Revenue Recognition

6 Months Ended

Jun. 30, 2019

Note 12. Revenue Recognition:

The following tables disaggregate our revenue by major source for the three and six-month periods ended June 30, 2019 and 2018 (excluding intercompany sales):

	Three Months Ended June 30, 2019
	Infrastructure Group			Aggregate and Mining Group			Energy Group		Total
Net Sales-Domestic:
Equipment sales	$	65,514		$	46,887		$	40,818	$	153,219
Pellet plant sales		20,000			–			–		20,000
Parts and component sales		24,535			18,921			11,327		54,783
Service and equipment installation revenue		4,867			2,431			1,569		8,867
Used equipment sales		2,205			–			1,185		3,390
Freight revenue		3,146			1,801			1,561		6,508
Other		(288	)		(700	)		434		(554	)
Total domestic revenue		119,979			69,340			56,894		246,213

Net Sales-International:
Equipment sales		5,219			24,416			5,216		34,851
Parts and component sales		5,435			11,438			2,425		19,298
Service and equipment installation revenue		2,084			308			5		2,397
Used equipment sales		121			371			70		562
Freight revenue		391			762			105		1,258
Other		6			202			15		223
Total international revenue		13,256			37,497			7,836		58,589

Total net sales	$	133,235		$	106,837		$	64,730	$	304,802

	Six Months Ended June 30, 2019
	Infrastructure Group		Aggregate and Mining Group			Energy Group		Total
Net Sales-Domestic:
Equipment sales	$	144,878	$	102,091		$	80,550	$	327,519
Pellet plant sales		20,000		–			–		20,000
Parts and component sales		66,726		38,080			23,634		128,440
Service and equipment installation revenue		8,098		3,056			3,112		14,266
Used equipment sales		3,698		413			2,455		6,566
Freight revenue		6,976		3,396			3,131		13,503
Other		148		(1,981	)		581		(1,252	)
Total domestic revenue		250,524		145,055			113,463		509,042

Net Sales-International:
Equipment sales		21,671		43,465			10,178		75,314
Parts and component sales		11,708		21,616			4,918		38,242
Service and equipment installation revenue		3,448		700			37		4,185
Used equipment sales		231		837			70		1,138
Freight revenue		630		1,430			288		2,348
Other		17		265			31		313
Total international revenue		37,705		68,313			15,522		121,540

Total net sales	$	288,229	$	213,368		$	128,985	$	630,582

	Three Months Ended June 30, 2018
	Infrastructure Group			Aggregate and Mining Group			Energy Group		Total
Net Sales-Domestic:
Equipment sales	$	102,724		$	57,989		$	41,911	$	202,624
Pellet plant agreement sale charge		(75,315	)		–			–		(75,315	)
Parts and component sales		29,269			18,311			11,479		59,059
Service and equipment installation revenue		3,283			564			1,332		5,179
Used equipment sales		1,384			652			768		2,804
Freight revenue		3,216			1,912			1,617		6,745
Other		511			(535	)		2,314		2,290
Total domestic revenue		65,072			78,893			59,421		203,386

Net Sales-International:
Equipment sales		12,040			23,385			9,075		44,500
Parts and component sales		4,310			12,070			3,280		19,660
Service and equipment installation revenue		644			328			229		1,201
Used equipment sales		661			630			583		1,874
Freight revenue		429			967			412		1,808
Other		46			24			29		99
Total international revenue		18,130			37,404			13,608		69,142

Total net sales	$	83,202		$	116,297		$	73,029	$	272,528

	Six Months Ended June 30, 2018
	Infrastructure Group			Aggregate and Mining Group			Energy Group		Total
Net Sales-Domestic:
Equipment sales	$	188,242		$	121,483		$	78,643	$	388,368
Pellet plant agreement sale charge		(75,315	)		–			–		(75,315	)
Parts and component sales		70,382			36,145			22,794		129,321
Service and equipment installation revenue		5,211			890			3,428		9,529
Used equipment sales		3,009			2,063			935		6,007
Freight revenue		7,254			3,720			2,949		13,923
Other		775			(1,571	)		2,427		1,631
Total domestic revenue		199,558			162,730			111,176		473,464

Net Sales-International:
Equipment sales		17,955			45,712			13,837		77,504
Parts and component sales		9,372			22,359			5,752		37,483
Service and equipment installation revenue		1,457			640			229		2,326
Used equipment sales		1,164			1,486			583		3,233
Freight revenue		683			2,297			676		3,656
Other		107			140			68		315
Total international revenue		30,738			72,634			21,145		124,517

Total net sales	$	230,296		$	235,364		$	132,321	$	597,981

Sales into major geographic regions for the three and six-month periods ended June 30, 2019 and 2018 were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019		2018
United States	$	246,213	$	203,386		$	509,042	$	473,464
Africa		8,827		10,834			15,918		20,876
Asia (excl. China, Japan & Korea)		2,816		1,342			4,947		2,186
Australia		7,156		7,929			15,969		13,897
Canada		14,020		20,963			37,013		35,072
Central America		2,602		3,772			6,152		7,325
China, Japan &Korea		440		3,561			2,580		4,217
Europe		12,982		8,610			19,472		19,071
Middle East		925		2,280			1,776		2,910
South America		7,581		9,367			14,635		18,234
West Indies		188		551			1,566		660
Other		1,052		(67	)		1,512		69
Total foreign		58,589		69,142			121,540		124,517
Total consolidated sales	$	304,802	$	272,528		$	630,582	$	597,981

Revenue is generally recognized when obligations under the terms of a contract are satisfied and generally occurs with the transfer of control of the product or services at a point in time. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company generally obtains purchase authorizations from its customers for a specified amount of products at a specified price with specific delivery terms. A significant portion of the Company’s equipment sales represents equipment produced in the Company’s manufacturing facilities under short-term contracts for a customer’s project or equipment designed to meet a customer’s requirements. Most of the equipment sold by the Company is based on standard configurations, some of which are modified to meet customer’s needs or specifications. The Company provides customers with technical design and performance specifications and typically performs pre-shipment testing, when feasible, to ensure the equipment performs according to the customer’s need, regardless of whether the Company provides installation services in addition to selling the equipment. Significant down payments are required on many equipment orders with other terms allowing for payment shortly after shipment, typically 30 days. Taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions between the Company and its customers, such as sales, use, value-added and some excise taxes, are excluded from revenue. Expected warranty costs for our standard warranties are expensed at the time the related revenue is recognized. Costs of obtaining sales contracts with an expected duration of one year or less are expensed as incurred. As contracts are typically fulfilled within one year from the date of the contract, revenue adjustments for a potential financing component or the costs to obtain the contract are not made.

Depending on the terms of the arrangement with the customer, recognition of a portion of the consideration received may be deferred and recorded as a contract liability if we have to satisfy a future obligation, such as to provide installation assistance, service work to be performed in the future without charge, floor plan interest to be reimbursed to our dealer customers, payments for extended warranties, for annual rebates given to certain high volume customers or for obligations for future estimated returns to be allowed based upon historical trends.

Certain contracts include terms and conditions pursuant to which the Company recognizes revenues upon the completion of production, and the equipment is subsequently stored at the Company’s plant at the customer’s request. Revenue is recorded on such contracts upon the customer’s assumption of title and risk of ownership, which transfers control of the equipment, and when collectability is reasonably assured. In addition, there must be a fixed schedule of delivery of the goods consistent with the customer’s business practices, the Company must not have retained any specific performance obligations such that the earnings process is not complete and the goods must have been segregated from the Company’s inventory prior to revenue recognition.

Service and Equipment Installation Revenue – Purchasers of certain of the Company’s equipment often contract with the Company to provide installation services. Installation is typically separately priced in the contract based upon observable market prices for stand-alone performance obligations or a cost plus margin approach when one is not available. The Company may also provide future services on equipment sold at the customer’s request, which may be for equipment repairs after the warranty period expires. Service is billed on a cost plus margin approach or at a standard rate per hour.

Used Equipment Sales – Used equipment is obtained by trade-in on new equipment sales, as a separate purchase in the open market or from the Company’s equipment rental business. Revenues from the sale of used equipment are recognized upon transfer of control to the customer at agreed upon pricing.

Freight Revenue – Under a practical expedient allowed under ASU No. 2014-09, the Company records revenues earned for shipping and handling as revenue at the time of shipment, regardless of whether or not it is identified as a separate performance obligation. The cost of shipping and handling is classified as cost of goods sold concurrently.

Other Revenues – Miscellaneous revenues and offsets not associated with one of the above classifications include rental revenues, extended warranty revenues, early pay discounts and floor plan interest reimbursements.