Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 9 Revenue Recognition

Revenue for sales of products and services is derived from contracts with customers. The products and services promised in contracts include the sale of utility water and flow instrumentation products, such as flow meters and radios, quality sensing equipment, software access and other ancillary services. Contracts generally state the terms of sale, including the description, quantity and price of each product or service. Since the customer typically agrees to a stated rate and price in the contract that does not vary over the life of the contract, the majority of the Company's contracts do not contain variable consideration. The Company establishes a provision for estimated warranty and returns as well as certain after sale costs as discussed in Note 2 "Additional Financial Information Disclosures" in the Notes to Unaudited Consolidated Condensed Financial Statements.

The Company disaggregates revenue from contracts with customers into geographical regions and by the timing of when goods and services are transferred. The Company determined that disaggregating revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors.

Information regarding revenues disaggregated by geographic area is as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
(In thousands)	2022		2021		2022		2021
Revenues:
United States	$	128,434	$	111,281	$	362,012	$	313,326
Foreign:
Asia		4,257		3,927		11,384		12,402
Canada		3,761		3,021		9,669		9,086
Europe		7,489		7,044		22,842		23,396
Mexico		1,034		948		2,419		4,025
Middle East		2,475		1,996		6,258		5,757
Other		559		521		3,660		1,457
Total	$	148,009	$	128,738	$	418,244	$	369,449

Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows:

	Three months ended						Nine months ended
	September 30,						September 30,
(In thousands)	2022			2021			2022			2021
Revenue recognized over time	$	9,324	6.3%	$	7,427	5.8%	$	25,554	6.1%	$	21,006	5.7%
Revenue recognized at a point in time		138,685	93.7%		121,311	94.2%		392,690	93.9%		348,443	94.3%
Total	$	148,009	100.0%	$	128,738	100.0%	$	418,244	100.0%	$	369,449	100.0%

The majority of the Company's revenue that is recognized over time relates to the BEACON® software as a service, but also includes training, certain installation and other revenues. The majority of the Company's revenue recognized at a point in time is for the sale of utility and flow instrumentation products. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during shipping.

The Company performs its obligations under a contract by shipping products or performing services in exchange for consideration. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable to the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods or services and the Company has not transferred control of the goods or services.

The closing balances of the Company's receivables and contract liabilities are as follows:

	September 30, 2022		December 31, 2021
(In thousands)
Receivables	$	83,491	$	65,866
Contract liabilities		37,205		30,194

Contract liabilities are included in Payables and Other long-term liabilities on the Company’s Consolidated Condensed Balance Sheets. The balance of contract assets was immaterial as the Company did not have a significant amount of uninvoiced receivables in the nine-month period ended September 30, 2022 and twelve-month period ended December 31, 2021.

A performance obligation is a promise to transfer a distinct good or service to the customer. At contract inception, the Company assesses the products and services promised in its contracts with customers. The Company then identifies performance obligations to transfer distinct products or services to the customer. In order to identify performance obligations, the Company considers all of the products or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices.

The Company's performance obligations are satisfied at a point in time or over time as work progresses. The majority of the Company's revenue recognized at a point in time is for the sale of utility and flow instrumentation products. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during the shipping process. The majority of the Company's revenue that is recognized over time relates to the BEACON software as a service.

As of September 30, 2022, the Company had certain contracts with unsatisfied performance obligations. For contracts recorded as contract liabilities, $37.2 million was the aggregate amount of the transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of the end of the reporting period. The Company estimates that revenue recognized from satisfying those performance obligations will be approximately $3.1 million in 2022, $6.3 million in 2023, $4.8 million in 2024, $4.0 million in 2025, $3.7 million in 2026, $3.3 million in 2027 and $12.0 million thereafter.