Note 3 - Revenue From Contracts With Customers

6 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

3)     Revenue From Contracts With Customers

Most of the Company’s contracts have a single performance obligation which represents the product or service being sold to the customer. Some contracts include multiple performance obligations such as a product and the related installation and/or extended warranty. Additionally, most of the Company’s contracts offer assurance type warranties in connection with the sale of a product to customers. Assurance type warranties provide a customer with assurance that the product complies with agreed-upon specifications. Assurance type warranties do not represent a separate performance obligation.

In general, the Company recognizes revenue at the point in time control transfers to its customer based on predetermined shipping terms. Revenue recognized under long-term contracts within the Engineering Technologies and Engraving groups for highly customized customer products that have no alternative use and in which the contract specifies the Company has a right to payment for its costs, plus a reasonable margin are recognized over time. For products manufactured over time, the transfer of control is measured pro rata, based upon current estimates of costs to complete such contracts. Losses on contracts are fully recognized in the period in which the losses become determinable. Revisions in profit estimates are reflected on a cumulative basis in the period in which the basis for such revision becomes known.

Disaggregation of Revenue from Contracts with Customers

The following table presents revenue disaggregated by product line and segment (in thousands):

	Three Months Ended
Revenue by Product Line	December 31, 2020		December 31, 2019
Electronics	$	60,156	$	45,834
Engraving Services		34,976		35,671
Engraving Products		2,974		2,585
Total Engraving		37,950		38,256
Scientific		17,893		15,414
Engineering Technologies		17,507		26,495
Hydraulics Cylinders and Systems		10,623		11,316
Merchandising & Display		6,041		8,692
Pumps		6,113		7,690
Total Specialty Solutions		22,777		27,698
Total Revenue by Product Line	$	156,283	$	153,697

The following table presents revenue disaggregated by product line and segment (in thousands):

	Six Months Ended
Revenue by Product Line	December 31, 2020		December 31, 2019
Electronics	$	115,427	$	92,452
Engraving Services		69,296		71,737
Engraving Products		5,055		4,950
Total Engraving		74,351		76,687
Scientific		34,556		30,164
Engineering Technologies		35,140		51,139
Hydraulics Cylinders and Systems		22,954		25,064
Merchandising & Display		13,239		18,515
Pumps		11,902		15,648
Total Specialty Solutions		48,095		59,227
Total Revenue by Product Line	$	307,569	$	309,669

The following table presents revenue from continuing operations disaggregated by geography based on company’s locations (in thousands):

	Three Months Ended		Six Months Ended		Three Months Ended		Six Months Ended
Net sales	December 31, 2020		December 31, 2020		December 31, 2019		December 31, 2019
United States	$	91,392	$	183,506	$	92,460	$	186,502
Asia Pacific		30,610		57,474		24,560		48,906
EMEA (1)		30,364		59,182		32,462		66,762
Other Americas		3,917		7,407		4,215		7,499
Total	$	156,283	$	307,569	$	153,697	$	309,669

⁽¹⁾ EMEA consists primarily of Europe, Middle East and S. Africa. 

The following table presents revenue from continuing operations disaggregated by timing of recognition (in thousands):

	Three Months Ended
Timing of Revenue Recognition	December 31, 2020		December 31, 2019
Products and services transferred at a point in time	$	147,167	$	144,229
Products transferred over time		9,116		9,468
Net Sales	$	156,283	$	153,697

	Six Months Ended
Timing of Revenue Recognition	December 31, 2020		December 31, 2019
Products and services transferred at a point in time	$	290,638	$	293,717
Products transferred over time		16,931		15,952
Net Sales	$	307,569	$	309,669

Contract Balances

Contract assets represent sales recognized in excess of billings related to work completed but not yet shipped for which revenue is recognized over time. Contract assets are recorded as prepaid and other current assets. Contract liabilities are customer deposits for which revenue has not been recognized. Current contract liabilities are recorded as accrued expenses.

The following table provides information about contract assets and liability balances as of December 31, 2020 (in thousands):

	Balance at Beginning of Period		Additions		Deductions		Balance at End of Period
Six months ended December 31, 2020
Contract assets:
Prepaid and other current assets	$	9,140	$	13,774	$	13,305	$	9,609
Contract liabilities:
Customer deposits		2,298		4,382		6,315		365

During the three and six months ended December 31, 2020, we recognized the following revenue which was included in the contract liability beginning balances (in thousands):

):

	December 31, 2020
Revenue recognized in the period from:	Three months ended		Six months ended
Amounts included in the contract liability balance at the beginning of the period	$	1,418	$	2,298

The timing of revenue recognition, invoicing and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheets. When consideration is received from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the goods and services are transferred to the customer and all revenue recognition criteria have been met.