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

 

   

Three Months Ended

  

Revenue by Product Line

  

September 30, 2023

    

September 30, 2022

  
                 

Electronics

   $ 81,688     $ 75,199  
                 

Engraving Services

     38,736       33,585  

Engraving Products

     2,058       1,439  

Total Engraving

     40,794       35,024  
                 

Scientific

     18,193       18,456  
                 

Engineering Technologies

     18,220       16,999  
                 

Hydraulics Cylinders and Systems

     14,729       16,737  

Merchandising & Display

     11,150       9,565  

Pumps

     -       8,620  

Total Specialty Solutions

     25,879       34,922  
                 

Total revenue by product line

   $ 184,774     $ 180,600  

 

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

 

   

Three Months Ended

    

Three Months Ended

  

Net sales

  

September 30, 2023

    

September 30, 2022

  

United States

   $ 114,501     $ 110,159  

Asia Pacific

     31,409       32,793  

EMEA (1)

     34,468       33,925  

Other Americas

     4,396       3,723  

Total

   $ 184,774     $ 180,600  

 

(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

  

September 30, 2023

    

September 30, 2022

  

Products and services transferred at a point in time

   $ 167,225     $ 173,075  

Products transferred over time

     17,549       7,525  

Net sales

   $ 184,774     $ 180,600  

 

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

  

Three months ended September 30, 2023

                                

Contract assets:

                                

Prepaid expenses and other current assets

   $ 31,138     $ 16,396     $ 15,072     $ 32,462  

Contract liabilities:

                                

Customer deposits

     -       -       -       -  

 

   

Balance at Beginning of Period

    

Additions

    

Deductions

    

Balance at End of Period

  

Three months ended September 30, 2022

                                

Contract assets:

                                

Prepaid expenses and other current assets

   $ 24,679     $ 16,315     $ 11,456     $ 29,538  

Contract liabilities:

                                

Customer deposits

     41       2,635       2,638       38  

 

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

 

   

September 30, 2023

  

Revenue recognized in the period from:

  

Three months ended

 

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

   $ -  

 

   

September 30, 2022

  

Revenue recognized in the period from:

  

Three months ended

 

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

   $ 41