Revenue

3 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

2. REVENUE

The Company recognizes revenues when control of the promised goods is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods, at a point in time, when shipping occurs.

The Company also engages in customer rebates, which are recorded in “Net sales” in the Condensed Consolidated Statements of Comprehensive Income (Loss) and in “Accrued rebates” and Trade receivables in the Condensed Consolidated Balance Sheets. The Company recorded accrued rebates of $35.8 million and $24.9 million as of December 31, 2020 and 2019, respectively, and contra trade receivables of $3.1 million and $2.2 million as of December 31, 2020 and 2019, respectively. The rebate activity was as follows (in thousands):

	Three Months Ended December 31,
	2020			2019
Beginning balance	$	32,679		$	24,858
Rebate expense		13,673			10,314
Rebate payments		(7,533	)		(8,023	)
Ending balance	$	38,819		$	27,149

The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance.