Revenue Recognition
The Company's revenues by reportable segments are presented in Note 24.
Service revenues related to the work performed for the Company’s customers by its maintenance technicians generally represent a separate and distinct performance obligation. Control for these services passes to the customer as the services are performed.
A small portion of the Company's customer arrangements oblige the Company to create customized products for its customers that require the bundling of both products and services into a single performance obligation because the individual products and services that are required to fulfill the customer requirements do not meet the definition for a distinct performance obligation.
These customized products generally have no alternative use to the Company and the terms and conditions of these arrangements give the Company the enforceable right to payment for performance completed to date, including a reasonable profit margin. For these arrangements, control transfers over time and the Company measures progress towards completion by selecting the input or output method that best depicts the transfer of control of the underlying goods and services to the customer for each respective arrangement. Methods used by the Company to measure progress toward completion include labor hours, costs incurred and units of production. Revenues recognized over time for fiscal 2026, 2025 and 2024 amounted to $160,128, $188,270 and $251,820, respectively.
On March 31, 2026, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $212,695, of which, the Company estimates that approximately $112,110 will be recognized as revenue in fiscal 2027, $65,445 in fiscal 2028, $23,281 in fiscal 2029, $11,668 in fiscal 2030, and $191 in fiscal 2031 and beyond.
Any payments that are received from a customer in advance, prior to the satisfaction of a related performance obligation and billings in excess of revenue recognized, are deferred and treated as a contract liability. Advance payments and billings in excess of revenue recognized are classified as current or non-current based on the timing of when recognition of revenue is expected. As of March 31, 2026, the current and non-current portion of contract liabilities were $48,080 and $1,830, respectively. As of March 31, 2025, the current and non-current portion of contract liabilities were $28,820 and $488, respectively. Revenues recognized during fiscal 2026 and fiscal 2025, that were included in the contract liability at the beginning of the year, amounted to $8,086 and $11,967, respectively.
Amounts representing work completed and not billed to customers represent contract assets and were $93,798 and $71,774 as of March 31, 2026 and March 31, 2025, respectively.
The Company uses historic customer product return data as a basis of estimation for customer returns and records the reduction of sales at the time revenue is recognized. At March 31, 2026, the right of return asset related to the value of inventory anticipated to be returned from customers was $4,270 and refund liability representing amounts estimated to be refunded to customers was $6,997.