v3.24.3
Revenues
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The outstanding contract asset and liability accounts were as follows:
20242023
(In thousands)
Contract assets—January 1$140,826 $119,741 
Contract assets – September 30151,451 139,771 
Change in contract assets – increase (decrease)10,625 20,030 
Contract liabilities – January 1432,830 398,692 
Contract liabilities – September 30396,172 422,415 
Change in contract liabilities – decrease (increase)36,658 (23,723)
Net change$47,283 $(3,693)
The net change for the nine months ended September 30, 2024 was primarily driven by contract liabilities, specifically lower advance payments from customers. For the nine months ended September 30, 2024 and 2023, the Company recognized revenue of $324.8 million and $297.7 million, respectively, that was previously included in the beginning balance of contract liabilities.
Contract assets are reported as a component of Other current assets in the consolidated balance sheet. At September 30, 2024 and December 31, 2023, $45.3 million and $57.3 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets.
The remaining performance obligations not expected to be completed within one year as of September 30, 2024 and December 31, 2023 were $611.2 million and $607.5 million, respectively. Remaining performance obligations represent the transaction price of firm, non-cancelable orders, with expected delivery dates to customers greater than one year from the balance sheet date, for which the performance obligation is unsatisfied or partially unsatisfied. These performance obligations will be substantially satisfied within two to three years.
Geographic Areas
Net sales were attributed to geographic areas based on the location of the customer. Information about the Company’s operations in different geographic areas was as follows for the three and nine months ended September 30:
Three months ended September 30, 2024Nine months ended September 30, 2024
EIG
EMG
Total
EIGEMGTotal
(In thousands)
United States$561,273 $333,575 $894,848 $1,732,847 $1,019,636 $2,752,483 
International(1):
United Kingdom25,247 31,160 56,407 79,713 95,107 174,820 
European Union countries123,271 109,071 232,342 393,941 331,047 724,988 
Asia301,858 60,008 361,866 881,893 166,517 1,048,410 
Other foreign countries122,939 40,162 163,101 356,586 122,291 478,877 
Total international573,315 240,401 813,716 1,712,133 714,962 2,427,095 
Consolidated net sales$1,134,588 $573,976 $1,708,564 $3,444,980 $1,734,598 $5,179,578 
________________
(1)    Includes U.S. export sales of $465.1 million and $1,374.4 million for the three and nine months ended September 30, 2024, respectively.

Three months ended September 30, 2023Nine months ended September 30, 2023
EIGEMGTotalEIGEMGTotal
(In thousands)
United States$616,988 $274,146 $891,134 $1,754,165 $805,876 $2,560,041 
International(1):
United Kingdom23,327 30,348 53,675 74,515 89,812 164,327 
European Union countries115,026 99,931 214,957 381,495 327,614 709,109 
Asia271,922 47,699 319,621 846,450 151,357 997,807 
Other foreign countries108,867 34,583 143,450 331,398 103,383 434,781 
Total international519,142 212,561 731,703 1,633,858 672,166 2,306,024 
Consolidated net sales$1,136,130 $486,707 $1,622,837 $3,388,023 $1,478,042 $4,866,065 
______________
(1)    Includes U.S. export sales of $391.7 million and $1,265.0 million for the three and nine months ended September 30, 2023, respectively.

Major Products and Services
The Company’s major products and services in the reportable segments were as follows:
Three months ended September 30, 2024Nine months ended September 30, 2024
EIGEMGTotalEIGEMGTotal
(In thousands)
Process and analytical instrumentation$779,772 $— $779,772 $2,374,034 $— $2,374,034 
Aerospace and power354,816 160,177 514,993 1,070,946 467,092 1,538,038 
Automation and engineered solutions— 413,799 413,799 — 1,267,506 1,267,506 
Consolidated net sales$1,134,588 $573,976 $1,708,564 $3,444,980 $1,734,598 $5,179,578 

Three months ended September 30, 2023Nine months ended September 30, 2023
EIGEMGTotalEIGEMGTotal
(In thousands)
Process and analytical instrumentation$801,027 $— $801,027 $2,394,127 $— $2,394,127 
Aerospace and power335,103 146,843 481,946 993,896 439,685 1,433,581 
Automation and engineered solutions— 339,864 339,864 — 1,038,357 1,038,357 
Consolidated net sales$1,136,130 $486,707 $1,622,837 $3,388,023 $1,478,042 $4,866,065 
Timing of Revenue Recognition
Three months ended September 30, 2024Nine months ended September 30, 2024
EIG
EMG
Total
EIGEMGTotal
(In thousands)
Products transferred at a point in time$904,622 $515,035 $1,419,657 $2,776,552 $1,557,412 $4,333,964 
Products and services transferred over time229,966 58,941 288,907 668,428 177,186 845,614 
Consolidated net sales$1,134,588 $573,976 $1,708,564 $3,444,980 $1,734,598 $5,179,578 

Three months ended September 30, 2023Nine months ended September 30, 2023
EIG
EMG
Total
EIGEMGTotal
(In thousands)
Products transferred at a point in time$937,382 $437,542 $1,374,924 $2,809,624 $1,314,761 $4,124,385 
Products and services transferred over time198,748 49,165 247,913 578,399 163,281 741,680 
Consolidated net sales$1,136,130 $486,707 $1,622,837 $3,388,023 $1,478,042 $4,866,065 

Product Warranties
The Company provides limited warranties in connection with the sale of its products. The warranty periods for products sold vary among the Company’s operations, but the majority do not exceed one year. The Company calculates its warranty expense provision based on its historical warranty experience and adjustments are made periodically to reflect actual warranty expenses. Product warranty obligations are reported as a component of Accrued liabilities and other in the consolidated balance sheet.

Changes in the accrued product warranty obligation were as follows:
Nine Months Ended September 30,
20242023
(In thousands)
Balance at the beginning of the period$37,087 $26,487 
Accruals for warranties issued during the period18,049 15,711 
Settlements made during the period(16,219)(10,868)
Warranty accruals related to acquired businesses and other during the period247 21 
Balance at the end of the period$39,164 $31,351 
Accounts Receivable
The Company maintains allowances for estimated losses resulting from the inability of customers to meet their financial obligations to the Company. The Company recognizes an allowance for credit losses, on all accounts receivable and contract assets, which considers risk of future credit losses based on factors such as historical experience, contract terms, as well as general and market business conditions, country, and political risk. Balances are written off when determined to be uncollectible.
At September 30, 2024, the Company had $968.2 million of accounts receivable, net of allowances of $14.3 million. Changes in the allowance were not material for the three and nine months ended September 30, 2024.