REVENUES FROM CONTRACTS

6 Months Ended

Jul. 02, 2022

Revenue from Contract with Customer [Abstract]

REVENUES FROM CONTRACTS

REVENUES FROM CONTRACTS

Disaggregated Revenues

We disaggregate revenue from contracts with customers by major product line and based on the timing of recognition for each of our reportable segments, as we believe such disaggregation best depicts how the nature, amount, timing, and uncertainty of our revenues and cash flows are affected by economic factors, with such disaggregation presented below for the three and six months ended July 2, 2022 and July 3, 2021:

	Three months ended July 2, 2022
Reportable Segments	HVAC		Detection and Measurement		Total
Major product lines
Package and process cooling equipment and services, and engineered air quality solutions	$	130.5	$	—	$	130.5
Boilers, comfort heating, and ventilation	88.2		—		88.2
Underground locators, inspection and rehabilitation  equipment, and robotic systems	—		65.4		65.4
Communication technologies, obstruction lighting, and bus fare collection systems	—		69.9		69.9
	$	218.7	$	135.3	$	354.0
Timing of Revenue Recognition
Revenues recognized at a point in time	$	202.8	$	110.9	$	313.7
Revenues recognized over time	15.9		24.4		40.3
	$	218.7	$	135.3	$	354.0

	Six months ended July 2, 2022
Reportable Segments	HVAC		Detection and Measurement		Total
Major product lines
Package and process cooling equipment and services, and engineered air quality solutions	$	247.3	$	—	$	247.3
Boilers, comfort heating, and ventilation	164.5		—		164.5
Underground locators, inspection and rehabilitation  equipment, and robotic systems	—		132.6		132.6
Communication technologies, obstruction lighting, and bus fare collection systems	—		116.7		116.7
	$	411.8	$	249.3	$	661.1
Timing of Revenue Recognition
Revenues recognized at a point in time	$	375.9	$	214.1	$	590.0
Revenues recognized over time	35.9		35.2		71.1
	$	411.8	$	249.3	$	661.1

	Three months ended July 3, 2021
Reportable Segments	HVAC		Detection and Measurement		Total
Major product lines
Package and process cooling equipment and services	$	111.5	$	—	$	111.5
Boilers, comfort heating, and ventilation	73.9		—		73.9
Underground locators, inspection and rehabilitation  equipment, and robotic systems	—		65.9		65.9
Communication technologies, obstruction lighting, and bus fare collection systems	—		45.3		45.3
	$	185.4	$	111.2	$	296.6
Timing of Revenue Recognition
Revenues recognized at a point in time	$	166.3	$	101.5	$	267.8
Revenues recognized over time	19.1		9.7		28.8
	$	185.4	$	111.2	$	296.6

	Six months ended July 3, 2021
Reportable Segments	HVAC		Detection and Measurement		Total
Major product lines
Package and process cooling equipment and services	$	213.2	$	—	$	213.2
Boilers, comfort heating, and ventilation	147.8		—		147.8
Underground locators, inspection and rehabilitation  equipment, and robotic systems	—		133.3		133.3
Communication technologies, obstruction lighting, and bus fare collection systems	—		89.5		89.5
	$	361.0	$	222.8	$	583.8
Timing of Revenue Recognition
Revenues recognized at a point in time	$	320.7	$	198.0	$	518.7
Revenues recognized over time	40.3		24.8		65.1
	$	361.0	$	222.8	$	583.8

Contract Balances

Our customers are invoiced for products and services at the time of delivery or based on contractual milestones, resulting in outstanding receivables with payment terms from these customers (“Contract Accounts Receivable”). In some cases, the timing of revenue recognition, particularly for revenue recognized over time, differs from when such amounts are invoiced to customers, resulting in a contract asset (revenue recognition precedes the invoicing of the related revenue amount) or a contract liability (payment from the customer precedes recognition of the related revenue amount). Contract assets and liabilities are generally classified as current. On a contract-by-contract basis, the contract assets and contract liabilities are reported net within our condensed consolidated balance sheets. Our contract balances consisted of the following as of July 2, 2022 and December 31, 2021:

Contract Balances	July 2, 2022		December 31, 2021		Change
Contract Accounts Receivable(1)	$	234.1	$	215.3	$	18.8
Contract Assets	33.9		28.9		5.0
Contract Liabilities - current	(45.4)		(44.7)		(0.7)
Contract Liabilities - non-current(2)	(5.9)		(5.8)		(0.1)
Net contract balance	$	216.7	$	193.7	$	23.0

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(1) Included in “Accounts receivable, net” within the accompanying condensed consolidated balance sheets.

(2) Included in “Other long-term liabilities” within the accompanying condensed consolidated balance sheets.

The $23.0 increase in our net contract asset balance from December 31, 2021 to July 2, 2022 was due primarily to revenue recognized during the period, partially offset by cash payments received from customers during the period.

During the three and six months ended July 2, 2022, we recognized revenues of $10.1 and $33.7, respectively, related to our contract liabilities at December 31, 2021.

Performance Obligations

As of July 2, 2022, the aggregate amount allocated to remaining performance obligations was $92.4. We expect to recognize revenue on approximately 65% and 87% of remaining performance obligations over the next 12 and 24 months, respectively, with the remaining recognized thereafter.