Revenue Recognition and Contracts with Customers (Tables)

12 Months Ended

Jan. 02, 2021

Revenue From Contract With Customer [Abstract]

Revenue Recognition

The details of the adjustment to accumulated deficit upon adoption on December 31, 2017 is as follows (in thousands):

	Cumulative
	Effect			Description of Effects on Line Item
Net sales	$	8,704		Additional contract asset sales
Cost of sales		(5,642	)	Inventory classified as cost of sales
SG&A expenses		(532	)	Accruals for selling costs
Income tax expense		(647	)	Estimated income tax effects
Net income	$	1,883		Additional net income

The following tables reconcile the balances as presented for the year ended December 29, 2018 to the balances prior to the adjustments made to implement the new revenue recognition standard for the same period, for the accompanying consolidated statement of operations. Adoption of the revenue recognition standard did not impact our cash from operating, investing, or financing activities on our condensed consolidated statements of cash flows. (in thousands, except per share amounts):

	Year Ended December 29, 2018
	As			Impact of		Previous
	Presented			ASU 2014-09		Standard
Net sales	$	698,493		$	2,553	$	701,046
Cost of sales		455,025			1,875		456,900
Gross profit		243,468			678		244,146
Selling, general and administrative expenses		150,910			104		151,014
Gains on sales of assets		(2,551	)		-		(2,551	)
Income from operations		95,109			574		95,683
Interest expense, net		26,529			-		26,529
Debt extinguishment costs		3,375			-		3,375
Income before income taxes		65,205			574		65,779
Income tax expense		11,272			146		11,418
Net income	$	53,933		$	428	$	54,361
Basic	$	1.03				$	1.04
Diluted	$	1.00				$	1.00
Other comprehensive loss before tax:
Change in fair value of derivatives		(4,357	)		-		(4,357	)
Reclassification to earnings		239			-		239
Other comprehensive loss before tax		(4,118	)		-		(4,118	)
Income tax benefit related to other comprehensive loss		(1,053	)		-		(1,053	)
Other comprehensive loss, net of tax		(3,065	)		-		(3,065	)
Comprehensive income	$	50,868		$	428	$	51,296

Amounts in the table above presented under “Previous Standard” represent balances as-if ASU 2014-09 had not been adopted, which primarily reflects finished goods and certain unused glass components directly attributable to noncancelable sales orders and with no alternative future use, and therefore recognized as revenue over time under the new standard.

Revenue Based on Business Unit, Product Category, and Market

The following table provides information about our revenue differentiated based on reportable segment, product category, and market, See Note 20 for more information regarding a realignment of our segments in 2020 (dollars in millions):

	Year Ended
	January 2,		December 28,		December 29,
Disaggregation of revenue:	2021		2019		2018
Reporting segment:
Southeast	$	752.4	$	606.6	$	648.8
Western		130.2		138.4		49.7
Total net sales	$	882.6	$	745.0	$	698.5
Product category:
Impact-resistant window and door products	$	630.2	$	516.1	$	561.8
Non-impact window and door products		252.4		228.9		136.7
Total net sales	$	882.6	$	745.0	$	698.5
Market:
New construction	$	402.5	$	368.4	$	283.1
Repair and remodel		480.1		376.6		415.4
Total net sales	$	882.6	$	745.0	$	698.5