Revenue from Contract with Customer [Text Block] | 3 Revenue From Contracts With Customers Effective July 1, 2018, No. 2014 09, 606 not June 30, 2018. not 605. 606 Under the Company’s historical accounting policies, non-developmental long-term contracts were recognized when the goods were transferred to the customer. Upon adoption, contracts for highly customized customer products that have no 606. 606, Upon adoption, we recognized a reduction to retained earnings of $1.0 $0.7 $0.6 $1.5 June 30, 2018 June 30, 2018, 606 2018 Cumulative (in thousands) Effect Net sales $ (799 ) Cost of Sales (574 ) Income tax expense 340 Net Loss (1,033 ) Effective Date Reported June 30, 2018 ASC 606 Adjustments As Adjusted July 1, 2018 Inventories $ 127,223 $ (574 ) $ 126,649 Accounts receivable 134,228 703 134,931 Accrued liabilities 65,575 1,502 67,077 Deferred income taxes 26,816 (340 ) 26,476 Retained earnings 761,430 (1,033 ) 760,397 Note that above amounts as of June 30 The following tables reconcile the balances as presented as of and for the three six December 31, 2018 Three Months Ended December 31, 2018 As Presented Impact of ASC 606 Balances Without adoption of ASC 606 Net sales $ 195,522 $ (2,812 ) $ 192,710 Cost of sales 128,586 (2,786 ) 125,800 Gross profit 66,936 (26 ) 66,910 Provision for income taxes 3,860 (8 ) 3,852 Income from continuing operations 12,474 (18 ) 12,456 Income (loss) from discontinued operations, net of income taxes 924 171 1,095 Net income (loss) $ 13,398 $ 153 $ 13,551 Six Months Ended December 31, 2018 As Presented Impact of ASC 606 Balances Without adoption of ASC 606 Net sales $ 388,609 $ (5,855 ) $ 382,754 Cost of sales 252,421 (5,282 ) 247,139 Gross profit 136,188 (573 ) 135,615 Provision for income taxes 9,702 (166 ) 9,536 Income from continuing operations 26,767 (407 ) 26,360 Income (loss) from discontinued operations, net of income taxes 2,488 195 2,683 Net income (loss) $ 29,255 $ (212 ) $ 29,043 December 31, 2018 As Presented Impact of ASC 606 Balances Without adoption of ASC 606 ASSETS Prepaid Expenses $ 21,425 $ (7,083 ) $ 14,342 Inventories 109,423 5,282 114,705 LIABILITIES Accrued liabilities $ 61,262 $ (1,228 ) $ 60,034 Income taxes payable 7,672 (166 ) 7,506 Current liabilities- Discontinued Operations 18,906 (195 ) 18,711 Retained earnings 784,687 (212 ) 784,475 Disaggregation of Revenue from Contracts with Customers The following table presents revenue disaggregated by product line and segment (in thousands): Three Months Ended Revenue by Product Line December 31, 2018 December 31, 2017 Refrigeration $ 52,217 $ 56,434 Merchandising & Display 9,065 8,235 Pumps 7,371 8,496 Total Food Service Equipment 68,653 73,165 Engraving Services 35,796 30,131 Engraving Products 2,689 3,748 Total Engraving 38,485 33,879 Engineering Technologies Components 23,568 21,928 Electronics 52,700 46,035 Hydraulics Cylinders and System 12,116 10,687 Total Revenue by Product Line $ 195,522 $ 185,694 The following table presents revenue disaggregated by product line and segment (in thousands): Six Months Ended Revenue by Product Line December 31, 2018 December 31, 2017 Refrigeration $ 106,664 116,105 Merchandising & Display 18,229 17,048 Pumps 16,098 17,839 Total Food Service Equipment 140,991 150,992 Engraving Services 69,653 60,124 Engraving Products 4,813 6,584 Total Engraving 74,466 66,708 Engineering Technologies Components 44,351 42,195 Electronics 104,150 92,851 Hydraulics Cylinders and System 24,651 22,090 Total Revenue by Product Line $ 388,609 374,836 The following table presents revenue from continuing operations disaggregated by geography based on company’s locations (in thousands): Net sales Three Months Ended December 31, 2018 Six Months Ended December 31, 2018 United States $ 129,969 254,705 Asia Pacific 28,163 56,041 EMEA (1) 32,978 68,504 Other Americas 4,412 9,359 Total $ 195,522 388,609 ( 1 The following table presents revenue from continuing operations disaggregated by timing of recognition (in thousands): Three Months Ended Timing of Revenue Recognition December 31, 2018 December 31, 2017 Products and services transferred at a point in time $ 188,093 $ 182,441 Products transferred over time 7,429 3,253 Net Sales $ 195,522 $ 185,694 Six Months Ended Timing of Revenue Recognition December 31, 2018 December 31, 2017 Products and services transferred at a point in time $ 375,998 $ 367,954 Products transferred over time 12,611 6,882 Net Sales $ 388,609 $ 374,836 Contract Balances Contract assets represent sales recognized in excess of billings related to work completed but not Contract liabilities are customer deposits for which revenue has not The following table provides information about contract assets and liability balances as of December 31, 2018 September 30, 2018 ( Balance at Beginning of Period Additions Deductions Balance at End of Period Fiscal quarter ended December 31, 2018 Contract assets: Accounts receivable $ 1,552 $ 10,735 $ 9,584 $ 2,703 Unbilled services 7,183 2,465 1,035 8,613 Contract liabilities: Customer deposits 2,049 3,383 - 5,432 Fiscal quarter ended September 30, 2018 Contract assets: Accounts receivable $ 5,655 $ 5,422 $ 9,525 $ 1,552 Unbilled services 5,904 2,960 1,681 7,183 Contract liabilities: Customer deposits 2,552 - 503 2,049 During the quarters ended December 31, 2018 September 30, 2018, Revenue recognized in the period from: December 31, 2018 September 30, 2018 Amounts included in the contract liability balance at the beginning of the period $ - $ 503 The timing of revenue recognition, invoicing and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheets. When consideration is received from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the goods and services are transferred to the customer and all revenue recognition criteria have been met. |