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Revenue
 6 Months Ended
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
 
The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for products, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with products is recognized at a point in time when the product is shipped to the customer, with a relatively small amount of transactions primarily in the Utility Solutions segment recognized upon delivery of the product at the destination. Revenue from service contracts and post-shipment performance obligations are approximately three percent of total annual consolidated net revenue and those service contracts and post-shipment obligations are primarily within the Utility Solutions segment. Revenue from service contracts and post-shipment performance obligations is recognized when or as those obligations are satisfied. The Company primarily offers assurance-type standard warranties that do not represent separate performance obligations and on occasion will separately offer and price extended warranties that are separate performance obligations for which the associated revenue is recognized over-time based on the extended warranty period. The Company records amounts billed to customers for reimbursement of shipping and handling costs within revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold. Sales taxes and other usage-based taxes are excluded from revenue.

Within the Electrical Solutions segment, certain businesses require a portion of the transaction price to be paid in advance of transfer of control. Advance payments are not considered a significant financing component as they are received less than one year before the related performance obligations are satisfied. In addition, in the Utility Solutions segment, certain businesses offer annual maintenance service contracts that require payment at the beginning of the contract period. These payments are treated as a contract liability and are classified in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Condensed Consolidated Statements of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Condensed Consolidated Statements of Income on a straight-line basis over the expected term of the contract.

The following table presents disaggregated revenue by business group. Prior period amounts have been reclassified to conform to our organizational changes as described in Note 1 - Basis of Presentation:
Three Months Ended June 30,Six Months Ended June 30,
in millions2021202020212020
Net sales
   Commercial and Industrial$423.6 $312.5 $802.1 $693.5 
   Heavy Industrial85.8 67.2 162.1 153.5 
   Residential and Retail93.5 89.7 184.9 186.1 
Total Electrical Solutions$602.9 $469.4 $1,149.1 $1,033.1 
   Utility T&D Components421.3 337.5 796.2 692.4 
   Utility Communications and Controls167.6 142.3 324.9 314.0 
Total Utility Solutions$588.9 $479.8 $1,121.1 $1,006.4 
TOTAL$1,191.8 $949.2 $2,270.2 $2,039.5 
The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions):
Three Months Ended June 30,Six Months Ended June 30,
in millions2021202020212020
Net sales
   United States$534.0 $424.2 $1,022.0 $931.5 
   International68.9 45.2 127.1 101.6 
Total Electrical Solutions$602.9 $469.4 $1,149.1 $1,033.1 
   United States560.3 456.5 1,061.7 954.4 
   International28.6 23.3 59.4 52.0 
Total Utility Solutions$588.9 $479.8 $1,121.1 $1,006.4 
TOTAL$1,191.8 $949.2 $2,270.2 $2,039.5 

Contract Balances

Our contract liabilities consist of advance payments for products as well as deferred revenue on service obligations and extended warranties. The current portion of deferred revenue is included in Other accrued liabilities and the non-current portion of deferred revenue is included in Other non-current liabilities in the Condensed Consolidated Balance Sheets.

Contract liabilities were $14.5 million as of June 30, 2021 compared to $30.9 million as of December 31, 2020. The $16.4 million decrease in our contract liabilities balance was primarily due to the recognition of $25.8 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2021 and a $1.5 million decline in contract liabilities relating to the disposition of a business, partially offset by a $10.9 million net increase in current year deferrals primarily due to timing of advance payments on certain orders. The Company has an immaterial amount of contract assets relating to performance obligations satisfied prior to payment that is recorded in Other long-term assets in the Condensed Consolidated Balance Sheets. Impairment losses recognized on our receivables and contract assets were immaterial for the three and six months ended June 30, 2021.

Unsatisfied Performance Obligations

As of June 30, 2021, the Company had approximately $430 million of unsatisfied performance obligations for contracts with an original expected length of greater than one year, primarily relating to long-term contracts of the Utility Solutions segment to deliver and install meters, metering communications and grid monitoring sensor technology. The Company expects that a majority of the unsatisfied performance obligations will be completed and recognized over the next three years.