MOLX » Topics » Revenue Recognition

These excerpts taken from the MOLX 10-K filed Aug 6, 2008.
Revenue Recognition
 
We recognize revenue when in the normal course of our business the following conditions are met: (i) a purchase order has been received from the customer with a corresponding order acknowledgement sent to the customer confirming delivery, price and payment terms, (ii) product has been shipped (FOB origin) or delivered (FOB destination) and title has clearly transferred to the customer or customer


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Table of Contents

 
Molex Incorporated
 
Notes to Consolidated Financial Statements — (Continued)
 
carrier, (iii) the price to the buyer is fixed and determinable for sales with an estimate of allowances made based on historical experience and (iv) there is reasonable assurance of collectability.
 
We record revenue on a consignment sale when a customer has taken title of product which is stored in either the customer’s warehouse or that of a third party.
 
From time to time, we will discontinue or obsolete products that we have formerly sold. When this is done, an accrual for estimated returns is established at the time of the announcement of product discontinuation or obsolescence.
 
We typically warrant that our products will conform to Molex specifications and that our products will be free from material defects in materials and manufacturing, and limit our liability to the replacement of defective parts or the cash value of replacement parts. We will not accept returned goods unless the customer makes a claim in writing and management authorizes the return. Returns result primarily from defective products or shipping discrepancies. A reserve for estimated returns is established at the time of sale based on historical return experience and is recorded as a reduction of revenue.
 
We provide certain distributors with an inventory allowance for returns or scrap equal to a percentage of qualified purchases. At the time of sale, we record as a reduction of revenue a reserve for estimated inventory allowances based on a fixed percentage of sales that we authorized to distributors.
 
From time to time we in our sole discretion will grant price allowances to customers. At the time of sale, we record as a reduction of revenue a reserve for estimated price allowances based on historical allowances authorized and approved solely at our discretion.
 
Other allowances include customer quantity and price discrepancies. At the time of sale, we record as a reduction of revenue a reserve for other allowances based on historical experience. We believe we can reasonably and reliably estimate the amounts of future allowances.
 
Revenue
Recognition



 



We recognize revenue when in the normal course of our business
the following conditions are met: (i) a purchase order has
been received from the customer with a corresponding order
acknowledgement sent to the customer confirming delivery, price
and payment terms, (ii) product has been shipped (FOB
origin) or delivered (FOB destination) and title has clearly
transferred to the customer or customer





45





Table of Contents





 




Molex
Incorporated




 




Notes to
Consolidated Financial
Statements — (Continued)


 



carrier, (iii) the price to the buyer is fixed and
determinable for sales with an estimate of allowances made based
on historical experience and (iv) there is reasonable
assurance of collectability.


 



We record revenue on a consignment sale when a customer has
taken title of product which is stored in either the
customer’s warehouse or that of a third party.


 



From time to time, we will discontinue or obsolete products that
we have formerly sold. When this is done, an accrual for
estimated returns is established at the time of the announcement
of product discontinuation or obsolescence.


 



We typically warrant that our products will conform to Molex
specifications and that our products will be free from material
defects in materials and manufacturing, and limit our liability
to the replacement of defective parts or the cash value of
replacement parts. We will not accept returned goods unless the
customer makes a claim in writing and management authorizes the
return. Returns result primarily from defective products or
shipping discrepancies. A reserve for estimated returns is
established at the time of sale based on historical return
experience and is recorded as a reduction of revenue.


 



We provide certain distributors with an inventory allowance for
returns or scrap equal to a percentage of qualified purchases.
At the time of sale, we record as a reduction of revenue a
reserve for estimated inventory allowances based on a fixed
percentage of sales that we authorized to distributors.


 



From time to time we in our sole discretion will grant price
allowances to customers. At the time of sale, we record as a
reduction of revenue a reserve for estimated price allowances
based on historical allowances authorized and approved solely at
our discretion.


 



Other allowances include customer quantity and price
discrepancies. At the time of sale, we record as a reduction of
revenue a reserve for other allowances based on historical
experience. We believe we can reasonably and reliably estimate
the amounts of future allowances.


 




This excerpt taken from the MOLX 10-K filed Aug 3, 2006.

Revenue Recognition


We recognize revenue when in the normal course of our business the following conditions are met: (i) a purchase order has been received from the customer with a corresponding order acknowledgement sent to the customer confirming delivery, price and payment terms, (ii) product has been shipped (FOB origin) or delivered (FOB destination) and title has clearly transferred to the customer or customer carrier, (iii) the price to the buyer


44




is fixed and determinable for sales with an estimate of allowances made based on historical experience and (iv) there is reasonable assurance of collectibility.

  

We record revenue on a consignment sale when a customer has taken title of product which is stored in either the customer’s warehouse or that of a third party.  


From time to time, we will discontinue or obsolete products that we have formerly sold.  When this is done, an accrual for estimated returns is established at the time of the announcement of product discontinuation or obsolescence.


We typically warrant that our products will conform to Molex specifications and that our products will be free from material defects in materials and manufacturing, and limit our liability to the replacement of defective parts or the cash value of replacement parts.  We will not accept returned goods unless the customer makes a claim in writing and management authorizes the return.  Returns result primarily from defective products or shipping discrepancies.  A reserve for estimated returns is established at the time of sale based on historical return experience and is recorded as a reduction of revenue.  


We provide certain distributors with an inventory allowance for returns or scrap equal to a percentage of qualified purchases.  At the time of sale, we record as a reduction of revenue a reserve for estimated inventory allowances based on a fixed percentage of sales that we authorized to distributors.


From time to time we in our sole discretion will grant price allowances to customers.  At the time of sale, we record as a reduction of revenue a reserve for estimated price allowances based on historical allowances authorized and approved solely at our discretion.


Other allowances include customer quantity and price discrepancies.  At the time of sale, we record as a reduction of revenue a reserve for other allowances based on historical experience.  We believe we can reasonably and reliably estimate the amounts of future allowances.  


This excerpt taken from the MOLX 10-K filed Sep 12, 2005.

Revenue Recognition

Revenue is realized or realizable and earned when (a) persuasive evidence of an arrangement exists, (b) delivery has occurred or services have been rendered, (c) the seller’s price to the buyer is fixed and determinable and (d) collectibility is
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reasonably assured.

The Company recognizes revenue when in the normal course of its business the following conditions are met: (a) a purchase order has been received from the customer with a corresponding order acknowledgement sent to the customer confirming delivery, price and payment terms, (b) product has been shipped (FOB origin) or delivered (FOB destination) and title has clearly transferred to the customer or customer carrier, (c) the price to the buyer is fixed and determinable for most sales with an estimate of allowances made based on historical experience and (d) there is reasonable assurance of collectibility.

The Company records revenue on a consignment sale when a customer has taken title of product which is stored in either the customer’s warehouse or that of a third party.

From time to time, the Company will discontinue or obsolete products that it has formerly sold. When this is done, an accrual for estimated returns is established at the time of the announcement of product discontinuation or obsolescence.

The Company typically warrants that (a) its products will conform to Molex specifications and (b) that its products will be free from material defects in materials and manufacturing, and limits its liability to the replacement of defective parts or the cash value of replacement parts. The Company will not accept returned goods unless the customer makes a claim in writing and management authorizes the return. Returns result primarily from defective products or shipping discrepancies. A reserve for estimated returns is established at the time of sale based on historical return experience and is recorded as a reduction of revenue.

The Company provides certain distributors with an inventory allowance for returns or scrap equal to a percentage of qualified purchases. A reserve for estimated inventory allowances is established at the time of the sale based on a fixed percentage of sales to distributors authorized and agreed to by Molex and is recorded as a reduction of revenue.

From time to time the Company in its sole discretion will grant price allowances to customers. A reserve for estimated price allowances is established at the time of sale based on historical allowances authorized and approved by Molex solely at its discretion and is recorded as a reduction of revenue.

Other allowances include customer quantity and price discrepancies. A reserve for other allowances is established at the time of sale based on historical experience and is recorded as a reduction of revenue. The Company believes it can reasonably and reliably estimate the amounts of future allowances.

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