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Note 3 - Revenue From Contracts With Customers
 12 Months Ended
Jun. 30, 2021
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 is recognized over time under certain 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. 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):

 

  

Year Ended

 

Revenue by Product Line

 

June 30, 2021

  

June 30, 2020

  

June 30, 2019

 

Electronics

  253,369   185,294   204,073 
             

Engraving Services

  137,159   132,586   139,769 

Engraving Products

  9,857   11,150   9,924 

Total Engraving

  147,016   143,736   149,693 
             

Scientific

  79,421   57,523   57,621 
             

Engineering Technologies

  75,562   104,047   105,270 
             

Hydraulics Cylinders and System

  48,776   51,722   53,943 

Merchandising & Display

  26,049   31,488   34,532 

Pumps

  26,039   30,725   34,799 

Total Specialty Solutions

  100,864   113,935   123,274 
             

Total Revenue by Product Line

 $656,232  $604,535  $639,931 

 

 

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

 

  

Year Ended

 

Net sales

 

June 30, 2021

  

June 30, 2020

  

June 30, 2019

 

United States

 $386,829  $364,188  $370,235 

Asia Pacific

  125,516   98,665   108,667 

EMEA (1)

  129,908   128,037   144,636 

Other Americas

  13,979   13,645   16,393 

Total

 $656,232  $604,535  $639,931 

 

(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):

  

Year Ended

 

Timing of Revenue Recognition

 

June 30, 2021

  

June 30, 2020

  

June 30, 2019

 

Products and services transferred at a point in time

 $619,029  $569,426  $607,980 

Products transferred over time

  37,203   35,109   31,951 

Net sales

 $656,232  $604,535  $639,931 

 

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 expenses 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 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.

 

The following table provides information about contract assets and liability balances as of June 30, 2021 and 2020 (in thousands):

 

Year ended June 30, 2021

  Balance at Beginning of Period   Additions   Deductions   Balance at End of Period 

Contract assets:

                

Prepaid expenses and other current assets

 $9,140   30,773   24,900  $15,013 

Contract liabilities:

                

Customer deposits

 $2,298   9,912   11,739  $471 

 

Year ended June 30, 2020

  Balance at Beginning of Period   Additions   Deductions   Balance at End of Period 

Contract assets:

                

Prepaid expenses and other current assets

 $8,418   41,462   40,740  $9,140 

Contract liabilities:

                

Customer deposits

 $1,358   11,939   10,999  $2,298 

 

During the years ended June 30, 2021 and 2020, we recognized the following revenue which was included in the contract liability beginning balances (in thousands):

 

  

Year ended

 

Revenue recognized in the period from:

 

June 30, 2021

 

Amounts included in the contract liability balance at the beginning of the period

 $2,298 

 

 

  

Year ended

 

Revenue recognized in the period from:

 

June 30, 2020

 

Amounts included in the contract liability balance at the beginning of the period

 $1,358