Revenue Recognition (Notes)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Transaction price allocated to remaining performance obligations

The Company has estimated that $1.2 billion in revenue is expected to be recognized in the future periods related to remaining performance obligations from the Company's contracts with customers outstanding as of March 31, 2023. The Company expects to complete these obligations and recognize 70% as revenue in 2023, 25% in 2024, and the remainder after 2024.

Disaggregation of Revenue

In the following table, revenue is disaggregated by type of good or service, primary geographical market, and timing of recognition for each reportable segment. The table also includes a reconciliation of the disaggregated revenue to total revenue of each reportable segment.

	Three Months Ended				Three Months Ended
	March 31, 2023				March 31, 2022
(In millions)	FoodTech		AeroTech		FoodTech		AeroTech
Type of Good or Service
Recurring (1)	$	219.3	$	54.5	$	174.2	$	48.7
Non-recurring (1)	169.2		86.5		182.1		64.2
Total	388.5		141.0		356.3		112.9
Geographical Region (2)
North America	240.6		127.3		210.3		104.1
Europe, Middle East and Africa	95.2		7.2		89.4		5.3
Asia Pacific	29.8		4.9		36.0		2.7
Latin America	22.9		1.6		20.6		0.8
Total	388.5		141.0		356.3		112.9
Timing of Recognition
Point in Time	201.8		69.4		171.9		49.6
Over Time	186.7		71.6		184.4		63.3
Total	388.5		141.0		356.3		112.9

(1) Aftermarket parts and services and revenue from lease and long-term service contracts are considered recurring revenue. Non-recurring revenue includes new equipment and installation.

(2) Geographical region represents the region in which the end customer resides.

Contract balances

The timing of revenue recognition, billings and cash collections results in trade receivables, contract assets, and advance and progress payments (contract liabilities). Contract assets exist when revenue recognition occurs prior to billings. Contract assets are transferred to trade receivables when the right to payment becomes unconditional (i.e., when receipt of the amount is dependent only on the passage of time). Conversely, the Company often receives payments from its customers before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the Balance Sheet as Contract assets and within Advance and progress payments, respectively, on a contract-by-contract net basis at the end of each reporting period.

Contract asset and liability balances for the period were as follows:

	Balances as of
(In millions)	March 31, 2023		December 31, 2022
Contract Assets	$	96.4	$	89.6
Contract Liabilities	209.8		182.1
	Balances as of
	March 31, 2022		December 31, 2021
Contract Assets	104.0		94.4
Contract Liabilities	207.1		178.0

The revenue recognized during the three months ended March 31, 2023 and 2022 that was included in contract liabilities at the beginning of the period amounted to $77.1 million and $83.5 million, respectively. The remainder of the change from December 31, 2022 and December 31, 2021 is driven by the timing of advance and milestone payments received from customers, customer returns and fulfillment of performance obligations. There were no significant changes in the contract balances other than those described above.