Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue Recognition [Abstract]

Revenue Recognition

2. Revenue Recognition

The Company’s revenue by major market is as follows:

	For the Quarter Ended June 30, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	34,589	$	—	$	—		$	34,589
Vehicle		48,101		—		—			48,101
Food and beverage		23,154		—		—			23,154
Industrial		67,246		—		(9	)		67,237
Auto aftermarket		—		60,075		—			60,075
Total net sales	$	173,090	$	60,075	$	(9	)	$	233,156

	For the Quarter Ended June 30, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	37,312	$	—	$	—		$	37,312
Vehicle		41,437		—		—			41,437
Food and beverage		16,399		—		—			16,399
Industrial		42,079		—		(14	)		42,065
Auto aftermarket		—		50,156		—			50,156
Total net sales	$	137,227	$	50,156	$	(14	)	$	187,369

	For the Six Months Ended June 30, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	66,513	$	—	$	—		$	66,513
Vehicle		95,878		—		—			95,878
Food and beverage		57,834		—		—			57,834
Industrial		129,501		—		(20	)		129,481
Auto aftermarket		—		108,936		—			108,936
Total net sales	$	349,726	$	108,936	$	(20	)	$	458,642

	For the Six Months Ended June 30, 2021
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	62,707	$	—	$	—		$	62,707
Vehicle		83,629		—		—			83,629
Food and beverage		37,816		—		—			37,816
Industrial		82,968		—		(28	)		82,940
Auto aftermarket		—		94,706		—			94,706
Total net sales	$	267,120	$	94,706	$	(28	)	$	361,798

Revenue is recognized when obligations under the terms of a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into any long-term contracts with customers greater than one year. Based on the nature of the Company’s products and customer contracts, no deferred revenue has been recorded, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90-day time frame mentioned above.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship. Expected returns allowances are recognized each period based on an analysis of historical experience, and when physical recovery of the product from returns occurs, an estimated right to return asset is also recorded based on the approximate cost of the product.

Amounts included in the Condensed Consolidated Statements of Financial Position (Unaudited) related to revenue recognition include:

	June 30,			December 31,			Statement of Financial Position
	2022			2021			Classification
Returns, discounts and other allowances	$	(879	)	$	(1,056	)	Accounts receivable
Right of return asset	$	346		$	361		Inventories, net
Customer deposits	$	(1,295	)	$	(1,816	)	Other current liabilities
Accrued rebates	$	(3,609	)	$	(3,378	)	Other current liabilities

Sales, value added, and other taxes collected with revenue from customers are excluded from net sales. The cost for shipments to customers is recognized when control over products has transferred to the customer and is classified as Selling, General and Administrative expenses for the Company’s manufacturing business and as Cost of sales for the Company’s distribution business. Costs for shipments to customers in Selling, General and Administrative expenses were approximately $3.9 million and $2.3 million for the quarters ended June 30, 2022 and 2021, respectively, and $7.1 million and $4.8 million for the six months ended June 30, 2022 and 2021, respectively, and in Cost of sales were approximately $2.4 million and $1.9 million for the quarters ended June 30, 2022 and 2021 and $4.0 million and $3.5 million for the six months ended June 30, 2022 and 2021, respectively.

Based on the short-term nature of contracts described above, contract acquisition costs are not significant. These costs, as well as other incidental items that are immaterial in the context of the contract, are recognized as expense as incurred.