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Revenue From Contracts With Customers
 9 Months Ended
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,
2022202120222021
Sales by Application
Materials processing$312,546 $346,045 $994,866 $1,008,939 
Other applications36,460 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,
2022202120222021
Sales by Geography
North America$82,119 $81,605 $247,495 $221,123 
Europe:
Germany20,622 26,832 70,831 74,840 
Other including Eastern Europe/CIS72,332 79,777 227,739 212,709 
Asia and Australia:
China117,952 137,211 385,080 436,119 
Japan11,220 14,286 38,847 35,485 
Other39,130 35,844 111,500 106,608 
Rest of World5,631 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 time11,358 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,
20222022Change20212021Change
Contract assets
Contract assets$8,995 $9,345 $(350)$7,510 $8,999 $(1,489)
Contract liabilities
Contract liabilities - current81,868 89,659 (7,791)80,694 71,246 9,448 
Contract liabilities - long-term2,711 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)
2023202420252026ThereafterTotal
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.