Revenue Recognition

The Company’s primary source of revenue are sales of coffee, tea and culinary products. The Company recognizes revenue when control of the promised good or service is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales.

The Company delivers products to customers primarily through two methods, Direct-store-delivery (“DSD”) to the Company’s customers at their place of business and direct ship from the Company’s warehouse to the customer’s warehouse or facility. Each delivery or shipment made to a third party customer is to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates.

The Company disaggregates net sales from contracts with customers based on the characteristics of the products sold:



	Three Months Ended December 31,
	2019				2018
(In thousands)	$		% of total		$		% of total
Net Sales by Product Category:
Coffee (Roasted)	$	96,177	63.1	%	$	99,286	62.1	%
Coffee (Frozen Liquid)	8,556		5.6	%	9,318		5.8	%
Tea (Iced & Hot)	7,563		5.0	%	8,651		5.4	%
Culinary	15,158		10.0	%	16,795		10.5	%
Spice	6,126		4.0	%	6,002		3.8	%
Other beverages(1)	17,299		11.3	%	18,915		11.8	%
Other revenues(2)	946		0.6	%	—		—	%
Net sales by product category	151,825		99.6	%	158,967		99	%
Fuel surcharge	673		0.4	%	806		0.6	%
Net sales	$	152,498	100.0	%	$	159,773	100	%

____________


(1)	Includes all beverages other than roasted coffee, frozen liquid coffee, and iced and hot tea, including cappuccino, cocoa, granitas, and concentrated and ready-to drink cold brew and iced coffee.


(2)	Represents revenues for certain transition services related to the sale of the Company’s office coffee assets.



	Six Months Ended December 31,
	2019				2018
(In thousands)	$		% of total		$		% of total
Net Sales by Product Category:
Coffee (Roasted)	$	183,547	63.1	%	$	194,640	63.4	%
Coffee (Frozen Liquid)	16,484		5.7	%	17,874		5.8	%
Tea (Iced & Hot)	15,268		5.2	%	17,555		5.7	%
Culinary	29,361		10.1	%	32,789		10.7	%
Spice	12,332		4.2	%	12,160		4.0	%
Other beverages(1)	30,032		10.3	%	30,541		9.9	%
Other revenues(2)	2,701		0.9	%	—		—	%
Net sales by product category	289,725		99.5	%	305,559		99.5	%
Fuel surcharge	1,373		0.5	%	1,654		0.5	%
Net sales	$	291,098	100.0	%	$	307,213	100.0	%

___________


(1)	Includes all beverages other than roasted coffee, frozen liquid coffee, and iced and hot tea, including cappuccino, cocoa, granitas, and concentrated and ready-to drink cold brew and iced coffee.


(2)	Represents revenues for certain transition services related to the sale of the Company’s office coffee assets.

The Company does not have any material contract assets and liabilities as of December 31, 2019. Receivables from contracts with customers are included in “Accounts receivable, net” on the Company’s condensed consolidated balance sheets. At December 31, 2019 and June 30, 2019, “Accounts receivable, net” included, $57.7 million and $53.6 million, respectively, in receivables from contracts with customers.