Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 9 Revenue Recognition

Revenue for sales of products and services is derived from contracts with customers. The products and services promised in contracts include the sale of measurement hardware, communication devices, data and analytics software and other ancillary services. Contracts generally state the terms of sale, including the description, quantity and price of each product or service. Since the customer typically agrees to a stated rate and price in the contract that does not vary over the life of the contract, the majority of the Company's contracts do not contain variable consideration. The Company establishes a provision for estimated warranty and returns as well as certain after sale costs as discussed in Note 2 "Additional Financial Information Disclosures" in the Notes to Unaudited Consolidated Condensed Financial Statements.

The Company disaggregates revenue from contracts with customers into geographical regions and by the timing of when goods and services are transferred. The Company determined that disaggregating revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors.

Information regarding revenues disaggregated by geographic area is as follows:

	Three months ended				Six months ended
	June 30,				June 30,
(In thousands)	2024		2023		2024		2023
Revenues:
United States	$	193,963	$	157,863	$	371,153	$	296,449
Foreign:
Asia		2,735		3,369		5,648		6,561
Canada		3,015		3,024		5,193		6,506
Europe		9,410		8,612		18,819		18,144
Mexico		1,431		452		2,052		1,487
Middle East		5,463		2,022		9,074		4,700
Other		641		516		999		1,112
Total	$	216,658	$	175,858	$	412,938	$	334,959

Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows:

	Three months ended						Six months ended
	June 30,						June 30,
(In thousands)	2024			2023			2024			2023
Revenue recognized over time	$	14,345	6.6%	$	10,932	6.2%	$	27,078	6.6%	$	20,669	6.2%
Revenue recognized at a point in time		202,313	93.4%		164,926	93.8%		385,860	93.4%		314,290	93.8%
Total	$	216,658	100.0%	$	175,858	100.0%	$	412,938	100.0%	$	334,959	100.0%

The majority of the Company's revenue that is recognized over time relates to the BEACON® software as a service ("SaaS"), but also includes training, certain installation and other revenues. The majority of the Company's revenue recognized at a point in time is for the sale of utility and flow instrumentation products. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during shipping.

The Company performs its obligations under a contract by shipping products or performing services in exchange for consideration. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable to the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods or services and the Company has not transferred control of the goods or services.

The Company's receivables and contract liabilities are as follows:

	June 30, 2024		December 31, 2023
(In thousands)
Receivables	$	106,229	$	83,507
Contract liabilities		71,782		59,970

Contract liabilities are included in payables and long-term deferred revenue on the Company's Consolidated Condensed Balance Sheets. The balance of contract assets was immaterial as the Company did not have a significant amount of uninvoiced receivables as of June 30, 2024 and December 31, 2023.

A performance obligation is a promise to transfer a distinct good or service to the customer. At contract inception, the Company assesses the products and services promised in its contracts with customers. The Company then identifies performance obligations to transfer distinct products or services to the customer. In order to identify performance obligations, the Company considers all of the products or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices.

The Company's performance obligations are satisfied at a point in time or over time as work progresses. The majority of the Company's revenue recognized at a point in time is for the sale of utility and flow instrumentation products. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during the shipping process. The majority of the Company's revenue that is recognized over time relates to the BEACON SaaS.

As of June 30, 2024, the Company had certain contracts with unsatisfied performance obligations. For contracts recorded as contract liabilities, $71.8 million was the aggregate amount of the transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of the end of the reporting period. The Company estimates that revenue recognized from satisfying those performance obligations will be approximately $7.9 million in 2024, $8.5 million in 2025, $7.4 million in 2026, $5.9 million in 2027, $4.9 million in 2028, $4.1 million in 2029 and $33.1 million thereafter.