Revenue from Contracts with Customers

6 Months Ended

Jul. 14, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Note L – Revenue from Contracts with Customers

Revenue Recognition – Effective December 31, 2017, we adopted ASC 606. The adoption of this standard did not impact the timing of revenue recognition for customer sales. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue.

Gross-to-net sales adjustments – We recognize revenue net of various sales adjustments to arrive at net sales as reported on the statement of operations. These adjustments are referred to as gross-to-net sales adjustments and primarily fall into one of three categories; returns, warranties and customer allowances.

Returns – The Company records an accrued liability and reduction in sales for estimated product returns based upon historical experience. An accrued liability and reduction in sales is also recorded for approved return authorizations that have been communicated by the customer.

Warranties – Limited warranties are provided on certain products for varying periods. We record an accrued liability and reduction in sales for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the accrued liability and sales in the current year.

Customer Allowances – Customer allowances are common practice in the industries in which the Company operates. These agreements are typically in the form of advertising subsidies, volume rebates and catalog allowances and are accounted for as a reduction to gross sales. The Company reviews such allowances on an ongoing basis and accruals are adjusted, if necessary, as additional information becomes available.

Disaggregation of Revenue – We generate revenue from the sale of widely recognized sporting goods brands in basketball goals, archery, indoor and outdoor game recreation and fitness products. These products are sold through multiple sales channels that include; mass merchants, specialty dealers, key on-line retailers (“E-commerce”) and international. The following table depicts the disaggregation of revenue according to sales channel:

	Three Months Ended				Six Months Ended
All Amounts in Thousands	July 14, 2018		July 15, 2017		July 14, 2018		July 15, 2017
Gross Sales by Channel:
Mass Merchants	$	19,562	$	25,355	$	32,693	$	38,263
Specialty Dealers		19,301		17,841		31,961		31,338
E-commerce		12,864		14,192		20,254		21,504
International		2,351		1,728		4,582		2,944
Other		348		104		537		289
Total Gross Sales		54,426		59,220		90,027		94,338
Less: Gross-to-Net Sales Adjustments
Returns		1,272		1,568		2,198		2,371
Warranties		494		62		801		321
Customer Allowances		3,976		3,669		6,195		5,859
Total Gross-to-Net Sales Adjustments		5,742		5,299		9,194		8,551
Total Net Sales	$	48,684	$	53,921	$	80,833	$	85,787

Contract Balances – The following table provides information on changes in our contract liability balances during the three and six month periods ending July 14, 2018 and July 15, 2017. The contract liability recorded during the quarter ending July 14, 2018 is related to a lump sum payment received for consulting services to be provided over the next year. The contract liability will be amortized, and revenues recognized, evenly over the year. At July 14, 2018, the contract liability balance was $930 and was reported within Accrued liabilities in our Consolidated Condensed Balance Sheet.

	Three Months Ended				Six Months Ended
All Amounts in Thousands	July 14, 2018		July 15, 2017		July 14, 2018		July 15, 2017
Increase due to cash received, excluding amounts recognized as revenue during the period	$	930	$	-	$	930	$	-
Revenue recognized that was included in the contract liability balance at the beginning of the period		-		-		-		-
Increase in contract liability during the period	$	930	$	-	$	930	$	-