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Revenue Recognition
 12 Months Ended
Dec. 31, 2024
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue Recognition REVENUE RECOGNITION
The majority of our revenues relate to customer orders that typically contain a single commitment of goods or services which have lead times under a year. More complex contracts with our customers typically have longer lead times and multiple commitments of goods and services, including any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services and parts related to the performance of such products. Control transfers over time when the customer is able to direct the use of and obtain substantially all of the benefits of our work as we perform. Service-related revenues do not typically represent a significant portion contracts with our customers and do not meet the thresholds requiring separate disclosure.
Revenue from products and services transferred to customers over time accounted for approximately 17%, 16% and 13% of total revenue for the years ended December 31, 2024, 2023 and 2022, respectively. Our primary method for recognizing revenue over time is the POC method. If control does not transfer over time, then control transfers at a point in time. For both POC and point-in-time methods, we recognize revenue at the level of each performance obligation based on the evaluation of certain indicators of control transfer, such as title transfer, risk of loss transfer, customer acceptance and physical possession. Revenue from products and services transferred to customers at a point in time accounted for approximately 83%, 84% and 87% of total revenue for the years ended December 31, 2024, 2023 and 2022, respectively.
Disaggregated Revenue
We conduct our operations through two business segments based on the type of product and how we manage the business:
•FPD designs, manufactures, pretests, distributes and services highly custom engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and
•FCD designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products and related equipment.
Our revenue sources are derived from our original equipment manufacturing and our aftermarket sales and services. Our original equipment revenues are generally related to originally designed, manufactured, distributed and installed equipment that can range from pre-configured, short-cycle products to more customized, highly engineered equipment ("Original Equipment"). Our aftermarket sales and services are derived from sales of replacement equipment, as well as maintenance, advanced diagnostic, repair and retrofitting services ("Aftermarket"). Each of our two business segments generates Original Equipment and Aftermarket revenues.
The following table presents our customer revenues disaggregated by revenue source:
December 31, 2024
(Amounts in thousands)FPDFCDTotal
Original Equipment$1,152,643 $1,065,408 $2,218,051 
Aftermarket2,001,508 338,247 2,339,755 
$3,154,151 $1,403,655 $4,557,806 
December 31, 2023
(Amounts in thousands)FPDFCDTotal
Original Equipment$1,147,906 $938,790 $2,086,696 
Aftermarket1,913,087 320,794 2,233,881 
$3,060,993 $1,259,584 $4,320,577 
December 31, 2022
(Amounts in thousands)FPDFCDTotal
Original Equipment$881,061 $825,508 $1,706,569 
Aftermarket1,636,939 271,612 1,908,551 
$2,518,000 $1,097,120 $3,615,120 
Our customer sales are diversified geographically. The following table presents our revenues disaggregated by geography, based on the shipping addresses of our customers:
December 31, 2024
(Amounts in thousands)FPDFCDTotal
North America(1)$1,291,273 $551,101 $1,842,374 
Latin America(1)
296,474 29,847 326,321 
Middle East and Africa 542,399 223,440 765,839 
Asia Pacific425,743 363,868 789,611 
Europe598,262 235,399 833,661 
$3,154,151 $1,403,655 $4,557,806 
December 31, 2023
(Amounts in thousands)FPDFCDTotal
North America(1)$1,264,673 $556,208 $1,820,881 
Latin America(1)
273,126 30,126 303,252 
Middle East and Africa538,037 146,552 684,589 
Asia Pacific436,813 302,700 739,513 
Europe548,344 223,998 772,342 
$3,060,993 $1,259,584 $4,320,577 
December 31, 2022
(Amounts in thousands)FPDFCDTotal
North America(1)$1,060,393 $472,467 $1,532,860 
Latin America(1)
222,878 23,575 246,453 
Middle East and Africa372,148 101,017 473,165 
Asia Pacific389,366 305,193 694,559 
Europe473,215 194,868 668,083 
$2,518,000 $1,097,120 $3,615,120 
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(1) North America represents United States and Canada; Latin America includes Mexico.
On December 31, 2024, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations related to contracts having an original expected duration in excess of one year was approximately $853 million. We estimate recognition of approximately $536 million of this amount as revenue in 2025 and an additional $317 million in 2026 and thereafter.
Contract Balances
We receive payment from customers based on a contractual billing schedule and specific performance requirements as established in our contracts. We record billings as accounts receivable when an unconditional right to consideration exists. A contract asset represents revenue recognized in advance of our right to bill the customer under the terms of a contract. A contract liability represents our contractual billings in advance of revenue recognized for a contract.
The following table presents opening and closing balances of contract assets and contract liabilities, current and long-term, for the years ended December 31, 2024 and 2023:
( Amounts in thousands) Contract Assets, net (Current)Long-term Contract Assets, net(1)Contract Liabilities (Current)Long-term Contract Liabilities(2)
Balance — January 1, 2023
$233,457 $297 $256,963 $1,059 
Revenue recognized that was included in contract liabilities at the beginning of the period— — (209,560)— 
Increase due to revenue recognized in the period in excess of billings890,150 932 — — 
Increase due to billings arising during the period in excess of revenue recognized— — 238,683 1,043 
Amounts transferred from contract assets to receivables(842,780)(435)— — 
Currency effects and other, net(599)240 1,611 (559)
Balance — December 31, 2023
$280,228 $1,034 $287,697 $1,543 
Revenue recognized that was included in contract liabilities at the beginning of the period— — (217,470)(740)
Increase due to revenue recognized in the period in excess of billings958,388 — — — 
Increase due to billings arising during the period in excess of revenue recognized— — 214,163 — 
Amounts transferred from contract assets to receivables(920,793)(656)— — 
Currency effects and other, net(18,917)545 (720)(130)
Balance — December 31, 2024
$298,906 $923 $283,670 $673 
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(1) Included in other assets, net.
(2) Included in retirement obligations and other liabilities.