Revenue (Notes)

9 Months Ended

Sep. 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 September 30,				For the nine months ended September 30,
Geography	2020		2019		2020		2019
Europe, the Middle East and Africa	$	32,596	$	31,474	$	99,107	$	96,830
Other Foreign	48,525		53,398		175,618		156,353
Total Foreign	81,121		84,872		274,725		253,183
United States	237,446		222,599		675,828		697,502
Total Revenues	$	318,567	$	307,471	$	950,553	$	950,685

    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	2020		2019		2020		2019
Infusion Consumables	$	116,054	$	119,745	$	350,554	$	357,994
Infusion Systems	88,388		78,932		267,856		244,523
IV Solutions	101,900		98,159		295,369		313,976
Critical Care	12,225		10,635		36,774		34,192
Total Revenues	$	318,567	$	307,471	$	950,553	$	950,685

Contract balances

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

	Contract Liabilities
Beginning balance, January 1, 2020	$	(4,855)
Equipment revenue recognized	9,920
Equipment revenue deferred due to implementation	(13,679)
Software revenue recognized	4,715
Software revenue deferred due to implementation	(5,033)
Ending balance, September 30, 2020	$	(8,932)
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)

    As of September 30, 2020, revenue from remaining performance obligations related to implementation of software and equipment is $7.6 million. We expect to recognize substantially all of this revenue within the next three to six months dependent on implementation restrictions due to the novel coronavirus ("COVID-19"). Revenue from remaining performance obligations related to annual software licenses is $1.3 million. We expect to recognize substantially all of this revenue over the next twelve months.