  |  | $ | 7,510 |  |  | $ | 8,999 |  |  | $ | (1,489) |  |
Contract liabilities |  |  |  |  |  |  |  |  |  |  |  |
Contract liabilities - current | 81,868 |  |  | 89,659 |  |  | (7,791) |  |  | 80,694 |  |  | 71,246 |  |  | 9,448 |  |
Contract liabilities - long-term | 2,711 |  |  | 2,691 |  |  | 20 |  |  | 2,737 |  |  | 2,189 |  |  | 548 |  |
During the three months ended September 30, 2022 and 2021 the Company recognized revenue of $31,213 and $10,172, respectively, that was included in contract liabilities at the beginning of each period. During the nine months ended September 30, 2022 and 2021 the Company recognized revenue of $65,743 and $58,069 respectively, that was included in contract liabilities at the beginning of each period. The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of September 30, 2022:
|  | Remaining Performance Obligations
|  | 2022 (a) |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | Thereafter |  | Total
Revenue expected to be recognized for extended warranty agreements |  | $ | 1,571 |  |  | $ | 3,181 |  |  | $ | 976 |  |  | $ | 729 |  |  | $ | 364 |  |  | $ | 92 |  |  | $ | 6,913 |
Revenue to be earned over time from contracts to sell large scale materials processing systems |  | 9,282 |  |  | 13,095 |  |  | 5,151 |  |  | — |  |  | — |  |  | — |  |  | 27,528 |
Total |  | $ | 10,853 |  |  | $ | 16,276 |  |  | $ | 6,127 |  |  | $ | 729 |  |  | $ | 364 |  |  | $ | 92 |  |  | $ | 34,441 |
(a) For the three-month period beginning October 1, 2022.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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