Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.20.1
Revenue Recognition
6 Months Ended
Mar. 31, 2020
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 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:
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  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

  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
 
 
 
 
 
 
 
 
 
 
 
  Plastics
$
202.2

 
$

 
$
202.2

 
$
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:
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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


 
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:
 
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