Quarterly report pursuant to Section 13 or 15(d)

Inventories

v3.7.0.1
Inventories
 3 Months Ended
Mar. 31, 2017
Inventories  
Inventories

 

4.Inventories

 

 

Inventories consist of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2017

 

2016

 

 

 

 

 

 

 

Finished goods and work-in-process

  

$

71,035

  

$

44,047

Raw material and supplies

 

 

27,325

 

 

26,824

 

 

$

98,360

 

$

70,871

 

 

 

 

 

 

 

 

 

 

 

 

The inventories in the table above do not include truck chassis inventory financed through a floor plan financing agreement as discussed in Note 6.  The Company takes title to truck chassis upon receipt of the inventory through their floor plan agreement and performs up-fitting service installations to the truck chassis inventory during the installation period.  The floor plan obligation is then assumed by their dealer customer upon delivery.  At March 31, 2017 and December 31, 2016, the Company had $6,938 and $3,939 of chassis inventory and related floor plan financing obligation, respectively.  The Company recognizes revenue associated with up-fitting and service installations net of the truck chassis.

 

Unlike the floor plan agreement, the Company does not record inventory related to the truck chassis acquired through the bailment pool agreement as these truck chassis are held on consignment.  Like the revenue recognized on floor plan arrangement, revenue recognized for up-fitting services on chassis acquired through the bailment agreement, are also recognized net of the truck chassis.