REVENUE

12 Months Ended

Dec. 31, 2022

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.

Critical infrastructure & solutions

The Company identifies 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. The Company generally satisfies these performance obligations and recognizes 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 the Company builds and customizes the product, the Company recognizes revenue over time because the customer obtains control of the asset as it is built. For these products, the Company uses 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. The Company recognizes 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, the Company recognizes revenue at a point in time based on when transfer of control occurs.

Disaggregation of Revenues

The following table disaggregates revenue by business segment, product and service offering and timing of transfer of control:

	Year Ended December 31, 2022
	Americas		Asia Pacific		Europe, Middle East, & Africa		Total
Sales by Product and Service Offering:
Critical infrastructure & solutions	$	1,608.4	$	949.3	$	917.6	$	3,475.3
Services & spares	754.6		441.7		284.3		1,480.6
Integrated rack solutions	365.6		210.3		159.7		735.6
Total	$	2,728.6	$	1,601.3	$	1,361.6	$	5,691.5
Timing of revenue recognition:
Products and services transferred at a point in time	$	1,925.0	$	1,242.6	$	985.7	$	4,153.3
Products and services transferred over time	803.6		358.7		375.9		1,538.2
Total	$	2,728.6	$	1,601.3	$	1,361.6	$	5,691.5

	Year Ended December 31, 2021
	Americas		Asia Pacific		Europe, Middle East, & Africa		Total
Sales by Product and Service Offering: (1)
Critical infrastructure & solutions	$	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:
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

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

	Balances at December 31, 2022		Balances at December 31, 2021
Deferred revenue - current (1)	$	309.4	$	238.9
Deferred revenue - noncurrent (2)	49.5		59.9
Other contract liabilities - current (1)	49.3		52.1

(1) Current deferred revenue and contract liabilities are included within “Accrued expenses and other liabilities” on the Consolidated Balance Sheets.

(2) Noncurrent deferred revenue is recorded within “Other long-term liabilities” on the Consolidated Balance Sheets.

Deferred revenue - noncurrent consists primarily of maintenance, extended warranty and other service contracts. The Company expects to recognize revenue of $26.6, $13.2 and $9.7 in the years ending December 31, 2024, 2025, and thereafter, respectively.