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Note 3 - Revenue From Contracts With Customers
 12 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

3. REVENUE FROM CONTRACTS WITH CUSTOMERS
 

Effective July 1, 2018, the Company adopted the new accounting standard, ASU No. 2014-09, “Revenue from Contracts with Customers” (ASC 606) using the modified retrospective method to contracts that were not completed as of June 30, 2018. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings, whereby the cumulative impact of all prior periods is recorded in retained earnings or other impacted balance sheet line items upon adoption. The comparative information has not been adjusted and continues to be reported under ASC 605. The impact on the Company’s consolidated income statements, balance sheets, equity or cash flows as of the adoption date as a result of applying ASC 606 have been reflected within those respective financial statements.

 

Disaggregation of Revenue from Contracts with Customers

 

Financial information for fiscal year 2017 has not been restated and continued to be reported under the guidance in effect prior to the adoption of ASC 606.

 

The following table presents revenue disaggregated by product line and segment (in thousands):

 

   

Year Ended

  

Revenue by Product Line

  

June 30, 2020

    

June 30, 2019

    

June 30, 2018

  

Electronics

     185,294       204,073       196,291  
                         

Engraving Services

     132,586       139,769       123,822  

Engraving Products

     11,150       9,924       12,453  

Total Engraving

     143,736       149,693       136,275  
                         

Scientific

     57,523       57,621       52,086  
                         

Engineering Technologies

     104,047       105,270       90,781  
                         

Hydraulics Cylinders and System

     51,722       53,943       48,169  

Merchandising & Display

     31,488       34,532       34,932  

Pumps

     30,725       34,799       36,981  

Total Specialty Solutions

     113,935       123,274       120,082  
                         

Total Revenue by Product Line

   $ 604,535     $ 639,931     $ 595,515  

 

The following table presents revenue from continuing operations disaggregated by geography based on company’s locations (in thousands):

 

   

Year Ended

  

Net sales

  

June 30, 2020

    

June 30, 2019

    

June 30, 2018

  

United States

   $ 364,188     $ 370,235     $ 321,284  

Asia Pacific

     98,665       108,667       108,569  

EMEA (1)

     128,037       144,636       149,249  

Other Americas

     13,645       16,393       16,413  

Total

   $ 604,535     $ 639,931     $ 595,515  

 

(1)  EMEA consists primarily of Europe, Middle East and S. Africa.


The following table presents revenue from continuing operations disaggregated by timing of recognition (in thousands):

 

   

Year Ended

  

Timing of Revenue Recognition

  

June 30, 2020

    

June 30, 2019

  

Products and services transferred at a point in time

   $ 569,426     $ 607,980  

Products transferred over time

     35,109       31,951  

Net Sales

   $ 604,535     $ 639,931  

 

Contract Balances

 

Contract assets represent sales recognized in excess of billings related to work completed but not yet shipped for which revenue is recognized over time. Contract assets are recorded as accounts receivable.

 

Contract liabilities are customer deposits for which revenue has not been recognized.  Current contract liabilities are recorded as accrued expenses.

 

The following table provides information about contract assets and liability balances as of June 30, 2020 and 2019 (in thousands):

 

   

Balance at Beginning of Period

    

Additions

    

Deductions

    

Balance at End of Period

  

Year ended June 30, 2020

                                

Contract assets:

                                

Prepaid and other current assets

     8,418       41,462       40,740       9,140  

Contract liabilities:

                                

Customer deposits

     1,358       11,939       10,999       2,298  

 

   

Balance at Beginning of Period

    

Additions

    

Deductions

    

Balance at End of Period

  

Year ended June 30, 2019

                                

Contract assets:

                                

Prepaid and other current assets

     5,904       24,380       21,866       8,418  

Contract liabilities:

                                

Customer deposits

     2,552       6,336       7,530       1,358  

 

During the years ended June 30, 2020 and 2019, we recognized the following revenue as a result of changes in the contract liability balances (in thousands):

 

   

Year ended

  

Revenue recognized in the period from:

  

June 30, 2020

  

Amounts included in the contract liability balance at the beginning of the period

   $ 1,358  

 

 

   

Year ended

  

Revenue recognized in the period from:

  

June 30, 2019

  

Amounts included in the contract liability balance at the beginning of the period

   $ 2,552  

 

The timing of revenue recognition, invoicing and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheets.

 

When consideration is received from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded.  Contract liabilities are recognized as revenue after control of the goods and services are transferred to the customer and all revenue recognition criteria have been met.