Revenue Recognition

The Company adopted ASU 2014-09, "Revenue from Contracts with Customers," as of January 1, 2018. The impact of the adoption was the recognition of a $1,721 increase in the Company's beginning retained earnings. See impact of adoption in Note 3 and additional discussion in Note 2 to these condensed consolidated financial statements.

The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the output method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer's designated carrier. The Company commonly enters into Master Supply Arrangements (MSA) with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in "Cost of Sales," and freight charged to customers is included in "Net Sales" in the Company's Condensed Consolidated Statements of Income.

The Company has rebate agreements with certain customers. These rebates are recorded as reductions of sales and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in "Accrued expenses and other" in the Company's Condensed Consolidated Balance Sheets.

Payment terms under the Company's arrangements are short term in nature, generally no longer than 120 days. The Company does provide prompt payment discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of revenue and are determinable within a short period of the sale.

The following table sets forth information about receivables, contract assets and liabilities from contracts with customers. The balances of the contract assets and liabilities are located in "Other receivables" and "Accrued expenses and other" on the Condensed Consolidated Balance Sheets.



	July 1, 2018			January 1, 2018 As adjusted
Contract Assets	$	48,765		$	45,877
Contract Liabilities	$	(5,737	)	$	(5,215	)

Significant changes in the contract assets and liabilities balances during the period were as follows:



	July 1, 2018						January 1, 2018 Adjusted
	Contract Asset			Contract Liability			Contract Asset		Contract Liability
Beginning Balance	$	45,877		$	(5,215	)	$	—	$	—
Revenue recognized that was included in the contract liabilities balance at the beginning of the period	—			(522		)	—		—
Increases due to rights to consideration for customer specific goods produced, but not billed during the period	48,765			—			—		—
Transferred to receivables from contract assets recognized at the beginning of the period	(45,877		)	—			—		—
Increase as a result of cumulative catch-up arising from changes in the estimate of completion, excluding amounts transferred to receivables during the period	—			—			45,877		(5,215		)
Impairment of contract asset	—			—			—		—
Acquired as part of a business combinations	—			—			—		—
Ending Balance	$	48,765		$	(5,737	)	$	45,877	$	(5,215	)

Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. Contract assets represents goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer, and therefore amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements. Generally the Company will defer revenue during the initial term of the arrangement, and will release the deferral over the back half of the contract term. The Company's reportable segments are aligned by product nature as disclosed in Note 15.

The following table sets forth information about revenue disaggregated by primary geographic regions, and timing of revenue recognition for the three-month period ended July 1, 2018. The table also includes a reconciliation of disaggregated revenue with reportable segments.



Three Months Ended	Consumer Packaging		Display and Packaging		Paper and Industrial Converted Products		Protective Solutions
Primary Geographical Markets:
United States	$	446,573	$	69,180	$	279,701	$	111,748
Europe	101,954		72,377		90,398		6,816
Canada	30,595		—		33,762		—
Other	36,940		1,703		70,276		14,350
Total	$	616,062	$	143,260	$	474,137	$	132,914

Timing of Revenue Recognition:
Products transferred at a point in time	$	386,850	$	99,233	$	452,576	$	109,636
Products transferred over time	229,212		44,027		21,561		23,278
Total	$	616,062	$	143,260	$	474,137	$	132,914

The following table sets forth information about revenue disaggregated by primary geographic regions, and timing of revenue recognition for the six-month period ended July 1, 2018. The table also includes a reconciliation of disaggregated revenue with reportable segments.



Six Months Ended	Consumer Packaging		Display and Packaging		Paper and Industrial Converted Products		Protective Solutions
Primary Geographical Markets:
United States	$	844,559	$	143,064	$	545,463	$	222,248
Europe	209,017		138,322		183,253		13,605
Canada	58,301		—		66,635		—
Other	74,037		4,532		139,439		28,085
Total	$	1,185,914	$	285,918	$	934,790	$	263,938

Timing of Revenue Recognition:
Products transferred at a point in time	$	732,416	$	200,876	$	893,667	$	221,435
Products transferred over time	453,498		85,042		41,123		42,503
Total	$	1,185,914	$	285,918	$	934,790	$	263,938