Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.19.3.a.u2
Revenue Recognition
3 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Revenue Recognition

Net revenue includes gross revenue less sales discounts, customer rebates, sales incentives, and product returns, all of which require the Company to make estimates for the portion of these allowances that have yet to be credited or paid to customers. The Company estimates these allowances using the expected value method, which is based upon historical rates and projections of customer purchases toward contractual rebate thresholds.

Contract balances

The balance in receivables from long-term manufacturing contracts at December 31, 2019 and September 30, 2019 was $205.9 and $181.1, respectively. The change was driven by the impact of net revenue recognized prior to billings. The balance in the liabilities from long-term manufacturing contracts and advances at December 31, 2019 and September 30, 2019 was $183.1 and $158.2, respectively, and consists primarily of cash payments received or due in advance of satisfying performance obligations. The revenue recognized for the three months ended December 31, 2019 and 2018 related to liabilities from long-term manufacturing
contracts and advances as of September 30, 2019 and 2018 was $55.3 and $78.0, respectively. During the three months ended December 31, 2019 and 2018, the adjustments related to performance obligations satisfied in previous periods were immaterial.

Transaction price allocated to the remaining performance obligations
                                            
As of December 31, 2019, the aggregate amount of transaction price of remaining performance obligations, which corresponds to backlog as defined in Item 2 of this Form 10-Q, for the Company was $1,047.7. Approximately 85% of these performance obligations are expected to be satisfied over the next twelve months, and the remaining performance obligations, primarily within one to three years.

Disaggregation of revenue

As a result of completing the acquisition of Milacron during the current year, the Company now sells products in the following additional end markets: custom molders, automotive, consumer goods, packaging, electronics, and construction. The following tables present net revenue by end market, which include reclassifications in the prior year period to conform to the current year presentation:
 
Three Months Ended December 31, 2019
 
Process Equipment Group
 
Milacron
 
Batesville
 
Total
Revenue by End Market
 
 
 
 
 
 
 
  Plastics
$
202.0

 
$

 
$

 
$
202.0

  Automotive

 
25.0

 

 
25.0

  Chemicals
24.4

 

 

 
24.4

  Consumer goods

 
18.4

 

 
18.4

  Food and pharmaceuticals
18.0

 

 

 
18.0

  Custom molders

 
16.8

 

 
16.8

Construction

 
16.8

 

 
16.8

Packaging

 
13.8

 

 
13.8

  Minerals and mining
13.3

 

 

 
13.3

  Electronics

 
8.3

 

 
8.3

  Death care

 

 
127.0

 
127.0

  Other industrial
48.9

 
34.2

 

 
83.1

    Total
$
306.6

 
$
133.3

 
$
127.0

 
$
566.9

 
Three Months Ended December 31, 2018
 
Process Equipment Group
 
Batesville
 
Total
Revenue by End Market
 
 
 
 
 
  Plastics
$
160.9

 
$

 
$
160.9

  Chemicals
29.6

 

 
29.6

Minerals and mining
28.0

 

 
28.0

Food and pharmaceuticals
16.5

 

 
16.5

  Death care

 
128.1

 
128.1

  Other industrial
47.2

 

 
47.2

    Total
$
282.2

 
$
128.1

 
$
410.3


The following tables present net revenue by products and services:
 
Three Months Ended December 31, 2019
 
Process Equipment Group
 
Milacron
 
Batesville
 
Total
Products and Services
 
 
 
 
 
 
 
Equipment
$
206.0

 
$
82.2

 
$

 
$
288.2

Parts and services
100.6

 
32.2

 

 
132.8

Death care

 

 
127.0

 
127.0

Other

 
18.9

 

 
18.9

    Total
$
306.6

 
$
133.3

 
$
127.0

 
$
566.9


 
Three Months Ended December 31, 2018
 
Process Equipment Group
 
Batesville
 
Total
Products and Services
 
 
 
 
 
Equipment
$
183.4

 
$

 
$
183.4

Parts and services
98.8

 

 
98.8

Death care

 
128.1

 
128.1

    Total
$
282.2

 
$
128.1

 
$
410.3


The following tables present net revenue by timing of transfer:
 
Three Months Ended December 31, 2019
 
Process Equipment Group
 
Milacron
 
Batesville
 
Total
Timing of Transfer
 
 
 
 
 
 
 
Point in time
$
147.3

 
$
133.3

 
$
127.0

 
$
407.6

Over time
159.3

 

 

 
159.3

    Total
$
306.6

 
$
133.3

 
$
127.0

 
$
566.9


 
Three Months Ended December 31, 2018
 
Process Equipment Group
 
Batesville
 
Total
Timing of Transfer
 
 
 
 
 
Point in time
$
163.7

 
$
128.1

 
$
291.8

Over time
118.5

 

 
118.5

    Total
$
282.2

 
$
128.1

 
$
410.3