Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

The following tables show disaggregated net sales by reportable segment (Note 19) by major source, net of intercompany sales eliminations.


	Three Months Ended June 30, 2024
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	203,642	$	—	$	—	$	203,642
Condensing units	—		15,433		—		15,433
Air handlers	—		12,496		2,371		14,867

Cleanroom systems	—		—		11,227		11,227
Data center cooling solutions	—		926		41,907		42,833
Water-source heat pumps	—		1,574		—		1,574
Part sales	17,974		—		906		18,880
Other1	4,111		944		55		5,110
	$	225,727	$	31,373	$	56,466	$	313,566

	Three Months Ended June 30, 2023
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	196,065	$	—	$	—	$	196,065
Condensing units	61		11,329		—		11,390
Air handlers	—		12,610		2,600		15,210
Outdoor mechanical rooms	—		61		—		61
Cleanroom systems	—		—		17,086		17,086
Data center cooling solutions	—		1,794		15,877		17,671
Water-source heat pumps	398		3,086		—		3,484
Part sales	15,963		—		243		16,206
Other1	5,727		1,201		(144)		6,784
	$	218,214	$	30,081	$	35,662	$	283,957
1 Other sales include freight, extended warranties and miscellaneous revenue.



	Six Months Ended June 30, 2024
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	394,907	$	—	$	—	$	394,907
Condensing units	—		27,266		—		27,266
Air handlers	—		22,474		4,558		27,032

Cleanroom systems	—		—		18,540		18,540
Data center cooling solutions	—		1,132		59,580		60,712
Water-source heat pumps	—		3,155		—		3,155
Part sales	33,291		6		1,184		34,481
Other1	7,669		1,587		316		9,572
	$	435,867	$	55,620	$	84,178	$	575,665

	Six Months Ended June 30, 2023
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	376,091	$	—	$	—	$	376,091
Condensing units	61		26,607		—		26,668
Air handlers	—		24,831		5,638		30,469
Outdoor mechanical rooms	208		212		—		420
Cleanroom systems	—		—		29,708		29,708
Data center cooling solutions	—		3,240		30,353		33,593
Water-source heat pumps	3,128		6,166		—		9,294
Part sales	29,867		1		491		30,359
Other1	10,861		2,436		11		13,308
	$	420,216	$	63,493	$	66,201	$	549,910
1 Other sales include freight, extended warranties and miscellaneous revenue.

Due to the highly customized nature of many of the Company’s products and each product not having an alternative use to the Company without significant costs to the Company, the Company recognizes revenue over time as progress is made toward satisfying the performance obligations of each contract. The Company has formal cancellation policies and generally does not accept returns on these units. As a result, many of the Company’s products do not have an alternative use and therefore, for these products we recognize revenue over the time it takes to produce the unit.

Contract costs include direct materials, direct labor, installation, freight and delivery, commissions and royalties. Other costs not related to contract performance, such as indirect labor and materials, small tools and supplies, operating expenses, field rework and back charges are charged to expense as incurred. Provisions for estimated losses on contracts in progress are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income, and are estimated and recognized by the Company throughout the life of the contract. The aggregate of costs incurred and income recognized on uncompleted contracts in excess of billings is shown as a contract asset within our consolidated balance sheets, and the aggregate of billings on uncompleted contracts in excess of related costs incurred and income recognized is shown as a contract liability within our consolidated balance sheets.

For all other products that are part sales or standardized units, the Company recognizes revenue, presented net of sales tax, when it satisfies the performance obligation in its contracts. As the primary performance obligation in such a contract is delivery of the requested manufactured equipment, we satisfy the performance obligation when the control is passed to the customer, generally at time of shipment. Final sales prices are fixed based on purchase orders.

Sales allowances and customer incentives are treated as reductions to sales and are provided for based on historical experiences and current estimates.

Historically, sales of our products were moderately seasonal with the peak period being May-October of each year due to timing of construction projects being directly related to warmer weather. However, in recent years, given the increases in demand of our product, changes in product mix and increases in our backlog, sales have become more constant throughout the year.