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Note 3 - Revenue From Contracts With Customers
 12 Months Ended
Jun. 30, 2022
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

  
   

June 30, 2022

    

June 30, 2021

    

June 30, 2020

  

Electronics

     304,290       253,369       185,294  
                         

Engraving Services

     136,779       137,159       132,586  

Engraving Products

     9,476       9,857       11,150  

Total Engraving

     146,255       147,016       143,736  
                         

Scientific

     83,850       79,421       57,523  
                         

Engineering Technologies

     78,117       75,562       104,047  
                         

Hydraulics Cylinders and System

     54,864       48,776       51,722  

Merchandising & Display

     34,305       26,049       31,488  

Pumps

     33,658       26,039       30,725  

Total Specialty Solutions

     122,827       100,864       113,935  
                         

Total revenue by product line

   $ 735,339     $ 656,232     $ 604,535  

 

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

 

   

Year Ended

  

Net sales

  

June 30, 2022

    

June 30, 2021

    

June 30, 2020

  

United States

   $ 429,368     $ 386,829     $ 364,188  

Asia Pacific

     148,028       125,516       98,665  

EMEA (1)

     143,967       129,908       128,037  

Other Americas

     13,976       13,979       13,645  

Total

   $ 735,339     $ 656,232     $ 604,535  

 

(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, 2022

    

June 30, 2021

    

June 30, 2020

  

Products and services transferred at a point in time

   $ 675,461     $ 619,029     $ 569,426  

Products transferred over time

     59,878       37,203       35,109  

Net sales

   $ 735,339     $ 656,232     $ 604,535  

 

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 liabilities.

 

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):

 

Year ended June 30, 2022

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

Contract assets:

                                

Prepaid expenses and other current assets

   $ 15,013       44,168       34,502     $ 24,679  

Contract liabilities:

                                

Customer deposits

   $ 471       12,972       13,402     $ 41  

 

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  

 

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, 2022

  

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

   $ 471  

 

   

Year ended

  

Revenue recognized in the period from:

  

June 30, 2021

  

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

   $ 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 year

 $1,358