Note 2 - Revenue Recognition
|3 Months Ended|
Sep. 30, 2018
|Notes to Financial Statements|
|Revenue from Contract with Customer [Text Block]||
Consumables revenues consist of single-use products and are recognized at a point in time following the transfer of control of such products to the customer, which generally occurs upon shipment. Instruments revenues typically consist of longer-lived assets that, for the substantial majority of sales, are recognized at a point in time in a manner similar to consumables. Service revenues consist of extended warranty contracts, post contract support (“PCS”), and custom development projects that are recognized over time as customers receive and consume the benefits of such services. Royalty revenues are based on net sales of the Company’s licensed products by a
thirdparty. We recognize royalty revenues in the period the sales occur based on
thirdparty evidence received.
Contracts with customers that contain instruments
mayinclude multiple performance obligations. For these contracts, the Company allocates the contract’s transaction price to each performance obligation on a relative standalone selling price basis. Allocation of the transaction price is determined at the contracts’ inception.
Payment terms for shipments to end-users are generally net
30days. Payment terms for distributor shipments
90days. Service arrangements commonly call for payments in advance of performing the work (e.g. extended warranty and service contracts), upon completion of the service (e.g. custom development manufacturing) or a mix of both.
Contract assets include revenues recognized in advance of billings. Contract assets are included within other current assets in the accompanying balance sheet as the amount of time expected to lapse until the company's right to consideration becomes unconditional is less than
oneyear. We elected the practical expedient allowing us to expense contract costs that would otherwise be capitalized and amortized over a period of less than
oneyear. Contract assets as of
September 30, 2018are
Contract liabilities include billings in excess of revenues recognized, such as those resulting from customer advances and deposits and unearned revenue on warranty contracts. Contract liabilities as of the adoption date and subsequently recognized as revenue during the
firstquarter of fiscal year
$3.8million. Contract liabilities as of
September 30, 2018were approximately
$10.6million. Long-term contract liabilities are included in the Other long-term liabilities on the balance sheet.
Any claims for credit or return of goods must be made within
10days of receipt. Revenues are reduced to reflect estimated credits and returns. Although the amounts recorded for these revenue deductions are dependent on estimates and assumptions, historically our adjustments to actual results have
Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenue. Amounts billed to customers for shipping and handling are included in revenue, while the related shipping and handling costs are reflected in cost of products. We have elected the practical expedient that allows us to account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment cost, and we accrue costs of shipping and handling when the related revenue is recognized.
The following tables present our disaggregated revenue for the periods presented.
Revenue by type is as follows:
Revenue by geography is as follows:
The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef