Note 4 - Revenue
The following table presents details deemed most relevant to the users of the financial statements about total revenue for the years ended December 31, 2025, 2024 and 2023:
| | | | | | | | | | | |
| December 31, 2025 |
| Engineered Bearings | Industrial Motion | Total |
| United States | $ | 1,245.8 | | $ | 830.4 | | $ | 2,076.2 | |
| Americas excluding United States | 370.6 | | 90.2 | | 460.8 | |
| Europe / Middle East / Africa | 587.2 | | 540.0 | | 1,127.2 | |
| | | |
| Asia-Pacific | 814.5 | | 103.1 | | 917.6 | |
| Net sales | $ | 3,018.1 | | $ | 1,563.7 | | $ | 4,581.8 | |
| | | |
| December 31, 2024 |
| Engineered Bearings | Industrial Motion | Total |
| United States | $ | 1,281.6 | | $ | 795.3 | | $ | 2,076.9 | |
| Americas excluding United States | 383.1 | | 102.7 | | 485.8 | |
| Europe / Middle East / Africa | 599.2 | | 520.7 | | 1,119.9 | |
| | | |
| Asia-Pacific | 770.4 | | 120.0 | | 890.4 | |
| Net sales | $ | 3,034.3 | | $ | 1,538.7 | | $ | 4,573.0 | |
| | | |
| December 31, 2023 |
| Engineered Bearings | Industrial Motion | Total |
| United States | $ | 1,266.1 | | $ | 789.8 | | $ | 2,055.9 | |
| Americas excluding United States | 375.6 | | 106.1 | | 481.7 | |
| Europe / Middle East / Africa | 678.6 | | 499.7 | | 1,178.3 | |
| | | |
| Asia-Pacific | 937.4 | | 115.7 | | 1,053.1 | |
| Net sales | $ | 3,257.7 | | $ | 1,511.3 | | $ | 4,769.0 | |
Net sales by geographic area are reported by the destination of net sales.
When reviewing revenues by sales channel, the Company separates net sales to OEMs from sales to distributors and end users. The following table presents the percent of revenues by sales channel for the years ended December 31, 2025, 2024 and 2023:
| | | | | | | | | | | |
| Revenue by sales channel | 2025 | 2024 | 2023 |
| Original equipment manufacturers | 60% | 55% | 60% |
| Distribution/end users | 40% | 45% | 40% |
In addition to disaggregating revenue by segment and geography and by sales channel as shown above, the Company believes information about the timing of transfer of goods or services and type of customer is also relevant. During the year ended December 31, 2025, approximately 9% of total net sales were recognized on an over-time basis compared to 10% and 9% in 2024 and 2023, respectively. These sales were recognized over-time due to the continuous transfer of control to the customer, with the remainder recognized as of a point in time. Finally, business with the U.S. government or its contractors represented approximately 7% of total net sales in 2025 and 2024, and 6% of total net sales for 2023.
Note 4 - Revenue (continued)
Remaining Performance Obligations:
Remaining performance obligations represent the transaction price of orders meeting the definition of a contract for which work has not been performed and excludes unexercised contract options. Performance obligations having a duration of more than one year are concentrated in contracts for certain products and services provided to the U.S. government or its contractors. The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $175 million at December 31, 2025.
Unbilled Receivables:
The following table contains a rollforward of unbilled receivables for the years ended December 31, 2025 and 2024:
| | | | | | | | |
| 2025 | 2024 |
| Beginning balance | $ | 140.8 | | $ | 144.5 | |
| Additional unbilled revenue recognized | 366.9 | | 380.5 | |
| Less: amounts billed to customers | (370.1) | | (384.2) | |
| | |
| | |
| Ending balance | $ | 137.6 | | $ | 140.8 | |
There were no impairment losses recorded on unbilled receivables for the years ended December 31, 2025 and 2024.
Deferred Revenue:
The following table contains a rollforward of deferred revenue for the years ended December 31, 2025 and 2024:
| | | | | | | | |
| 2025 | 2024 |
| Beginning balance | $ | 41.4 | | $ | 45.4 | |
| Acquisitions | — | | 0.7 | |
| Revenue (cash) received in advance | 180.9 | | 153.0 | |
| Less: revenue recognized | (166.6) | | (157.7) | |
| Ending balance | $ | 55.7 | | $ | 41.4 | |
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.