Net Sales

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Net Sales

4. Net Sales

Adoption of ASU 2014-09, “Revenue From Contracts With Customers”

On January 1, 2018, the Company adopted ASU 2014-09, “Revenue From Contracts with Customers” and all related amendments using the modified retrospective method. Subsequent to the date of adoption, the Company recognizes revenue in accordance with ASC 606, “Revenue From Contracts With Customers.” Prior to January 1, 2018, the Company recognized revenue in accordance with ASC 605, “Revenue Recognition” and prior period results continue to be reported under the accounting standards in effect for those periods. The cumulative impact of adopting the new standard on the consolidated financial statements was recorded as a decrease to the opening retained deficit of $0.1 million as of January 1, 2018. Refer to Note 1, “Summary of Significant Accounting Policies” for a description of the Company’s revenue recognition accounting policy.

Revenue Disaggregation

The industrial segment operates principally as a provider of industrial brushes, polishing buffs and compounds, abrasives and roller technology products that are used in a broad range of industrial and infrastructure applications. The Company typically sells products within this business under purchase orders through both direct to customer and distribution sales channels. The Company generally transfers control and recognizes net sales when the product is shipped to the customer. Within the industrial segment, there are certain custom products for customers for which the Company recognizes net sales over time. For these sales, the Company has an enforceable right to payment with a reasonable margin under the terms of the agreement. Revenue from products transferred to customers over time accounted for approximately 1% of industrial net sales for the years ended December 31, 2019 and 2018.

The engineered components segment operates principally as a supplier to Original Equipment Manufacturers (“OEM”) within the lawn and turf care, agriculture, construction, material handling, power sports, rail and general industrial markets. The Company sells products within this business under both purchase orders and contracts for custom products primarily through the direct to customer sales channel. The Company transfers control and recognizes net sales at a point in time upon shipment to the customer for these contracts.

The Company disaggregates net sales by geography based on the country of origin of the final sale with the external customer. In certain cases the products may be manufactured in other countries at facilities within the Company’s global network. The following table summarizes net sales disaggregated by geography and reportable segment:

	For the Year Ended December 31, 2019
	Industrial		Engineered Components		Total
United States	$	77,529	$	136,072	$	213,601
Germany	76,273		—		76,273
Rest of Europe	34,535		—		34,535
Mexico	9,074		11		9,085
Other	4,106		297		4,403
Total	$	201,517	$	136,380	$	337,897
	For the Year Ended December 31, 2018
	Industrial		Engineered Components		Total
United States	$	68,384	$	154,223	$	222,607
Germany	89,247		—		89,247
Rest of Europe	37,317		6,099		43,416
Mexico	8,762		—		8,762
Other	3,927		—		3,927
Total	$	207,637	$	160,322	$	367,959

The Company disaggregates net sales by sales channel as either direct or distribution net sales. Direct net sales are defined as net sales ordered by and sold directly to the end customer without the involvement of a third party. For our OEM customers, direct sales include certain spare parts and accessories which are intended for resale to end consumers. Distribution

net sales are defined as net sales ordered by and sold to a third party that intends to resell the products to the end consumer. The following table summarizes net sales disaggregated by sales channel and reportable segment:

	For the Year Ended December 31, 2019
	Industrial		Engineered Components		Total
Direct	$	108,918	$	131,802	$	240,720
Distribution	92,599		4,578		97,177
Total	$	201,517	$	136,380	$	337,897
	For the Year Ended December 31, 2018
	Industrial		Engineered Components		Total
Direct	$	112,047	$	156,311	$	268,358
Distribution	95,590		4,011		99,601
Total	$	207,637	$	160,322	$	367,959