Revenue

9 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

Revenue Recognition

The Company recognizes sales of products and services based on the five-step analysis of transactions as provided in Topic 606. For all contracts with customers, the Company first identifies the contract which usually is established when the customer’s purchase order is accepted or acknowledged. Next the Company identifies the performance obligations in the contract. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company then determines the transaction price in the arrangement and allocates the transaction price to each performance obligation identified in the contract. The Company’s allocation of the transaction price to the performance obligations are based on the relative standalone selling prices for the goods and services contained in a particular performance obligation. The transaction price is adjusted for the Company’s estimate of variable consideration which may include discounts if the Company would fail to meet certain performance requirements, volume discounts or early payment discounts. To estimate variable consideration, the Company utilizes historical experience and known terms. Variable consideration in contracts for the three and nine months ended June 30, 2020 was insignificant.

For sales of aftermarket parts or products with a low level of customization and engineering time, the Company recognizes revenues at the time risks and rewards of ownership pass, which is generally when products are shipped or delivered to the customer as the Company has no obligation for installation. The Company considers shipping and handling services to be fulfillment activities and as such they do not represent separate performance obligations for revenue recognition. Sales of service arrangements are recognized as the services are performed.

For certain arrangements where there is significant customization to the product and for long-term construction-type sales contracts, revenue may be recognized over time. In these instances, revenue is recognized using a measure of progress that applies an input method based on costs incurred in relation to total estimated costs. These arrangements include large capital water treatment projects, systems and solutions for municipal and industrial applications. The nature of the contracts is generally fixed price with milestone billings. In order for revenue to be recognized over a period of time, the product must have no alternative use and the Company must have an enforceable right to payment for the performance completed to date, including a normal profit margin, in the event of termination for convenience. If these two criteria are not met, revenues from these contracts will not be recognized until construction is complete. Contract revenues and cost estimates are reviewed and revised quarterly at a minimum and the cumulative effect of such adjustments are recognized in current operations. The amount of such adjustments has not been material.

The Company has made accounting policy elections to exclude all taxes by governmental authorities from the measurement of the transaction price and that long-term construction-type sales contracts, or those contracts for products with significant customization that the total contract price is less than $100 will be recorded at the point in time when the construction is complete.

Performance Obligations

The Company elects to apply the practical expedient to exclude from this disclosure revenue related to performance obligations if the product has an alternative use and the Company does not have an enforceable right to payment for the performance completed to date, including a normal profit margin, in the event of termination for convenience. The Company maintains a backlog of confirmed orders of approximately $163,517 at June 30, 2020. This backlog represents the aggregate amount of the transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of the end of the reporting period. The Company estimates that the majority of these performance obligations will be satisfied within the next twelve months.

The recording of assets recognized from the costs to obtain and fulfill customer contracts primarily relate to the deferral of sales commissions. The Company’s costs incurred to obtain or fulfill a contract with a customer are classified

as non-current assets and amortized to expense over the period of benefit of the related revenue. These costs are recorded within Cost of product sales and services. The amount of contract costs was insignificant at June 30, 2020.

The Company offers standard warranties that generally do not represent a separate performance obligation. In certain instances, a warranty is obtained separately from the original equipment sale or the warranty provides incremental services and as such is treated as a separate performance obligation.

Disaggregation of Revenue

In accordance with Topic 606, the Company disaggregates revenue from contracts with customers into source of revenue, reportable operating segment and geographical regions. The Company determined that disaggregating revenue into these categories meets the disclosure objective in Topic 606 which is to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Information regarding the source of revenues:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2020		2019		2020		2019
Revenue from contracts with customers recognized under Topic 606	$	310,525	$	325,009	$	934,121	$	934,111
Other (1)	37,302		35,334		111,474		97,862
Total	$	347,827	$	360,343	$	1,045,595	$	1,031,973

(1) Other revenue relates to revenue recognized from Topic 842 (previously Topic 840), Leases, mainly attributable to long term rentals.

Information regarding revenues disaggregated by source of revenue and segment is as follows:

	Three Months Ended June 30,
	2020						2019
	Integrated Solutions and Services		Applied Product Technologies		Total		Integrated Solutions and Services		Applied Product Technologies		Total
Revenue from capital projects	$	64,692	$	85,654	$	150,346	$	52,132	$	83,390	$	135,522
Revenue from aftermarket	29,143		28,086		57,229		29,968		44,873		74,841
Revenue from service	134,876		5,376		140,252		143,329		6,651		149,980
Total	$	228,711	$	119,116	$	347,827	$	225,429	$	134,914	$	360,343

	Nine Months Ended June 30,
	2020						2019
	Integrated Solutions and Services		Applied Product Technologies		Total		Integrated Solutions and Services		Applied Product Technologies		Total
Revenue from capital projects	$	185,404	$	235,794	$	421,198	$	152,772	$	230,887	$	383,659
Revenue from aftermarket	90,717		98,189		188,906		93,238		120,422		213,660
Revenue from service	418,613		16,878		435,491		416,781		17,873		434,654
Total	$	694,734	$	350,861	$	1,045,595	$	662,791	$	369,182	$	1,031,973

Information regarding revenues disaggregated by geographic area is as follows:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2020		2019		2020		2019
United States	$	285,077	$	284,737	$	853,067	$	823,923
Europe	23,413		26,677		79,906		71,235
Asia	19,806		23,007		51,268		62,411
Canada	16,536		20,873		50,418		58,836
Australia	2,995		5,049		10,936		15,568
Total	$	347,827	$	360,343	$	1,045,595	$	1,031,973

Contract Balances

The Company performs its obligations under a contract with a customer by transferring products and/or services in exchange for consideration from the customer. The Company receives payments from customers based on a billing schedule as established in its contracts.

Contract assets relate to costs incurred to perform in advance of scheduled billings. Contract liabilities relate to payments received in advance of performance under the contracts. Change in contract assets and liabilities are due to the Company’s performance under the contract.

The tables below provide a roll-forward of contract assets and contract liabilities balances for the periods presented:

	Nine Months Ended June 30,
Contract assets (a)	2020			2019
Balance at beginning of period	$	73,467		$	69,147
Cumulative effect of adoption of new accounting standards	—			(6,106		)
Recognized in current period	255,623			225,341
Reclassified to accounts receivable	(253,199		)	(218,433		)
Amounts related to sale of the Memcor product line	2,710			—
Foreign currency	(1,011		)	69
Balance at end of period	$	77,590		$	70,018

(a) Excludes receivable balances which are disclosed on the Consolidated Balance Sheets.

	Nine Months Ended June 30,
Contract Liabilities	2020			2019
Balance at beginning of period	$	39,051		$	17,652
Cumulative effect of adoption of new accounting standards				1,773
Recognized in current period	241,468			214,444
Amounts in beginning balance reclassified to revenue	(37,508		)	(20,127		)
Current period amounts reclassified to revenue	(210,985		)	(181,266		)
Amounts related to sale of the Memcor product line	(700		)	—
Foreign currency	(485		)	(164		)
Balance at end of period	$	30,841		$	32,312