Revenue Recognition

3 Months Ended

Sep. 25, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The Company follows a five-step approach for recognizing revenue, consisting of the following: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation.

Contract liabilities primarily include various rights of return and customer deposits, as well as a reserve on the Company's "ship and debit" program. Contract liabilities were $48.2 million as of September 25, 2022 and $47.8 million as of June 26, 2022. The increase was primarily due to increases to ship and debit reserves partially offset by decreases in product exchange reserves. Contract liabilities are recorded within accrued contract liabilities and other long-term liabilities on the consolidated balance sheets.

For the three months ended September 25, 2022, the Company did not recognize revenue that was included in contract liabilities as of June 26, 2022.

The Company conducts business in several geographic areas. Revenue is attributed to a particular geographic region based on the shipping address for the products. Disaggregated revenue from external customers by geographic area is as follows:

	Three months ended
	September 25, 2022			September 26, 2021
(in millions of U.S. Dollars)	Revenue	% of Revenue		Revenue	% of Revenue
Europe	$75.7	31.4	%	$58.1	37.1	%
China	66.0	27.4	%	42.9	27.4	%
United States	50.4	20.9	%	26.0	16.6	%
Asia Pacific (excluding China)	47.8	19.8	%	29.4	18.8	%
Other	1.4	0.6	%	0.2	0.1	%
Total	$241.3			$156.6