Revenue Recognition (Notes)

6 Months Ended

Jan. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition Disclosure

Revenue Recognition

The Company recognizes revenue when control of the product or service transfers to the customer at an amount that represents the consideration expected to be received in exchange for those products and services. The Company’s revenues are primarily from the sale of identification solutions and workplace safety products that are shipped and billed to customers. All revenue is from contracts with customers and is included in “Net sales” on the condensed consolidated statements of income. See Note H, “Segment Information,” for the Company’s disaggregated revenue disclosure.

The Company offers extended warranty coverage that is included in the sales price of certain products, which it accounts for as service warranties. The Company accounts for the deferred revenue associated with extended service warranties as a contract liability. The balance of contract liabilities associated with service warranty performance obligations was $2,979 and $2,757 as of January 31, 2024 and July 31, 2023, respectively. The current portion and non-current portion of contract liabilities are included in “Other current liabilities” and “Other liabilities," respectively, on the condensed consolidated balance sheets. The Company recognized revenue of $321 and $311 during the three months ended January 31, 2024 and 2023, respectively, and $635 and $617 during the six months ended January 31, 2024 and 2023, respectively, that was included in the contract liability balance at the beginning of the respective period from the amortization of extended service warranties. Of the contract liability balance outstanding at January 31, 2024, the Company expects to recognize 21% by the end of fiscal 2024, an additional 33% by the end of fiscal 2025, and the remaining balance thereafter.