Revenue (Notes) |
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Revenue from Contract with Customer [Text Block] | Revenue The following tables disaggregate the Company’s revenue by segment and timing of transfer:
In certain contracts, particularly within the Air and Gas Handling segment, the Company is engaged to engineer and build highly-customized, large-scale products and systems. In these circumstances, the Company produces an asset with no alternative use and has a right to payment for performance completed to date. As a result, revenue is recognized over the performance period of the contract based on progress to date. As of March 29, 2019, the Air and Gas Handling business had $893.0 million of remaining performance obligations, which is also referred to as total backlog. Of that total backlog, the Company expects to recognize approximately 68% as revenue in 2019 and an additional 32% thereafter. As of March 29, 2019 and December 31, 2018, there were $150.7 million and $168.3 million, respectively, of revenues in excess of billings and $83.4 million and $68.1 million, respectively, of billings in excess of revenues on long-term contracts in the Condensed Consolidated Balance Sheets. The Company’s Fabrication Technology business formulates, develops, manufactures and supplies consumable products and equipment. Substantially all revenue from the Fabrication Technology business is recognized at a point in time. As a result, of the total amount of remaining unsatisfied performance obligations, the majority relate to ship and bill arrangements. For contracts within the Medical Technology segment, the Company further disaggregates revenue into three primary sales channels. The Dealers & Distributors channel, comprising 41% of Medical Technology revenue for the three months ended March 29, 2019, represents products sold to independent dealers, distributors and retailers. The Insurance channel represents products sold to patients who qualify for medical reimbursement and comprises 17% of Medical Technology revenue for the three months ended March 29, 2019. The Direct channel, comprising 41% of Medical Technology revenue for the three months ended March 29, 2019 represents products sold directly to orthopedic groups, hospitals, and consumers. The remaining 1% of products are sold through other channels. Given the nature of the Fabrication Technology and Medical Technology businesses, the total amount of unsatisfied performance obligations with an original contract duration of greater than one year as of March 29, 2019 is immaterial. The nature of the Company’s contracts gives rise to certain types of variable consideration, including rebates, liquidated damages, implicit price concessions, and other discounts. The Company includes estimated amounts of variable consideration in the transaction price to the extent that it is probable there will not be a significant reversal of revenue. In some circumstances for both over time and point in time contracts, customers are billed in advance of revenue recognition, resulting in contract liabilities. As of December 31, 2018 and 2017, total contract liabilities were $140.0 million and $133.3 million, respectively. During the three months ended March 29, 2019 and March 30, 2018, revenue recognized that was included in the contract liability balance at the beginning of the year was $80.1 million and $57.3 million, respectively. Of this total, 55% and 70%, respectively, was related to long-term contracts which have met the criteria for over time recognition. As of March 29, 2019 and March 30, 2018, total contract liabilities were $148.5 million and $161.8 million, respectively. |