Revenue from Contracts with Customers (Notes)

9 Months Ended

Sep. 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 September 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 for the three and nine months ended September 30, 2019 and 2018 follows:

For the three months ended September 30, 2019	U.S. Operations		Swiss Operations		Western European Operations		Chinese Operations		Other Operations		Total
Product Revenue	$	203,291	$	26,114	$	120,510	$	129,163	$	107,678	$	586,756
Service Revenue:
Point in time	53,035		5,191		31,852		10,111		27,665		127,854
Over time	12,712		2,110		16,290		3,018		5,126		39,256
Total	$	269,038	$	33,415	$	168,652	$	142,292	$	140,469	$	753,866

For the three months ended September 30, 2018	U.S. Operations		Swiss Operations		Western European Operations		Chinese Operations		Other Operations		Total
Product Revenue	$	195,554	$	24,791	$	124,412	$	127,050	$	104,533	$	576,340
Service Revenue:
Point in time	48,910		4,663		29,365		10,200		25,645		118,783
Over time	10,915		2,009		19,393		2,848		4,558		39,723
Total	$	255,379	$	31,463	$	173,170	$	140,098	$	134,736	$	734,846

For the nine months ended September 30, 2019	U.S. Operations		Swiss Operations		Western European Operations		Chinese Operations		Other Operations		Total
Product Revenue	$	580,155	$	77,142	$	352,260	$	364,620	$	302,853	$	1,677,030
Service Revenue:
Point in time	156,221		15,176		97,182		27,363		80,324		376,266
Over time	35,202		6,032		48,798		8,490		12,866		111,388
Total	$	771,578	$	98,350	$	498,240	$	400,473	$	396,043	$	2,164,684

For the nine months ended September 30, 2018	U.S. Operations		Swiss Operations		Western European Operations		Chinese Operations		Other Operations		Total
Product Revenue	$	559,566	$	75,520	$	365,680	$	351,052	$	297,944	$	1,649,762
Service Revenue:
Point in time	146,515		14,410		92,331		28,212		74,853		356,321
Over time	30,517		6,152		54,303		8,037		12,571		111,580
Total	$	736,598	$	96,082	$	512,314	$	387,301	$	385,368	$	2,117,663

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

	Three Months Ended				Nine Months Ended
	2019		2018		2019		2018
Americas	$	298,304	$	280,512	$	849,282	$	807,119
Europe	212,736		216,956		629,600		643,514
Asia / Rest of World	242,826		237,378		685,802		667,030
Total	$	753,866	$	734,846	$	2,164,684	$	2,117,663

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 nine months ended September 30 is as follows:

	Three Months Ended				Nine Months Ended
	2019		2018		2019		2018
Laboratory	$	388,441	$	368,967	$	1,127,833	$	1,075,853
Industrial	315,337		305,248		889,716		873,181
Retail	50,088		60,631		147,135		168,629
Total	$	753,866	$	734,846	$	2,164,684	$	2,117,663

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 September 30, 2019 and December 31, 2018 was $21.6 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 September 30, 2019 and 2018:

	2019			2018
Beginning balances as of January 1	$	105,381		$	107,166
Customer pre-payments/deferred revenue	466,617			469,173
Revenue recognized	(442,904		)	(450,312		)
Foreign currency translation	(2,169		)	(2,501		)
Ending balance as of September 30	$	126,925		$	123,526

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.