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

 

   

Three Months Ended

  

Revenue by Product Line

  

March 31, 2022

    

March 31, 2021

  
                 

Electronics

   $ 79,889     $ 65,085  
                 

Engraving Services

     34,399       33,655  

Engraving Products

     2,824       2,371  

Total Engraving

     37,223       36,026  
                 

Scientific

     18,914       24,221  
                 

Engineering Technologies

     20,890       19,951  
                 

Hydraulics Cylinders and Systems

     15,306       13,629  

Merchandising & Display

     8,438       6,276  

Pumps

     8,621       7,028  

Total Specialty Solutions

     32,365       26,933  
                 

Total revenue by product line

   $ 189,281     $ 172,216  

 

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

 

   

Nine Months Ended

  

Revenue by Product Line

  

March 31, 2022

    

March 31, 2021

  
                 

Electronics

   $ 232,351     $ 180,524  
                 

Engraving Services

     101,637       102,950  

Engraving Products

     7,400       7,427  

Total Engraving

     109,037       110,377  
                 

Scientific

     65,079       58,777  
                 

Engineering Technologies

     56,558       55,091  
                 

Hydraulics Cylinders and Systems

     39,207       36,583  

Merchandising & Display

     23,548       19,515  

Pumps

     24,820       18,930  

Total Specialty Solutions

     87,575       75,028  
                 

Total revenue by product line

   $ 550,600     $ 479,797  

 

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, 2022

    

March 31, 2021

    

March 31, 2022

    

March 31, 2021

  

United States

   $ 110,076     $ 103,005     $ 314,657     $ 286,522  

Asia Pacific

     37,441       31,715       116,842       89,189  

EMEA (1)

     37,963       34,367       108,841       93,549  

Other Americas

     3,801       3,129       10,260       10,537  

Total

   $ 189,281     $ 172,216     $ 550,600     $ 479,797  

 

(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

  

March 31, 2022

    

March 31, 2021

  

Products and services transferred at a point in time

   $ 170,949     $ 163,356  

Products transferred over time

     18,332       8,860  

Net sales

   $ 189,281     $ 172,216  

 

   

Nine Months Ended

  

Timing of Revenue Recognition

  

March 31, 2022

    

March 31, 2021

  

Products and services transferred at a point in time

   $ 510,988     $ 454,007  

Products transferred over time

     39,612       25,790  

Net sales

   $ 550,600     $ 479,797  

 

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):

 

   

Balance at Beginning of Period

    

Additions

    

Amount Recognized

    

Balance at End of Period

  

Nine months ended March 31, 2022

                                

Contract assets:

                                

Prepaid expenses and other current assets

   $ 15,013     $ 35,091     $ 25,711     $ 24,393  

Contract liabilities:

                                

Customer deposits

     471       10,293       10,721       43  

 

   

Balance at Beginning of Period

    

Additions

    

Amount Recognized

    

Balance at End of Period

  

Nine months ended March 31, 2021

                                

Contract assets:

                                

Prepaid expenses 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, 2022

  

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

   $ 252     $ 471  

 

   

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