REVENUE

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

REVENUE

CONTRACT ASSETS AND LIABILITIES

Under our customized pump production contracts in our IPS segment, amounts are billed as work progresses in accordance with agreed-upon contractual terms, upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. Our contract assets are presented as “Cost and estimated profits in excess of billings” on our Consolidated Balance Sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities that are presented as “Billings in excess of costs and estimated profits” on our Consolidated Balance Sheets.

Costs and estimated profits on uncompleted contracts and related amounts billed for 2022 and 2021 are as follows (in thousands):

	December 31,
	2022		2021
Costs incurred on uncompleted contracts	$	70,329	$	41,329
Estimated profits, thereon	23,274		17,143
Total	93,603		58,472
Less: billings to date	80,421		44,859
Net	$	13,182	$	13,613

Such amounts were included in the accompanying Consolidated Balance Sheets for 2022 and 2021 under the following captions (in thousands):

	December 31,
	2022		2021
Costs and estimated profits in excess of billings	$	23,588	$	17,193
Billings in excess of costs and estimated profits	(10,411)		(3,581)
Translation Adjustment	5		1
Net	$	13,182	$	13,613

During the twelve months ended December 31, 2022, $3.6 million of the balances that were previously classified as contract liabilities at the beginning of the period were recognized into revenues. Contract assets and liability changes were primarily due to normal activity and timing differences between our performance and customer payments.

REVENUE

The Company’s disaggregated revenue represents our business of selling MROP products and services to a variety of end markets based upon our geography and our reportable business segments - Service Centers, Innovative Pumping Solutions and Supply Chain Services. Each of our geographic and reportable business segments are impacted and influenced by varying factors, including the macroeconomic environment, maintenance and capital spending and commodity prices and exploration and production activity. As such, we believe this information is important in depicting the nature, timing and uncertainty of our contracts with customers. The following Geographical Information and Note 22 - Segment Reporting present our revenue disaggregated by source.

Geographical Information

Revenues are presented in geographic area based on location of the facility shipping products or providing services.

The Company’s revenues by geographical location are as follows (in millions):

	Years Ended December 31,
	2022		2021		2020
Revenues
United States	$	1,402	$	1,031	$	931
Canada	79		83		74
Total	$	1,481	$	1,114	$	1,005