Summary of Sales Return Reserve |
The following table presents a rollforward of our sales return reserve for the years ended December 31, 2019, 2018, and 2017:
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
Beginning balance |
|
$ |
29,184 |
|
|
$ |
19,005 |
|
|
$ |
13,198 |
|
Returns |
|
|
(691,953 |
) |
|
|
(530,824 |
) |
|
|
(385,022 |
) |
Provisions |
|
|
697,873 |
|
|
|
541,003 |
|
|
|
390,829 |
|
Ending balance |
|
$ |
35,104 |
|
|
$ |
29,184 |
|
|
$ |
19,005 |
|
|
Schedule of Impact to Financial Statements |
As a result of applying ASC 606 (see Recent Accounting Pronouncements below), the impact to our consolidated balance sheet as of December 31, 2019 was as follows (in thousands):
|
|
December 31, 2019 |
|
|
|
As reported |
|
|
Impact
due to
ASC 606 |
|
|
Without adoption |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Inventory |
|
$ |
104,257 |
|
|
$ |
13,586 |
|
|
$ |
117,843 |
|
Prepaid expenses and other current assets |
|
|
24,155 |
|
|
|
(12,989 |
) |
|
|
11,166 |
|
Total assets |
|
|
232,290 |
|
|
|
597 |
|
|
|
232,887 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Other current liabilities |
|
|
16,740 |
|
|
|
3,149 |
|
|
|
19,889 |
|
Total current liabilities |
|
|
101,526 |
|
|
|
3,149 |
|
|
|
104,675 |
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings |
|
|
56,677 |
|
|
|
(2,552 |
) |
|
|
54,125 |
|
Total liabilities and members’/stockholders’ equity |
|
|
232,290 |
|
|
|
597 |
|
|
|
232,887 |
|
As a result of applying Topic 606, the impact to our consolidated statements of income for the year ended December 31, 2019 was as follows (in thousands):
|
|
Year ended December 31, 2019 |
|
|
|
As reported |
|
|
Impact
due to
ASC 606 |
|
|
Without adoption |
|
Net sales |
|
$ |
600,993 |
|
|
$ |
(2,389 |
) |
|
$ |
598,604 |
|
Selling and distribution |
|
|
87,706 |
|
|
|
123 |
|
|
|
87,829 |
|
Net income |
|
|
35,667 |
|
|
|
(2,266 |
) |
|
|
33,401 |
|
|