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Revenue
 9 Months Ended
Sep. 30, 2021
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, regenerative blowers, 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 customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those products or providing those services. The Company accounts 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. The Company determines the appropriate revenue recognition for contracts with customers by analyzing the terms and conditions of each contract or arrangement with a customer.

Disaggregation of Revenue

The Company has a comprehensive offering of products, including technologies, built to customers’ specifications that are sold in niche markets throughout the world. The Company disaggregates its revenue from contracts with customers by reporting unit and geographical region for each segment as the Company believes it best depicts how the amount, nature, timing and uncertainty of its 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 the Company’s revenue disaggregated by reporting unit and geographical region.
Revenue by reporting unit for the three and nine months ended September 30, 2021 and 2020 was as follows:


Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Energy$40,430 $56,155 $125,860 $150,483 
Valves(1)
29,020 29,533 91,565 86,596 
Water(1)
64,865 57,190 189,013 165,114 
Pumps90,026 59,585 261,457 201,970 
Agriculture26,956 18,284 78,044 62,557 
Intersegment elimination— (194)(737)(533)
Fluid & Metering Technologies251,297 220,553 745,202 666,187 
Scientific Fluidics & Optics131,198 100,569 375,990 313,275 
Sealing Solutions67,696 50,726 202,432 151,257 
Performance Pneumatic Technologies(2)
62,181 32,173 125,355 87,558 
Micropump8,519 7,273 24,794 22,260 
Material Processing Technologies32,693 29,637 99,097 85,755 
Intersegment elimination(650)(707)(2,228)(1,744)
Health & Science Technologies301,637 219,671 825,440 658,361 
Fire & Safety92,305 94,065 287,107 280,428 
BAND-IT25,166 22,692 74,843 64,228 
Dispensing41,635 24,139 117,452 67,640 
Intersegment elimination(21)(7)(42)(20)
Fire & Safety/Diversified Products159,085 140,889 479,360 412,276 
Total net sales$712,019 $581,113 $2,050,002 $1,736,824 

(1) During the third quarter of 2021, the Company merged a business in the Water reporting unit with a business in the Valves reporting unit. Revenue for each reporting unit has been restated to reflect this change for each of the three and nine months ended September 30, 2021 and 2020.

(2) This reporting unit was previously named Gast and was renamed Performance Pneumatic Technologies upon the acquisition of Airtech. Prior to that acquisition date, all amounts reflect only the Gast business.
Revenue by geographical region for the three and nine months ended September 30, 2021 and 2020 was as follows:
Three Months Ended September 30, 2021
FMTHSTFSDPIDEX
U.S.$137,046 $148,195 $79,911 $365,152 
North America, excluding U.S.13,685 5,193 7,178 26,056 
Europe 48,802 86,509 39,967 175,278 
Asia36,861 59,990 24,463 121,314 
Other (1)
14,903 2,400 7,587 24,890 
Intersegment elimination— (650)(21)(671)
Total net sales$251,297 $301,637 $159,085 $712,019 
Three Months Ended September 30, 2020
FMTHSTFSDPIDEX
U.S.$122,352 $98,943 $65,369 $286,664 
North America, excluding U.S. 13,706 5,417 5,680 24,803 
Europe 43,855 59,509 37,437 140,801 
Asia26,010 52,197 25,378 103,585 
Other (1)
14,824 4,312 7,032 26,168 
Intersegment elimination(194)(707)(7)(908)
Total net sales$220,553 $219,671 $140,889 $581,113 

Nine Months Ended September 30, 2021
FMTHSTFSDPIDEX
U.S.$399,123 $355,759 $227,259 $982,141 
North America, excluding U.S.42,645 16,687 22,551 81,883 
Europe 150,098 258,838 127,948 536,884 
Asia108,505 178,971 78,153 365,629 
Other (1)
45,568 17,413 23,491 86,472 
Intersegment elimination(737)(2,228)(42)(3,007)
Total net sales$745,202 $825,440 $479,360 $2,050,002 

Nine Months Ended September 30, 2020
FMTHSTFSDPIDEX
U.S.$384,429 $288,042 $203,940 $876,411 
North America, excluding U.S.38,741 15,911 16,980 71,632 
Europe 127,906 182,596 108,683 419,185 
Asia77,144 161,342 63,500 301,986 
Other (1)
38,500 12,214 19,193 69,907 
Intersegment elimination(533)(1,744)(20)(2,297)
Total net sales$666,187 $658,361 $412,276 $1,736,824 

(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 the Company’s 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 (defined below) 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:
September 30, 2021December 31, 2020
Billed receivables$352,238 $273,536 
Unbilled receivables14,956 14,752 
Total customer receivables$367,194 $288,288 

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 the Company expects to recognize the revenue. The current portion is included in Accrued expenses and the noncurrent portion is included in Other noncurrent liabilities on the Company’s Condensed Consolidated Balance Sheets. Advance payments and 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. The Company generally receives advance payments from customers related to maintenance services which the Company recognizes ratably over the service term. The Company also receives deposits from customers on certain orders which the Company recognizes 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 (defined below) 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:
September 30, 2021December 31, 2020
Deferred revenue - current$45,055 $28,374 
Deferred revenue - noncurrent31,025 30,354 
Total deferred revenue$76,080 $58,728 

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 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 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 contracts have multiple performance obligations for which the Company allocates 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, the Company may be required to estimate standalone selling price using the expected cost plus margin approach, under which it forecasts the expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct product or service.

The Company’s performance obligations are satisfied either 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. The Company defines 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 each of the three and nine months ended September 30, 2021 and 2020. Revenue on these contracts is recognized when obligations under the terms of the contract with the 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 each of the three and nine months ended September 30, 2021 and 2020. 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 customers. When accounting for over-time contracts, the Company uses 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). The Company believes this measure of progress best depicts the transfer of control to the customer which occurs as the Company incurs costs on its 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 the Company’s contracts, the Company reviews and updates its 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, the Company recognizes 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.