Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Policies)

v3.22.2.2
Summary of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 24, 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.
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 September 24, 2022
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
Fastening and Hardware $ 210,853  $ —  $ 39,578  $ 250,431 
Personal Protective 61,000  —  322  61,322 
Keys and Key Accessories —  51,688  1,145  52,833 
Engraving and Resharp —  13,944  13,952 
Consolidated $ 271,853  $ 65,632  $ 41,053  $ 378,538 
Thirteen weeks ended September 25, 2021
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
Fastening and Hardware $ 189,935  $ —  $ 34,648  $ 224,583 
Personal Protective 71,521  —  79  71,600 
Keys and Key Accessories —  52,586  778  53,364 
Engraving and Resharp —  14,913  20  14,933 
Consolidated $ 261,456  $ 67,499  $ 35,525  $ 364,480 


Thirty-nine weeks ended September 24, 2022
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
Fastening and Hardware $ 625,537  $ —  $ 121,710  $ 747,247 
Personal Protective 192,573  —  984  193,557 
Keys and Key Accessories —  149,901  2,611  152,512 
Engraving and Resharp —  42,315  34  42,349 
Consolidated $ 818,110  $ 192,216  $ 125,339  $ 1,135,665 
Thirty-nine weeks ended September 25, 2021
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
Fastening and Hardware $ 557,745  $ —  $ 114,565  $ 672,310 
Personal Protective 217,769  —  270  218,039 
Keys and Key Accessories —  144,969  1,345  146,314 
Engraving and Resharp —  44,760  53  44,813 
Consolidated $ 775,514  $ 189,729  $ 116,233  $ 1,081,476 


The following table disaggregates our revenue by geographic location:

Thirteen weeks ended September 24, 2022
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
United States $ 265,446  $ 64,372  $ —  $ 329,818 
Canada 1,941  1,260  41,053  44,254 
Mexico 4,466  —  —  4,466 
Consolidated $ 271,853  $ 65,632  $ 41,053  $ 378,538 

Thirteen weeks ended September 25, 2021
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
United States $ 256,407  $ 66,563  $ —  $ 322,970 
Canada 1,866  936  35,525  38,327 
Mexico 3,183  —  —  3,183 
Consolidated $ 261,456  $ 67,499  $ 35,525  $ 364,480 

Thirty-nine weeks ended September 24, 2022
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
United States $ 800,925  $ 189,066  $ —  $ 989,991 
Canada 5,794  3,150  125,339  134,283 
Mexico 11,391  —  —  11,391 
Consolidated $ 818,110  $ 192,216  $ 125,339  $ 1,135,665 
Thirty-nine weeks ended September 25, 2021
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
United States $ 760,946  $ 187,602  $ —  $ 948,548 
Canada 5,145  2,127  116,233  123,505 
Mexico 9,423  —  —  9,423 
Consolidated $ 775,514  $ 189,729  $ 116,233  $ 1,081,476 


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.