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 customers. 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

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



(in thousands)	Balance at September 30, 2019
	Current - under one year		Non-current - over one year
Restaurant/Retail	$	10,814	$	4,148
Government	—		—
TOTAL	$	10,814	$	4,148



(in thousands)	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 72% of which we expect to fulfill within the one-year period and 100% within 60 months.

During the three and nine months ended September 30, 2019, we recognized revenue of $2.1 million and $8.6 million, respectively, that was included in contract liabilities at the beginning of the period.

The value of existing Government contracts at September 30, 2019, net of amounts relating to work performed to that date, was approximately $201.6 million, of which $59.1 million was funded. The value of existing Government contracts at December 31, 2018, net of amounts relating to work performed to that date, was approximately $138.6 million, of which $30.2 million was funded. Funded amounts represent those amounts committed under contract by Government agencies and prime contractors.

Disaggregated Revenue

The Company disaggregates revenue from contracts from customers by major product group for each of the reporting segments as it believes 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 nine months ended September 30, 2019 and September 30, 2018 is as follows:



(in thousands)	Three months ended September 30, 2019
	Restaurant/Retail - Point in Time		Restaurant/Retail - Over Time		Government - Over Time
Restaurant/Retail	$	23,599	$	5,508	$	—
Grocery	335		399		—
Mission Systems	—		—		8,420
ISR Solutions	—		—		7,119
TOTAL	$	23,934	$	5,907	$	15,539



(in thousands)	Three months ended September 30, 2018
	Restaurant/Retail - Point in Time		Restaurant/Retail - Over Time		Government - Over Time
Restaurant/Retail	$	21,761	$	5,727	$	—
Grocery	691		747		—
Mission Systems	—		—		8,283
ISR Solutions	—		—		9,153
TOTAL	$	22,452	$	6,474	$	17,436



(in thousands)	Nine months ended September 30, 2019
	Restaurant/Retail - Point in Time		Restaurant/Retail - Over Time		Government - Over Time
Restaurant/Retail	$	65,849	$	18,718	$	—
Grocery	1,067		2,029		—
Mission Systems	—		—		25,161
ISR Solutions	—		—		21,485
TOTAL	$	66,916	$	20,747	$	46,646



(in thousands)	Nine months ended September 30, 2018
	Restaurant/Retail - Point in Time		Restaurant/Retail - Over Time		Government - Over Time
Restaurant/Retail	$	81,422	$	17,258	$	—
Grocery	2,251		2,342		—
Mission Systems	—		—		25,324
ISR Solutions	—		—		25,997
TOTAL	$	83,673	$	19,600	$	51,321

Practical Expedients and Exemptions

The Company generally expenses 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).