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Revenue
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
IDEX is an applied solutions company specializing in the manufacture of fluid and metering technologies, health and science technologies and fire, safety and other diversified products built to customers’ specifications. The Company’s products include industrial pumps, provers, compressors, flow meters, injectors, valves and related controls for use in a wide variety of process applications; precision fluidics solutions, including pumps, valves, degassing equipment, corrective tubing, fittings and complex manifolds, optical filters and specialty medical equipment and devices for use in life science applications; precision-engineered equipment for dispensing, metering and mixing paints; and engineered products for industrial and commercial markets, including fire and rescue, transportation equipment, oil and gas, electronics and communications.

Revenue is recognized when control of products or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for transferring those products or providing those services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of the consideration is probable. We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer.

Disaggregation of Revenue

We have a comprehensive offering of products, including technologies, built to customers’ specifications that are sold in niche markets throughout the world. We disaggregate our revenue from contracts with customers by reporting unit and geographical region for each of our segments as we believe it best depicts how the amount, nature, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenue was attributed to geographical region based on the location of the customer. The following tables present our revenue disaggregated by reporting unit and geographical region.

Revenue by reporting unit for the three and six months ended June 30, 2020 and 2019 was as follows:

Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Energy$55,814  $40,608  $94,328  $80,006  
Valves25,714  29,809  51,921  59,191  
Water54,730  65,148  113,066  126,280  
Pumps60,555  87,125  142,385  175,385  
Agriculture22,299  23,499  44,273  47,849  
Intersegment elimination(190) (78) (339) (264) 
Fluid & Metering Technologies218,922  246,111  445,634  488,447  
Scientific Fluidics & Optics106,564  109,554  212,706  216,862  
Sealing Solutions45,201  46,431  100,531  96,937  
Gast28,039  37,399  55,385  71,308  
Micropump7,272  8,271  14,987  17,026  
Material Processing Technologies28,592  30,598  56,118  55,410  
Intersegment elimination(434) (81) (1,037) (683) 
Health & Science Technologies215,234  232,172  438,690  456,860  
Fire & Safety92,295  103,257  186,363  202,705  
BAND-IT16,303  27,758  41,536  55,670  
Dispensing18,478  33,028  43,501  61,827  
Intersegment elimination17  (227) (13) (1,179) 
Fire & Safety/Diversified Products127,093  163,816  271,387  319,023  
Total net sales$561,249  $642,099  $1,155,711  $1,264,330  
Revenue by geographical region for the three and six months ended June 30, 2020 and 2019 was as follows:
Three Months Ended June 30, 2020
FMTHSTFSDPIDEX
U.S.$134,299  $93,103  $63,640  $291,042  
North America, excluding U.S.11,359  4,526  5,031  20,916  
Europe 39,386  56,000  31,176  126,562  
Asia24,349  57,806  21,543  103,698  
Other (1)
9,719  4,233  5,686  19,638  
Intersegment elimination(190) (434) 17  (607) 
Total net sales$218,922  $215,234  $127,093  $561,249  
Three Months Ended June 30, 2019
FMTHSTFSDPIDEX
U.S.$139,786  $106,193  $78,898  $324,877  
North America, excluding U.S. 14,628  5,497  6,418  26,543  
Europe 43,949  65,798  43,813  153,560  
Asia32,353  50,502  26,744  109,599  
Other (1)
15,473  4,263  8,170  27,906  
Intersegment elimination(78) (81) (227) (386) 
Total net sales$246,111  $232,172  $163,816  $642,099  
Six Months Ended June 30, 2020
FMTHSTFSDPIDEX
U.S.$262,077  $189,099  $138,571  $589,747  
North America, excluding U.S.25,035  10,494  11,300  46,829  
Europe 84,051  123,087  71,246  278,384  
Asia51,134  109,145  38,122  198,401  
Other (1)
23,676  7,902  12,161  43,739  
Intersegment elimination(339) (1,037) (13) (1,389) 
Total net sales$445,634  $438,690  $271,387  $1,155,711  
Six Months Ended June 30, 2019
FMTHSTFSDPIDEX
U.S.$277,935  $205,244  $153,575  $636,754  
North America, excluding U.S.27,685  10,389  12,398  50,472  
Europe 87,573  135,170  86,875  309,618  
Asia64,270  98,561  50,304  213,135  
Other (1)
31,248  8,179  17,050  56,477  
Intersegment elimination(264) (683) (1,179) (2,126) 
Total net sales$488,447  $456,860  $319,023  $1,264,330  

(1) Other includes: South America, Middle East, Australia and Africa.
Contract Balances

The timing of revenue recognition, billings and cash collections can result in customer receivables, advance payments or billings in excess of revenue recognized. Customer receivables include both amounts billed and currently due from customers as well as unbilled amounts (contract assets) and are included in Receivables on our Condensed Consolidated Balance Sheets. Amounts are billed in accordance with contractual terms or as work progresses. Unbilled amounts arise when the timing of billing differs from the timing of revenue recognized, such as when contract provisions require specific milestones to be met before a customer can be billed. Unbilled amounts primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to invoice in accordance with contractual terms. Unbilled amounts are recorded as a contract asset when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Customer receivables are recorded at face amount less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for expected losses as a result of customers’ inability to make required payments. Management evaluates the aging of customer receivable balances, the financial condition of its customers, historical trends and the time outstanding of specific balances to estimate the amount of customer receivables that may not be collected in the future and records the appropriate provision.

The composition of Customer receivables was as follows:
June 30, 2020December 31, 2019
Billed receivables$261,248  $286,196  
Unbilled receivables11,139  11,922  
Total customer receivables$272,387  $298,118  

Advance payments, deposits and billings in excess of revenue recognized are included in Deferred revenue which is classified as current or noncurrent based on the timing of when we expect to recognize the revenue. The current portion is included in Accrued expenses and the noncurrent portion is included in Other noncurrent liabilities on our Condensed Consolidated Balance Sheets. Advance payments or deposits represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements, including those with performance obligations satisfied over time. We generally receive advance payments from customers related to maintenance services which we recognize ratably over the service term. We also receive deposits from customers on certain orders which we recognize as revenue at a point in time. Billings in excess of revenue recognized represent contract liabilities and primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and revenue cannot yet be recognized as the Company has not completed the corresponding performance obligation. Contract liabilities are derecognized when revenue is recognized and the performance obligation is satisfied.

The composition of Deferred revenue was as follows:
June 30, 2020December 31, 2019
Deferred revenue - current$38,493  $17,633  
Deferred revenue - noncurrent1,615  2,129  
Total deferred revenue$40,108  $19,762  

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. A contract’s transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For our contracts that require complex design, manufacturing and installation activities, certain performance obligations may not be separately identifiable from other performance obligations in the contract and, therefore, not distinct. As a result, the entire contract is accounted for as a single performance obligation. For our contracts that include distinct products or services that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct products or services. Certain of our contracts have multiple performance obligations for which we allocate the transaction price to each performance obligation using an estimate of the standalone selling price of each distinct product or service in the contract. For product sales, each product sold to a customer generally represents a distinct performance
obligation. In such cases, the observable standalone sales are used to determine the standalone selling price. In certain cases, we may be required to estimate standalone selling price using the expected cost plus margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct product or service.

Our performance obligations are satisfied at a point in time or over time as work progresses. Performance obligations are supported by contracts with customers that provide a framework for the nature of the distinct product or service or bundle of products and services. We define service revenue as revenue from activities that are not associated with the design, development or manufacture of a product or the delivery of a software license.

Revenue from products and services transferred to customers at a point in time approximated 95% of total revenues in both the three and six months ended June 30, 2020 and 2019. Revenue on these contracts is recognized when obligations under the terms of the contract with our customer are satisfied. Generally, this occurs with the transfer of control of the asset, which is in line with shipping terms.

Revenue from products and services transferred to customers over time approximated 5% of total revenues in both the three and six months ended June 30, 2020 and 2019. Revenue earned by certain business units within the Water, Energy, Material Processing Technologies (“MPT”) and Dispensing reporting units is recognized over time because control transfers continuously to our customers. When accounting for over-time contracts, we use an input measure to determine the extent of progress towards completion of the performance obligation. For certain business units within the Water, Energy and MPT reporting units, revenue is recognized over time as work is performed based on the relationship between actual costs incurred to date for each contract and the total estimated costs for such contract at completion of the performance obligation (i.e. the cost-to-cost method). We believe this measure of progress best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Incurred cost represents work performed, which corresponds with the transfer of control to the customer. Contract costs include labor, material and overhead. Contract estimates are based on various assumptions to project the outcome of future events. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. For certain business units within the Energy and Dispensing reporting units, revenue is recognized ratably over the contract term.

As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our estimates regularly. Due to uncertainties inherent in the estimation process, it is reasonably possible that completion costs, including those arising from contract penalty provisions and final contract settlements, will be revised. Such revisions to costs and income are recognized in the period in which the revisions are determined as a cumulative catch-up adjustment. The impact of the adjustment on profit recorded to date on a contract is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize provisions for estimated losses on incomplete contracts in the period in which such losses are determined.

The Company records allowances for discounts and product returns at the time of sale as a reduction of revenue as such allowances can be reliably estimated based on historical experience and known trends. The Company also offers product warranties (primarily assurance-type) and accrues its estimated exposure for warranty claims at the time of sale based upon the length of the warranty period, warranty costs incurred and any other related information known to the Company.