Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.19.1
Revenue Recognition
6 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Revenue Recognition

The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various delivery terms applicable to the Company’s sales. For substantially all transactions, control passes in accordance with agreed upon delivery terms, including in certain circumstances, customer acceptance. This approach is consistent with the Company’s historical revenue recognition methodology. In limited instances revenue is recognized over time as critical milestones are met and as services are provided. Transaction price, for revenue recognition, is allocated to each performance obligation consisting of the stand alone selling price, estimates of rebates and other sales or contract renewal incentives, and cash discounts and sales returns ("Variable Consideration"). Estimates are made for Variable Consideration based on contract terms and historical experience of actual results and are applied to the performance obligations as they are satisfied.

The Company delivers a variety of products and services through its business segments. The SGK Brand Solutions segment delivers brand management, pre-media services, printing plates and cylinders and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services primarily to the consumer packaged goods and retail industries. The Memorialization segment produces and delivers bronze and granite memorials and other memorialization products, caskets and cremation equipment primarily for the cemetery and funeral home industries.  The Industrial Technologies segment delivers marking and coding equipment and consumables, industrial automation products and order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products for the warehousing and industrial industries. Each product or service delivered to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. Certain revenue related to mausoleum construction and significant engineering projects, including cremation and incineration projects, and marking and industrial automation projects, are recognized over time using the input method measuring progress toward completion of such projects. Amounts recognized using the over time method were less than 5% of the Company's consolidated revenue for the three and six months ended March 31, 2019 and 2018. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates.

Note 3.   Revenue Recognition (continued)

The Company disaggregates revenue from contracts with customers by geography, as it believes geographic regions best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Disaggregated sales by segment and region for the three and six months ended March 31, 2019 and 2018 were as follows:
 
 
SGK Brand Solutions
 
Memorialization
 
Industrial Technologies
 
Consolidated
 
 
Three Months Ended
March 31,
 
Three Months Ended
March 31,
 
Three Months Ended
March 31,
 
Three Months Ended
March 31,
 
 
2019
2018
 
2019
2018
 
2019
2018
 
2019
2018
North America
 
$
79,170

$
89,609

 
$
151,441

$
156,512

 
$
30,988

$
29,609

 
$
261,599

$
275,730

Central and South America
 
1,480

1,571

 


 


 
1,480

1,571

Europe
 
96,070

101,703

 
8,606

9,769

 
7,035

7,731

 
111,711

119,203

Australia
 
2,901

3,007

 
2,129

2,408

 


 
5,030

5,415

Asia
 
11,030

11,162

 


 
550

980

 
11,580

12,142

Total Sales
 
$
190,651

$
207,052

 
$
162,176

$
168,689

 
$
38,573

$
38,320

 
$
391,400

$
414,061



 
 
SGK Brand Solutions
 
Memorialization
 
Industrial Technologies
 
Consolidated
 
 
Six Months Ended March 31,
 
Six Months Ended March 31,
 
Six Months Ended March 31,
 
Six Months Ended March 31,
 
 
2019
2018
 
2019
2018
 
2019
2018
 
2019
2018
North America
 
$
158,752

$
176,562

 
$
294,734

$
289,261

 
$
58,702

$
53,468

 
$
512,188

$
519,291

Central and South America
 
2,697

3,136

 


 


 
2,697

3,136

Europe
 
186,588

190,573

 
16,764

19,014

 
13,372

15,362

 
216,724

224,949

Australia
 
5,860

6,010

 
4,564

5,303

 


 
10,424

11,313

Asia
 
22,054

22,537

 


 
1,490

2,289

 
23,544

24,826

Total Sales
 
$
375,951

$
398,818

 
$
316,062

$
313,578

 
$
73,564

$
71,119

 
$
765,577

$
783,515