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Note 3 - Revenue From Contracts With Customers
 9 Months Ended
Mar. 31, 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):

 

  

Three Months Ended

 

Revenue by Product Line

 

March 31, 2021

  

March 31, 2020

 
         

Electronics

 $65,085  $48,069 
         

Engraving Services

  33,655   31,893 

Engraving Products

  2,371   3,538 

Total Engraving

  36,026   35,431 
         

Scientific

  24,221   14,670 
         

Engineering Technologies

  19,951   26,730 
         

Hydraulics Cylinders and Systems

  13,629   13,549 

Merchandising & Display

  6,276   7,719 

Pumps

  7,028   9,306 

Total Specialty Solutions

  26,933   30,574 
         

Total Revenue by Product Line

 $172,216  $155,474 

 

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

 

  

Nine Months Ended

 

Revenue by Product Line

 

March 31, 2021

  

March 31, 2020

 
         

Electronics

 $180,524  $140,521 
         

Engraving Services

  102,950   103,630 

Engraving Products

  7,427   8,488 

Total Engraving

  110,377   112,118 
         

Scientific

  58,777   44,834 
         

Engineering Technologies

  55,091   77,869 
         

Hydraulics Cylinders and Systems

  36,583   38,613 

Merchandising & Display

  19,515   26,234 

Pumps

  18,930   24,961 

Total Specialty Solutions

  75,028   89,808 
         

Total Revenue by Product Line

 $479,797  $465,150 

 

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

 

 

  

Three Months Ended

  

Three Months Ended

  

Nine Months Ended

  

Nine Months Ended

 

Net sales

 

March 31, 2021

  

March 31, 2020

  

March 31, 2021

  

March 31, 2020

 

United States

 $103,005  $95,643  $286,522  $282,146 

Asia Pacific

  31,715   22,583   89,189   71,495 

EMEA (1)

  34,367   33,781   93,549   100,543 

Other Americas

  3,129   3,467   10,537   10,966 

Total

 $172,216  $155,474  $479,797  $465,150 

 

(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

 

March 31, 2021

  

March 31, 2020

 

Products and services transferred at a point in time

 $163,356  $145,498 

Products transferred over time

  8,860   9,976 

Net Sales

 $172,216  $155,474 

 

  

Nine Months Ended

 

Timing of Revenue Recognition

 

March 31, 2021

  

March 31, 2020

 

Products and services transferred at a point in time

 $454,007  $439,222 

Products transferred over time

  25,790   25,928 

Net Sales

 $479,797  $465,150 

 

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 (in thousands):

 

  

Balance at Beginning of Period

  

Additions

  

Deductions

  

Balance at End of Period

 

Nine months ended March 31, 2021

                

Contract assets:

                

Prepaid and other current assets

 $9,140  $21,055  $18,422  $11,773 

Contract liabilities:

                

Customer deposits

  2,298   6,497   7,871   924 

 

 

We recognized the following revenue which was included in the contract liability beginning balances (in thousands):

 

  

March 31, 2021

 

Revenue recognized in the period from:

 

Three months ended

  

Nine months ended

 

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

 $365  $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.