Note 10 - Revenue Recognition |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2022 | |||
| Notes to Financial Statements | |||
| Revenue from Contract with Customer [Text Block] |
Revenues are generated from the sale of products. Performance obligations are met and revenue is recognized upon transfer of control to the customer, which is generally upon shipment. When contract terms require transfer of control upon delivery at a customer’s location, revenue is recognized on the date of delivery. For products shipped under vendor managed inventory arrangements, revenue is recognized and billed when the product is consumed by the customer, at which point control has transferred and there are no further obligations by the Company. Revenue is measured as the amount of consideration we expect to receive in exchange for shipped product. Sales, value-added and other taxes billed and collected from customers are excluded from revenue. Customers, including distributors, do not have a general right of return.
Separately priced extended warranty contracts are offered on certain Communications Systems products for a duration of up to eight (8) years. Extended warranties are treated as separate performance obligations and recognized to revenue evenly over the term of the respective contract. Revenue not yet recognized on extended warranty contracts is recorded as deferred revenue on the consolidated balance sheet.
As of September 30, 2022, there was deferred revenue on extended warranty contracts of $592 in other noncurrent liabilities and $119 in accrued expenses and other current liabilities on our consolidated balance sheet. As of December 31, 2021, the Company had extended warranty obligations.
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