2. Revenue Recognition

The following tables disaggregate the Company’s revenue by major market:

	For the Three Months Ended September 30, 2018
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	20,048	$	—	$	—		$	20,048
Vehicle		23,037		—		—			23,037
Food and beverage		19,159		—		—			19,159
Industrial		35,438		—		(20	)		35,418
Auto aftermarket		—		37,557		—			37,557
Total net sales	$	97,682	$	37,557	$	(20	)	$	135,219

	For the Nine Months Ended September 30, 2018
	Material Handling		Distribution		Inter-company			Consolidated
Consumer	$	64,325	$	—	$	—		$	64,325
Vehicle		75,338		—		—			75,338
Food and beverage		72,124		—		—			72,124
Industrial		105,834		—		(89	)		105,745
Auto aftermarket		—		110,815		—			110,815
Total net sales	$	317,621	$	110,815	$	(89	)	$	428,347

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 Company’s 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 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, the Company has not recorded any deferred revenue, 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 the customer relationship. Thus, the Company estimates the expected returns each period based on an analysis of historical experience. For certain businesses where physical recovery of the product from returns occurs, the Company records an estimated right to return asset from such recovery, based on the approximate cost of the product.

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

	September 30,			December 31,			Statement of Financial Position
	2018			2017			Classification
Returns, discounts and other allowances	$	(1,272	)	$	(853	)	Accounts receivable
Right of return asset		529			433		Inventories, net
Customer deposits		(1,099	)		(140	)	Other current liabilities
Accrued rebates		(2,177	)		(2,962	)	Other current liabilities

Sales, value added, and other taxes the Company collects concurrent with revenue from customers are excluded from net sales. The Company has elected to recognize the cost for shipments to customers when control over products has transferred to the customer. Costs for shipments to customers are classified as Selling, General and Administrative Expenses for the Company’s manufacturing business and as Cost of Sales for the Company’s distribution business in the accompanying Condensed Consolidated Statements of Operations (Unaudited). The Company incurred costs for shipments to customers of approximately $2.1 million and $1.9 million for the three months ended September 30, 2018 and 2017, respectively, and $7.4 million and $6.2 million for the nine months ended September 30, 2018 and 2017, respectively, in Selling, General and Administrative Expenses and $1.4 million and $1.5 million for the three months ended September 30, 2018 and 2017, respectively, and $4.2 million and $4.5 million for the nine months ended September 30, 2018 and 2017, respectively, in Cost of Sales. All other internal distribution costs are recorded in Selling, General and Administrative Expenses.

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