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Note 3 - Revenue From Contracts With Customers
 12 Months Ended
Jun. 30, 2023
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, 2023

  

June 30, 2022

  

June 30, 2021

 

Electronics

  305,872   304,290   253,369 
             

Engraving Services

  145,616   136,779   137,159 

Engraving Products

  6,451   9,476   9,857 

Total Engraving

  152,067   146,255   147,016 
             

Scientific

  74,924   83,850   79,421 
             

Engineering Technologies

  81,079   78,117   75,562 
             

Hydraulics Cylinders and System

  61,010   54,864   48,776 

Merchandising & Display

  44,836   34,305   26,049 

Pumps

  21,260   33,658   26,039 

Total Specialty Solutions

  127,106   122,827   100,864 
             

Total revenue by product line

 $741,048  $735,339  $656,232 

 

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

 

  

Year Ended

 

Net sales

 

June 30, 2023

  

June 30, 2022

  

June 30, 2021

 

United States

 $449,820  $429,368  $386,829 

Asia Pacific

  130,130   148,028   125,516 

EMEA (1)

  144,672   143,967   129,908 

Other Americas

  16,426   13,976   13,979 

Total

 $741,048  $735,339  $656,232 

 

(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, 2023

  

June 30, 2022

  

June 30, 2021

 

Products and services transferred at a point in time

 $668,633  $675,461  $619,029 

Products transferred over time

  72,415   59,878   37,203 

Net sales

 $741,048  $735,339  $656,232 

 

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, 2023

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

Contract assets:

                

Prepaid expenses and other current assets

 $24,679   69,402   62,943  $31,138 

Contract liabilities:

                

Customer deposits

 $41   15,505   15,546  $- 

 

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 

 

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, 2023

 

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

 $41 

 

  

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