Revenue

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

The Company recognizes revenue from the sale of manufactured products and services when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Disaggregation of Revenues

Beginning in 2020, sales were moved within product and service offering categories to reflect a strategic realignment within the Company's matrix organizational structure. Comparative results for the years ended December 31, 2020 and 2019 have been adjusted to reflect this modification. Additionally, product and service offering category names were revised as follows: Services & software solutions changed to Service & spares and I.T. edge & infrastructure changed to Integrated rack solutions. There was no change in the description of the Critical infrastructure & solutions offering.

Critical infrastructure & solutions

We identify delivery of products as performance obligations within the critical infrastructure & solutions offering. Such products include AC and DC power management, thermal management, integrated modular solutions, as well as hardware for managing IT equipment. We generally satisfy these performance obligations and recognize revenue for these products at a point in time when control has transferred to the customer. The transfer of control generally occurs when the product has been shipped or delivery has occurred, depending on shipping terms.

For customized products that the customer controls at the customer’s site while we build and customize the product, we recognize revenue over time because the customer obtains control of the asset as it is built. For these products, we use an input method to recognize revenue based on costs incurred relative to total estimated project costs as this represents the most faithful measure of the goods transferred to the customer.

Services & spares

Services include preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software. Services are generally recognized as the services are provided, or straight-line for stand-ready contracts, because the customer simultaneously receives and consumes the benefit as we perform the services. We recognize revenue for software applications at a point in time upon transfer of the software and monitoring services are recognized over time.

Integrated rack solutions

Performance obligations within integrated rack solutions include the delivery of racks, rack power, rack power distribution, rack thermal systems, and configurable integrated solutions. For these performance obligations, we recognize revenue at a point in time based on when transfer of control occurs.

Disaggregation of Revenues

The following table disaggregates our revenue by product and service offering and timing of transfer of control:

	Year Ended December 31, 2021
	Americas		Asia Pacific		Europe, Middle East, & Africa		Total
Sales by Product and Service Offering:
Critical infrastructure & solutions(1)	$	1,189.6	$	971.7	$	739.1	$	2,900.4
Services & spares	705.1		421.5		312.1		1,438.7
Integrated rack solutions	292.7		215.8		150.5		659.0
Total	$	2,187.4	$	1,609.0	$	1,201.7	$	4,998.1
Timing of revenue recognition:
Products and services transferred at a point in time	$	1,514.6	$	1,304.3	$	1,019.5	$	3,838.4
Products and services transferred over time	672.8		304.7		182.2		1,159.7
Total	$	2,187.4	$	1,609.0	$	1,201.7	$	4,998.1

(1)    For the year ended December 31, 2021, E&I sales from November 1, 2021 to December 31, 2021 of $21.7 and $45.7 are included in Americas; and Europe, Middle East & Africa reportable segments, respectively.

	Year Ended December 31, 2020
	Americas		Asia Pacific		Europe, Middle East, & Africa		Total
Sales by Product and Service Offering: (1)
Critical infrastructure & solutions	$	1,074.2	$	830.7	$	529.7	$	2,434.6
Services & spares	662.6		366.3		288.2		1,317.1
Integrated rack solutions	303.8		171.4		143.7		618.9
Total	$	2,040.6	$	1,368.4	$	961.6	$	4,370.6
Timing of revenue recognition:
Products and services transferred at a point in time	$	1,418.9	$	1,078.5	$	751.9	$	3,249.3
Products and services transferred over time	621.7		289.9		209.7		1,121.3
Total	$	2,040.6	$	1,368.4	$	961.6	$	4,370.6

(1)Comparative results for Critical infrastructure & solutions, Services & spares and Integrated rack solutions for the year ended December 31, 2020 have been adjusted by $(23.1), $(7.7), and $30.8, respectively, to reflect the strategic realignment described above.

	Year Ended December 31, 2019
	Americas		Asia Pacific		Europe, Middle East, & Africa		Total
Sales by Product and Service Offering:
Critical infrastructure & solutions	$	1,225.6	$	755.5	$	486.4	$	2,467.5
Services & spares	689.8		361.1		287.2		1,338.1
Integrated rack solutions	313.7		161.4		150.5		625.6
Total	$	2,229.1	$	1,278.0	$	924.1	$	4,431.2
Timing of revenue recognition:
Products and services transferred at a point in time	$	1,592.4	$	1,007.1	$	748.9	$	3,348.4
Products and services transferred over time	636.7		270.9		175.2		1,082.8
Total	$	2,229.1	$	1,278.0	$	924.1	$	4,431.2

The opening and closing balances of our current and long-term contract liabilities and current and long-term deferred revenue are as follows:

	Balances at December 31, 2021		Balances at December 31, 2020
Deferred revenue - current (1)	$	238.9	$	199.6
Deferred revenue - noncurrent (2)	59.9		38.8
Other contract liabilities - current (1)	52.1		36.1

(1) Current deferred revenue and contract liabilities are included within accrued expenses.

(2) Noncurrent deferred revenue is recorded within other long-term liabilities.

Noncurrent deferred revenue consists primarily of maintenance, extended warranty and other service contracts. We expect to recognize revenue of $37.2, $12.6 and $10.1 in the years ending December 31, 2023, 2024, and thereafter, respectively.