Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

The following tables show disaggregated net sales by reportable segment (Note 20) by major source, net of intercompany sales eliminations.


	Three Months Ended September 30, 2024
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	203,172	$	—	$	—	$	203,172
Condensing units	—		16,548		—		16,548
Air handlers	—		15,829		414		16,243

Cleanroom systems	—		—		6,966		6,966
Data center cooling solutions	—		599		54,561		55,160
Water-source heat pumps	—		1,403		—		1,403
Part sales	20,113		1		984		21,098
Other1	5,602		852		208		6,662
	$	228,887	$	35,232	$	63,133	$	327,252

	Three Months Ended September 30, 2023
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	221,417	$	—	$	—	$	221,417
Condensing units	—		7,636		—		7,636
Air handlers	—		9,862		7,558		17,420
Outdoor mechanical rooms	—		62		—		62
Cleanroom systems	—		—		5,355		5,355
Data center cooling solutions	—		3,284		25,726		29,010
Water-source heat pumps	—		3,898		—		3,898
Part sales	17,756		4		371		18,131
Other1	7,281		1,023		737		9,041
	$	246,454	$	25,769	$	39,747	$	311,970
1 Other sales include freight, extended warranties and miscellaneous revenue.



	Nine Months Ended September 30, 2024
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	598,079	$	—	$	—	$	598,079
Condensing units	—		43,814		—		43,814
Air handlers	—		38,303		4,972		43,275

Cleanroom systems	—		—		25,506		25,506
Data center cooling solutions	—		1,731		114,141		115,872
Water-source heat pumps	—		4,558		—		4,558
Part sales	53,404		7		2,168		55,579
Other1	13,271		2,439		524		16,234
	$	664,754	$	90,852	$	147,311	$	902,917

	Nine Months Ended September 30, 2023
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	597,508	$	—	$	—	$	597,508
Condensing units	61		34,243		—		34,304
Air handlers	—		34,693		13,196		47,889
Outdoor mechanical rooms	208		274		—		482
Cleanroom systems	—		—		35,063		35,063
Data center cooling solutions	—		6,524		56,079		62,603
Water-source heat pumps	3,128		10,064		—		13,192
Part sales	47,623		5		862		48,490
Other1	18,142		3,459		748		22,349
	$	666,670	$	89,262	$	105,948	$	861,880
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.

The Company recognizes revenue, presented net of sales tax, when it satisfies the performance obligation in its contracts. For certain manufactured equipment contracts and part sales, the primary performance obligation is delivery. 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.