Note 4 - Net Sales

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE

4

– Net Sales:

On

January 

1,

2018,

the Company adopted ASU

2014

-

09

Revenue from Contracts with Customers

and all subsequent amendments to the ASU (collectively “ASC

606”

) using the modified retrospective method to all contracts

not

completed as of

January 1, 2018.

The Company recorded a net increase to retained earnings of

$11.2

million as of

January 1, 2018

due to the cumulative impact of adopting ASC

606.

Revenue for our Uniforms and Related Products and Promotional Products segments is recognized when the earnings process is complete. For certain contracts with customers in which the Company has an enforceable right to payment for goods with

no

alternative use, revenue is recognized over time upon receipt of finished goods into inventory. Contract termination terms

may

involve variable consideration clauses such as discounts and rebates, and revenue has been adjusted accordingly for these provisions. Revenue for goods that do have an alternative use or that the customer is

not

obligated to purchase under the terms of a contract is generally recognized when the goods are transferred to the customer. The Company includes shipping and handling fees billable to customers in net sales. Shipping and handling activities that occur after the transfer of promised goods are accrued as control is transferred to the customer rather than being treated as a separate performance obligation. Revenue for our Remote Staffing segment is recognized as services are delivered. Revenue is measured as the amount of consideration we expect to receive in exchange for the goods or services. Sales taxes, sales discounts and customer rebates are also excluded from revenue. Refer to Note

9

for the disaggregation of revenues by operating segment.

Contract Assets

The following table provides information about accounts receivables - trade and contract assets from contracts with customers (in thousands):

	June 30,		December 31,
	2019		2018
Accounts receivable - trade	$	70,927	$	64,017
Current contract assets		43,674		49,236

Contract assets relate to goods produced without an alternative use for which the Company has an enforceable right to payment but which have

not

yet been invoiced to the customer.