XML 23 R12.htm IDEA: XBRL DOCUMENT v3.23.3
Revenue Recognition and Contracts with Customers
9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition and Contracts with Customers

NOTE 2. REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS

Disaggregation of Revenue from Contracts with Customers

As discussed in Note 1, we have two reportable segments: our Southeast segment and our Western segment. The following table provides information about our net sales by reporting segment, product category and market for the three and nine months ended September 30, 2023 and October 1, 2022:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

October 1,

 

 

September 30,

 

 

October 1,

 

Disaggregation of revenue (in millions):

2023

 

 

2022

 

 

2023

 

 

2022

 

Reporting segment:

 

 

 

 

 

 

 

 

 

 

 

Southeast

$

302.9

 

 

$

288.2

 

 

$

873.0

 

 

$

867.5

 

Western

 

97.0

 

 

 

97.6

 

 

 

288.7

 

 

 

283.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net sales

$

399.9

 

 

$

385.8

 

 

$

1,161.7

 

 

$

1,151.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Product category:

 

 

 

 

 

 

 

 

 

 

 

Impact-resistant

$

251.8

 

 

$

227.7

 

 

$

716.6

 

 

$

688.5

 

Nonimpact-resistant

 

148.1

 

 

 

158.1

 

 

 

445.1

 

 

 

462.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net sales

$

399.9

 

 

$

385.8

 

 

$

1,161.7

 

 

$

1,151.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Market:

 

 

 

 

 

 

 

 

 

 

 

New construction

$

149.9

 

 

$

160.9

 

 

$

453.8

 

 

$

484.3

 

Repair and remodel

 

250.0

 

 

 

224.9

 

 

 

707.9

 

 

 

666.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net sales

$

399.9

 

 

$

385.8

 

 

$

1,161.7

 

 

$

1,151.0

 

 

The Company’s Western segment includes both custom and volume products. This segment’s volume products are not made-to-order and are of standardized sizes and design specifications. Therefore, the Company’s assessment is that the Western segment’s volume products have alternative uses, and that control of these products passes to the customer at a point in time, which is typically when the product has been delivered to the customer. For the three months ended September 30, 2023 and October 1, 2022, the Western segment’s net sales of its volume products were $20.9 million and $26.6 million, respectively. For the nine months ended September 30, 2023 and October 1, 2022, the Western segment’s net sales of its volume products were $61.7 million and $82.6 million, respectively.

 

Contract Balances

Contract assets represent sales recognized in excess of billings related to finished goods not yet shipped and certain unused glass components not yet placed into the production process for which revenue is recognized over time. Contract liabilities relate to customer deposits at the end of reporting periods. At September 30, 2023 and December 31, 2022, those contract liabilities totaled $27.0 million and $39.1 million, respectively, of which $20.7 million and $33.4 million, respectively, are classified within accrued liabilities, and $6.3 million and $5.7 million, respectively, are classified as a reduction to the contract assets to which they relate. Contract assets, net, totaled $53.9 million at September 30, 2023 and $47.9 million at December 31, 2022, in the accompanying condensed consolidated balance sheets.

Because of the short-term nature of our performance obligations, as discussed below, substantially all of our performance obligations are satisfied within the quarter following the end of a reporting period. As such, substantially all of the contract liabilities at December 31, 2022 were satisfied in the first quarter of 2023, and contract assets at December 31, 2022 were transferred to accounts receivable in the first quarter of 2023. Also, substantially all of the contract liabilities at September 30, 2023 will be satisfied in the fourth quarter of 2023, and contract assets at September 30, 2023 will be transferred to accounts receivable in the fourth quarter of 2023. Contract liabilities at September 30, 2023 represents cash received during the three-month period ended September 30, 2023, excluding amounts recognized as revenue during that period. Contract assets at September 30, 2023 represents revenue recognized during the three-month period ended September 30, 2023, excluding amounts transferred to accounts receivable during that period. Contract liabilities at December 31, 2022 represents cash received during the three-month period ended December 31, 2022, excluding amounts recognized as revenue during that period. Contract assets at December 31, 2022 represents revenue recognized during the three-month period ended December 31, 2022, excluding amounts transferred to accounts receivable during that period.

 

Allowance for Credit Losses

We measure all expected credit losses for financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. In the ordinary course of business, we extend credit to qualified dealers and distributors, generally on a non-collateralized basis. The Company maintains an allowance for credit losses which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions, and may include anticipated unfavorable impacts of current macro-economic conditions on the businesses of our customers, such as dealers and distributors.

As of September 30, 2023 and December 31, 2022, we had gross accounts receivable of $163.8 million and $173.8 million, respectively, and an allowance for credit losses of $14.5 million and $13.7 million, respectively.