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Revenue
 3 Months Ended
Dec. 31, 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 ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“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 months ended December 31, 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, which totaled approximately $154,029 at December 31, 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 December 31, 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
December 31,
20202019
Revenue from contracts with customers recognized under Topic 606
$285,188 $308,602 
Other (1)
37,005 37,503 
Total$322,193 $346,105 
(1)     Other revenue relates to revenue recognized pursuant to ASU 2016-02, Leases (Topic 842), mainly attributable to long term rentals.
Information regarding revenues disaggregated by source of revenue and segment is as follows:
Three Months Ended December 31,
20202019
Integrated Solutions and ServicesApplied Product TechnologiesTotalIntegrated Solutions and ServicesApplied Product TechnologiesTotal
Revenue from capital projects$50,626 $76,889 $127,515 $54,620 $74,926 $129,546 
Revenue from aftermarket27,146 25,354 52,500 29,673 37,341 67,014 
Revenue from service136,945 5,233 142,178 143,845 5,700 149,545 
Total$214,717 $107,476 $322,193 $228,138 $117,967 $346,105 
Information regarding revenues disaggregated by geographic area is as follows:
Three Months Ended
December 31,
20202019
United States$264,131 $277,717 
Asia22,605 18,742 
Europe21,285 26,112 
Canada11,179 17,563 
Australia2,993 5,971 
Total$322,193 $346,105 
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:
Three Months Ended
December 31,
Contract assets (a)20202019
Balance at beginning of period$80,759 $73,467 
Recognized in current period66,885 84,596 
Reclassified to accounts receivable(88,560)(87,046)
Amounts related to sale of the Memcor product line— 2,710 
Foreign currency741 182 
Balance at end of period$59,825 $73,909 
(a)     Excludes receivable balances which are disclosed on the Consolidated Balance Sheets.
Three Months Ended
December 31,
Contract Liabilities 20202019
Balance at beginning of period$26,259 $39,051 
Recognized in current period96,230 88,616 
Amounts in beginning balance reclassified to revenue(24,895)(37,624)
Current period amounts reclassified to revenue(62,730)(46,083)
Amounts related to sale of the Memcor product line— (700)
Foreign currency(419)374 
Balance at end of period$34,445 $43,634