Revenue Recognition

3 Months Ended

Mar. 29, 2020

Revenue from Contract with Customer [Abstract]

The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer's designated carrier. The Company commonly enters into Master Supply Arrangements with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in "Cost of Sales," and freight charged to customers is included in "Net Sales" in the Company's Condensed Consolidated Statements of Income.

The Company has rebate agreements with certain customers. These rebates are recorded as reductions of revenue and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in "Accrued expenses and other" in the Company's Condensed Consolidated Balance Sheets.

Payment terms under the Company's sales arrangements are short term, generally no longer than 120 days. The Company does provide prompt payment discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of revenue and are determinable within a short period of the sale.

The following table sets forth information about receivables, contract assets, and liabilities from contracts with customers. Contract assets and liabilities are reported in "Other receivables" and "Accrued expenses and other," respectively, on the Condensed Consolidated Balance Sheets.


	March 29, 2020		December 31, 2019

Contract Assets	$	56,631	$	56,364
Contract Liabilities	$	(13,036)	$	(17,047)

Significant changes in the contract assets and liabilities balances during the period were as follows:


	March 29, 2020									December 31, 2019
	Contract Asset			Contract Liability			Contract Asset			Contract Liability
Beginning Balance		$	56,364		$	(17,047)		$	48,786		$	(18,533)
Revenue deferred or rebates accrued		—			(7,528)			—			(29,062)
Recognized as revenue					2,075						8,473
Rebates paid to customers		—			9,464			—			22,075
Increases due to rights to consideration for customer specific goods produced, but not billed during the period		56,631			—			51,797			—
Transferred to receivables from contract assets recognized at the beginning of the period		(56,364)			—			(48,786)			—


Acquired as part of a business combination		—			—			4,567			—
Ending Balance		$	56,631		$	(13,036)		$	56,364		$	(17,047)

Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. Contract assets represent goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer, and therefore amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements, volume rebates, and payments received in advance. For multi-year arrangements with pricing mechanisms, the Company will generally defer revenue during the first half of the arrangement, and will release the deferral over the back half of the contract term. The Company's reportable segments are aligned by product nature as disclosed in Note 15.

The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended March 29, 2020 and March 31, 2019. The tables also include a reconciliation of disaggregated revenue with reportable segments.


Three months ended March 29, 2020	Consumer Packaging		Display and Packaging		Paper and Industrial Converted Products		Protective Solutions		Total
Primary Geographical Markets:
United States	$	421,479	$	55,709	$	276,822	$	96,488	$	850,498
Europe	103,023		65,647		83,540		5,284		257,494
Canada	25,845		—		25,577		—		51,422
Asia	16,538		—		55,784		202		72,524
Other	21,532		—		33,247		16,579		71,358
Total	$	588,417	$	121,356	$	474,970	$	118,553	$	1,303,296


Three months ended March 31, 2019	Consumer Packaging		Display and Packaging		Paper and Industrial Converted Products		Protective Solutions		Total
Primary Geographical Markets:
United States	$	416,397	$	65,563	$	268,566	$	101,178	$	851,704
Europe	108,213		70,242		90,705		5,867		275,027
Canada	27,301		—		32,833		—		60,134
Asia	15,913		—		69,060		920		85,893
Other	21,892		1,749		34,873		20,433		78,947
Total	$	589,716	$	137,554	$	496,037	$	128,398	$	1,351,705