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Revenue from Contracts with Customers (Notes) | 9 Months Ended
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Sep. 30, 2020
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customer [Text Block] | 3. Revenue 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 and nine months ended September 30, 2020 and 2019: Net Sales by geographic area
| Three Months Ended |  | Nine Months Ended
| September 30 |  | September 30
| 2020 |  | 2019 |  | 2020 |  | 2019
Americas | $ | 167.7 |  |  | $ | 186.1 |  |  | $ | 466.6 |  |  | $ | 536.4 |
Europe, Middle East and Africa | 69.5 |  |  | 69.7 |  |  | 196.3 |  |  | 228.6 |
Asia Pacific | 24.7 |  |  | 24.9 |  |  | 65.1 |  |  | 77.8 |
Total | $ | 261.9 |  |  | $ | 280.7 |  |  | $ | 728.0 |  |  | $ | 842.8 |
Net Sales are attributed to each geographic area based on the end user country and are net of intercompany sales. Net Sales by groups of similar products and services
| Three Months Ended |  | Nine Months Ended
| September 30 |  | September 30
| 2020 |  | 2019 |  | 2020 |  | 2019
Equipment | $ | 167.6 |  |  | $ | 190.0 |  |  | $ | 456.3 |  |  | $ | 552.9 |
Parts and Consumables | 52.7 |  |  | 46.9 |  |  | 150.2 |  |  | 158.2 |
Specialty Surface Coatings | 5.3 |  |  | 6.9 |  |  | 16.6 |  |  | 20.2 |
Service and Other | 36.3 |  |  | 36.9 |  |  | 104.9 |  |  | 111.5 |
Total | $ | 261.9 |  |  | $ | 280.7 |  |  | $ | 728.0 |  |  | $ | 842.8 |
For the three months ended September 30, 2019, we reclassified $20.7 million from Service and Other to Equipment and $2.8 million from Service and Other to Parts and Consumables. For the nine months ended September 30, 2019, we reclassified $4.9 million from Parts and Consumables to Equipment and $28.8 million from Service and Other to Equipment. Net Sales by sales channel
| Three Months Ended |  | Nine Months Ended
| September 30 |  | September 30
| 2020 |  | 2019 |  | 2020 |  | 2019
Sales Direct to Consumer | $ | 177.3 |  |  | $ | 189.7 |  |  | $ | 488.2 |  |  | $ | 563.5 |
Sales to Distributors | 84.6 |  |  | 91.0 |  |  | 239.8 |  |  | 279.3 |
Total | $ | 261.9 |  |  | $ | 280.7 |  |  | $ | 728.0 |  |  | $ | 842.8 |
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. We record our accruals for volume-based rebates and other promotions in Other Current Liabilities on our Consolidated Balance Sheets. The change in our sales incentive accrual balance for the nine months ended September 30, 2020 and 2019 was as follows:
| Nine Months Ended
| September 30
| 2020 |  | 2019
Beginning balance | $ | 13.7 |  |  | $ | 16.7 |
Additions to sales incentive accrual | 15.0 |  |  | 21.0 |
Contract payments | (15.6 | ) |  | (24.4 | )
Foreign currency fluctuations | (0.1 | ) |  | (0.1 | )
Ending balance | $ | 13.0 |  |  | $ | 13.2 |
Deferred Revenue We sell separately priced prepaid contracts to our customers where we receive payment at the inception of the contract and defer recognition of the consideration received because we have to satisfy future performance obligations. Our deferred revenue balance is primarily attributed to prepaid maintenance contracts on our machines ranging from 12 months to 60 months. In circumstances where prepaid contracts are bundled with machines, we use an observable price to determine stand-alone selling price for separate performance obligations. The change in the deferred revenue balance for the nine months ended September 30, 2020 and 2019 was as follows:
| Nine Months Ended
| September 30
| 2020 |  | 2019
Beginning balance | $ | 10.7 |  |  | $ | 8.5 |
Increase in deferred revenue representing our obligation to satisfy future performance obligations | 15.3 |  |  | 16.9 |
Deferred revenue addition from the acquisition of Gaomei | — |  |  | 1.4 |
Decrease in deferred revenue for amounts recognized in Net Sales for satisfied performance obligations | (15.0 | ) |  | (16.8 | )
Foreign currency fluctuations | (0.8 | ) |  | (0.1 | )
Ending balance | $ | 10.2 |  |  | $ | 9.9 |
Certain 2019 numbers in the table above have been adjusted to conform with current year presentation. At September 30, 2020, $6.7 million and $3.5 million of deferred revenue was reported in Other Current Liabilities and Other Liabilities, respectively, on our Consolidated Balance Sheets. Of this, we expect to recognize the following approximate amounts in Net Sales in the following periods:
Remaining 2020 | $ | 4.6 |
2021 | 2.7 |
2022 | 1.6 |
2023 | 0.8 |
2024 | 0.4 |
Thereafter | 0.1 |
Total | $ | 10.2 |
At December 31, 2019, $6.8 million and $3.9 million of deferred revenue was reported in Other Current Liabilities and Other Liabilities, respectively, on our Consolidated Balance Sheets.

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- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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