Revenue From Contracts With Customers

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue From Contracts With Customers

REVENUE FROM CONTRACTS WITH CUSTOMERS

Sales are derived from products for different applications: fiber lasers, diode lasers, systems and accessories for materials processing, fiber lasers, amplifiers and diodes for advanced applications, fiber amplifiers and transceivers for communications applications, and fiber lasers, systems and fibers for medical applications. The following tables represent a disaggregation of revenue from contracts with customers for the years ended December 31, 2021, 2020 and 2019:

	Year Ended December 31,
	2021		2020		2019
Sales by Application
Materials processing	$	1,325,404	$	1,082,478	$	1,229,211
Other applications	135,456		118,246		85,370
Total	$	1,460,860	$	1,200,724	$	1,314,581

Sales by Product
High Power Continuous Wave ("CW") Lasers	$	687,406	$	646,062	$	734,745
Medium Power CW Lasers	80,501		50,796		56,625
Pulsed Lasers	240,978		158,448		137,675
Quasi-Continuous Wave ("QCW") Lasers	60,668		50,333		56,440
Laser and Non-Laser Systems	126,642		93,727		141,647
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue	264,665		201,358		187,449
Total	$	1,460,860	$	1,200,724	$	1,314,581

Sales by Geography
North America	$	314,984	$	246,189	$	280,886
Europe:
Germany	101,738		65,646		81,365
Other including Eastern Europe/CIS	289,136		219,540		249,871
Asia and Australia:
China	548,348		502,278		491,890
Japan	54,077		53,180		71,757
Other	139,148		103,785		121,586
Rest of World	13,429		10,106		17,226
Total	$	1,460,860	$	1,200,724	$	1,314,581

Timing of Revenue Recognition
Goods and services transferred at a point in time	$	1,402,498	$	1,144,237	$	1,233,065
Goods and services transferred over time	58,362		56,487		81,516
Total	$	1,460,860	$	1,200,724	$	1,314,581

The Company enters into contracts to sell lasers and spare parts, for which revenue is generally recognized upon shipment or delivery, depending on the terms of the contract. The Company also provides installation services and extended warranties. The Company frequently receives consideration from a customer prior to transferring goods to the customer under the terms of a sales contract. The Company records customer deposits related to these prepayments, which represent a contract liability. The Company also records deferred revenue related to installation services when consideration is received before the services have been performed. The standalone selling price for installation services is determined based on the estimated number of days of service technician time required for installation at standard service rates. The Company recognizes customer deposits and deferred revenue as net sales after control of the goods or services has been transferred to the customer and all revenue recognition criteria is met. The Company bills customers for extended warranties upon entering into the agreement with the customer, resulting in deferred revenue. The timing of customer payments on contracts for the sale of customized robotic systems generally differs from the timing of revenue recognized, resulting in contract assets and liabilities. Contract assets are included within prepaid expense and other current assets on the consolidated balance sheets. Contract liabilities are included within accrued expenses and other current liabilities on the consolidated balance sheets.

The following table reflects the changes in the Company's contract assets and liabilities for the years ended December 31, 2021 and 2020:

	December 31,		January 1,				December 31,		January 1,
	2021		2021		Change		2020		2020		Change
Contract assets
Contract assets	$	9,345	$	8,999	$	346	$	8,999	$	9,645	$	(646)
Contract liabilities
Contract liabilities - current	89,659		71,246		18,413		71,246		59,531		11,715
Contract liabilities - long-term	2,691		2,189		502		2,189		1,820		369

During the year ended December 31, 2021 and 2020, the Company recognized revenue of $64,364 and $48,738, respectively, that was included in the contract liabilities at the beginning of the period.

The Company has elected the practical expedient in ASC 606-10-50-14, whereby the performance obligations for contracts with an original expected duration of one year or less are not disclosed. The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of December 31, 2021:

	Remaining Performance Obligations
	2022		2023		2024		2025		2026		Thereafter		Total
Revenue expected to be recognized for extended warranty agreements	$	3,671	$	1,189	$	899	$	461	$	116	$	19	$	6,355
Revenue to be earned over time from contracts to sell robotic systems	29,116		10,720		—		—		—		—		39,836
Total	$	32,787	$	11,909	$	899	$	461	$	116	$	19	$	46,191