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Note 3 - Revenue From Contracts With Customers
 3 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

3)

Revenue From Contracts With Customers

 

Most of the Company’s contracts have a single performance obligation which represents the product or service being sold to the customer. Some contracts include multiple performance obligations such as a product and the related installation and/or extended warranty. Additionally, most of the Company’s contracts offer assurance type warranties in connection with the sale of a product to customers. Assurance type warranties provide a customer with assurance that the product complies with agreed-upon specifications. Assurance type warranties do not represent a separate performance obligation.

 

In general, the Company recognizes revenue at the point in time control transfers to its customer based on predetermined shipping terms. Revenue recognized under long-term contracts within the Engineering Technologies and Engraving groups for highly customized customer products that have no alternative use and in which the contract specifies the Company has a right to payment for its costs, plus a reasonable margin are recognized over time. For products manufactured over time, the transfer of control is measured pro rata, based upon current estimates of costs to complete such contracts. Losses on contracts are fully recognized in the period in which the losses become determinable. Revisions in profit estimates are reflected on a cumulative basis in the period in which the basis for such revision becomes known.

 

Disaggregation of Revenue from Contracts with Customers

 

The following table presents revenue disaggregated by product line and segment (in thousands):

 

  

Three Months Ended

 

Revenue by Product Line

 

September 30, 2020

  

September 30, 2019

 
         
Electronics $55,271  $46,617 
         
Engraving Services  34,320   36,066 
Engraving Products  2,081   2,365 

Total Engraving

  36,401   38,431 
         
Scientific  16,663   14,750 
         
Engineering Technologies  17,633   24,644 
         
Hydraulics Cylinders and Systems  12,331   13,749 
Merchandising & Display  7,198   9,823 
Pumps  5,789   7,964 

Total Specialty Solutions

  25,318   31,536 
         
         

Total Revenue by Product Line

 $151,286  $155,978 

 

The following table presents revenue from continuing operations disaggregated by geography based on company’s locations (in thousands):

 

  

Three Months Ended

 

Net sales

 

September 30, 2020

  

September 30,2019

 
United States $92,114  $94,042 
Asia Pacific  26,864   24,352 
EMEA (1)  28,818   34,300 
Other Americas  3,490   3,284 

Total

 $151,286  $155,978 

 

(1) EMEA consists primarily of Europe, Middle East and S. Africa.

 

The following table presents revenue from continuing operations disaggregated by timing of recognition (in thousands):

 

  

Three Months Ended

 

Timing of Revenue Recognition

 

September 30, 2020

  

September 30, 2019

 
Products and services transferred at a point in time $143,471  $149,494 
Products transferred over time  7,815   6,484 

Net Sales

 $151,286  $155,978 

 

Contract Balances

 

Contract assets represent sales recognized in excess of billings related to work completed but not yet shipped for which revenue is recognized over time. Contract assets are recorded as prepaid and other current assets. Contract liabilities are customer deposits for which revenue has not been recognized. Current contract liabilities are recorded as accrued expenses.

 

The following table provides information about contract assets and liability balances as of  September 30, 2020 (in thousands):

 

  

Balance at Beginning of Period

  

Additions

  

Recognized

  

Balance at End of Period

 

Three months ended September 30, 2020

                

Contract assets:

                

Prepaid and other current assets

 $9,140   6,054   7,187  $8,007 

Contract liabilities:

                

Customer deposits

 $2,298   1,873   2,753  $1,418 

 

During the three months ended September 30, 2020, we recognized the following revenue as a result of changes in the contract liability balances (in thousands):

 

  

Three months ended

 

Revenue recognized in the period from:

 

September 30, 2020

 
Amounts included in the contract liability balance at the beginning of the period $2,298 

 

The timing of revenue recognition, invoicing and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheets. When consideration is received from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the goods and services are transferred to the customer and all revenue recognition criteria have been met.