XML 21 R11.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Note 3 - Revenue From Contracts With Customers
 9 Months Ended
Mar. 31, 2024
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, 2024

  

March 31, 2023

 
         

Electronics

 $80,431  $78,211 
         

Engraving Services

  33,011   35,454 

Engraving Products

  3,286   1,455 

Total Engraving

  36,297   36,909 
         

Scientific

  16,925   18,898 
         

Engineering Technologies

  20,098   18,052 
         

Hydraulics Cylinders and Systems

  14,800   13,548 

Merchandising & Display

  8,716   13,203 

Pumps

  -   5,511 

Total Specialty Solutions

  23,516   32,262 
         

Total revenue by product line

 $177,267  $184,332 

 

  

Nine Months Ended

 

Revenue by Product Line

 

March 31, 2024

  

March 31, 2023

 
         

Electronics

 $241,538  $225,966 
         

Engraving Services

  110,214   105,259 

Engraving Products

  7,722   4,363 

Total Engraving

  117,936   109,622 
         

Scientific

  51,410   56,646 
         

Engineering Technologies

  58,205   59,244 
         

Hydraulics Cylinders and Systems

  41,410   47,823 

Merchandising & Display

  29,942   32,160 

Pumps

  -   21,260 

Total Specialty Solutions

  71,352   101,243 
         

Total revenue by product line

 $540,441  $552,721 

 

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, 2024

  

March 31, 2023

  

March 31, 2024

  

March 31, 2023

 

United States

 $107,805  $112,002  $332,473  $338,464 

Asia Pacific

  32,139   29,204   96,290   95,858 

EMEA (1)

  34,438   38,953   100,538   106,279 

Other Americas

  2,885   4,173   11,140   12,120 

Total

 $177,267  $184,332  $540,441  $552,721 

 

(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, 2024

  

March 31, 2023

 

Products and services transferred at a point in time

 $157,866  $169,669 

Products transferred over time

  19,401   14,663 

Net sales

 $177,267  $184,332 

 

  

Nine Months Ended

 

Timing of Revenue Recognition

 

March 31, 2024

  

March 31, 2023

 

Products and services transferred at a point in time

 $485,295  $501,090 

Products transferred over time

  55,146   51,631 

Net sales

 $540,441  $552,721 

 

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, 2024

                

Contract assets:

                

Prepaid expenses and other current assets

 $31,138  $53,394  $45,274  $39,258 

 

  

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 

 

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

 

There was no liability balance at the beginning of fiscal year 2024.

 

  

March 31, 2023

  

March 31, 2023

 

Revenue recognized in the period from:

 

Three months ended

  

Six months ended

 

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

 $38  $41