Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 4 – Revenue Recognition

Disaggregation of Revenue

The Company’s revenue is primarily comprised of product sales to customers. The Company has disaggregated revenue by geographic area and by segment as it most reasonably depicts the amount, timing and uncertainty of revenue and cash flows generated from our contracts with customers. Disaggregated consolidated revenue by geographic area (based on the location to which the product is shipped to):

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
United States	$	355,252	$	307,258	$	683,895	$	591,369
Canada	30,978		36,193		60,366		72,654
Europe	11,753		17,540		30,847		34,456
Pacific Rim	4,266		1,054		8,489		2,991
Latin America	35,071		13,439		67,180		20,868
Other	2,884		2,500		5,908		3,916
Intersegment revenue elimination	(668)		—		(1,063)		—
Total revenue	$	439,536	$	377,984	$	855,622	$	726,254

See Note 16 – Segment Information for disaggregation of revenue by segment.

Rental Revenue

TestEquity rents new and used electronic test and measurement equipment to customers in multiple industries. Lawson leases parts washer machines to customers. This leased equipment is included in Rental equipment, net in the Unaudited Condensed Consolidated Balance Sheets, and rental revenue is included in Revenue in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The unearned rental revenue related to customer prepayments on equipment leases was nominal at June 30, 2024 and December 31, 2023.

Rental revenue from operating leases:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Revenue from operating leases	$	4,125	$	4,822	$	8,410	$	10,923