Revenue (Notes)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue

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 and maintenance 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 and six months ended June 30, 2020 and 2019 were as follows (in millions):

	Three Months Ended June 30,
	2020			2019
Balance at beginning of period	$	111.6		$	84.5
Advance consideration received	35.7			38.3
Revenue recognized during the period for extended warranty contracts, maintenance services and technology services	(12.0		)	(7.9		)
Revenue recognized during the period related to grain storage and protein production systems	(17.2		)	(27.2		)
Foreign currency translation	0.6			0.3
Balance at June 30	$	118.7		$	88.0

	Six Months Ended June 30,
	2020			2019
Balance at beginning of period	$	104.0		$	76.8
Advance consideration received	69.6			63.7
Revenue recognized during the period for extended warranty contracts, maintenance services and technology services	(22.1		)	(14.0		)
Revenue recognized during the period related to grain storage and protein production systems	(29.0		)	(38.6		)
Foreign currency translation	(3.8		)	0.1
Balance at June 30	$	118.7		$	88.0

The contract liabilities are classified as either “Accrued expenses” or “Other current liabilities” and “Other noncurrent liabilities” 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 June 30, 2020 are $24.8 million for the remainder of 2020, $35.9 million in 2021, $24.1 million in 2022, $12.3 million in 2023 and $5.8 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 June 30, 2020 disaggregated by primary geographical markets and major products consisted of the following (in millions):

	North America		South America(1)		Europe/Middle East		Asia/Pacific/Africa		Consolidated(1)
Primary geographical markets:
United States	$	452.1	$	—	$	—	$	—	$	452.1
Canada	82.7		—		—		—		82.7
South America	—		177.3		—		—		177.3
Germany	—		—		294.3		—		294.3
France	—		—		221.0		—		221.0
United Kingdom and Ireland	—		—		111.1		—		111.1
Finland and Scandinavia	—		—		144.6		—		144.6
Other Europe	—		—		325.4		—		325.4
Middle East and Algeria	—		—		28.6		—		28.6
Africa	—		—		—		2.6		2.6
Asia	—		—		—		85.9		85.9
Australia and New Zealand	—		—		—		59.0		59.0
Mexico, Central America and Caribbean	21.0		1.2		—		—		22.2
	$	555.8	$	178.5	$	1,125.0	$	147.5	$	2,006.8
Major products:
Tractors	$	148.6	$	101.0	$	682.2	$	60.5	$	992.3
Replacement parts	105.8		16.8		257.4		19.3		399.3
Grain storage and protein production systems	142.8		16.9		33.3		48.4		241.4
Combines, application equipment and other machinery	158.6		43.9		152.1		19.3		373.9
	$	555.8	$	178.5	$	1,125.0	$	147.5	$	2,006.8

(1) Rounding may impact the summation of amounts.

Net sales for the three months ended June 30, 2019 disaggregated by primary geographical markets and major products consisted of the following (in millions):

	North America(1)		South America(1)		Europe/Middle East		Asia/Pacific/Africa		Consolidated(1)
Primary geographical markets:
United States	$	500.2	$	—	$	—	$	—	$	500.2
Canada	91.9		—		—		—		91.9
South America	—		182.1		—		—		182.1
Germany	—		—		390.6		—		390.6
France	—		—		267.5		—		267.5
United Kingdom and Ireland	—		—		135.9		—		135.9
Finland and Scandinavia	—		—		199.0		—		199.0
Other Europe	—		—		443.3		—		443.3
Middle East and Algeria	—		—		20.9		—		20.9
Africa	—		—		—		29.7		29.7
Asia	—		—		—		77.6		77.6
Australia and New Zealand	—		—		—		53.4		53.4
Mexico, Central America and Caribbean	26.9		3.6		—		—		30.5
	$	618.9	$	185.8	$	1,457.2	$	160.7	$	2,422.6
Major products:
Tractors	$	187.4	$	106.3	$	994.1	$	62.0	$	1,349.8
Replacement parts	98.7		21.4		246.4		17.2		383.7
Grain storage and protein production systems	166.4		17.7		61.6		61.2		306.9
Combines, application equipment and other machinery	166.5		40.4		155.1		20.3		382.3
	$	618.9	$	185.8	$	1,457.2	$	160.7	$	2,422.6

(1) Rounding may impact the summation of amounts.

Net sales for the six months ended June 30, 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	$	919.5	$	—	$	—	$	—	$	919.5
Canada	144.4		—		—		—		144.4
South America	—		329.2		—		—		329.2
Germany	—		—		594.4		—		594.4
France	—		—		435.7		—		435.7
United Kingdom and Ireland	—		—		223.6		—		223.6
Finland and Scandinavia	—		—		276.9		—		276.9
Other Europe	—		—		649.6		—		649.6
Middle East and Algeria	—		—		58.1		—		58.1
Africa	—		—		—		16.0		16.0
Asia	—		—		—		133.9		133.9
Australia and New Zealand	—		—		—		106.8		106.8
Mexico, Central America and Caribbean	43.8		3.2		—		—		47.0
	$	1,107.7	$	332.4	$	2,238.3	$	256.7	$	3,935.1
Major products:
Tractors	$	317.0	$	176.9	$	1,452.5	$	107.4	$	2,053.8
Replacement parts	178.0		36.8		458.0		36.6		709.4
Grain storage and protein production systems	239.6		38.8		60.8		77.4		416.6
Other machinery	373.1		79.9		266.9		35.4		755.3
	$	1,107.7	$	332.4	$	2,238.3	$	256.7	$	3,935.1

(1) Rounding may impact the summation of amounts.

Net sales for the six months ended June 30, 2019 disaggregated by primary geographical markets and major products consisted of the following (in millions):

	North America(1)		South America		Europe/Middle East		Asia/Pacific/Africa(1)		Consolidated(1)
Primary geographical markets:
United States	$	912.8	$	—	$	—	$	—	$	912.8
Canada	153.1		—		—		—		153.1
South America	—		335.0		—		—		335.0
Germany	—		—		660.9		—		660.9
France	—		—		505.6		—		505.6
United Kingdom and Ireland	—		—		290.2		—		290.2
Finland and Scandinavia	—		—		368.6		—		368.6
Other Europe	—		—		807.5		—		807.5
Middle East and Algeria	—		—		35.0		—		35.0
Africa	—		—		—		50.0		50.0
Asia	—		—		—		136.8		136.8
Australia and New Zealand	—		—		—		106.8		106.8
Mexico, Central America and Caribbean	49.3		6.9		—		—		56.2
	$	1,115.1	$	341.9	$	2,667.8	$	293.6	$	4,418.4
Major products:
Tractors	$	327.6	$	190.6	$	1,823.8	$	127.0	$	2,469.0
Replacement parts	160.2		43.3		448.3		33.9		685.7
Grain storage and protein production systems	270.2		37.4		104.1		98.3		510.0
Other machinery	357.2		70.6		291.6		34.3		753.7
	$	1,115.1	$	341.9	$	2,667.8	$	293.6	$	4,418.4

(1) Rounding may impact the summation of amounts.