Note 4 - Revenue Recognition

9 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

(4) Revenue Recognition

We recognize revenues when performance obligations under the terms of a contract with our customers are satisfied, which generally occurs when products are shipped and control is transferred. We enter into contracts that pertain to products, which are accounted for as separate performance obligations and typically one year or less in duration. We do not exercise significant judgment in determining the timing for the satisfaction of performance obligations or the transaction price. Revenue is measured as the amount of consideration expected to be received in exchange for our products. We have elected to apply the practical expedient provided for in ASU No. 2014-09 and not disclose information regarding remaining performance obligations that have original expected durations of one year or less.

Variable consideration that may affect the total transaction price, including contractual discounts, rebates, returns and credits are included in net sales. Estimates for variable consideration are based on historical experience, anticipated performance and management's judgment and are updated as of each reporting date. Shipping and related expenses associated with outbound freight are accounted for as fulfillment costs and included in cost of sales. We do not have significant financing components.

Our net sales by product line are as follows:

	Three Months Ended				Nine Months Ended
	July 3,		June 27,		July 3,		June 27,
(In thousands)	2021		2020		2021		2020
Welded wire reinforcement	$	96,422	$	75,103	$	252,371	$	206,284
Prestressed concrete strand		64,317		46,856		166,972		128,103
Total	$	160,739	$	121,959	$	419,343	$	334,387

Our net sales by geographic region are as follows:

	Three Months Ended				Nine Months Ended
	July 3,		June 27,		July 3,		June 27,
(In thousands)	2021		2020		2021		2020
United States	$	158,710	$	120,985	$	413,826	$	332,791
Foreign		2,029		974		5,517		1,596
Total	$	160,739	$	121,959	$	419,343	$	334,387

Contract assets primarily relate to our rights to consideration for products that are delivered but not billed as of the reporting date and are reclassified to receivables when the customer is invoiced. Contract liabilities primarily relate to performance obligations that are to be satisfied in the future and arise when we bill the customer in advance of shipments. Contract costs are not significant and are recognized as incurred. Contract assets and liabilities were not material as of July 3, 2021 and October 3, 2020.

Accounts receivable includes amounts billed and currently due from customers stated at their net estimated realizable value. Customer payment terms are generally 30 days. We maintain an allowance for doubtful accounts to provide for the estimated receivables that will not be collected, which is based upon our assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. Past-due trade receivable balances are written off when our collection efforts have been unsuccessful.