Revenue Recognition

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Transaction price allocated to remaining performance obligations

The Company has estimated that $698.1 million in revenue is expected to be recognized in future periods related to remaining performance obligations from the Company's contracts with customers outstanding as of September 30, 2024. The Company expects to complete these obligations and recognize 48% as revenue in 2024, 49% as revenue in 2025, and the remainder after 2025.

Disaggregation of Revenue

In the following table, revenue is disaggregated by type of good or service, primary geographical market, and timing of recognition. The table also includes a reconciliation of the disaggregated revenue to total revenue.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2024		2023		2024		2023
Type of Good or Service
Recurring (1)	$	213.1	$	202.7	$	613.7	$	639.1
Non-recurring (1)	240.7		200.9		634.7		580.7
Total	453.8		403.6		1,248.4		1,219.8
Geographical Region (2)
North America	261.9		238.9		731.7		737.6
Europe, Middle East and Africa	122.7		101.6		332.1		300.0
Asia Pacific	46.1		37.0		116.5		108.0
Central and South America	23.1		26.1		68.1		74.2
Total	453.8		403.6		1,248.4		1,219.8
Timing of Recognition
Point in Time	224.9		200.8		614.3		619.6
Over Time	228.9		202.8		634.1		600.2
Total	453.8		403.6		1,248.4		1,219.8

(1) Recurring revenue includes revenue from aftermarket parts and services, re-build services on customer owned equipment, operating leases of equipment, and subscription-based software applications. Non-recurring revenue includes new equipment and installation and the sale of software licenses.

(2) Geographical region represents the region in which the end customer resides.

Contract balances

The timing of revenue recognition, billings and cash collections results in trade receivables, contract assets, and advance and progress payments (contract liabilities). Contract assets exist when revenue recognition occurs prior to billings. Contract assets are transferred to trade receivables when the right to payment becomes unconditional (i.e., when receipt of the amount is dependent only on the passage of time). Conversely, the Company often receives payments from its customers before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the Condensed Consolidated Balance Sheets as Contract assets and within Advance and progress payments, respectively, on a contract-by-contract net basis at the end of each reporting period.

Contract asset and liability balances for the period were as follows:

	Balances as of
(In millions)	September 30, 2024		December 31, 2023
Contract Assets	$	96.7	$	74.5
Contract Liabilities	146.9		156.5
	September 30, 2023		December 31, 2022
Contract Assets	69.3		65.1
Contract Liabilities	158.4		161.2

The revenue recognized during the nine months ended September 30, 2024 and 2023 that was included in contract liabilities at the beginning of the period amounted to $137.1 million and $143.1 million, respectively. The remainder of the change from December 31, 2023 and December 31, 2022 is driven by the timing of advance and milestone payments received from customers, customer returns and fulfillment of performance obligations. There were no significant changes in the contract balances other than those described above.