Revenue (Notes)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

Our primary product lines are Infusion Consumables, IV Solutions, Infusion Systems and Critical Care. The vast majority of our sales of these products are made on a stand-alone basis to hospitals and distributors. Revenue is typically recognized upon transfer of control of the products, which we deem to be at point of shipment.

Payment is typically due in full within 30 days of delivery or the start of the contract term. Revenue is recorded in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We offer certain volume-based rebates to our distribution customers, which we record as variable consideration when calculating the transaction price. Rebates are offered on both a fixed and tiered/variable basis. In both cases, we use information available at the time and our historical experience with each customer to estimate the most likely rebate amount. We also provide chargebacks to distributors that sell to end-customers at prices determined under a contract between us and the end-customer. We use information available at the time and our historical experience to estimate and record provisions for chargebacks.

We also warrant products against defects and have a policy permitting the return of defective products, for which we accrue and expense at the time of sale using information available at that time and our historical experience. We also provide

for extended service-type warranties, which we consider to be separate performance obligations. We allocate a portion of the transaction price to the extended service-type warranty based on its estimated relative selling price, and recognize revenue over the period the warranty service is provided.

Revenue disaggregated

The following table represents our revenues disaggregated by geography (in thousands):

	For the three months ended September 30,				For the nine months ended September 30,
Geography	2019		2018		2019		2018
Europe, the Middle East and Africa	$	31,474	$	30,759	$	96,830	$	104,150
Other Foreign	53,398		51,569		156,353		154,278
Total Foreign	84,872		82,328		253,183		258,428
United States	222,599		244,841		697,502		801,234
Total Revenues	$	307,471	$	327,169	$	950,685	$	1,059,662

The following table represents our revenues disaggregated by product (in thousands):

	For the three months ended September 30,				For the nine months ended September 30,
Product line	2019		2018		2019		2018
Infusion Consumables	$	119,745	$	117,797	$	357,994	$	361,490
IV Solutions	98,159		114,433		313,976		394,198
Infusion Systems	78,932		81,456		244,523		263,271
Critical Care	10,635		13,483		34,192		40,703
Total Revenues	$	307,471	$	327,169	$	950,685	$	1,059,662

Contract balances

The following table presents our changes in the contract balances for the nine months ended September 30, 2019 and 2018 (in thousands):

	Contract Liabilities
Beginning balance, January 1, 2019	$	(4,282	)
Equipment revenue recognized	3,619
Equipment revenue deferred due to implementation	(6,869		)
Software revenue recognized	2,955
Software revenue deferred due to implementation	(3,115		)
Ending balance, September 30, 2019	$	(7,692	)
Beginning balance, January 1, 2018	$	(7,066	)
Equipment revenue recognized	3,136
Equipment revenue deferred due to implementation	(4,086		)
Software revenue recognized	5,649
Software revenue deferred due to implementation	(5,507		)
Ending balance, September 30, 2018	$	(7,874	)

As of September 30, 2019, revenue from remaining performance obligations related to implementation of software and equipment is $6.3 million. We expect to recognize substantially all of this revenue within the next three months. Revenue from

remaining performance obligations related to annual software licenses is $1.4 million. We expect to recognize substantially all of this revenue over the next twelve months.