Revenue Recognition

9 Months Ended

Sep. 30, 2023

Revenue Recognition [Abstract]

Revenue Recognition

2. Revenue Recognition

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

	For the Quarter Ended September 30, 2023
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	21,740	$	—	$	—		$	21,740
Vehicle		29,770		—		—			29,770
Food and beverage		26,770		—		—			26,770
Industrial		54,204		—		(21	)		54,183
Auto aftermarket		—		65,335		—			65,335
Total net sales	$	132,484	$	65,335	$	(21	)	$	197,798

	For the Quarter Ended September 30, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	24,476	$	—	$	—		$	24,476
Vehicle		38,158		—		—			38,158
Food and beverage		31,126		—		—			31,126
Industrial		61,898		—		(9	)		61,889
Auto aftermarket		—		72,416		—			72,416
Total net sales	$	155,658	$	72,416	$	(9	)	$	228,065

	For the Nine Months Ended September 30, 2023
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	75,900	$	—	$	—		$	75,900
Vehicle		97,983		—		—			97,983
Food and beverage		86,915		—		—			86,915
Industrial		167,543		—		(44	)		167,499
Auto aftermarket		—		193,693		—			193,693
Total net sales	$	428,341	$	193,693	$	(44	)	$	621,990

	For the Nine Months Ended September 30, 2022
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	90,989	$	—	$	—		$	90,989
Vehicle		134,036		—		—			134,036
Food and beverage		88,960		—		—			88,960
Industrial		191,399		—		(29	)		191,370
Auto aftermarket		—		181,352		—			181,352
Total net sales	$	505,384	$	181,352	$	(29	)	$	686,707

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:

	September 30,			December 31,			Statement of Financial Position
	2023			2022			Classification
Returns, discounts and other allowances	$	(1,138	)	$	(986	)	Accounts receivable
Right of return asset	$	386		$	350		Inventories, net
Customer deposits	$	(4,013	)	$	(5,896	)	Other current liabilities
Accrued rebates	$	(4,093	)	$	(4,711	)	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 $3.0 million and $2.9 million for the quarters ended September 30, 2023 and 2022, respectively, and $8.6 million and $10.1 million for the nine months ended September 30, 2023 and 2022, respectively, and in Cost of sales were approximately $2.7 million and $3.1 million for the quarters ended September 30, 2023 and 2022, respectively, and $9.9 million and $7.0 million for the nine months ended September 30, 2023 and 2022, 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.