Revenue Recognition | 2. Revenue Recognition The Company’s revenue by major market is as follows: For the Quarter Ended June 30, 2020 Material Handling Distribution Inter-company Consolidated Consumer $ 31,211 $ — $ — $ 31,211 Vehicle 13,813 — — 13,813 Food and beverage 9,072 — — 9,072 Industrial 26,759 — (2 ) 26,757 Auto aftermarket — 37,541 — 37,541 Total net sales $ 80,855 $ 37,541 $ (2 ) $ 118,394 For the Quarter Ended June 30, 2019 Material Handling Distribution Inter-company Consolidated Consumer $ 22,515 $ — $ — $ 22,515 Vehicle 21,962 — — 21,962 Food and beverage 16,818 — — 16,818 Industrial 34,607 — (12 ) 34,595 Auto aftermarket — 38,395 — 38,395 Total net sales $ 95,902 $ 38,395 $ (12 ) $ 134,285 For the Six Months Ended June 30, 2020 Material Handling Distribution Inter-company Consolidated Consumer $ 51,498 $ — $ — $ 51,498 Vehicle 30,125 — — 30,125 Food and beverage 26,491 — — 26,491 Industrial 56,817 — (23 ) 56,794 Auto aftermarket — 75,736 — 75,736 Total net sales $ 164,931 $ 75,736 $ (23 ) $ 240,644 For the Six Months Ended June 30, 2019 Material Handling Distribution Inter-company Consolidated Consumer $ 40,300 $ — $ — $ 40,300 Vehicle 44,482 — — 44,482 Food and beverage 41,967 — — 41,967 Industrial 72,104 — (22 ) 72,082 Auto aftermarket — 74,569 — 74,569 Total net sales $ 198,853 $ 74,569 $ (22 ) $ 273,400 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 2020 2019 Classification Returns, discounts and other allowances $ (1,025 ) $ (589 ) Accounts receivable Right of return asset 377 312 Inventories, net Customer deposits (19 ) (269 ) Other current liabilities Accrued rebates (3,174 ) (2,349 ) Other current liabilities Sales, value added, and other taxes collect ed 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 e xpenses for the Company’s manufacturing business and as Cost of Sales for the Company’s distribution business. C osts for shipments to customers in Selling, General and Administrative expenses were approximately $ million and $ million for the quarters ended June 30, 2020 and 201 9 , respectively, and $ 3.3 million and $ 4.1 million for the six months ended June 30, 2020 and 2019, respectively, and in Cost of Sales were approximately $ million for each of the quarters ended June 30, 2020 and 201 9 and $ 2.9 million for each of the six months ended June 30, 2020 and 2019 . 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. |