XML 22 R10.htm IDEA: XBRL DOCUMENT v3.22.4
Revenue Recognition and Contracts with Customers
 12 Months Ended
Dec. 31, 2022
Revenue from Contracts with Customers [Abstract]  
Revenue Recognition and Contracts with Customers

3.       Revenue Recognition and Contracts with Customers

 

The impact of ASC 606 on revenue recognized during the years ended December 31, 2022, December 31, 2021, and December 31, 2020 is as follows:

    2022    2021    2020 
Contract liabilities with customers at January 1,  $
—
   $84   $9,623 
                
Revenue recognized   
—
    (84)   (14,570)
                
Revenue deferred   1,031    
—
    5,031 
                
Contract liabilities with customers at December 31,  $1,031   $
—
   $84 

 

During the year ended December 31, 2022, the Company deferred $1.0 million of revenue. There was no offset for the recognition from previously deferred revenue as the Company did not satisfy any performance obligations relating to the shipment of free products during the year. This resulted in a net decrease in firearms sales for the year ended December 31, 2022 of $1.0 million and a deferred contract revenue liability at December 31, 2022 of $1.0 million. The Company

estimates that revenue from this deferred contract liability will be recognized in the first half of 2023.

 

During the year ended December 31, 2021, there were no promotions giving rise to deferred contract liabilities and, therefore, there was no additional deferred revenue. Previously deferred revenue of $0.1 million was recognized in the first quarter of 2021. The Company did not have a deferred contract revenue liability at December 31, 2021.

 

During the year ended December 31, 2020, the Company deferred $5.0 million of revenue, offset by the recognition of $14.6 million of revenue previously deferred as the performance obligations relating to the shipment of free products were satisfied. This resulted in a net increase in firearms sales for the year ended December 31, 2020 of $9.6 million and a deferred contract revenue liability at December 31, 2020 of $0.1 million. The deferred revenue balance was significantly reduced due to the absence of promotions in the fourth quarter of 2020.

 

Practical Expedients and Exemptions

 

The Company has elected to account for shipping and handling activities that occur after control of the related product transfers to the customer as fulfillment activities that are recognized upon shipment of the goods.