Revenue

3 Months Ended

Apr. 01, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The Company provides advanced equipment, consumables, gas control equipment, robotics and digital solutions. The Company’s products are utilized to solve challenges in a wide range of industries, including cutting, joining and automated welding. Substantially all revenue is recognized at a point in time. The Company disaggregates its revenue into the following product groups:

	Three Months Ended
	March 31, 2023		April 1, 2022
	(In thousands)
Equipment	$	200,219	$	188,348
Consumables	483,781		459,563
Total	$	684,000	$	647,911

The sales mix in the above table is relatively consistent across both reportable segments. The consumables product grouping generally has less production complexity and shorter production cycles than equipment products.

Given the nature of the business, the total amount of unsatisfied performance obligations with an original contract duration of greater than one year as of March 31, 2023 is immaterial.

In some circumstances, customers are billed in advance of revenue recognition, resulting in contract liabilities. As of December 31, 2022 and December 31, 2021, total contract liabilities were $25.9 million and $22.3 million, respectively, and were included in Accrued liabilities on the Consolidated and Combined Condensed Balance Sheets. During the three months ended March 31, 2023 and April 1, 2022 revenue recognized that was included in the contract liability balance at the beginning of the year was $11.1 million and $9.1 million, respectively. As of March 31, 2023 and April 1, 2022 total contract liabilities were $28.3 million and $25.9 million, respectively, and were included in Accrued liabilities on the Company’s Consolidated and Condensed Balance Sheets.

Allowance for Credit Losses

A summary of the activity in the Company’s allowance for credit losses included within Trade receivables in the Consolidated and Condensed Balance Sheets is as follows:

	Three Months Ended March 31, 2023
	Balance at Beginning of Period		Charged to Expense, net		Write-Offs and Deductions		Foreign Currency Translation		Balance at End of Period
	(In thousands)
Allowance for credit losses	$	23,471	$	1,591	$	(732)	$	257	$	24,587