Revenue (Notes)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE

Contract Liabilities

Contract liabilities relate to the following: (1) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to extended warranty contracts and where the performance obligation is satisfied over time, (2) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to certain grain storage and protein production systems and where the performance obligation is satisfied over time and (3) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to technology services and where the performance obligation is satisfied over time.

Significant changes in the balance of contract liabilities for the three months ended March 31, 2020 and 2019 were as follows (in millions):



	Three Months Ended March 31,
	2020			2019
Balance at beginning of period	$	104.0		$	76.8
Advance consideration received	33.9			25.4
Revenue recognized during the period for extended warranty contracts	(10.1		)	(6.1		)
Revenue recognized during the period related to installation of grain storage and protein production systems	(11.8		)	(11.4		)
Foreign currency translation	(4.4		)	(0.2		)
Balance at March 31	$	111.6		$	84.5

The contract liabilities are classified as either “Other current liabilities” and “Other noncurrent liabilities” or “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets.

Remaining Performance Obligations

The estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2020 are $31.0 million for the remainder of 2020, $31.6 million in 2021, $19.8 million in 2022, $9.9 million in 2023 and $3.7 million thereafter, and relate primarily to extended warranty contracts. The Company applied the practical expedient in ASU 2014-09 and has not disclosed information about remaining performance obligations that have original expected durations of 12 months or less.

Disaggregated Revenue

Net sales for the three months ended March 31, 2020 disaggregated by primary geographical markets and major products consisted of the following (in millions):



	North America		South America		Europe/Middle East⁽¹⁾		Asia/Pacific/Africa⁽¹⁾		Consolidated
Primary geographical markets:
United States	$	467.4	$	—	$	—	$	—	$	467.4
Canada	61.7		—		—		—		61.7
South America	—		151.9		—		—		151.9
Germany	—		—		300.1		—		300.1
France	—		—		214.7		—		214.7
United Kingdom and Ireland	—		—		112.5		—		112.5
Finland and Scandinavia	—		—		132.3		—		132.3
Other Europe	—		—		324.2		—		324.2
Middle East and Algeria	—		—		29.5		—		29.5
Africa	—		—		—		13.4		13.4
Asia	—		—		—		48.0		48.0
Australia and New Zealand	—		—		—		47.8		47.8
Mexico, Central America and Caribbean	22.8		2.0		—		—		24.8
	$	551.9	$	153.9	$	1,113.3	$	109.2	$	1,928.3

Major products:
Tractors	$	168.4	$	75.9	$	770.3	$	46.9	$	1,061.5
Replacement parts	72.2		20.1		200.6		17.3		310.2
Grain storage and protein production systems	96.8		21.9		27.5		29.0		175.2
Other machinery	214.5		36.0		114.8		16.1		381.4
	$	551.9	$	153.9	$	1,113.3	$	109.2	$	1,928.3

(1) Rounding may impact the summation of amounts.

Net sales for the three months ended March 31, 2019 disaggregated by primary geographical markets and major products consisted of the following (in millions):



	North America⁽¹⁾		South America⁽¹⁾		Europe/Middle East⁽¹⁾		Asia/Pacific/Africa⁽¹⁾		Consolidated⁽¹⁾
Primary geographical markets:
United States	$	412.6	$	—	$	—	$	—	$	412.6
Canada	61.2		—		—		—		61.2
South America	—		152.9		—		—		152.9
Germany	—		—		270.3		—		270.3
France	—		—		238.1		—		238.1
United Kingdom and Ireland	—		—		154.3		—		154.3
Finland and Scandinavia	—		—		169.6		—		169.6
Other Europe	—		—		364.2		—		364.2
Middle East and Algeria	—		—		14.1		—		14.1
Africa	—		—		—		20.3		20.3
Asia	—		—		—		59.2		59.2
Australia and New Zealand	—		—		—		53.4		53.4
Mexico, Central America and Caribbean	22.4		3.3		—		—		25.7
	$	496.2	$	156.1	$	1,210.6	$	132.9	$	1,995.8

Major products:
Tractors	$	140.2	$	84.3	$	829.7	$	65.0	$	1,119.2
Replacement parts	61.5		21.9		201.9		16.7		302.0
Grain storage and protein production systems	103.8		19.7		42.5		37.1		203.1
Other machinery	190.8		30.2		136.4		14.0		371.4
	$	496.2	$	156.1	$	1,210.6	$	132.9	$	1,995.8

(1) Rounding may impact the summation of amounts.