6. REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregated Net Sales

For the presentation of net sales by segment and geographic region, see Note 17 included in these consolidated financial statements.

Allowance for Doubtful Accounts

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Allowance for doubtful accounts, beginning of period

 

$

1.6

 

 

$

6.5

 

 

$

9.9

 

Benefit

 

 

(0.1

)

 

 

(3.7

)

 

 

(3.2

)

Write-offs

 

 

 

 

 

(1.0

)

 

 

(0.5

)

Foreign exchange and other

 

 

0.1

 

 

 

(0.2

)

 

 

0.3

 

Allowance for doubtful accounts, end of period

 

$

1.6

 

 

$

1.6

 

 

$

6.5

 

 

Customer Contract Balances

The following table provides the balance sheet location and amounts of contract assets, or unbilled accounts receivable, and contract liabilities, or deferred revenue, from contracts with customers as of December 31, 2025 and December 31, 2024.

Contract Balance Type

 

Balance Sheet Location

 

2025

 

 

2024

 

Unbilled accounts receivable

 

Accounts receivable, net of allowance
   for doubtful accounts

 

$

9.4

 

 

$

10.3

 

 

 

 

 

 

 

 

 

 

Deferred revenue – current

 

Accrued and other liabilities

 

$

106.5

 

 

$

94.7

 

Deferred revenue – noncurrent

 

Other noncurrent liabilities

 

 

93.7

 

 

 

84.2

 

   Total contract liabilities

 

 

 

$

200.2

 

 

$

178.9

 

There were no material changes to contract asset balances for the year ended December 31, 2025 as a result of changes in estimates or impairments. The change in the contract liability balance from December 31, 2024 to December 31, 2025 was primarily due to upfront support billings to be recognized over the support term. During the year ended December 31, 2025, the Company recognized $98.2 million of revenue related to contract liabilities recorded as of December 31, 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 26, 2025
2023Feb 29, 2024
2022Feb 23, 2023
2021Feb 17, 2022
2020Feb 17, 2021
2019Feb 20, 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.