The Company primarily manufactures fully customized windows and doors, and manufactures products based on design specifications, measurements, colors, finishes, framing materials, glass-types, and other options selected by the customer at the point in time an order is received from the customer. The Company has an enforceable right to payment at the time an order is received and accepted at the agreed-upon sales prices contained in our agreements with our customers for all manufacturing efforts expended by the Company on behalf of its customers. Due to the customized build-to-order nature of the Company’s products, the Company’s assessment is that the substantial portion of its finished goods and certain unused glass components have no alternative use, and that control of these products and components passes to the customer over time during the manufacturing of the products in an order, or upon our receipt of certain pre-cut glass components from our supplier attributed to specific customer orders.

Based on these factors, the Company recognizes a substantial portion of revenue over time during the manufacturing process once customization begins, and for certain unused glass components on hand, at the end of a reporting period. Revenue on work-in-process at the end of a reporting period is recognized in proportion to costs incurred to total estimated cost of the product being manufactured. Except for the Western segment’s volume products, discussed in the section titled Disaggregation of Revenue from Contracts with Customers below, revenue recognized at a point in time is immaterial.

As discussed in Note 1, beginning in 2019, we determined that we have two reportable segments: our Southeast business unit and our Western business unit. See Note 17 for more information. The following tables provide information about our net sales by product category and by market for the three and nine months ended September 28, 2019, by segment, and for the three and nine months ended September 29, 2018 (dollars in millions):

	Segments
Three Months Ended September 28, 2019	Southeast		Western		Total
Product category:
Impact-resistant window and door products	$	129.5	$	1.6	$	131.1
Non-impact window and door products		28.8		37.9		66.7

Total net sales	$	158.3	$	39.5	$	197.8

Market:
New construction	$	59.7	$	35.9	$	95.6
Repair and remodel		98.6		3.6		102.2

Total net sales	$	158.3	$	39.5	$	197.8

	Segments
Three Months Ended September 29, 2018	Southeast		Western		Total
Product category:
Impact-resistant window and door products	$	157.2	$	1.1	$	158.3
Non-impact window and door products		19.8		21.0		40.8

Total net sales	$	177.0	$	22.1	$	199.1

Market:
New construction	$	62.7	$	18.7	$	81.4
Repair and remodel		114.3		3.4		117.7

Total net sales	$	177.0	$	22.1	$	199.1

	Segments
Nine Months Ended September 28, 2019	Southeast		Western		Total
Product category:
Impact-resistant window and door products	$	392.0	$	3.7	$	395.7
Non-impact window and door products		64.4		110.0		174.4

Total net sales	$	456.4	$	113.7	$	570.1

Market:
New construction	$	176.4	$	105.1	$	281.5
Repair and remodel		280.0		8.6		288.6

Total net sales	$	456.4	$	113.7	$	570.1

	Segments
Nine Months Ended September 29, 2018	Southeast		Western		Total
Product category:
Impact-resistant window and door products	$	422.3	$	3.3	$	425.6
Non-impact window and door products		57.7		25.3		83.0

Total net sales	$	480.0	$	28.6	$	508.6

Market:
New construction	$	174.0	$	18.7	$	192.7
Repair and remodel		306.0		9.9		315.9

Total net sales	$	480.0	$	28.6	$	508.6

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 and nine months ended September 28, 2019, the Western segment’s net sales of its volume products were $13.8 million and $40.6 million, respectively. For the post-acquisition period from the August 13, 2018 acquisition date to September 29, 2018, the Western segment’s net sales of its volume products were $9.8 million.

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 as noted above. Contract liabilities relate to customer deposits at the end of reporting periods. At September 28, 2019, and December 29, 2018, those contract liabilities totaled $7.6 million and $8.3 million, respectively, of which $6.1 million and $7.8 million, respectively, are classified within accrued liabilities, and $1.5 million and $0.5 million, respectively, are classified within contract assets, net, in the accompanying condensed consolidated balance sheets at September 28, 2019, and December 29, 2018.

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 29, 2018 were satisfied in the first quarter of 2019, and contract assets at December 29, 2018 were transferred to accounts receivable in the first quarter of 2019. Contract liabilities at September 28, 2019 represents cash received during the three-month period ended September 28, 2019, excluding amounts recognized as revenue during that period. Contract assets at September 28, 2019 represents revenue recognized during the three-month period ended September 28, 2019, excluding amounts transferred to accounts receivable during that period.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue as the performance obligation is satisfied. Our contracts with our customers generally represent an approved purchase order, which is typically accounted for as a single performance obligation. In situations when our contract includes distinct goods that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct goods. We allocate the contract’s transaction price to each distinct performance obligation based on the estimated relative standalone selling price of each distinct good. Observable standalone sales are used to determine the standalone selling price.

Performance obligations are satisfied over time, generally for our custom products, and as of a point in time for our standard products. Performance obligations are supported by contracts with customers, and we have elected not to disclose our unsatisfied performance obligations as of September 28, 2019 under the short-term contract exemption as we expect such performance obligations will be satisfied within the quarter following the end of a reporting period.

Policies Regarding Shipping and Handling Costs and Commissions on Contract Assets

The Company has made a policy election to continue to recognize shipping and handling costs as a fulfillment activity. Treating shipping and handling as a fulfillment activity requires estimated shipping and handling costs for undelivered products and certain glass components on which we have recognized revenue and created a contract asset, to be accrued to match this cost with the recognized revenue. This policy is unchanged from the Company’s policy for recognizing shipping and handling costs prior to the adoption of the new revenue guidance.

The Company utilizes the practical expedient which permits expensing of costs to obtain a contract when the expected amortization period is one year or less, which typically results in expensing commissions paid to employees. We expense sales commissions paid to employees as sales are recognized, including sales from the creation of contract assets, as the expected amortization period is less than one year.