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Revenue
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenue is recognized upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products and services. Generally, these criteria are met at the time the product is shipped.
We also enter into contracts that can include combinations of products and services, which are generally capable of being distinct and are accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities.
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 years ended December 31:
Net sales by geographic area
202420232022
Americas$888.5 $840.3 $705.9 
Europe, Middle East and Africa (EMEA)318.5 314.4 301.6 
Asia Pacific (APAC)79.7 88.9 84.7 
Total$1,286.7 $1,243.6 $1,092.2 
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
202420232022
Equipment$808.7 $776.4 $664.0 
Parts and consumables274.3 279.5 263.1 
Service and other203.7 187.7 165.1 
Total$1,286.7 $1,243.6 $1,092.2 
Net sales by sales channel
202420232022
Sales direct to consumer$905.7 $854.4 $712.6 
Sales to distributors381.0 389.2 379.6 
Total$1,286.7 $1,243.6 $1,092.2 
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. The 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 years ended December 31, 2024 and 2023 was as follows:
20242023
Beginning balance$21.2 $20.0 
Additions to sales incentive accrual22.4 29.5 
Contract payments(27.2)(28.5)
Foreign currency fluctuations(0.3)0.2 
Ending balance$16.1 $21.2 
Deferred Revenue
We provide separately priced prepaid contracts to our customers, collecting payment at the start of the agreement. Revenue recognition is deferred until we meet our future performance obligations. Our deferred revenue balance includes autonomous subscription sales and prepaid maintenance contracts on our machines ranging from 12 months to 60 months. In circumstances where prepaid contracts are sold simultaneously 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 years ended December 31, 2024 and 2023 was as follows:
20242023
Beginning balance$10.3 $9.3 
Increase in deferred revenue representing our obligation to satisfy future performance obligations31.7 21.7 
Decrease in deferred revenue for amounts recognized in net sales for satisfied performance obligations(20.8)(20.8)
Foreign currency fluctuations(0.6)0.1 
Ending balance$20.6 $10.3 
As of December 31, 2024, $9.8 million and $10.8 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:
2025$9.8 
20264.7 
20273.3 
20281.7 
20291.0 
Thereafter0.1 
Total$20.6 
As of December 31, 2023, $7.9 million and $2.4 million of deferred revenue was reported in other current liabilities and other liabilities, respectively, on our consolidated balance sheets.