REVENUES FROM CONTRACTS

9 Months Ended

Oct. 01, 2022

Revenue from Contract with Customer [Abstract]

REVENUES FROM CONTRACTS

REVENUES FROM CONTRACTS

Disaggregated Revenues

We disaggregate revenue from contracts with customers by major product line and based on the timing of recognition for each of our reportable segments, as we believe such disaggregation best depicts how the nature, amount, timing, and uncertainty of our revenues and cash flows are affected by economic factors, with such disaggregation presented below for the three and nine months ended October 1, 2022 and October 2, 2021:

	Three months ended October 1, 2022
Reportable Segments	HVAC		Detection and Measurement		Total
Major product lines
Package and process cooling equipment and services, and engineered air quality solutions	$	134.5	$	—	$	134.5
Boilers, comfort heating, and ventilation	93.3		—		93.3
Underground locators, inspection and rehabilitation  equipment, and robotic systems	—		61.5		61.5
Communication technologies, obstruction lighting, and bus fare collection systems	—		81.2		81.2
	$	227.8	$	142.7	$	370.5
Timing of Revenue Recognition
Revenues recognized at a point in time	$	212.2	$	117.1	$	329.3
Revenues recognized over time	15.6		25.6		41.2
	$	227.8	$	142.7	$	370.5

	Nine months ended October 1, 2022
Reportable Segments	HVAC		Detection and Measurement		Total
Major product lines
Package and process cooling equipment and services, and engineered air quality solutions	$	381.8	$	—	$	381.8
Boilers, comfort heating, and ventilation	257.8		—		257.8
Underground locators, inspection and rehabilitation  equipment, and robotic systems	—		194.1		194.1
Communication technologies, obstruction lighting, and bus fare collection systems	—		197.9		197.9
	$	639.6	$	392.0	$	1,031.6
Timing of Revenue Recognition
Revenues recognized at a point in time	$	588.1	$	331.2	$	919.3
Revenues recognized over time	51.5		60.8		112.3
	$	639.6	$	392.0	$	1,031.6

	Three months ended October 2, 2021
Reportable Segments	HVAC		Detection and Measurement		Total
Major product lines
Package and process cooling equipment and services	$	104.1	$	—	$	104.1
Boilers, comfort heating, and ventilation	75.2		—		75.2
Underground locators, inspection and rehabilitation  equipment, and robotic systems	—		60.1		60.1
Communication technologies, obstruction lighting, and bus fare collection systems	—		46.3		46.3
	$	179.3	$	106.4	$	285.7
Timing of Revenue Recognition
Revenues recognized at a point in time	$	154.1	$	94.5	$	248.6
Revenues recognized over time	25.2		11.9		37.1
	$	179.3	$	106.4	$	285.7

	Nine months ended October 2, 2021
Reportable Segments	HVAC		Detection and Measurement		Total
Major product lines
Package and process cooling equipment and services	$	317.3	$	—	$	317.3
Boilers, comfort heating, and ventilation	223.0		—		223.0
Underground locators, inspection and rehabilitation  equipment, and robotic systems	—		193.4		193.4
Communication technologies, obstruction lighting, and bus fare collection systems	—		135.8		135.8
	$	540.3	$	329.2	$	869.5
Timing of Revenue Recognition
Revenues recognized at a point in time	$	474.8	$	292.5	$	767.3
Revenues recognized over time	65.5		36.7		102.2
	$	540.3	$	329.2	$	869.5

Contract Balances

Our customers are invoiced for products and services at the time of delivery or based on contractual milestones, resulting in outstanding receivables with payment terms from these customers (“Contract Accounts Receivable”). In some cases, the timing of revenue recognition, particularly for revenue recognized over time, differs from when such amounts are invoiced to customers, resulting in a contract asset (revenue recognition precedes the invoicing of the related revenue amount) or a contract liability (payment from the customer precedes recognition of the related revenue amount). Contract assets and liabilities are generally classified as current. On a contract-by-contract basis, the contract assets and contract liabilities are reported net within our condensed consolidated balance sheets. Our contract balances consisted of the following as of October 1, 2022 and December 31, 2021:

Contract Balances	October 1, 2022		December 31, 2021		Change
Contract Accounts Receivable(1)	$	257.1	$	215.3	$	41.8
Contract Assets	30.2		28.9		1.3
Contract Liabilities - current	(45.5)		(44.7)		(0.8)
Contract Liabilities - non-current(2)	(5.5)		(5.8)		0.3
Net contract balance	$	236.3	$	193.7	$	42.6

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(1) Included in “Accounts receivable, net” within the accompanying condensed consolidated balance sheets.

(2) Included in “Other long-term liabilities” within the accompanying condensed consolidated balance sheets.

The $42.6 increase in our net contract balance from December 31, 2021 to October 1, 2022 was due primarily to revenue recognized during the period, partially offset by cash payments received from customers during the period.

During the three and nine months ended October 1, 2022, we recognized revenues of $5.8 and $39.5, respectively, related to our contract liabilities at December 31, 2021.

Performance

As of October 1, 2022, the aggregate amount allocated to remaining performance obligations was $174.7. We expect to recognize revenue on approximately 48% and 90% of remaining performance obligations over the next 12 and 24 months, respectively, with the remaining recognized thereafter.