Revenue from Contracts with Customers (Notes)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE

On January 1, 2018, the Company adopted ASC 606 "Revenue from Contracts with Customers" and all the related amendments using the modified retrospective method, whereby the adoption does not impact any prior periods. The effect of adopting the new standard did not require any cumulative effect adjustment to retained earnings as of January 1, 2018. There was no impact to our consolidated statements of operations and comprehensive income, balance sheets, or statements of cash flows as of and for the period ended June 30, 2018.

The Company disaggregates revenue from contracts with customers by product, service, timing of revenue recognition and geography. A summary by the Company’s reportable segments follows for the three and six months ended June 30, 2019 and 2018 follows:

For the three months ended June 30, 2019	U.S. Operations		Swiss Operations		Western European Operations		Chinese Operations		Other Operations		Total
Product Revenue	$	202,608	$	24,362	$	115,195	$	124,042	$	99,720	$	565,927
Service Revenue:
Point in time	53,054		5,035		32,553		9,548		27,800		127,990
Over time	12,227		1,961		15,933		2,869		4,459		37,449
Total	$	267,889	$	31,358	$	163,681	$	136,459	$	131,979	$	731,366

For the three months ended June 30, 2018	U.S. Operations		Swiss Operations		Western European Operations		Chinese Operations		Other Operations		Total
Product Revenue	$	191,511	$	25,163	$	124,336	$	119,709	$	101,757	$	562,476
Service Revenue:
Point in time	49,985		4,919		33,081		10,885		24,969		123,839
Over time	9,978		2,072		16,355		2,678		4,598		35,681
Total	$	251,474	$	32,154	$	173,772	$	133,272	$	131,324	$	721,996

For the six months ended June 30, 2019	U.S. Operations		Swiss Operations		Western European Operations		Chinese Operations		Other Operations		Total
Product Revenue	$	376,864	$	51,027	$	231,751	$	235,457	$	195,175	$	1,090,274
Service Revenue:
Point in time	102,707		9,985		65,328		17,252		52,660		247,932
Over time	22,969		3,923		32,508		5,472		7,740		72,612
Total	$	502,540	$	64,935	$	329,587	$	258,181	$	255,575	$	1,410,818

For the six months ended June 30, 2018	U.S. Operations		Swiss Operations		Western European Operations		Chinese Operations		Other Operations		Total
Product Revenue	$	364,012	$	50,728	$	241,268	$	224,002	$	193,412	$	1,073,422
Service Revenue:
Point in time	97,605		9,748		62,966		18,012		49,208		237,539
Over time	19,602		4,143		34,910		5,188		8,013		71,856
Total	$	481,219	$	64,619	$	339,144	$	247,202	$	250,633	$	1,382,817

A summary of revenue by major geographic destination for the three and six months ended June 30 follows:

	Three Months Ended				Six Months Ended
	2019		2018		2019		2018
Americas	$	292,345	$	274,328	$	550,978	$	526,607
Europe	207,309		220,718		416,864		426,558
Asia / Rest of World	231,712		226,950		442,976		429,652
Total	$	731,366	$	721,996	$	1,410,818	$	1,382,817

The Company's global revenue mix by product category is comprised of laboratory (52% of sales), industrial (41% of sales) and retail (7% of sales). The Company's product revenue by reportable segment is proportionately similar to the Company's global mix except the Company's Swiss Operations is largely comprised of laboratory products while the Company's Chinese Operations has a slightly higher percentage of industrial products. A summary of the Company’s revenue by product category for the three and six months ended June 30 is as follows:

	Three Months Ended				Six Months Ended
	2019		2018		2019		2018
Laboratory	$	379,659	$	361,726	$	739,392	$	706,885
Industrial	303,059		305,277		574,379		567,933
Retail	48,648		54,993		97,047		107,999
Total	$	731,366	$	721,996	$	1,410,818	$	1,382,817

The payment terms in the Company’s contracts with customers do not exceed one year and therefore contracts do not contain a significant financing component. In most cases, after appropriate credit evaluations, payments are due in arrears and are recognized as receivables. Unbilled revenue is recorded when performance obligations have been satisfied, but not yet billed to the customer. Unbilled revenue as of June 30, 2019 and December 31, 2018 was $22.1 million and $12.4 million respectively, and is included within accounts receivable. Deferred revenue and customer prepayments are recorded when cash payments are received or due in advance of the performance obligation being satisfied. Deferred revenue primarily includes prepaid service contracts, as well as deferred installation.

Changes in the components of deferred revenue and customer prepayments during the periods ended June 30, 2019 and 2018:

	2019			2018
Beginning balances as of December 31	$	105,381		$	107,166
Customer pre-payments/deferred revenue	306,667			282,446
Revenue recognized	(283,508		)	(260,280		)
Foreign currency translation	164			(2,497		)
Ending balance as of June 30	$	128,704		$	126,835

The Company generally expenses sales commissions when incurred because the amortization period is one year or less. These costs are recorded within selling, general, and administrative expenses. The Company has not disclosed the value of unsatisfied performance obligations other than customer prepayments and deferred revenue above as most contracts have an expected length of one year or less and amounts greater than one year are immaterial.