Revenue (Notes)

9 Months Ended

Sep. 30, 2021

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. However, for purposes of revenue recognition for our software licenses and renewals, we consider the control of these products to be transferred to a customer at a certain point in time; therefore, we recognize revenue at the start of the applicable license term.

    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. Chargebacks are the difference between the prices we charge our distribution customers and the contracted prices we have with the end customer which are processed as credits to our distribution customers. In estimating the expected value of chargeback amounts in order to determine the transaction price, we use information available at the time, including our historical experience.

    We also warranty 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. Our revenues are recorded at the net sales price, which includes an estimate for variable consideration related to rebates, chargebacks and product returns.

Revenue disaggregated

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

	Three months ended September 30,				Nine months ended September 30,
Geography	2021		2020		2021		2020
Europe, the Middle East and Africa	$	36,239	$	32,596	$	108,800	$	99,107
Other Foreign	54,523		48,525		169,667		175,618
Total Foreign	90,762		81,121		278,467		274,725
United States	245,298		237,446		697,316		675,828
Total Revenues	$	336,060	$	318,567	$	975,783	$	950,553

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

	Three months ended September 30,				Nine months ended September 30,
Product line	2021		2020		2021		2020
Infusion Consumables	$	144,850	$	116,054	$	407,419	$	350,554
Infusion Systems	90,688		88,388		259,683		267,856
IV Solutions	89,237		101,900		271,834		295,369
Critical Care	11,285		12,225		36,847		36,774
Total Revenues	$	336,060	$	318,567	$	975,783	$	950,553

Contract balances

    The following table presents our changes in the contract balances for the nine months ended September 30, 2021 and 2020 (in thousands):

	Contract Liabilities
Beginning balance, January 1, 2021	$	(6,430)
Equipment revenue recognized	7,193
Equipment revenue deferred due to implementation	(8,652)
Software revenue recognized	6,194
Software revenue deferred due to implementation	(2,967)
Ending balance, September 30, 2021	$	(4,662)
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)

    As of September 30, 2021, revenue from remaining performance obligations related to implementation of software and equipment is $3.3 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 and its variants ("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.