Note 16 - Revenue from Contracts with Customers

12 Months Ended

Dec. 25, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 16 —    Revenue from Contracts with Customers

Revenue Recognition – 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 25, 2021		December 26, 2020		December 28, 2019
Gross Sales by Channel:
Mass Merchants	$	115,949	$	104,147	$	66,428
Specialty Dealers		96,166		80,419		53,878
E-commerce		119,550		109,297		74,029
International		11,337		8,226		6,562
Other		3,240		2,312		2,475
Total Gross Sales		346,242		304,401		203,372
Less: Gross-to-Net Sales Adjustments
Returns		8,304		7,837		5,415
Warranties		2,488		1,648		1,736
Customer Allowances		21,838		21,267		15,680
Total Gross-to-Net Sales Adjustments		32,630		30,752		22,831
Total Net Sales	$	313,612	$	273,649	$	180,541

Contract Balances – The following table provides information on changes in our contract liability balances during the twelve month periods ended December 25, 2021, December 26, 2020 and December 28, 2019.

	Years Ended
All Amounts in Thousands	December 25, 2021		December 26, 2020		December 28, 2019
Increase due to cash received, excluding amounts recognized as revenue during the period	$	-	$	-	$	-
Revenue recognized that was included in the contract liability balance at the beginning of the period		-		-		(413	)
Increase in contract liability during the period	$	-	$	-	$	-