Net RevenuesNet revenues by reportable segment and major type of good or service were as follows:
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Total North America Net revenues | | | | | |
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Total International Net revenues | | | | | |
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Equipment and service parts
The Company offers a full line of stand-alone laundry washers and dryers and related service parts. These products
range from small residential washers and dryers to large commercial laundry equipment. Revenue from equipment and
service part sales is recognized when the Company satisfies a performance obligation by transferring control of a product to
a customer. Transfer of control generally takes place upon shipment to the customer. Revenue is measured based on the
consideration that the Company expects to be entitled to in exchange for the products transferred. Sales are generally made
with 30 – 120 day terms. The resulting receivables are recorded on the Consolidated Balance Sheet under Accounts
receivable, net and Accounts receivable, net - restricted for securitization investors for those receivables that are sold to a
securitization entity.
Sales incentive programs such as cash discounts, customer promotional allowances, and volume rebates are used to
promote the sale of equipment and other products. The Company estimates its variable consideration related to sales
incentive programs using the most likely amount. Revenues are recorded net of sales incentive allowances, and are based
on factors specific to each customer’s program such as expected sales volume and rebate percentages. The Company
maintains an accrual at the end of each period for the unpaid amount the customer is expected to earn related to such
programs. As of December 31, 2025 and 2024, the related accrual balances were $27.4 million and $23.1 million,
respectively. The accruals are recorded in Other current liabilities in the Consolidated Balance Sheet.
Shipping and handling costs associated with freight after control of a product has transferred to a customer are
accounted for as fulfillment costs. The Company accrues for the shipping and handling costs in the same period that the
related revenue is recognized.
The Company offers standard, limited warranties on its products. These warranties provide assurance that the product
will function as expected and are not separate performance obligations. The Company accounts for estimated warranty
costs as a liability when control of the product transfers to the customer.
The Company sells an extended warranty to its customers that is a separate performance obligation as the Company
stands by ready to perform additional warranty work not covered by the standard warranty. The Company defers the
extended warranty revenue until the period covered by the extended warranty begins, and then recognizes extended
warranty revenue ratably over the coverage period. The extended warranty contract liability was $1.4 million and $1.0
million as of December 31, 2025 and 2024, respectively.
The Company collects and remits taxes assessed by different governmental authorities that are both imposed on and
concurrent with revenue producing transactions between the Company and its customers. The Company excludes these
taxes from Net revenues.
Equipment financing
The Company offers an equipment financing program to end-customers who are primarily laundromat owners, in order
to finance their purchase of new equipment. Typical terms for equipment financing receivables range from two to twelve
years. Interest income on finance receivables is recorded as earned over the life of the loan. See Note 7 - Securitization
Activities for further discussion regarding asset-backed financing.
Other
Other revenue consists primarily of company-owned laundromat proceeds, scrap sale and field service revenue.
Revenue from these sources is typically recognized at point of sale or when the service is performed. Additionally, other
revenue includes sales of our digital products under distinct subscription agreements. The Company records revenue for
digital product subscriptions ratably over the subscription coverage period.