Revenue from Contracts with Customers

9 Months Ended

Oct. 06, 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				Nine Months Ended
All Amounts in Thousands	October 6, 2018		October 7, 2017		October 6, 2018		October 7, 2017
Gross Sales by Channel:
Mass Merchants	$	20,074	$	22,247	$	52,767	$	60,510
Specialty Dealers		11,954		12,418		43,915		43,756
E-commerce		13,806		10,490		34,060		31,994
International		1,684		1,568		6,266		4,512
Other		663		58		1,200		347
Total Gross Sales		48,181		46,781		138,208		141,119
Less: Gross-to-Net Sales Adjustments
Returns		1,315		1,074		3,513		3,445
Warranties		289		245		1,090		566
Customer Allowances		2,622		2,601		8,817		8,460
Total Gross-to-Net Sales Adjustments		4,226		3,920		13,420		12,471
Total Net Sales	$	43,955	$	42,861	$	124,788	$	128,648

Contract Balances – The following table provides information on changes in our contract liability balances during the three and nine month periods ending October 6, 2018 and October 7, 2017. The contract liability recorded during the nine month periods ending October 6, 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 October 6, 2018, the contract liability balance was $671 and was reported within Accrued liabilities in our Consolidated Condensed Balance Sheet.

	Three Months Ended					Nine Months Ended
All Amounts in Thousands	October 6, 2018			October 7, 2017		October 6, 2018		October 7, 2017
Increase due to cash received, excluding amounts recognized as revenue during the period	$	-		$	-	$	671	$	-
Revenue recognized that was included in the contract liability balance at the beginning of the period		259			-		-		-
Increase (decrease) in contract liability during the period	$	(259	)	$	-	$	671	$	-