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Note 3 - Revenue From Contracts With Customers
 3 Months Ended
Sep. 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):

 

  

Three Months Ended

 

Revenue by Product Line

 

September 30, 2021

  

September 30, 2020

 
         

Electronics

 $75,836  $55,271 
         

Engraving Services

  32,917   34,320 

Engraving Products

  2,253   2,081 

Total Engraving

  35,170   36,401 
         

Scientific

  21,529   16,663 
         

Engineering Technologies

  17,573   17,633 
         

Hydraulics Cylinders and Systems

  10,653   12,331 

Merchandising & Display

  6,688   7,198 

Pumps

  8,161   5,789 

Total Specialty Solutions

  25,502   25,318 
         

Total revenue by product line

 $175,610  $151,286 

 

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

 

  

Three Months Ended

  

Three Months Ended

 

Net sales

 

September 30, 2021

  

September 30, 2020

 

United States

 $98,984  $92,114 

Asia Pacific

  37,256   26,864 

EMEA (1)

  36,001   28,818 

Other Americas

  3,369   3,490 

Total

 $175,610  $151,286 

 

(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) for the three months ended:

 

  

Three Months Ended

 

Timing of Revenue Recognition

 

September 30, 2021

  

September 30, 2020

 

Products and services transferred at a point in time

 $164,423  $143,471 

Products transferred over time

  11,187   7,815 

Net sales

 $175,610  $151,286 

 

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 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 (in thousands):

 

  

Balance at Beginning of Period

  

Additions

  

Deductions

  

Balance at
End of Period

 

Three months ended September 30, 2021

                

Contract assets:

                

Prepaid expenses and other current assets

 $15,013  $9,087  $5,965  $18,135 

Contract liabilities:

                

Customer deposits

  471   2,955   3,174   252 
                 
  

Balance at Beginning of Period

  

Additions

  

Deductions

  

Balance at
End of Period

 

Three months ended September 30, 2020

                

Contract assets:

                

Prepaid expenses and other current assets

 $9,140  $6,054  $7,187  $8,007 

Contract liabilities:

                

Customer deposits

  2,298   1,873   2,753   1,418 

 

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

 

Revenue recognized in the period from:

 

September 30, 2021

 

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

 $471 
     
     

Revenue recognized in the period from:

 

September 30, 2020

 

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

 $2,298