Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Policies)

v3.23.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jul. 01, 2023
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 tables display our disaggregated revenue by product category. Certain amounts in the prior year presentation between segments were reclassified to conform to the current year’s presentation.

Thirteen weeks ended July 1, 2023
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
Fastening and Hardware $ 225,139  $ —  $ 44,743  $ 269,882 
Personal Protective 43,655  —  1,928  45,583 
Keys and Key Accessories —  49,021  2,091  51,112 
Engraving and Resharp —  13,435  7  13,442 
Total Revenue $ 268,794  $ 62,456  $ 48,769  $ 380,019 
Thirteen weeks ended June 25, 2022
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
Fastening and Hardware $ 225,047  $ —  $ 48,810  $ 273,857 
Personal Protective 52,391  —  2,287  54,678 
Keys and Key Accessories —  48,768  1,852  50,620 
Engraving and Resharp —  14,948  11  14,959 
Total Revenue $ 277,438  $ 63,716  $ 52,960  $ 394,114 
Twenty-six weeks ended July 1, 2023
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
Fastening and Hardware $ 430,114  $ —  $ 75,965  $ 506,079 
Personal Protective 92,531  —  3,541  96,072 
Keys and Key Accessories —  97,568  4,033  101,601 
Engraving and Resharp —  25,954  20  25,974 
Total Revenue $ 522,645  $ 123,522  $ 83,559  $ 729,726 
Twenty-six weeks ended June 25, 2022
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
Fastening and Hardware $ 415,111  $ —  $ 81,722  $ 496,833 
Personal Protective 127,704  —  4,515  132,219 
Keys and Key Accessories —  96,305  3,356  99,661 
Engraving and Resharp —  28,388  26  28,414 
Total Revenue $ 542,815  $ 124,693  $ 89,619  $ 757,127 
The following tables disaggregate our revenue by geographic location. Certain amounts in the prior year presentation between segments were reclassified to conform to the current year’s presentation.
Thirteen weeks ended July 1, 2023
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
United States $ 267,202  $ 62,456  $ —  $ 329,658 
Canada —  —  48,769  48,769 
Mexico 1,592  —  —  1,592 
Consolidated $ 268,794  $ 62,456  $ 48,769  $ 380,019 
Thirteen weeks ended June 25, 2022
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
United States $ 274,080  $ 63,716  $ —  $ 337,796 
Canada —  —  52,960  52,960 
Mexico 3,358  —  —  3,358 
Consolidated $ 277,438  $ 63,716  $ 52,960  $ 394,114 
Twenty-six weeks ended July 1, 2023
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
United States $ 516,670  $ 123,522  $ —  $ 640,192 
Canada —  —  83,559  83,559 
Mexico 5,975  —  —  5,975 
Consolidated $ 522,645  $ 123,522  $ 83,559  $ 729,726 

Twenty-six weeks ended June 25, 2022
Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue
United States $ 535,890  $ 124,693  $ —  $ 660,583 
Canada —  —  89,619  89,619 
Mexico 6,925  —  —  6,925 
Consolidated $ 542,815  $ 124,693  $ 89,619  $ 757,127 


The Company's revenue by geography is allocated based on the location of its sales operations.
Hardware and Protective Solutions revenues consist primarily of the delivery of fasteners, anchors, specialty fastening products, and personal protective equipment such as gloves and eyewear, 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, warehouse, 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.