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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Overview
The Company recognizes revenue when the Company has satisfied its obligation and control is transferred to the customer. The amount of revenue recognized includes adjustments for any variable consideration, such as rebates, sales discounts, liquidated damages, etc., which are included in the transaction price, and allocated to each performance obligation. The variable consideration is estimated throughout the course of the contract using the Company’s best estimates.
The majority of the Company’s revenues are derived from short duration contracts and revenue is recognized at a single point in time when control is transferred to the customer, generally at shipment or when delivery has occurred or services have been rendered.
The Company has certain long duration engineered to order (“ETO”) contracts that require highly engineered solutions designed to customer specific applications. For contracts where the contractual deliverables have no alternative use and the contract termination clauses provide for the recovery of cost plus a reasonable margin, revenue is recognized over time based on the Company’s progress in satisfying the contractual performance obligations, generally measured as the ratio of actual costs incurred to date to the estimated total costs to complete the contract. For contracts with termination provisions that do not provide for recovery of cost and a reasonable margin, revenue is recognized at a point in time, generally at shipment or delivery to the customer. Identification of performance obligations, determination of alternative use, assessment of contractual language regarding termination provisions, and estimation of total project costs are all significant judgments required in the application of ASC 606.
Contractual specifications and requirements may be modified. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. In the event a contract modification is for goods or services that are not distinct in the contract, and therefore, form part of a single performance obligation that is partially satisfied as of the modification date, the effect of the contract modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates, is recognized on a cumulative catch-up basis.
Taxes assessed by a government authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Sales commissions are generally due at either collection of payment from customers or recognition of revenue. Applying the practical expedient from ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in “Selling and administrative expenses” in the Condensed Consolidated Statements of Operations.
Disaggregation of Revenue
The following tables provide disaggregated revenue by reportable segment for the three and nine month periods ended September 30, 2023 and 2022.
Industrial Technologies and ServicesPrecision and Science TechnologiesTotal
Three Month Period Ended September 30,
202320222023202220232022
Primary Geographic Markets
United States$590.3 $494.5 $144.8 $140.4 $735.1 $634.9 
Other Americas92.3 83.2 7.6 7.7 99.9 90.9 
Total Americas682.6 577.7 152.4 148.1 835.0 725.8 
EMEIA449.7 347.9 114.6 109.1 564.3 457.0 
Asia Pacific296.1 274.0 43.5 58.9 339.6 332.9 
Total$1,428.4 $1,199.6 $310.5 $316.1 $1,738.9 $1,515.7 
Product Categories
Original equipment$862.7 $723.7 $246.6 $257.0 $1,109.3 $980.7 
Aftermarket565.7 475.9 63.9 59.1 629.6 535.0 
Total$1,428.4 $1,199.6 $310.5 $316.1 $1,738.9 $1,515.7 
Pattern of Revenue Recognition
Revenue recognized at point in time(1)
$1,306.6 $1,099.6 $309.2 $315.1 $1,615.8 $1,414.7 
Revenue recognized over time(2)
121.8 100.0 1.3 1.0 123.1 101.0 
Total$1,428.4 $1,199.6 $310.5 $316.1 $1,738.9 $1,515.7 
Industrial Technologies and ServicesPrecision and Science TechnologiesTotal
Nine Month Period Ended September 30,
202320222023202220232022
Primary Geographic Markets
United States$1,698.3 $1,378.2 $429.8 $410.4 $2,128.1 $1,788.6 
Other Americas271.2 237.5 22.0 23.1 293.2 260.6 
Total Americas1,969.5 1,615.7 451.8 433.5 2,421.3 2,049.2 
EMEIA1,304.2 1,023.0 341.9 324.0 1,646.1 1,347.0 
Asia Pacific850.3 751.0 137.0 145.4 987.3 896.4 
Total$4,124.0 $3,389.7 $930.7 $902.9 $5,054.7 $4,292.6 
Product Categories
Original equipment$2,496.0 $2,035.7 $736.4 $730.2 $3,232.4 $2,765.9 
Aftermarket1,628.0 1,354.0 194.3 172.7 1,822.3 1,526.7 
Total$4,124.0 $3,389.7 $930.7 $902.9 $5,054.7 $4,292.6 
Pattern of Revenue Recognition
Revenue recognized at point in time(1)
$3,793.3 $3,122.1 $926.5 $899.3 $4,719.8 $4,021.4 
Revenue recognized over time(2)
330.7 267.6 4.2 3.6 334.9 271.2 
Total$4,124.0 $3,389.7 $930.7 $902.9 $5,054.7 $4,292.6 
Revenues from short and long duration product and service contracts recognized at a point in time when control is transferred to the customer generally when product delivery has occurred and services have been rendered.(2)Revenues primarily from long duration ETO product contracts and certain contracts for delivery of a significant volume of substantially similar products recognized over time as contractual performance obligations are completed.
Performance Obligations
As of September 30, 2023, for contracts with an original duration greater than one year, the Company expects to recognize revenue in the future related to unsatisfied (or partially satisfied) performance obligations of $668.6 million in the next twelve months and $628.1 million in periods thereafter. The performance obligations that are unsatisfied (or partially satisfied) are primarily related to orders for goods or services that were placed prior to the end of the reporting period and have not been delivered to the customer, on-going work on ETO contracts where revenue is recognized over time and service contracts with an original duration greater than one year.
Contract Balances
The following table provides the contract balances as of September 30, 2023 and December 31, 2022 presented in the Condensed Consolidated Balance Sheets.
September 30, 2023December 31, 2022
Accounts receivable, net$1,216.1 $1,122.0 
Contract assets57.0 70.6 
Contract liabilities - current343.7 305.6 
Contract liabilities - noncurrent1.1 1.1