XML 20 R11.htm IDEA: XBRL DOCUMENT
v3.23.3

Revenue | 3 Months Ended
--- | ---
Sep. 30, 2023
Revenue from Contract with Customer [Abstract] |
Revenue | Note 2. Revenue Contract Balances The timing of revenue recognition, billings, and cash collections results in trade receivables, unbilled receivables, and deferred revenues on the unaudited condensed consolidated balance sheets. The Company may offer longer or extended payment terms of more than one year for qualified customers in some circumstances. At times, revenue recognition occurs before the billing, resulting in an unbilled receivable, which represents a contract asset. The contract asset is a component of accounts receivable and other assets for the current and non-current portions, respectively. When the Company receives advances or deposits from customers before revenue is recognized, this results in a contract liability. It can take two or more years from the time of order to revenue recognition due to the Company’s long sales cycle. Changes in the contract assets and liabilities are as follows (dollars in thousands):
|  |  |  |  |  |  |  | Change |
|  | September 30, 2023 |  |  | June 30, 2023 |  |  | $ |  |  | % |
Contract Assets: |  |  |  |  |  |  |  |  |  |  |  |
Unbilled accounts receivable – current (1) |  | $ | 13,805 |  |  | $ | 9,847 |  |  |  | 3,958 |  |  |  | 40 | %
Interest receivable – current (2) |  |  | 382 |  |  |  | 379 |  |  |  | 3 |  |  |  | 1 | %
Long-term accounts receivable (3) |  |  | 5,052 |  |  |  | 4,734 |  |  |  | 318 |  |  |  | 7 | %
Interest receivable – non-current (3) |  |  | 611 |  |  |  | 673 |  |  |  | (62 | ) |  |  | (9 | %)
Contract Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Customer advances |  |  | 19,372 |  |  |  | 20,777 |  |  |  | (1,405 | ) |  |  | (7 | %)
Deferred revenue – current |  |  | 71,764 |  |  |  | 72,185 |  |  |  | (421 | ) |  |  | (1 | %)
Deferred revenue – non-current |  |  | 26,939 |  |  |  | 27,079 |  |  |  | (140 | ) |  |  | (1 | %)
(1) Included in accounts receivable on the unaudited condensed consolidated balance sheets. (2) Included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets. (3) Included in other assets on the unaudited condensed consolidated balance sheets. During the three months ended September 30, 2023, contract assets changed primarily due to changes in the timing of billings that occurred after revenues were recognized and changes in transactions with payment terms exceeding 12 months. During the three months ended September 30, 2023, contract liabilities changed due to changes in the timing of revenue recognition as a result of changes in shipping timing, transaction price, reduced customer deposits for system sales and for which the warranty was deferred. During the three months ended September 30, 2023, the Company recognized revenue of $30.0 million which was included in the deferred revenue balances at June 30, 2023. During the three months ended September 30, 2022, the Company recognized revenue of $34.9 million which was included in the deferred revenue balances at June 30, 2022. Remaining Performance Obligations Remaining performance obligations represent deferred revenue from open contracts for which performance has already started and the transaction price from executed contracts for which performance has not yet started. Service contracts in general are considered month-to-month contracts. As of September 30, 2023, total remaining performance obligations amounted to $1,034.4 million. Of this total amount, $68.2 million related to long-term warranty and non-cancellable post-warranty services, which is the estimated revenue expected to be recognized over the remaining service period and warranty period for systems that have been delivered (the time bands reflect management’s best estimate of when the Company will transfer control to the customer and may change based on timing of shipment, readiness of customers’ facilities for installation, installation requirements, and availability of products). The Company has elected the practical expedient to not disclose the unsatisfied performance obligations of contracts with an original expected duration of one year or less. The following table represents the Company's remaining performance obligations related to long-term warranty and non-cancellable post-warranty services as of September 30, 2023 (in thousands):
|  | Fiscal years of revenue recognition |
|  | 2024 |  |  | 2025 |  |  | 2026 |  |  | Thereafter |
Long-term warranty and non-cancellable post-warranty services |  | $ | 22,445 |  |  | $ | 23,665 |  |  | $ | 14,438 |  |  | $ | 7,691 |
For the remaining $966.2 million of performance obligations (i.e., open systems sales, upgrades, training and other miscellaneous items), the Company estimates 28% to 31% will be recognized in the next 12 months, and the remaining portion will be recognized thereafter. The Company’s historical experience indicates that some of its customers will cancel or renegotiate contracts as economic conditions change or when product offerings change during the long sales cycle. The Company anticipates a portion of its open contracts may never result in revenue recognition primarily due to the long sales cycle and factors outside of its control, including changes to its customers' needs or financial condition, changes in government or health insurance reimbursement policies, or changes to regulatory requirements. Based on historical experience and management's best estimate, approximately 20% of the Company’s $915.4 million open system sales contracts as of September 30, 2023, may never result in revenue. Capitalized Contract Costs As of September 30, 2023, and June 30, 2023, the balance of capitalized costs to obtain a contract was $11.4 million and $11.0 million, respectively. The Company has classified the capitalized costs to obtain a contract as a component of prepaid expenses and other current assets and other assets with respect to the current and non-current portions of capitalized costs, respectively, on the unaudited condensed consolidated balance sheets. The Company did no t incur any capitalized contract impairment losses during the three months ended September 30, 2023, and recorded $0.2 million in capitalized contract impairment losses during September 30, 2022. The Company recognized expenses related to the amortization of the capitalized contract costs of $0.9 million for both the three months ended September 30, 2023 and 2022, respectively.

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/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration