Revenue From Contracts With Customers

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

Sales are derived from products for different applications: fiber lasers, diode lasers, diodes and systems for materials processing, fiber lasers and amplifiers for advanced applications, fiber amplifiers for communications applications, and fiber lasers for medical applications. The following tables represent a disaggregation of revenue from contracts with customers for the years ended December 31, 2019 and 2018:


	Twelve Months Ended December 31,
	2019		2018
Sales by Application
Materials processing	$	1,229,211	$	1,374,448
Other applications	85,370		85,426
Total	$	1,314,581	$	1,459,874


	Twelve Months Ended December 31,
	2019		2018
Sales by Product
High Power Continuous Wave ("CW") Lasers	$	734,745	$	909,726
Medium and Low Power CW Lasers	56,625		95,764
Pulsed Lasers	137,675		162,048
Quasi-Continuous Wave ("QCW") Lasers	56,440		66,700
Laser and Non-Laser Systems	141,647		59,330
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue	187,449		166,306
Total	$	1,314,581	$	1,459,874




Sales by Geography
North America	$	280,886	$	202,743
Europe:
Germany	81,365		111,259
Other including Eastern Europe/CIS	249,871		296,917
Asia and Australia:
China	491,890		629,079
Japan	71,757		87,619
Other	121,586		127,251
Rest of World	17,226		5,006
Total	$	1,314,581	$	1,459,874


Timing of Revenue Recognition
Goods and services transferred at a point in time	$	1,233,065	$	1,447,343
Goods and services transferred over time	81,516		12,531
Total	$	1,314,581	$	1,459,874

The Company enters into contracts to sell lasers and spare parts, for which revenue is generally recognized upon shipment or delivery, depending on the terms of the contract. The Company also provides installation services and extended warranties. The Company frequently receives consideration from a customer prior to transferring goods to the customer under the terms of a sales contract. The Company records customer deposits related to these prepayments, which represent a contract liability. The Company also records deferred revenue related to installation services when consideration is received before the services have been performed. The standalone selling price for installation services is determined based on the estimated number of days of service technician time required for installation at standard service rates. The Company recognizes customer deposits and deferred revenue as net sales after control of the goods or services has been transferred to the customer and all revenue recognition criteria is met. The Company bills customers for extended warranties upon entering into the agreement with the customer, resulting in deferred revenue. The timing of customer payments on contracts for the sale of customized robotic systems generally differs from the timing of revenue recognized, resulting in contract assets and liabilities. Contract assets are included within prepaid expense and other current assets on the consolidated balance sheets. Contract liabilities are included within accrued expenses and other current liabilities on the consolidated balance sheets.

The following table reflects the changes in the Company's contract assets and liabilities for the years ended December 31, 2019 and 2018:


	December 31,		December 31,				December 31,		January 1,
	2019		2018		Change		2018		2018		Change
Contract assets
Contract assets	$	9,645	$	10,102	$	(457)	$	10,102	$	—	$	10,102
Contract liabilities
Contract liabilities - current	59,531		52,606		6,925		52,606		46,508		6,098
Contract liabilities - long-term	1,820		1,413		407		1,413		182		1,231

During the year ended December 31, 2019 and 2018, the Company recognized revenue of $45,223 and $40,944, respectively, that was included in the contract liabilities at the beginning of the period.

The Company has elected the practical expedient in ASC 606-10-50-14, whereby the performance obligations for contracts with an original expected duration of one year or less are not disclosed. The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of December 31, 2019:


	Remaining Performance Obligations
	2020		2021		2022		2023		2024		2025		Total
Revenue expected to be recognized for extended warranty agreements	$	4,105	$	914	$	498	$	301	$	87	$	18	$	5,923
Revenue to be earned over time from contracts to sell robotic systems	28,170		1,325		—		—		—		—		29,495

Total	$	32,275	$	2,239	$	498	$	301	$	87	$	18	$	35,418