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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 March 31, 2020 and September 30, 2019 was $187.3 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 March 31, 2020 and September 30, 2019 was $176.6 and $158.2, respectively, and consists primarily of cash payments received in advance of satisfying performance obligations. The revenue recognized for the six months ended March 31, 2020 and 2019 related to liabilities from long-term manufacturing contracts and advances as of September 30, 2019 and 2018 was $87.8 and $107.0, respectively. During the three and six months ended March 31, 2020 and 2019, the adjustments related to performance obligations satisfied in previous periods were immaterial.
Transaction price allocated to the remaining performance obligations
As of March 31, 2020, the aggregate amount of transaction price of remaining performance obligations within the Process Equipment Group and Milacron reportable segments, which corresponds to backlog as defined in Item 2 of this Form 10-Q, was $1,169.5. Approximately 83% 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 fiscal 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:
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020 |
|
Six Months Ended March 31, 2020 |
|
Process Equipment Group |
|
Milacron |
|
Batesville |
|
Total |
|
Process Equipment Group |
|
Milacron |
|
Batesville |
|
Total |
End Market |
|
|
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|
|
|
|
|
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|
|
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Plastics |
$ |
206.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
206.6 |
|
|
$ |
408.7 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
408.7 |
|
Automotive |
— |
|
|
38.1 |
|
|
— |
|
|
38.1 |
|
|
— |
|
|
63.2 |
|
|
— |
|
|
63.2 |
|
Chemicals |
24.1 |
|
|
— |
|
|
— |
|
|
24.1 |
|
|
48.4 |
|
|
— |
|
|
— |
|
|
48.4 |
|
Consumer goods |
— |
|
|
19.3 |
|
|
— |
|
|
19.3 |
|
|
— |
|
|
37.6 |
|
|
— |
|
|
37.6 |
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Food and pharmaceuticals |
17.2 |
|
|
— |
|
|
— |
|
|
17.2 |
|
|
35.2 |
|
|
— |
|
|
— |
|
|
35.2 |
|
Custom molders |
— |
|
|
21.3 |
|
|
— |
|
|
21.3 |
|
|
— |
|
|
38.1 |
|
|
— |
|
|
38.1 |
|
Packaging |
— |
|
|
22.8 |
|
|
— |
|
|
22.8 |
|
|
— |
|
|
36.6 |
|
|
— |
|
|
36.6 |
|
Construction |
— |
|
|
14.9 |
|
|
— |
|
|
14.9 |
|
|
— |
|
|
31.8 |
|
|
— |
|
|
31.8 |
|
Minerals and mining |
15.4 |
|
|
— |
|
|
— |
|
|
15.4 |
|
|
28.7 |
|
|
— |
|
|
— |
|
|
28.7 |
|
Electronics |
— |
|
|
14.5 |
|
|
— |
|
|
14.5 |
|
|
— |
|
|
22.8 |
|
|
— |
|
|
22.8 |
|
Death care |
— |
|
|
— |
|
|
138.8 |
|
|
138.8 |
|
|
— |
|
|
— |
|
|
265.8 |
|
|
265.8 |
|
Other industrial |
47.8 |
|
|
68.1 |
|
|
— |
|
|
115.9 |
|
|
96.7 |
|
|
102.2 |
|
|
— |
|
|
198.9 |
|
Total |
$ |
311.1 |
|
|
$ |
199.0 |
|
|
$ |
138.8 |
|
|
$ |
648.9 |
|
|
$ |
617.7 |
|
|
$ |
332.3 |
|
|
$ |
265.8 |
|
|
$ |
1,215.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
Six Months Ended March 31, 2019 |
|
Process Equipment Group |
|
Batesville |
|
Total |
|
Process Equipment Group |
|
Batesville |
|
Total |
End Market |
|
|
|
|
|
|
|
|
|
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Plastics |
$ |
202.2 |
|
|
$ |
— |
|
|
$ |
202.2 |
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|
$ |
363.1 |
|
|
$ |
— |
|
|
$ |
363.1 |
|
Chemicals |
22.9 |
|
|
— |
|
|
22.9 |
|
|
52.5 |
|
|
— |
|
|
52.5 |
|
Food and pharmaceuticals |
24.4 |
|
|
— |
|
|
24.4 |
|
|
40.9 |
|
|
— |
|
|
40.9 |
|
Minerals and mining |
22.2 |
|
|
— |
|
|
22.2 |
|
|
50.2 |
|
|
— |
|
|
50.2 |
|
Death care |
— |
|
|
137.9 |
|
|
137.9 |
|
|
— |
|
|
266.0 |
|
|
266.0 |
|
Other industrial |
55.0 |
|
|
— |
|
|
55.0 |
|
|
102.2 |
|
|
— |
|
|
102.2 |
|
Total |
$ |
326.7 |
|
|
$ |
137.9 |
|
|
$ |
464.6 |
|
|
$ |
608.9 |
|
|
$ |
266.0 |
|
|
$ |
874.9 |
|
The following tables present net revenue by products and services:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020 |
|
Six Months Ended March 31, 2020 |
|
Process Equipment Group |
|
Milacron |
|
Batesville |
|
Total |
|
Process Equipment Group |
|
Milacron |
|
Batesville |
|
Total |
Products and Services |
|
|
|
|
|
|
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|
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|
|
|
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Equipment |
$ |
207.9 |
|
|
$ |
99.0 |
|
|
$ |
— |
|
|
$ |
306.9 |
|
|
$ |
413.9 |
|
|
$ |
181.2 |
|
|
$ |
— |
|
|
$ |
595.1 |
|
Parts and services |
103.2 |
|
|
58.3 |
|
|
— |
|
|
161.5 |
|
|
203.8 |
|
|
90.5 |
|
|
— |
|
|
294.3 |
|
Death care |
— |
|
|
— |
|
|
138.8 |
|
|
138.8 |
|
|
— |
|
|
— |
|
|
265.8 |
|
|
265.8 |
|
Other |
— |
|
|
41.7 |
|
|
— |
|
|
41.7 |
|
|
— |
|
|
60.6 |
|
|
— |
|
|
60.6 |
|
Total |
$ |
311.1 |
|
|
$ |
199.0 |
|
|
$ |
138.8 |
|
|
$ |
648.9 |
|
|
$ |
617.7 |
|
|
$ |
332.3 |
|
|
$ |
265.8 |
|
|
$ |
1,215.8 |
|
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|
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
Six Months Ended March 31, 2019 |
|
Process Equipment Group |
|
Batesville |
|
Total |
|
Process Equipment Group |
|
Batesville |
|
Total |
Products and Services |
|
|
|
|
|
|
|
|
|
|
|
Equipment |
$ |
227.6 |
|
|
$ |
— |
|
|
$ |
227.6 |
|
|
$ |
411.0 |
|
|
$ |
— |
|
|
$ |
411.0 |
|
Parts and services |
99.1 |
|
|
— |
|
|
99.1 |
|
|
197.9 |
|
|
— |
|
|
197.9 |
|
Death care |
— |
|
|
137.9 |
|
|
137.9 |
|
|
— |
|
|
266.0 |
|
|
266.0 |
|
Total |
$ |
326.7 |
|
|
$ |
137.9 |
|
|
$ |
464.6 |
|
|
$ |
608.9 |
|
|
$ |
266.0 |
|
|
$ |
874.9 |
|
The following tables present net revenue by timing of transfer:
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|
|
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020 |
|
Six Months Ended March 31, 2020 |
|
Process Equipment Group |
|
Milacron |
|
Batesville |
|
Total |
|
Process Equipment Group |
|
Milacron |
|
Batesville |
|
Total |
Timing of Transfer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Point in time |
$ |
149.4 |
|
|
$ |
199.0 |
|
|
$ |
138.8 |
|
|
$ |
487.2 |
|
|
$ |
296.7 |
|
|
$ |
332.3 |
|
|
$ |
265.8 |
|
|
$ |
894.8 |
|
Over time |
161.7 |
|
|
— |
|
|
— |
|
|
161.7 |
|
|
321.0 |
|
|
— |
|
|
— |
|
|
321.0 |
|
Total |
$ |
311.1 |
|
|
$ |
199.0 |
|
|
$ |
138.8 |
|
|
$ |
648.9 |
|
|
$ |
617.7 |
|
|
$ |
332.3 |
|
|
$ |
265.8 |
|
|
$ |
1,215.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
Six Months Ended March 31, 2019 |
|
Process Equipment Group |
|
Batesville |
|
Total |
|
Process Equipment Group |
|
Batesville |
|
Total |
Timing of Transfer |
|
|
|
|
|
|
|
|
|
|
|
Point in time |
$ |
176.8 |
|
|
$ |
137.9 |
|
|
$ |
314.7 |
|
|
$ |
340.5 |
|
|
$ |
266.0 |
|
|
$ |
606.5 |
|
Over time |
149.9 |
|
|
— |
|
|
149.9 |
|
|
268.4 |
|
|
— |
|
|
268.4 |
|
Total |
$ |
326.7 |
|
|
$ |
137.9 |
|
|
$ |
464.6 |
|
|
$ |
608.9 |
|
|
$ |
266.0 |
|
|
$ |
874.9 |
|
|