Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Policies)

v3.22.1
Summary of Significant Accounting Policies (Policies)
3 Months Ended
Mar. 26, 2022
Accounting Policies [Abstract]  
Use of Estimates in the Preparation of Financial Statements
Use of Estimates in the Preparation of Financial Statements:
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses for the reporting periods. Actual results may differ from these estimates.
The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts COVID-19 as of March 26, 2022 and through the date of this
report. The accounting matters assessed included, but were not limited to the carrying value of the goodwill and other long-lived assets. While there was not a material impact to the Company’s Condensed Consolidated Financial Statements for the
thirteen weeks ended March 26, 2022, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s Condensed Consolidated Financial Statements in future reporting periods.
Revenue Recognition
Revenue Recognition:

Revenue is recognized when control of goods or services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue.
The Company offers a variety of sales incentives to its customers primarily in the form of discounts and rebates. Discounts are
recognized in the Condensed Consolidated Financial Statements at the date of the related sale. Rebates are based on the revenue to date and
the contractual rebate percentage to be paid. A portion of the cost of the rebate is allocated to each underlying sales transaction.
Discounts and rebates are included in the determination of net sales.

The Company also establishes reserves for customer returns and allowances. The reserve is established based on historical rates
of returns and allowances. The reserve is adjusted quarterly based on actual experience. Returns and allowances are included
in the determination of net sales.
The following table displays our disaggregated revenue by product category:

Thirteen weeks ended March 26, 2022
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
Fastening and Hardware $ 189,307  $ —  $ 33,659  $ 222,966 
Personal Protective 77,108  —  442  77,550 
Keys and Key Accessories —  48,376  674  49,050 
Engraving —  13,263  15  13,278 
Resharp —  169  —  169 
Consolidated $ 266,415  $ 61,808  $ 34,790  $ 363,013 
Thirteen weeks ended March 27, 2021
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
Fastening and Hardware $ 166,602  $ —  $ 34,091  $ 200,693 
Personal Protective 84,327  —  13  84,340 
Keys and Key Accessories —  42,094  361  42,455 
Engraving —  13,778  13,786 
Resharp —  — 
Consolidated $ 250,929  $ 55,879  $ 34,473  $ 341,281 


The following table disaggregates our revenue by geographic location:

Thirteen weeks ended March 26, 2022
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
United States $ 261,062  $ 60,978  $ —  $ 322,040 
Canada 1,786  830  34,790  37,406 
Mexico 3,567  —  —  3,567 
Consolidated $ 266,415  $ 61,808  $ 34,790  $ 363,013 

Thirteen weeks ended March 27, 2021
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
United States $ 246,797  $ 55,300  $ —  $ 302,097 
Canada 1,229  579  34,473  36,281 
Mexico 2,903  —  —  2,903 
Consolidated $ 250,929  $ 55,879  $ 34,473  $ 341,281 


Our revenue by geography is allocated based on the location of our sales operations. Our Hardware and Protective Solutions segment contains sales of Big Time Products personal protective equipment into Canada. Our Robotics and Digital Solutions segment contains sales of MinuteKey Canada.
Hardware and Protective Solutions revenues consist primarily of the delivery of fasteners, anchors, specialty fastening products, and personal protective equipment such as gloves and eye-wear, as well as in-store merchandising services for the related product category.

Robotics and Digital Solutions revenues consist primarily of sales of keys and identification tags through self-service key
duplication and engraving kiosks. It also includes our associate-assisted key duplication systems and key accessories.

Canada revenues consist primarily of the delivery to Canadian customers of fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, personal protective equipment, and identification items as well as in-store merchandising services for the related product category.

The Company’s performance obligations under its arrangements with customers are providing products, in-store merchandising
services, and access to key duplicating and engraving equipment. Generally, the price of the merchandising services and the
access to the key duplicating and engraving equipment is included in the price of the related products. Control of products is
transferred at the point in time when the customer accepts the goods, which occurs upon delivery of the products. Judgment is
required in determining the time at which to recognize revenue for the in-store services and the access to key duplicating and
engraving equipment. Revenue is recognized for in-store service and access to key duplicating and engraving equipment as the
related products are delivered, which approximates a time-based recognition pattern. Therefore, the entire amount of
consideration related to the sale of products, in-store merchandising services, and access to key duplicating and engraving
equipment is recognized upon the delivery of the products.

The costs to obtain a contract are insignificant, and generally contract terms do not extend beyond one year. Therefore, these
costs are expensed as incurred. Freight and shipping costs and the cost of our in-store merchandising services teams are
recognized in selling, general, and administrative expense when control over products is transferred to the customer.

The Company used the practical expedient regarding the existence of a significant financing component as payments are due in
less than one year after delivery of the products.
Recent Accounting Pronouncements