Contracts with Customers
Deferred Revenue and Contract Balances — Deferred revenue primarily represents contractual amounts received from customers that exceed revenue recognized for automation equipment sales. Our enforceable contractual obligations have
durations of less than one year and are included in current liabilities on the Consolidated Balance Sheets. The following table presents our contract assets and contract liabilities:
December 31, 2024December 31, 2023
Contract Assets$2.1 $1.4 
Contract Liabilities$3.4 $2.0 
The contract liability balance represents deferred revenue related to our automation contracts. Deferred revenue from our automation projects is recognized within twelve months.
During 2024, one customer comprised 10.2% of our net revenue. During 2023 and 2022, no customers exceeded 10% of net revenue.

Historical Timeline

Fiscal YearFiled
2024Mar 17, 2025Showing above
2022Mar 31, 2023
2021Feb 28, 2022
2020Mar 4, 2021
2019Mar 17, 2020

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.