Revenue (Notes)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

        Our primary product lines are Infusion Consumables, Infusion Systems, IV Solutions 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 June 30,				For the six months ended June 30,
Geography	2020		2019		2020		2019
Europe, the Middle East and Africa	$	28,583	$	32,978	$	66,511	$	65,356
Other Foreign	66,572		51,594		127,093		102,955
Total Foreign	95,155		84,572		193,604		168,311
United States	208,224		227,710		438,382		474,903
Total Revenues	$	303,379	$	312,282	$	631,986	$	643,214

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

	For the three months ended June 30,				For the six months ended June 30,
Product line	2020		2019		2020		2019
Infusion Consumables	$	110,993	$	117,669	$	234,500	$	238,249
Infusion Systems	91,088		81,309		179,468		165,591
IV Solutions	89,178		102,635		193,469		215,817
Critical Care	12,120		10,669		24,549		23,557
Total Revenues	$	303,379	$	312,282	$	631,986	$	643,214

Contract balances

        The following table presents our changes in the contract balances for the six months ended June 30, 2020 and 2019 (in thousands):

	Contract Liabilities
Beginning balance, January 1, 2020	$	(4,855)
Equipment revenue recognized	3,263
Equipment revenue deferred due to implementation	(10,347)
Software revenue recognized	3,340
Software revenue deferred due to implementation	(3,643)
Ending balance, June 30, 2020	$	(12,242)
Beginning balance, January 1, 2019	$	(4,282)
Equipment revenue recognized	2,669
Equipment revenue deferred due to implementation	(3,860)
Software revenue recognized	1,947
Software revenue deferred due to implementation	(2,366)
Ending balance, June 30, 2019	$	(5,892)

        As of June 30, 2020, revenue from remaining performance obligations related to implementation of software and equipment is $10.7 million. We expect to recognize substantially all of this revenue within the next three to six months dependent on implementation restrictions due to COVID-19. Revenue from remaining performance obligations related to annual software licenses is $1.5 million. We expect to recognize substantially all of this revenue over the next twelve months.