CONTRACT ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2023

Contractors [Abstract]

CONTRACT ASSETS AND LIABILITIES

CONTRACT ASSETS AND LIABILITIES

Under our customized pump production contracts, 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 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 were as follows (in thousands):

	December 31,
	2023		2022
Costs incurred on uncompleted contracts	$	92,363	$	70,329
Estimated profits, thereon	37,379		23,274
Total costs and estimated profits on uncompleted contracts	129,742		93,603
Less: billings to date	96,928		80,421
Total	$	32,814	$	13,182

Such amounts were included in the accompanying Consolidated Balance Sheets for 2023 and 2022 under the following captions (in thousands):

	December 31,
	2023		2022
Costs and estimated profits in excess of billings	$	42,323	$	23,588
Billings in excess of costs and estimated profits	(9,506)		(10,411)
Translation Adjustment	(3)		5
Net contract assets	$	32,814	$	13,182

During the twelve months ended December 31, 2023, $10.4 million of the balances that were previously classified as contract liabilities at the beginning of the period were recognized into revenues.

REVENUE

The Company disaggregates revenue based upon our geography and our reportable 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 20 - 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,
	2023		2022		2021
Revenues
United States	$	1,602	$	1,402	$	1,031
Canada	75		79		83
Other	2		—		—
Total	$	1,679	$	1,481	$	1,114