4. Revenue—On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers” using the modified retrospective method. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the condensed consolidated financial statements. For the Company, the most significant impact of the new standard is the addition of required disclosures within the notes to the financial statements.

The Company operates in the fastener industry and is in the business of manufacturing and selling rivets, cold-formed fasteners and parts, screw machine products, automatic rivet setting machines and parts and tools for such machines. Revenue is recognized when control of the promised goods or services is transferred to our customers, generally upon shipment of goods or completion of services, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. Sales taxes we may collect concurrent with revenue producing activities are excluded from revenue. Revenue is recognized net of certain sales adjustments to arrive at net sales as reported on the statement of income. These adjustments primarily relate to customer returns and allowances. The Company records a liability and reduction in sales for estimated product returns based upon historical experience. If we determine that our obligation under warranty claims is probable and subject to reasonable determination, an estimate of that liability is recorded as an offset against revenue at that time. As of September 30, 2018 and December 31, 2017 reserves for warranty claims were not material. Cash received by the Company prior to shipment is recorded as unearned revenue.

Shipping and handling fees billed to customers are recognized in net sales, and related costs as cost of sales, when incurred.

Sales commissions are expensed when incurred because the amortization period is less than one year. These costs are recorded within selling and administrative expenses in the statement of income.

The following table presents revenue by segment, further disaggregated by end-market:

	Fastener	Assembly Equipment	Consolidated
Three Months Ended September 30, 2018:
Automotive	5,291,033	100,751	5,391,784
Non-automotive	2,645,765	818,500	3,464,265
Total	7,936,798	919,251	8,856,049

Three Months Ended September 30, 2017:
Automotive	5,181,974	49,040	5,231,014
Non-automotive	2,304,219	851,523	3,155,742
Total	7,486,193	900,563	8,386,756

Nine Months Ended September 30, 2018:
Automotive	17,225,475	189,656	17,415,131
Non-automotive	8,670,697	2,574,646	11,245,343
Total	25,896,172	2,764,302	28,660,474

Nine Months Ended September 30, 2017:
Automotive	17,116,399	130,631	17,247,030
Non-automotive	7,203,326	2,855,235	10,058,561
Total	24,319,725	2,985,866	27,305,591