Revenue Recognition

Beginning on January 1, 2018, the Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the company expects to be entitled in exchange for those goods or services. The Company applies the five-step model, as described in ASU 2014-09 Revenue from Contracts with Customers, to contracts when it is probable the Company will collect the consideration it expects in exchange for the goods and services transferred to the customer. The following steps are applied to achieve that principle:

Step 1: Identify the contract with the customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when the company satisfies a performance obligation

The Company's performance obligations are satisfied when services are received by the customer and when the customer takes title to the product and assumes the significant risks and rewards of ownership.

Performance Obligations Outstanding

Our performance obligations outstanding represent the transaction price of firm, non-cancellable orders, with expected delivery dates to customers subsequent to June 30, 2019 and December 31, 2018, respectively, for work that has not been performed. The aggregate outstanding performance obligations attributable to our two reporting segments, Restaurant/Retail and Government, is as follows (in thousands):



	Balance at June 30, 2019
	Current - under one year		Non-current - over one year
Restaurant/Retail	$	10,657	$	4,343
Government	79		—
TOTAL	$	10,736	$	4,343



	Balance at December 31, 2018
	Current - under one year		Non-current - over one year
Restaurant/Retail	$	9,320	$	4,407
Government	325		—
TOTAL	$	9,645	$	4,407

Most performance obligations over one year are related to service and support contracts, approximately 71% of which we expect to fulfill within the one-year period and 100% within 60 months.

During the three and six months ended June 30, 2019, we recognized revenue of $3.4 million and $8.1 million, respectively, that was included in contract liabilities at the beginning of the period.

Disaggregated Revenue

We disaggregate revenue from contracts from customers by major product group for each of the reporting segments as we believe it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Disaggregation of revenue for the three and six months ended June 30, 2019 and June 30, 2018 is as follows (in thousands):



	Three months ended June 30, 2019
	Restaurant/Retail - Point in Time		Restaurant/Retail - Over Time		Government - Over Time
Restaurant/Retail	$	21,503	$	5,829	$	—
Grocery	283		647		—
Mission Systems	—		—		8,192
ISR Solutions	—		—		7,793
TOTAL	$	21,786	$	6,476	$	15,985



	Three months ended June 30, 2018
	Restaurant/Retail - Point in Time		Restaurant/Retail - Over Time		Government - Over Time
Restaurant/Retail	$	27,430	$	5,742	$	—
Grocery	873		782		—
Mission Systems	—		—		8,707
ISR Solutions	—		—		9,037
TOTAL	$	28,303	$	6,524	$	17,744



	Six months ended June 30, 2019
	Restaurant/Retail - Point in Time		Restaurant/Retail - Over Time		Government - Over Time
Restaurant/Retail	$	43,880	$	11,579	$	—
Grocery	732		1,631		—
Mission Systems	—		—		16,738
ISR Solutions	—		—		14,369
TOTAL	$	44,612	$	13,210	$	31,107



	Six months ended June 30, 2018
	Restaurant/Retail - Point in Time		Restaurant/Retail - Over Time		Government - Over Time
Restaurant/Retail	$	59,594	$	11,599	$	—
Grocery	1,626		1,528		—
Mission Systems	—		—		17,041
ISR Solutions	—		—		16,844
TOTAL	$	61,220	$	13,127	$	33,885

Practical Expedients and Exemptions

We generally expense sales commissions when incurred because the amortization period is less than one year or the total amount of commissions is immaterial. We record these expenses in selling, general and administrative.

We elected to exclude from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer (for example, sales, use, value added, and some excise taxes).