Revenue Recognition

6 Months Ended

Mar. 31, 2023

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, the Software & Control segment, and the 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 March 31, 2023, we expect to recognize approximately $1,175 million of revenue in future periods from unfulfilled performance obligations from existing contracts with customers. We expect to recognize revenue of approximately $692 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 March 31, 2023.

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 March 31, 2023								Three Months Ended March 31, 2022
	Intelligent Devices		Software & Control		Lifecycle Services		Total		Intelligent Devices		Software & Control		Lifecycle Services		Total
North America	$	598.7	$	452.0	$	259.9	$	1,310.6	$	495.9	$	343.0	$	232.7	$	1,071.6
Europe, Middle East and Africa	216.6		148.6		121.3		486.5		147.4		85.4		116.1		348.9
Asia Pacific	136.7		99.6		97.9		334.2		104.6		78.1		83.5		266.2
Latin America	71.2		40.9		32.0		144.1		60.7		28.4		32.3		121.4
Total Company Sales	$	1,023.2	$	741.1	$	511.1	$	2,275.4	$	808.6	$	534.9	$	464.6	$	1,808.1

	Six Months Ended March 31, 2023								Six Months Ended March 31, 2022
	Intelligent Devices		Software & Control		Lifecycle Services		Total		Intelligent Devices		Software & Control		Lifecycle Services		Total
North America	$	1,166.1	$	836.1	$	487.3	$	2,489.5	$	1,054.8	$	667.1	$	450.4	$	2,172.3
Europe, Middle East and Africa	387.8		234.4		237.1		859.3		305.2		173.8		224.6		703.6
Asia Pacific	268.0		168.0		194.7		630.7		227.9		151.8		165.4		545.1
Latin America	137.5		75.9		63.5		276.9		121.0		56.1		67.3		244.4
Total Company Sales	$	1,959.4	$	1,314.4	$	982.6	$	4,256.4	$	1,708.9	$	1,048.8	$	907.7	$	3,665.4

Contract Liabilities

Contract liabilities primarily relate to consideration received in advance of performance under the contract.

Below is a summary of our Contract liabilities balance, the portion not expected to be recognized within twelve months is included within Other liabilities in the Consolidated Balance Sheet (in millions):

	March 31, 2023		March 31, 2022
Balance as of beginning of year	$	541.3	$	462.5
Balance as of end of period	636.9		541.0

The most significant changes in our Contract liabilities balance during both the six months ended March 31, 2023 and 2022, were due to amounts billed during the period, partially offset by revenue recognized that was included in the Contract liabilities balance at the beginning of the period and revenue recognized on amounts billed during the period.

In the six months ended March 31, 2023, we recognized revenue of approximately $312.1 million that was included in the Contract liabilities balance at September 30, 2022. In the six months ended March 31, 2022, we recognized revenue of approximately $260.8 million that was included in the Contract liabilities balance at September 30, 2021. We did not have a material amount of revenue recognized in the six months ended March 31, 2023 and 2022, from performance obligations satisfied or partially satisfied in previous periods.