Revenue Recognition | Revenue Recognition 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 (MSA) 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. September 29, 2019 December 31, 2018 Contract Assets $ 51,287 $ 48,786 Contract Liabilities $ (18,469) $ (18,533) Significant changes in the contract assets and liabilities balances during the period were as follows: September 29, 2019 December 31, 2018 Contract Contract Contract Contract Beginning Balance $ 48,786 $ (18,533) $ 45,877 $ (17,736) Revenue deferred or rebates accrued — (21,812) — (19,730) Recognized as revenue 5,350 1,652 Rebates paid to customers — 16,526 — 17,281 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 51,287 — 48,786 — Transferred to receivables from contract assets recognized at the beginning of the period (48,786) — (45,877) — Ending Balance $ 51,287 $ (18,469) $ 48,786 $ (18,533) Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. Contract assets represents 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, and timing of revenue recognition for the three-month periods ended September 29, 2019 and September 30, 2018. The tables also include a reconciliation of disaggregated revenue with reportable segments. Three months ended September 29, 2019 Consumer Display and Paper and Protective Total Primary Geographical Markets: United States $ 415,567 $ 59,688 $ 279,908 $ 104,082 $ 859,245 Europe 99,276 83,888 83,421 6,456 273,041 Canada 26,567 — 26,960 — 53,527 Asia Pacific 17,714 — 71,313 496 89,523 Other 22,244 1,440 34,227 20,684 78,595 Total $ 581,368 $ 145,016 $ 495,829 $ 131,718 $ 1,353,931 Timing of Revenue Recognition: Products transferred at a point in time $ 354,070 $ 69,751 $ 479,914 $ 110,594 $ 1,014,329 Products transferred over time 227,298 75,265 15,915 21,124 339,602 Total $ 581,368 $ 145,016 $ 495,829 $ 131,718 $ 1,353,931 Three months ended September 30, 2018 Consumer Packaging Display and Packaging Paper and Industrial Converted Products Protective Solutions Total Primary Geographical Markets: United States $ 431,217 $ 80,696 $ 274,965 $ 107,493 $ 894,371 Europe 101,848 82,906 84,313 6,721 275,788 Canada 29,427 — 33,233 — 62,660 Asia Pacific 17,863 — 35,617 781 54,261 Other 19,799 1,562 35,620 20,701 77,682 Total $ 600,154 $ 165,164 $ 463,748 $ 135,696 $ 1,364,762 Timing of Revenue Recognition 1 : Products transferred at a point in time $ 358,233 $ 79,239 $ 438,599 $ 117,608 $ 993,679 Products transferred over time 241,921 85,925 25,149 18,088 371,083 Total $ 600,154 $ 165,164 $ 463,748 $ 135,696 $ 1,364,762 The following tables set forth information about revenue disaggregated by primary geographic regions, and timing of revenue recognition for the nine-month periods ended September 29, 2019 and September 30, 2018. The tables also include a reconciliation of disaggregated revenue with reportable segments. Nine months ended September 29, 2019 Consumer Display and Paper and Protective Total Primary Geographical Markets: United States $ 1,268,863 $ 187,347 $ 817,364 $ 309,318 $ 2,582,892 Europe 306,495 225,695 262,084 17,918 812,192 Canada 82,706 — 89,696 — 172,402 Asia 51,072 — 209,961 1,932 262,965 Other 64,698 4,361 104,089 61,758 234,906 Total $ 1,773,834 $ 417,403 $ 1,483,194 $ 390,926 $ 4,065,357 Timing of Revenue Recognition: Products transferred at a point in time $ 1,025,890 $ 198,577 $ 1,431,757 $ 329,699 $ 2,985,923 Products transferred over time 747,944 218,826 51,437 61,227 1,079,434 Total $ 1,773,834 $ 417,403 $ 1,483,194 $ 390,926 $ 4,065,357 Nine months ended September 30, 2018 Consumer Packaging Display and Paper and Protective Total Primary Geographical Markets: United States $ 1,275,775 $ 223,760 $ 820,429 $ 313,343 $ 2,633,307 Europe 310,864 221,228 267,566 20,325 819,983 Canada 87,729 — 99,868 — 187,597 Asia 51,067 — 106,615 2,671 160,353 Other 60,633 6,094 104,060 63,295 234,082 Total $ 1,786,068 $ 451,082 $ 1,398,538 $ 399,634 $ 4,035,322 Timing of Revenue Recognition 1 : Products transferred at a point in time $ 1,070,346 $ 222,137 $ 1,332,266 $ 339,043 $ 2,963,792 Products transferred over time 715,722 228,945 66,272 60,591 1,071,530 Total $ 1,786,068 $ 451,082 $ 1,398,538 $ 399,634 $ 4,035,322 1 The Company has revised the amounts from those previously reported in 2018 to reflect corrections in the classification of revenue between "Products transferred at a point in time" and "Products transferred over time" for the Consumer Packaging and Display and Packaging reportable segments. Revised disclosures for the year ended December 31, 2018 are presented below: Consumer Packaging Display and Packaging As Originally Reported Adjustment As Revised As Originally Reported Adjustment As Revised Products transferred at a point in time Year ended December 31, 2018 $ 1,440,662 $ (41,837) $ 1,398,825 $ 248,034 $ 41,837 $ 289,871 Products transferred over time Year ended December 31, 2018 $ 919,337 $ 41,837 $ 961,174 $ 344,275 $ (41,837) $ 302,438 |