Revenue Recognition

9 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Nature of Products and Services

Substantially all of our revenue is from contracts with customers. We recognize revenue as promised products are transferred to, or services are performed for, customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those products and services. Our offerings consist of industrial automation and information products, solutions, and services.

Our products include hardware, software, and configured-to-order products. Our solutions include custom-engineered systems and software. Our services include customer technical support and repair, asset management and optimization consulting, and training. Also included in our services is a portion of revenue related to spare parts that are managed within our services offering.

Our operations are comprised of the Intelligent Devices segment, Software & Control segment, and Lifecycle Services segment. Revenue from the Intelligent Devices and Software & Control segments is predominantly comprised of product sales, which are recognized at a point in time. The Software & Control segment also contains revenue from software products, which may be recognized over time if certain criteria are met. Revenue from the Lifecycle Services segment is predominantly comprised of solutions and services, which are primarily recognized over time. See Note 15 for more information.

Unfulfilled Performance Obligations

As of June 30, 2022, we expect to recognize approximately $1,080 million of revenue in future periods from unfulfilled performance obligations from existing contracts with customers. We expect to recognize revenue of approximately $540 million from our remaining performance obligations over the next 12 months with the remaining balance recognized thereafter.

We have applied the practical expedient to exclude the value of remaining performance obligations for (i) contracts with an original term of one year or less and (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. The amounts above also do not include the impact of contract renewal options that are unexercised as of June 30, 2022.

Disaggregation of Revenue

The following tables present our revenue disaggregation by geographic region for our three operating segments (in millions). We attribute sales to the geographic regions based on the country of destination.

	Three Months Ended June 30, 2022								Three Months Ended June 30, 2021
	Intelligent Devices		Software & Control		Lifecycle Services		Total		Intelligent Devices		Software & Control		Lifecycle Services		Total
North America	$	549.6	$	437.8	$	252.5	$	1,239.9	$	548.5	$	302.9	$	235.3	$	1,086.7
Europe, Middle East and Africa	162.5		72.3		117.8		352.6		162.8		103.3		111.2		377.3
Asia Pacific	106.4		61.3		79.1		246.8		118.1		74.4		82.3		274.8
Latin America	59.8		35.5		34.1		129.4		53.5		29.0		26.9		109.4
Total Company Sales	$	878.3	$	606.9	$	483.5	$	1,968.7	$	882.9	$	509.6	$	455.7	$	1,848.2

	Nine Months Ended June 30, 2022								Nine Months Ended June 30, 2021
	Intelligent Devices		Software & Control		Lifecycle Services		Total		Intelligent Devices		Software & Control		Lifecycle Services		Total
North America	$	1,604.4	$	1,104.9	$	702.9	$	3,412.2	$	1,536.7	$	878.5	$	649.5	$	3,064.7
Europe, Middle East and Africa	467.7		246.1		342.4		1,056.2		445.1		286.2		321.5		1,052.8
Asia Pacific	334.3		213.1		244.5		791.9		316.6		204.0		223.0		743.6
Latin America	180.8		91.6		101.4		373.8		156.4		84.2		87.9		328.5
Total Company Sales	$	2,587.2	$	1,655.7	$	1,391.2	$	5,634.1	$	2,454.8	$	1,452.9	$	1,281.9	$	5,189.6

Contract Balances

Contract liabilities primarily relate to consideration received in advance of performance under the contract. Contract assets primarily relate to performance under the contract prior to the consideration being received or due. We do not have significant contract assets as of June 30, 2022.

Below is a summary of our Contract liabilities balance (in millions):

	June 30, 2022		June 30, 2021
Balance as of beginning of fiscal year	$	462.5	$	325.3
Balance as of end of period	549.5		413.2

The most significant changes in our Contract liabilities balance during the nine months ended June 30, 2022, were due to amounts billed, partially offset by revenue recognized on amounts billed during the period and revenue recognized that was included in the Contract liabilities balance at the beginning of the period. The most significant changes in our Contract liabilities balance during the nine months ended June 30, 2021, were due to amounts billed, partially offset by revenue recognized that was included in the contract liabilities balance at the beginning of the period.

In the nine months ended June 30, 2022, we recognized revenue of approximately $296.8 million that was included in the Contract liabilities balance at September 30, 2021. In the nine months ended June 30, 2021, we recognized revenue of approximately $217.6 million that was included in the Contract liabilities balance at September 30, 2020. We did not have a material amount of revenue recognized in the nine months ended June 30, 2022 and 2021, from performance obligations satisfied or partially satisfied in previous periods.