XML 20 R8.htm IDEA: XBRL DOCUMENT v3.20.2
Revenue
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregation of Revenue
The following table summarizes net sales by end market:
(in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
End Market2020201920202019
Energy$33,813 $64,331 $113,546 $162,224 
Industrial29,843 37,020 97,437 142,267 
Transportation50,794 37,161 101,620 88,492 
Total$114,450 $138,512 $312,603 $392,983 
The following table summarizes net sales by geographic area:
(in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
Geographic Area2020201920202019
North America$104,840 $125,971 $281,339 $343,593 
Pacific Rim5,466 6,744 18,215 30,173 
Europe2,395 4,329 7,630 12,712 
Other1,749 1,468 5,419 6,505 
Total$114,450 $138,512 $312,603 $392,983 
Contract Balances
Most of the Company’s contracts are for a period of less than one year; however, certain long-term manufacturing and extended warranty contracts extend beyond one year. The timing of revenue recognition may differ from the time of invoicing to customers and these timing differences result in contract assets or contract liabilities on the Company’s Consolidated Balance Sheets. Contract assets include amounts related to the contractual right to consideration for completed performance when the right to consideration is conditional. The Company records contract liabilities when cash payments are received or due in advance of performance. Contract assets and contract liabilities are recognized at the contract level.
(in thousands)As of September 30, 2020As of December 31, 2019
Short-term contract assets (included in Prepaid expenses and other current assets)
$8,601 $694 
Short-term contract liabilities (included in Other accrued liabilities)
(52,502)(26,898)
Long-term contract liabilities (included in Noncurrent contract liabilities)
(10,009)(17,998)
Net contract liabilities$(53,910)$(44,202)
During the nine months ended September 30, 2020 and 2019, the Company recognized $18.4 million and $4.1 million, respectively, of revenue upon satisfaction of performance obligations related to amounts that were included in the net contract liabilities balance as of December 31, 2019 and 2018, respectively. The increase in the contract asset during the nine months ended September 30, 2020 is related to performance completed and revenue recognized under certain contracts for which the Company’s right to consideration is conditional at the end of the period. The increase in the contract liabilities during the nine months ended September 30, 2020 is primarily related to prepayments for certain engines by a customer under a long-term supply agreement.
Remaining Performance Obligations
For performance obligations that extend beyond one year, the Company had $62.1 million of remaining performance obligations as of September 30, 2020 which primarily relates to prepayments for certain engines by a customer under a long-term supply agreement. The Company expects to recognize revenue related to these remaining performance obligations of approximately $14.8 million in the remainder of 2020, $44.5 million in 2021, $0.7 million in 2022, $0.9 million in 2023, $0.8 million in 2024 and $0.4 million in 2025 and beyond.