Company: ICUI
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000883984-25-000007
Chunk: 222

Company: ICU MEDICAL INC/DE
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 222
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 contract balances for the years ended December 31, 2024 and 2023, (in thousands):Contract LiabilitiesBeginning balance, January 1, 2023$45,866 Equipment revenue recognized(34,121)Equipment revenue deferred due to implementation35,868 Software revenue recognized(18,526)Software revenue deferred due to implementation19,947 Government grant income recognized(1)(3,684)Government grant income deferred944 Other deferred revenue recognized(6,041)Other deferred revenue1,924 Ending balance, December 31, 202342,177 Equipment revenue recognized(56,182)Equipment revenue deferred due to implementation55,932 Software revenue recognized(28,292)Software revenue deferred due to implementation29,913 Government grant income recognized(1)(2,072)Government grant income deferred— Other deferred revenue recognized(2,576)Other deferred revenue503 Ending balance, December 31, 2024$39,403 ____________________________(1) The government grant income deferred is amortized over the life of the related depreciable asset as a reduction to depreciation expense.     During 2024, we recognized $26.0 million in revenue that was included in the opening contract balances as of December 31, 2023. As of December 31, 2024, revenue from remaining performance obligations is as follows (in thousands):

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ICU MEDICAL, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Recognition Timing<12 Months> 12 MonthsEquipment revenue$17,050 $1,231 Software revenue11,214 471 Government grant deferred income(1)2,064 7,343 Other deferred revenue(2)30 — Total$30,358 $9,045 ____________________________(1)    The government grant deferred income is amortized over the life of the related depreciable asset as a reduction to depreciation expense.(2)    Other deferred revenue includes pump development programs, purchased training and extended warranty.Costs to Obtain a Contract with a CustomerAs part of the cost to obtain a contract, we may pay incremental commissions to sales employees upon entering into a sales contract. Under ASC Topic 606, we have elected to expense these costs as incurred as the period of benefit is less than one year.   Practical expedients and exemptionsIn addition to the practical expedient applied to sales commissions,