Revenue disaggregation (ASC 606): disclosure examples
Verbatim excerpt (195 words), formatting simplified. View full filing on EDGAR →The Company operates in one reportable business segment: manufacturing and servicing of wafer processing semiconductor manufacturing equipment. Refer to Note 19: Segment, Geographic Information, and Major Customers for additional information regarding the Company’s evaluation of reportable business segments and the disaggregation of revenue by the geographic regions in which the Company operates.
Additionally, the Company serves three primary markets: memory, foundry, and logic/integrated device manufacturing. The following table presents the percentages of leading- and non-leading-edge equipment and upgrade revenue to each of the primary markets the Company serves:
Year Ended June 28, 2026 June 29, 2025 June 30, 2024 Foundry 54 45 40 Memory 39 42 42 Logic/integrated device manufacturing 7 13 18 Deferred Revenue
Revenue of $ 2.09 billion included in deferred profit at June 29, 2025 was recognized during fiscal year 2026, representing 78 % of the $ 2.68 billion of deferred revenue as of June 29, 2025.
The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of June 28, 2026 and when the Company expects to recognize the amounts as revenue:
Verbatim excerpt (392 words), formatting simplified. View full filing on EDGAR →We disaggregate revenue by type of product, which are Components and Systems, and by geography. A Components product is defined as one of the individual building blocks that goes into creating a larger solution. It is typically not a complete solution on its own but rather a specialized element that enables system functionality. This includes semiconductor laser chips, laser sub-assemblies, line subsystems and wavelength management systems. These are supplied to customers who then integrate them into their own full system solutions. Components represent foundational parts that support or enable that system’s operation and include optical chips and subsystems that are supplied to cloud data center operators, AI/ML infrastructure providers, and network equipment manufacturer customers.
A Systems product is defined as a complete, stand-alone solution that delivers full functionality to the end customer. It is typically self-contained and ready to operate within a customer’s network or application environment. This includes optical modules, optical circuit switches, and industrial lasers such as short-pulse solid-state lasers and kilowatt-class fiber lasers. These products integrate multiple technologies and subsystems into a finished solution that directly addresses a customer’s needs. A system represents the end-product that can be deployed and used independently.
Our products enable high-capacity optical links for cloud computing, AI/ML workloads, and data center interconnect (“DCI”) applications, as well as for communications service provider networks. Our offerings support access (local), metro (intracity), long-haul (intercity and global), and submarine (undersea) network infrastructure. Our products serve enterprise network infrastructure needs, including storage area networks (“SANs”), local area networks (“LANs”), and wide area networks (“WANs”). Demand for our products is fueled by the ongoing expansion of network capacity required to support cloud services, AI/ML processing, streaming video, video conferencing, wireless and mobile connectivity, and the internet of things (“IoT”). In addition, our industrial laser products are used for precision material processing across diverse industries, including semiconductor and microelectronics fabrication, electric vehicle and battery production, metal cutting and welding, and advanced manufacturing that emphasize greater manufacturing precision, flexibility, and sustainability.
We have a global footprint that enables us to address global market opportunities for our products with employees engaged in research and development (“R&D”), administration, manufacturing, support and sales and marketing activities in various locations worldwide. Our headquarters are located in San Jose, California, and we have manufacturing capabilities and facilities in North America, Asia-Pacific, and Europe.
Verbatim excerpt (391 words), formatting simplified. View full filing on EDGAR →The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands):
Fiscal Year Ended 2024 2025 2026 United States 1,979,325 2,207,375 2,464,546 Rest of the world 851,296 960,789 1,198,297 Total revenue 2,830,621 3,168,164 3,662,843 Long-Lived Assets by Geographic Area
Long-lived assets, which are comprised of property and equipment, net, by geographic area are summarized as follows (in thousands):
At the End of Fiscal 2025 2026 United States 448,035 569,932 Rest of the world 13,696 17,090 Total long-lived assets 461,731 587,022 Note 16. Employee Benefits and Deferred Compensation
We have a 401(k) savings plan (the 401(k) plan) which qualifies as a deferred salary arrangement under section 401(k) of the Internal Revenue Code. Under the 401(k) plan, participating employees may elect to contribute up to 85 % of their eligible compensation, subject to certain limitations. We currently match 50 % of employees’ contributions up to a maximum of $ 4,000 annually. Matching contributions immediately vest. Our contributions to the plan were $ 13.5 million, $ 14.1 million and $ 14.7 million during fiscal 2024, 2025 and 2026.
We have a NQDC whereby executive officers, senior management and members of our Board of Directors may elect to defer compensation payable to them in excess of the IRS limits imposed on 401(k) plans. Deferred compensation payments are held in investment accounts that reside in a trust. The fair value of the deferred compensation plan assets and liabilities under the NQDC was $ 8.4 million and $ 15.9 million at the end of fiscal 2025 and 2026.
Note 17. Subsequent Events
On February 20, 2026, we entered into a definitive agreement to acquire 100 % of the equity interests in 1touch, an innovator in data intelligence and orchestration that provides a comprehensive, unified view of an enterprise's information, for total stated cash consideration of $ 125.0 million, subject to customary closing adjustments including net working capital, closing indebtedness, closing cash, and transaction expenses as defined in the agreement. The transaction, which is expected to close in the second quarter of fiscal 2027, remains subject to satisfaction of customary closing conditions.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Verbatim excerpt (288 words), formatting simplified. View full filing on EDGAR →The Company provides disaggregation of revenue based on product and service type on the consolidated statements of operations as it believes these categories best depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
Contract Balances
The following table provides information about accounts receivable, unbilled accounts receivable, and contract liabilities from contracts with customers (in thousands):
September 27, 2025 September 28, 2024 Accounts receivable 186,705 201,548 Unbilled accounts receivable 181,658 218,233 Contract liabilities 1,367,244 805,547 The change in the opening and closing balances of the Company’s accounts receivable primarily results from the increase in customer system implementations in the current fiscal year as well as the timing of when customer payments are due. The change in the opening and closing balances of the Company’s unbilled accounts receivable and contract liabilities primarily results from the timing difference between the Company’s performance and customer payments. The Company’s performance obligations are typically satisfied over time as work is performed. Payment from customers can vary and is often received in advance of satisfaction of the performance obligations, resulting in a contract liability balance. When satisfaction of the performance obligations occurs in advance of invoicing or payment being received, an unbilled accounts receivable is generated. For the year ended September 30, 2023, the ending balance of accounts receivable, unbilled accounts receivable, and contract liabilities was $ 69.2 million, $ 121.1 million, and $ 787.2 million, respectively. During the years ended September 27, 2025 and September 28, 2024, the Company recognized $ 737.2 million and $ 723.2 million, respectively, of the contract liability balance at the beginning of the period as revenue upon transfer of the products or services to customers.
2025 Walmart Master Automation Agreement
Verbatim excerpt (342 words), formatting simplified. View full filing on EDGAR →In 2025, we started to present revenue and cost of revenue in a single line on the accompanying consolidated statement of operations. Accordingly, we recast our presentation of revenue and cost of revenue for the years ended December 31, 2024 and 2023 to conform with the current year presentation. See Revenue Recognition section of Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K for additional information related to the disaggregation of revenue. In addition, we included in this section a detailed discussion comparing our revenue and cost of revenue under the recast presentation for the years ended December 31, 2024 and 2023.
Overview
We are a leading precision oncology company focused on guarding wellness and giving every person more time free from cancer. We are transforming patient care by providing critical insights into what drives disease through our advanced blood and tissue tests, real-world data and AI analytics. Our tests help improve outcomes across all stages of care, including screening to find cancer early, monitoring for recurrence in early-stage cancer, and treatment selection for patients with advanced cancer. For patients with advanced-stage cancer, we offer the Guardant360 Liquid test, formerly known as the Guardant360 LDT test, and the Guardant360 CDx test, the first comprehensive liquid biopsy test approved by the U.S. Food and Drug Administration, or the FDA, to provide tumor mutation profiling with solid tumors and to be used as a companion diagnostic in connection with non-small cell lung cancer, or NSCLC, colorectal cancer and breast cancer. We also offer the Guardant360 Tissue test for advanced-stage cancer and the Guardant Reveal test to detect residual and recurring disease in early-stage colorectal, breast and lung cancer patients. We have also expanded the Guardant Reveal test to include late-stage therapy response monitoring for patients with solid tumors. Our product portfolio is now powered by our Smart Platform, which utilizes methylation technology with genomic, epigenomic, and RNA-based data, to unlock multi-modal biology with proprietary chemistry, advanced algorithms and our InfinityAI learning engine.
Verbatim excerpt (346 words), formatting simplified. View full filing on EDGAR →
Fiscal Year Ended July 31, 2024 2025 2026 (in thousands) Disaggregation of revenue: Subscription revenue 2,016,776 2,410,751 2,712,274 Professional services and other revenue (1) 132,040 127,176 141,271 Total revenue 2,148,816 2,537,927 2,853,545 Prior to fiscal 2026, these amounts were presented as separate line items, Professional services and Other non-subscription product, as described below. Prior period amounts have been updated to conform to the current period presentation.
Subscription revenue — Subscription revenue includes any performance obligation which has a defined duration and is generated from the sales of software maintenance subscriptions, support subscriptions, subscription software licenses and cloud-based SaaS offerings.
Ratable — We recognize revenue from software maintenance subscriptions, support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software maintenance subscriptions and support subscriptions. These offerings represented approximately $1,029.0 million, $1,138.4 million and $1,299.7 million of our subscription revenue for fiscal 2024, 2025 and 2026, respectively.
Upfront — We generally recognize revenue from our subscription software licenses upfront upon the transfer of control to the customer. For sales of our software purchased alongside a server from an OEM or other partner, revenue is typically recognized upon shipment of the server. For software sold separately from a server, revenue is typically recognized when the software is made available to the customer. These subscription software licenses represented approximately $987.8 million, $1,272.4 million and $1,412.6 million of our subscription revenue for fiscal 2024, 2025 and 2026, respectively.
Professional services and other revenue — Includes Professional services revenue and Other non-subscription product revenue, as described below:
Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed. Professional services revenue was approximately $100.9 million, $112.2 million, and $126.6 million for fiscal 2024, 2025 and 2026, respectively.
Other non-subscription product revenue — Includes non-portable software revenue and hardware revenue, which were immaterial for the periods presented.
NUTANIX, INC.
Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Non-GAAP Financial Measures and Key Performance Measures
Verbatim excerpt (348 words), formatting simplified. View full filing on EDGAR →See Note 4 for comparative information of the Company's overall revenue by segment, end-use market and geographical location. The Company believes further disaggregation of revenue is impracticable. Net sales and operating income by segment for the years ended June 30, 2026, 2025 and 2024 were as follows:
Year Ended June 30, 2026 Year Ended June 30, 2025 Year Ended June 30, 2024 ($ in millions) SAO PEP Total SAO PEP Total SAO PEP Total Sales to external customers 2,811.7 312.5 3,124.2 2,548.7 328.4 2,877.1 2,432.8 326.9 2,759.7 Intersegment sales 15.1 70.5 85.6 14.9 77.0 91.9 11.0 84.1 95.1 Total sales 2,826.8 383.0 3,209.8 2,563.6 405.4 2,969.0 2,443.8 411.0 2,854.8 Reconciliation of sales Elimination of intersegment ( 85.6 ) ( 91.9 ) ( 95.1 ) Consolidated net sales 3,124.2 2,877.1 2,759.7 Less: (a) Cost of sales 1,920.7 331.9 2,252.6 1,855.8 344.0 2,199.8 1,923.0 349.5 2,272.5 Other segment items (b) 123.2 21.0 144.2 119.2 24.4 143.6 112.3 25.5 137.8 Segment operating income 782.9 30.1 813.0 588.6 37.0 625.6 408.5 36.0 444.5 Reconciliation of operating income Corporate costs (c) ( 108.7 ) ( 102.9 ) ( 123.0 ) Elimination of intersegment ( 2.3 ) ( 0.9 ) 1.6 Consolidated operating income 702.0 521.8 323.1 Other items: Interest expense, net 37.8 48.4 51.0 Debt extinguishment losses 15.6 — — Other (income) expense, net ( 7.6 ) 6.1 60.5 Income before income taxes 656.2 467.3 211.6 (a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.
(b) Other segment items for each reportable segment primarily includes selling, general and administrative expenses.
(c) Corporate costs include executive and director compensation, and other corporate facilities and administrative expenses not allocated to the segments. Corporate costs also include other items that management considers not representative of ongoing operations, such as restructuring charges and other specifically identified income or expense items.
CARPENTER TECHNOLOGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Additional data by segment for the years ended June 30, 2026, 2025 and 2024 is as follows:
Verbatim excerpt (382 words), formatting simplified. View full filing on EDGAR →Revenues by geography are based on the location of the customer (or end-customer under partner transactions). Refer to Note 3, Revenue Recognition, for a disaggregation of revenue by geographic region.
Long-lived assets, net
The following table presents the Company’s long-lived assets, net, which consists of property and equipment, net, and operating lease right-of-use asset, net, by geographic region for the periods presented (in thousands):
March 31, 2026 2025 North America 40,905 36,522 Europe, Middle East and Africa 163,985 88,255 Asia Pacific 6,876 3,577 Latin America 512 647 Total long-lived assets, net 212,278 129,001 19. Subsequent Event
On April 14, 2026, the Company acquired all of the outstanding equity of observIQ, Inc. d/b/a Bindplane, a provider of an open-standards-based telemetry pipeline that helps organizations capture and manage data at scale, for total cash consideration of $ 100.2 million. The Company is in process of allocating the purchase consideration over the fair value of identifiable assets and liabilities assumed.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, including our Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Annual Report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures, as of March 31, 2026, were effective and provided reasonable assurance that the information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosure.
Management’s Annual Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. This system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with GAAP.
Verbatim excerpt (307 words), formatting simplified. View full filing on EDGAR →The Company has a comprehensive offering of products, including technologies, built to customers’ specifications that are sold in niche markets throughout the world. The Company disaggregates revenue from contracts with customers by reporting unit and geographical region for each segment as the Company believes it best depicts how the amount, nature, timing and uncertainty of its revenue and cash flows are affected by economic factors. Revenue, presented as Net sales on the Consolidated Statements of Income, was attributed to geographical region based on the location of the customer. The following tables present revenue disaggregated by reporting unit and geographical region.
Revenue by reporting unit for the years ended December 31, 2025, 2024 and 2023 was as follows:
For the Year Ended December 31, 2025 2024 2023 Scientific Fluidics & Optics 859.3 706.1 681.5 Performance Pneumatic Technologies 259.2 237.4 250.0 Sealing Solutions 249.6 232.4 242.3 Material Processing Technologies 127.4 122.2 120.7 Micropump (1) — — 21.9 Intersegment elimination ( 4.8 ) ( 4.1 ) ( 2.9 ) Health & Science Technologies 1,490.7 1,294.0 1,313.5 Pumps 426.6 408.3 402.9 Water 351.8 347.8 345.8 Energy 205.2 207.6 209.3 Agriculture 143.3 146.4 159.6 Valves 97.1 123.1 129.5 Intersegment elimination ( 1.5 ) ( 1.4 ) ( 2.9 ) Fluid & Metering Technologies 1,222.5 1,231.8 1,244.2 Fire & Safety 478.4 467.2 431.9 Dispensing 147.2 161.3 167.5 BAND-IT 119.7 115.8 119.4 Intersegment elimination ( 1.0 ) ( 1.3 ) ( 2.6 ) Fire & Safety/Diversified Products 744.3 743.0 716.2 Net sales 3,457.5 3,268.8 3,273.9 (1) Revenue from Micropump (sold on August 3, 2023) has been included in the Company’s Consolidated Statements of Income through the date of disposition. See Note 2 , “Acquisitions and Divestitures,” for further detail.
Revenue by geographical region for the years ended December 31, 2025, 2024 and 2023 was as follows:
Verbatim excerpt (199 words), formatting simplified. View full filing on EDGAR →We disaggregate revenue from contracts with customers by sales of product and software and services, geographic location, and end market for each of our segments, as we believe it best depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors.
Disaggregation of revenue for the year ended December 31, 2025 is presented as follows ($ in millions):
Total Intelligent Operating Solutions Advanced Healthcare Solutions Sales: Sales of products and software 3,341.3 2,319.4 1,021.9 Sales of services 817.8 536.9 280.9 Total 4,159.1 2,856.3 1,302.8 Geographic: North America (a) 2,491.1 1,737.0 754.1 Asia-Pacific 730.1 449.7 280.4 Europe, Middle East, and Africa 725.8 553.8 172.0 Latin America 212.1 115.8 96.3 Total 4,159.1 2,856.3 1,302.8 End markets: Healthcare 1,280.5 44.9 1,235.6 Industrial & Manufacturing 1,198.7 1,181.7 17.0 Energy & Infrastructure 687.6 687.6 — Government 350.6 314.0 36.6 Retail 315.7 315.7 — Other 326.0 312.4 13.6 Total 4,159.1 2,856.3 1,302.8 (a) North America is comprised of the United States and Canada. Sales attributed to the United States were 56 % of total Fortive sales. Disaggregation of revenue for the year ended December 31, 2024 is presented as follows ($ in millions):
Verbatim excerpt (254 words), formatting simplified. View full filing on EDGAR →Segment revenues, operating income, and related financial information, including disaggregation of revenue, for the years ended September 30, 2025, 2024 and 2023 are set forth in Note 9 and Note 15 to the accompanying consolidated financial statements.
Revenues
The following tables set forth certain summary information on a segment basis related to our revenues for fiscal 2025, 2024 and 2023:
Year Ended September 30, Period-to-Period Change Period-to-Period Percentage Change Segment 2025 2024 2023 2025 to 2024 2024 to 2023 2025 to 2024 2024 to 2023 (In thousands) (In thousands) Scores 1,168,575 919,650 773,828 248,925 145,822 27 19 Software 822,294 797,876 739,729 24,418 58,147 3 8 Total 1,990,869 1,717,526 1,513,557 273,343 203,969 16 13
Percentage of Revenues Year Ended September 30, Segment 2025 2024 2023 Scores 59 54 51 Software 41 46 49 Total 100 100 100 Scores
Scores segment revenues increased $248.9 million in fiscal 2025 from 2024 due to an increase of $236.7 million in our business-to-business scores revenue and an increase of $12.2 million in our business-to-consumer scores revenue. The increase in business-to-business scores revenue was primarily attributable to a higher unit price, an increase in volume of mortgage originations and a multi-year license renewal in the U.S. recognized on our insurance score product during fiscal 2025. The increase in business-to-consumer scores revenue was primarily attributable to an increase in royalties derived from scores sold indirectly to consumers through consumer reporting agencies.
Software
The following table provides information about disaggregated revenue for our Software segment by revenue types:
Verbatim excerpt (347 words), formatting simplified. View full filing on EDGAR →Refer to Note 3 - “Disaggregation of Revenue” for further information, including the economic factors that affect the nature, amount, timing, and uncertainty of revenues and cash flows of our various revenue categories.
Contract Balances
Accounts receivable and allowance for losses and sales adjustments
Timing of revenue recognition may differ from the timing of invoicing to clients. We record an unbilled receivable when revenue is recognized prior to invoicing, or deferred revenue when invoicing occurs prior to revenue recognition. For multi-year agreements, we generally invoice clients annually at the beginning of each annual coverage period.
In connection with certain professional services contracts, we may perform work prior to when the software and services are billable and/or payable pursuant to the contract. Unbilled revenue is not billable at the balance sheet date but is recoverable over the remaining life of the contract through billings made in accordance with contractual agreements. The termination clauses in most of our contracts provide for the payment for the value of products delivered or services performed in the event of early termination. We have historically recorded such unbilled receivables (costs and estimated profit in excess of billings) in connection with (1) professional services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing for the software element of the arrangement may be based upon the specific phase of the implementation; (2) software revenue for which we have recognized revenue at the point in time when the software is made available to the client but the billing has not yet been submitted to the client; (3) some of our contracts which provide for an amount to be withheld from a progress billing (generally between 5 % and 15 % retention) until final and satisfactory project completion is achieved; and (4) in a limited number of cases, extended payment terms, which may be granted to clients with whom we generally have a long-term relationship and favorable collection history.
Accounts receivable is as follows:
New SEC comment letters by topic, notable staff comments, fresh disclosure examples and effective-date reminders. One email a week.
Templates & resources
- AICPA & CIMA – SEC reporting resources (AICPA & CIMA · Professional body · Free / member)
- BDO Accounting, Reporting & Compliance Hub (ARCH) (BDO · Firm guide · Free)
- Deloitte DART – Roadmap Series (Deloitte · Firm guide · Free)
- Grant Thornton Insights (Grant Thornton · Firm guide · Free)
- KPMG Financial Reporting View (KPMG · Firm guide · Free)
- PwC Viewpoint (PwC · Firm guide · Free / paid)
- RSM Financial Reporting Resource Center (RSM · Firm guide · Free)
- SEC – EDGAR Full Text Search (SEC · Regulator · Free)