Net Sales

9 Months Ended

Sep. 30, 2023

Net Sales.

Net Sales

2. Net Sales

The Company disaggregates its net sales by major source as follows:

	Three Months Ended September 30, 2023
	Products		Services		Total
	(dollars in thousands)
Debit and Credit	$	55,934	$	27,846	$	83,780
Prepaid Debit		—		22,335		22,335
Intersegment eliminations		(245)		(7)		(252)
Total	$	55,689	$	50,174	$	105,863
	Nine Months Ended September 30, 2023
	Products		Services		Total
	(dollars in thousands)
Debit and Credit	$	195,967	$	82,992	$	278,959
Prepaid Debit		—		63,286		63,286
Intersegment eliminations		(542)		(28)		(570)
Total	$	195,425	$	146,250	$	341,675
	Three Months Ended September 30, 2022
	Products		Services		Total
	(dollars in thousands)
Debit and Credit	$	71,857	$	27,655	$	99,512
Prepaid Debit		—		25,335		25,335
Intersegment eliminations		(251)		(19)		(270)
Total	$	71,606	$	52,971	$	124,577
	Nine Months Ended September 30, 2022
	Products		Services		Total
	(dollars in thousands)
Debit and Credit	$	209,236	$	76,472	$	285,708
Prepaid Debit		—		64,010		64,010
Intersegment eliminations		(369)		(40)		(409)
Total	$	208,867	$	140,442	$	349,309

Products Net Sales

“Products” net sales are recognized when obligations under the terms of a contract with a customer are satisfied. In most instances, this occurs over time as cards are produced for specific customers and have no alternative use and the Company has an enforceable right to payment for work performed. For unbilled work performed but not completed, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts. Items included in “Products” net sales are the design and production of Financial Payment Cards, including contact-EMV^®, contactless dual-interface EMV, contactless and magnetic stripe cards, CPI’s eco-focused solutions, including Second Wave^® and Earthwise^® cards made with upcycled plastic, metal cards, private label credit cards and retail gift cards. Card@Once^® printers and consumables are also included in “Products” net sales, and their associated revenues are recognized at the time of shipping. The Company includes gross shipping and handling revenue in net sales, and shipping and handling costs in cost of sales.

EMV^® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMV Co, LLC.

Services Net Sales

Net sales are recognized for “Services” as the services are performed. Items included in “Services” net sales include the personalization and fulfillment of Financial Payment Cards, providing tamper-evident secure packaging and fulfillment services to Prepaid Debit Card program managers, and software-as-a-service personalization of instant issuance debit cards. As applicable, for unbilled work performed but not completed, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts.

Customer Contracts

The Company often enters into Master Services Agreements (“MSAs”) with its customers. Generally, enforceable rights and obligations for goods and services occur only when a customer places a purchase order or statement of work to obtain goods or services under an MSA. The contract term as defined by ASC 606, Revenue from Contracts with Customers, is the length of time it takes to deliver the goods or services promised under the purchase order or statement of work. As such, the Company's contracts are generally short term in nature.