Net sales include product revenue and shipping and handling charges, net of estimated sales returns and any related sales incentives. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract, and invoicing occurs at approximately the same point in time. The Company recognizes revenue once the customer obtains control of the products. The Company’s product sales have standard payment terms that do not exceed one year. The Company considers shipping and handling as activities to fulfill its performance obligation. The Company’s contracts have a single performance obligation, to deliver products, and are short-term in nature. The Company estimates product returns based on historical return rates. Total accrued sales returns were $5,315 and $5,432 as of August 29, 2020 and August 31, 2019, respectively, and are reported as Accrued liabilities in the Consolidated Balance Sheets. Sales taxes and value-added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales.

The Company offers customers sales incentives, which primarily consist of volume rebates, and upfront sign-on payments. These volume rebates and payments are not in exchange for a distinct good or service and result in a reduction of net sales from the goods transferred to the customer at the later of when the related revenue is recognized or when the Company promises to pay the consideration. The Company estimates its volume rebate accruals and records its sign-on payments based on various factors, including contract terms, historical experience, and performance levels. Total accrued sales incentives, primarily related to volume rebates, were $19,679 and $14,770 as of August 29, 2020 and August 31, 2019 respectively, and are included in Accrued liabilities in the Consolidated Balance Sheets. Sign-on payments, not yet recognized as a reduction of revenue, are recorded in Prepaid expenses and other current assets in the Consolidated Balance Sheets and were $3,762 and $2,788 as of August 29, 2020 and August 31, 2019, respectively.

The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have material unsatisfied performance obligations, contract assets or liabilities as of August 29, 2020 and August 31, 2019.

The Company operates in one operating and reportable segment as a distributor of MRO products and services. The Company serves a large number of customers in diverse industries, which are subject to different economic and industry factors. The Company's presentation of net sales by customer end-market most reasonably depicts how the nature, amount, timing, and uncertainty of Company revenue and cash flows are affected by economic and industry factors. The Company does not disclose net sales information by product category as it is impracticable to do so as a result of its numerous product offerings and the way its business is managed.

The following table presents the Company's percentage of net sales by customer end-market for the fiscal years ended August 29, 2020 and August 31, 2019:


	For the Fiscal Year Ended		For the Fiscal Year Ended
	August 29, 2020		August 31, 2019
	(52 weeks)		(52 weeks)
Manufacturing Heavy	45	%	48	%
Manufacturing Light	21	%	22	%
Government	10	%	8	%
Retail/Wholesale	7	%	6	%
Commercial Services	5	%	4	%
Other ⁽¹⁾	12	%	12	%
Total net sales	100	%	100	%

The Company’s net sales originating from the following geographic areas were as follows for the year fiscal years ended August 29, 2020 and August 31, 2019:


	For the Fiscal Year Ended					For the Fiscal Year Ended
	August 29, 2020					August 31, 2019
	(52 weeks)					(52 weeks)
United States	$	3,044,943	95	%	$	3,243,026	96	%
UK		48,505	2	%		56,506	2	%
Canada		41,402	1	%		41,126	1	%
Mexico		57,549	2	%		23,159	1	%
Total net sales	$	3,192,399	100	%	$	3,363,817	100	%