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Revenue

3 Months Ended

Mar. 31, 2018

10. Revenue

In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, we disaggregate revenue (or “net sales”) by major product category, geographic region, and pattern of recognition.

The Company has identified six major product categories – aviation, marine, outdoor, fitness, auto PND, and auto OEM. Note 4 – Segment Information contains disaggregated revenue information of the aviation, marine, outdoor and fitness major product categories, and auto OEM comprised 37% and 33% of the auto segment revenue presented in Note 4 for the 13-weeks ended March 31, 2018, and April 1, 2017, respectively. Auto PND comprised of 63% and 67% of the auto segment revenue presented in Note 4 for the 13-weeks ended March 31, 2018 and April 1, 2017, respectively. Disaggregated revenue by geographic region (Americas, APAC, and EMEA) is also presented in Note 4.

A large majority of the Company’s sales are recognized on a point in time basis, usually once the product is shipped and title and risk of loss have transferred to the customer. Sales recognized over a period of time are primarily within the auto segment and relate to performance obligations that are satisfied over the life of the product or contractual service period. Revenue disaggregated by the timing of transfer of the goods or services is presented in the table below:

		13-Weeks Ended
		March 31, 2018				April 1, 2017
Point in time		$	671,263			$	599,745
Over time			39,609				41,765
Net sales		$	710,872			$	641,510

Transaction price and costs associated with the Company’s unsatisfied performance obligations are reflected as deferred revenue and deferred costs, respectively, on the Company’s Condensed Consolidated Balance Sheets. Such amounts are recognized ratably over the applicable service period or estimated useful life. Changes in deferred revenue and costs during the 13-weeks ended March 31, 2018 are presented below:

			13-Weeks Ended
			March 31, 2018
				Deferred Revenue⁽¹⁾				Deferred Costs⁽²⁾
Balance, beginning of period			$	190,200			$	63,554
Deferrals in period				31,291				7,840
Recognition of deferrals in period				(39,609	)			(9,639	)
Balance, end of period			$	181,882			$	61,755

⁽¹⁾Deferred revenue is comprised of both Deferred revenue and Noncurrent deferred revenue per the Condensed Consolidated Balance Sheets

⁽²⁾ Deferred costs are comprised of both Deferred costs and Noncurrent deferred costs per the Condensed Consolidated Balance Sheets

Of the $39,609 deferred revenue recognized in the 13-weeks ended March 31, 2018, $32,515 was deferred as of the beginning of the period.

Approximately two-thirds of the $181,882 of deferred revenue at the end of the period, March 31, 2018, is recognized ratably over a period of three years or less.