Revenue from Contracts with Customers

12 Months Ended

Dec. 29, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Note 18 —      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:

	Years Ended
All Amounts in Thousands	December 29, 2018		December 30, 2017		December 31, 2016
Gross Sales by Channel:
Mass Merchants	$	68,196	$	80,539	$	84,434
Specialty Dealers		59,211		56,862		58,622
E-commerce		58,026		50,431		38,776
International		8,533		7,545		7,414
Other		1,828		402		712
Total Gross Sales		195,794		195,779		189,958
Less: Gross-to-Net Sales Adjustments
Returns		5,085		4,729		4,666
Warranties		1,448		1,036		1,501
Customer Allowances		13,481		12,681		12,129
Total Gross-to-Net Sales Adjustments		20,014		18,446		18,296
Total Net Sales	$	175,780	$	177,333	$	171,662

Contract Balances – The following table provides information on changes in our contract liability balances during the twelve month periods ending December 29, 2018, December 30, 2017 and December 31, 2016. The contract liability recorded during the twelve month periods ending December 29, 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 December 29, 2018, the contract liability balance was $413 and was reported within Accrued liabilities in our Consolidated Condensed Balance Sheet.

	Years Ended
All Amounts in Thousands	December 29, 2018		December 30, 2017		December 31, 2016
Increase due to cash received, excluding amounts recognized as revenue during the period	$	413	$	-	$	-
Revenue recognized that was included in the contract liability balance at the beginning of the period		-		-		-
Increase in contract liability during the period	$	413	$	-	$	-