XML 20 R11.htm IDEA: XBRL DOCUMENT v3.23.1
Note 3 - Revenue From Contracts With Customers
 9 Months Ended
Mar. 31, 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):

 

  

Three Months Ended

 

Revenue by Product Line

 

March 31, 2023

  

March 31, 2022

 
         

Electronics

 $78,211  $79,889 
         

Engraving Services

  35,454   34,399 

Engraving Products

  1,455   2,824 

Total Engraving

  36,909   37,223 
         

Scientific

  18,898   18,914 
         

Engineering Technologies

  18,052   20,890 
         

Hydraulics Cylinders and Systems

  13,548   15,306 

Merchandising & Display

  13,203   8,438 

Pumps

  5,511   8,621 

Total Specialty Solutions

  32,262   32,365 
         

Total revenue by product line

 $184,332  $189,281 

 

  

Nine Months Ended

 

Revenue by Product Line

 

March 31, 2023

  

March 31, 2022

 
         

Electronics

 $225,966  $232,351 
         

Engraving Services

  105,259   101,637 

Engraving Products

  4,363   7,400 

Total Engraving

  109,622   109,037 
         

Scientific

  56,646   65,079 
         

Engineering Technologies

  59,244   56,558 
         

Hydraulics Cylinders and Systems

  47,823   39,207 

Merchandising & Display

  32,160   23,548 

Pumps

  21,260   24,820 

Total Specialty Solutions

  101,243   87,575 
         

Total revenue by product line

 $552,721  $550,600 

 

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, 2023

  

March 31, 2022

  

March 31, 2023

  

March 31, 2022

 

United States

 $112,002  $110,076  $338,464  $314,657 

Asia Pacific

  29,204   37,441   95,858   116,842 

EMEA (1)

  38,953   37,963   106,279   108,841 

Other Americas

  4,173   3,801   12,120   10,260 

Total

 $184,332  $189,281  $552,721  $550,600 

 

(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, 2023

  

March 31, 2022

 

Products and services transferred at a point in time

 $169,669  $170,949 

Products transferred over time

  14,663   18,332 

Net sales

 $184,332  $189,281 

 

  

Nine Months Ended

 

Timing of Revenue Recognition

 

March 31, 2023

  

March 31, 2022

 

Products and services transferred at a point in time

 $501,090  $510,988 

Products transferred over time

  51,631   39,612 

Net sales

 $552,721  $550,600 

 

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

  

Deductions

  

Balance at End of Period

 

Nine months ended March 31, 2023

                

Contract assets:

                

Prepaid expenses and other current assets

 $24,679  $49,682  $43,820  $30,541 

Contract liabilities:

                

Customer deposits

  41   13,015   12,750   306 

 

  

Balance at Beginning of Period

  

Additions

  

Deductions

  

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 

 

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

 

  

March 31, 2023

 

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

 $38  $41 

 

  

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