Revenue Recognition (Notes)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

NOTE 2 – Revenue Recognition

The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle:

• Identify the contract(s) with a customer

• Identify the performance obligations

• Determine the transaction price

• Allocate the transaction price

• Recognize revenue when the performance obligations are met

We recognize revenue when the performance obligations specified in our contracts have been satisfied, after considering the impact of variable consideration and other factors that may affect the transaction price. Our contracts normally contain a single performance obligation that is fulfilled on the date of delivery based on shipping terms stipulated in the contract. We usually expect payment within 30 to 90 days from the shipping date, depending on our terms with the customer. None of our contracts as of June 30, 2019, contained a significant financing component. Differences between the amount of revenue recognized and the amount invoiced, collected from, or paid to our customers are recognized as contract assets or liabilities. Contract assets will be reviewed for impairment when events or circumstances indicate that they may not be recoverable.

To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method based on an analysis of historical experience and current facts and circumstances, which requires significant judgment. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.

Contract Assets and Liabilities

Contract assets and liabilities included in our Condensed Consolidated Balance Sheets are as follows:

	As of
	June 30,			December 31,
	2019			2018
Contract Assets
Prepaid rebates included in Other current assets	$	65		$	65
Prepaid rebates included in Other assets	1,501			999
Total Contract Assets	$	1,566		$	1,064
Contract Liabilities
Customer discounts and price concessions included in Accrued liabilities	$	(1,799	)	$	(1,656	)
Customer rights of return included in Accrued liabilities	(464		)	(325		)
Total Contract Liabilities	$	(2,263	)	$	(1,981	)

During the three and six months ended June 30, 2019, we recognized revenues of $37 and $106, respectively, for amounts that were included in contract liabilities at the beginning of the period.

Disaggregated Revenue

The following table presents revenues disaggregated by the major markets we serve:

	Three Months Ended				Six Months Ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Aero & Defense	$	6,988	$	6,024	$	14,511	$	11,127
Industrial	19,500		22,773		37,656		43,129
Medical	8,973		9,793		18,639		19,034
Telecom & IT	4,880		5,525		8,318		10,050
Transportation	80,343		73,906		159,184		148,211
Total	$	120,684	$	118,021	$	238,308	$	231,551