XML 22 R9.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Revenue from Contracts with Customers (Notes) | 3 Months Ended
--- | ---
Mar. 31, 2018
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customer |
3. | Revenue from Contracts with Customers
Under the new revenue standard, revenue is recognized when control transfers under the terms of the contract with our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. We do not account for shipping and handling as a distinct performance obligation as we generally perform shipping and handling activities after we transfer control of goods to the customer. Incidental items that are immaterial in the context of the contract are not recognized as a separate performance obligation. We do not have any significantly extended payment terms as payment is generally received within one year of the point of sale. In general, we transfer control and recognize a sale at the point in time when products are shipped from our manufacturing facilities both direct to consumers and to distributors. Service revenue is recognized in the period the service is performed or ratably over the period of the related service contract. Consideration related to service contracts is deferred if the proceeds are received in advance of the satisfaction of the performance obligations and recognized over the contract period as the performance obligation is met. We use an output method to measure progress towards completion for certain prepaid service contracts, as this method appropriately depicts performance towards satisfaction of the performance obligations. For contracts with multiple performance obligations (i.e., a product and service component), we allocate the transaction price to the performance obligations in proportion to their stand-alone selling prices. We use an observable price to determine the stand-alone selling price for separate performance obligations. When allocating on a relative stand-alone selling price basis, any discounts contained within the contract are allocated proportionately to all of the performance obligations in the contract. Disaggregation of Revenue The following tables illustrate the disaggregation of revenue by geographic area, groups of similar products and services and sales channels for the three months ended March 31, 2018 and 2017 (in thousands): Net Sales by geographic area
| Three Months Ended
| March 31
| 2018 |  | 2017
Americas | $ | 162,638 |  |  | $ | 142,770 |
Europe, Middle East and Africa | 88,816 |  |  | 33,276 |
Asia Pacific | 21,393 |  |  | 15,013 |
Total | $ | 272,847 |  |  | $ | 191,059 |
Net Sales are attributed to each geographic area based on the country from which the product was shipped and are net of intercompany sales. Net Sales by groups of similar products and services
| Three Months Ended
| March 31
| 2018 |  | 2017
Equipment | $ | 172,074 |  |  | $ | 113,341 |
Parts and Consumables | 57,441 |  |  | 42,803 |
Specialty Surface Coatings | 6,455 |  |  | 6,681 |
Service and Other | 36,877 |  |  | 28,234 |
Total | $ | 272,847 |  |  | $ | 191,059 |
Net Sales by sales channel
| Three Months Ended
| March 31
| 2018 |  | 2017
Sales Direct to Consumer | $ | 178,710 |  |  | $ | 143,623 |
Sales to Distributors | 94,137 |  |  | 47,436 |
Total | $ | 272,847 |  |  | $ | 191,059 |
Contract Liabilities Sales Returns The right of return may exist explicitly or implicitly with our customers. When the right of return exists, we adjust the transaction price for the estimated effect of returns. We estimate the expected returns using the expected value method by assessing historical sales levels and the timing and magnitude of historical sales return levels as a percent of sales, and projecting this experience into the future. Sales Incentives Our sales contracts may contain various customer incentives, such as volume-based rebates or other promotions. We reduce the transaction price for certain customer programs and incentive offerings that represent variable consideration. Sales incentives given to our customers are recorded using the most likely amount approach for estimating the amount of consideration to which the company will be entitled. We forecast the most likely amount of the incentive to be paid at the time of sale, update this forecast quarterly, and adjust the transaction price accordingly to reflect the new amount of incentives expected to be earned by the customer. A majority of our customer incentives are settled within one year. At March 31, 2018 and December 31, 2017, we reported $7,925 and $13,466, respectively, of volume-based rebates and other promotions in Other Current Liabilities on our Condensed Consolidated Balance Sheets. The change in the balance was primarily due to payments of rebates during the three months ended March 31, 2018. Prepaid Service Contracts We sell separately priced prepaid service contracts on our machines ranging from 12 months to 60 months. We receive payment at the inception of the contract and defer recognition of the consideration received because we have to satisfy future performance obligations. In circumstances where prepaid service contracts are bundled with machines, we use an observable price to determine stand-alone selling price for separate performance obligations. At December 31, 2017, $4,468 and $2,483 of unearned revenue associated with outstanding prepaid service contracts was reported in Other Current Liabilities and Other Liabilities, respectively, on our Condensed Consolidated Balance Sheets. During the three months ended March 31, 2018, we recognized $3,295 of revenue related to the satisfaction of performance obligations under the terms of these prepaid service contracts and deferred an additional $3,660 in additional prepayments representing our obligation to satisfy future performance obligations. At March 31, 2018, $4,732 and $2,669 of unearned revenue associated with outstanding prepaid service contracts was reported in Other Current Liabilities and Other Liabilities, respectively, on our Condensed Consolidated Balance Sheet. Of this, we expect to recognize the following approximate amounts in Net Sales in the following periods:
Remaining 2018 | $ | 3,799 |
2019 | 1,835 |
2020 | 1,115 |
2021 | 416 |
2022 | 230 |
Thereafter | 6 |
Total | $ | 7,401 |
Practical Expedients and Exemptions We generally expense the incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. These costs relate primarily to sales commissions and are recorded in Selling and Administrative Expense in the Condensed Consolidated Statements of Operations. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. In addition, we do not adjust the promised amount of consideration for the effects of a significant financing component if we expect, at contract inception, that the period between when we transfer a promised good or service to a customer, and when the customer pays for that good or service will be one year or less.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration