v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Revenue is recognized at a point-in-time or over time when performance obligations are satisfied. When revenue is recognized at a point-in-time, control generally transfers at time of shipment. Revenues are recognized over time if the customer simultaneously receives control as the Company performs work under a contract, if the customer controls the asset as it is being produced, or if the product produced for the customer has no alternative use and the Company has a contractual right to payment with a reasonable profit margin. Revenue recognized over time relates solely to our Commercial segment. Revenue is measured based on the amount of consideration the Company expects to receive, reduced for estimates for return allowances, discounts and rebates. Product returns, customer allowances and rebates are estimated based on contractual obligations, historical experience and known trends. Revenues also exclude any impacts from value-added taxes, sales tax and other taxes where the Company is a pass-through conduit for collecting and remitting such taxes to governmental authorities. Taxes collected are included in accrued expenses and other current liabilities until the taxes are remitted to the appropriate taxing authorities. Payment terms vary by customer and the time between invoicing and due date is typically not significant.
Substantially all sales are made on credit to customers located throughout the world. Accounts receivable are stated at original invoice amounts less an estimate made for credit losses, returns, discounts, rebates and other customer allowances. Accounts receivable acquired as part of a business combination are recorded at fair value. The Company determines an allowance for credit losses for the current expected credit losses inherent over the expected life. The allowance for credit losses is a valuation account deducted from the amortized cost basis to present the net carrying value at the amount expected to be collected. Each period, the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets. The Company estimates expected credit losses based on historical experience, current and projected economic conditions, and reasonable and supportable forecasts that affect the collectability. The allowance for credit losses was $5.2 and $3.8 as of June 30, 2026 and December 31, 2025, respectively.
For the three and six months ended June 30, 2026 the Company had one customer account for approximately 12.3% and 12.2% of our net sales, respectively. The same customer accounted for approximately 13.7% of our accounts receivable balance as of June 30, 2026, respectively.
Customer sales disaggregated by the timing of transfer are as follows:
Three months ended June 30,Six months ended June 30,
2026202520262025
Products transferred at a point in time$963.7 $783.8 $1,864.1 $1,452.2 
Products transferred over time27.6 35.8 50.9 57.8 
Net Sales$991.3 $819.6 $1,915.0 $1,510.0 
The transaction prices for long-term contracts are primarily fixed; however, transaction prices may include variable consideration which includes, for example increases or decreases to the transaction price for change orders. Change orders which modify the scope of terms of an original contract are included in the transaction price once approved, the recovery amount is probable and the amount can be reliably estimated. As of June 30, 2026, the aggregate amount of the transaction prices allocated to the remaining performance obligations was $22.8, and the Company will recognize this revenue when equipment is delivered or installation service is completed, which is expected to occur over the next 12 to 36 months. Future contract modifications could affect the timing and the amount of the remaining performance obligations. The aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations excludes the value of remaining performance obligations for service contracts with an original expected duration of one year or less and contracts that are cancellable without penalty consistent with the transaction price.
The timing of revenue recognition, billings and cash collections results in contract assets and contract liabilities. Contract assets relate to the conditional right to consideration for any completed performance under a contract when costs are incurred in excess of billings. Contract liabilities relate to payments received in advance of performance under a contract or when the Company has a right to consideration that is conditioned upon transfer of good or service to the customer. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract. The Company does not capitalize costs to obtain a contract as these amounts would generally be recognized over a period less than one year and are not material.
Total contract assets and liabilities consisted of the following:
June 30, 2026December 31, 2025
Contract assets, current (included in accounts receivable, net)$36.9 $43.3 
Total contract assets36.9 43.3 
Contract liabilities, current (included in customer deposits and deferred revenue)(139.5)(128.3)
Contract liabilities, long-term (included in other long-term liabilities)(12.4)(13.3)
Total contract liabilities(151.9)(141.6)
Net contract assets (liabilities)$(115.0)$(98.3)
The Company recognized revenue of $25.7 and $65.4 for the three and six months ended June 30, 2026, respectively, from contract liability balances at December 31, 2025. The Company expects a majority of its contract liabilities at the end of the period to be recognized as revenue over the next 12 months.