We sell our products through three primary commercial channels: original equipment manufacturers (OEMs), industrial distributors and direct to end users. Each of our segments sells similar products, which are balanced across end-user industries including, without limitation, energy, food processing, general industrial, material handling, mining, transportation, industrial automation, robotics, medical devices, and turf & garden.

As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment from the Company’s manufacturing site or delivery to the customer’s named location. In determining whether control has transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. In certain circumstances, the Company manufactures customized product without alternative use for its customers, which would generally result in the transfer of control over time. The Company has evaluated the amount of revenue subject to recognition over time and concluded that it is immaterial.

The following table disaggregates our revenue for each reportable segment. The Company believes that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

	Quarter Ended
	March 31, 2020			March 31, 2019
Net Sales:
Power Transmission Technologies	$	216.7		$	234.9
Automation & Specialty		218.6			249.1
Inter-segment eliminations		(1.1	)		(1.2	)
Net sales	$	434.2		$	482.8

Net sales by geographic region based on point of shipment origin are as follows:

	Net Sales
	Quarter Ended
	March 31, 2020		March 31, 2019
North America (primarily U.S.)	$	245.3	$	273.0
Europe excluding Germany		74.8		81.7
Germany		52.5		62.2
Asia and other		61.6		65.9
Total	$	434.2	$	482.8

The payment terms and conditions in our customer contracts vary. In some cases, customers will partially prepay for their goods; in other cases, after appropriate credit evaluations, payment will be due in arrears. In addition, there are constraints that cause variability in the ultimate consideration to be recognized. These constraints typically include early payment discounts, volume rebates, rights of return, surcharges, and other customer considerations.

A contract asset is created when the Company satisfies a performance obligation by transferring a promised good to the customer. Contract assets may represent conditional or unconditional rights to consideration. A right is conditional, and recorded as a contract asset, if for example the Company must first satisfy another performance obligation in the contract before it is entitled to payment from the customer. Contract assets are transferred to accounts receivable once the right becomes unconditional. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. If the Company receives a customer payment prior to satisfying a performance obligation or in excess of estimates of what the Company expects to be entitled to, the payment is recorded as a contract liability. Contracts with payment in arrears are recognized as receivables.

The opening and closing balances of the Company’s contract liability and accounts receivable as of the year to date period ended March 31, 2020 are as follows:

	Deferred Revenue (Current)		Accounts Receivable
Beginning - January 1, 2020	$	8.4	$	243.2
Closing - March 31, 2020		11.1		242.9
Increase/(Decrease)	$	2.7	$	(0.3	)

	Deferred Revenue (Current)		Accounts Receivable
Beginning - January 1, 2019	$	7.4	$	259.8
Closing - March 31, 2019		7.8		281.8
Increase/(Decrease)	$	0.4	$	22.0

The revenue recognized during the three-month periods ended March 31, 2020 and 2019 that was included in contract liabilities at the beginning of the period amounted to $2.2 million, and $2.1 million, respectively.