XML 24 R10.htm IDEA: XBRL DOCUMENT

REVENUE

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

4.	REVENUE

Substantially all of our revenue is generated from sales of towing equipment. As such, disaggregation of revenue by product type was not a viable option for disclosure. However, we track our revenue streams by the location of our customers by separating North American sales from foreign sales. The following table disaggregates our revenue by the geographic region of our customers.

		For the Three Months Ended March 31
		2018				2017
Net Sales:
North America		$	131,644			$	130,678
Foreign			27,516				18,255
		$	159,160			$	148,933

Revenue is recognized when obligations under the terms of a contract with our customer are satisfied. Generally, this occurs upon shipment, which is when the risk of ownership for products has transferred to independent distributors or other customers. From time to time, revenue is recognized under a bill and hold arrangement. Recognition of revenue on bill and hold arrangements occurs when risk of ownership has passed to the customer, a fixed written commitment has been provided by the customer, the goods are complete and ready for shipment, the goods are segregated from inventory, and no performance obligation remains.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring our products. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Warranty related costs are recognized as an expense at the time products are sold. Depending on the terms of the arrangement, for certain contracts we may defer the recognition of a portion of the consideration received because we have to satisfy a future obligation, such as an extended service contract. We use an observable price to determine the stand-alone selling price for separate performance obligations or a cost plus margin approach when one is not available.

Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to performance obligations to be satisfied in the future. As of January 1, 2018 and March 31, 2018, contract liability balances related to extended service contracts were $154 and $369, respectively. No revenue related to the contract liability balance at January 1, 2018 was recognized during the three months ended March 31, 2018. The Company did not have any contract assets at January 1, 2018 or March 31, 2018. Impairment losses on contract receivables were de minimis during the three months ended March 31, 2018.