REVENUE

9 Months Ended

Nov. 01, 2020

REVENUE

REVENUE

NOTE 12 — REVENUE

The Company’s revenues are earned from contracts with customers. Contracts include written agreements, as well as arrangements that are implied by customary practices or law.

Nature of Products and Services

The Company offers products that serve the maintenance, repair and operations (“MRO”) end market as well as value-added services. For additional information regarding the nature of products and services offered, see “Description of business” within Item 2 of this quarterly report on Form 10-Q.

Revenue Recognition

The Company recognizes revenue, net of allowances for returns and discounts and any taxes collected from the customer, when an identified performance obligation is satisfied by the transfer of control of promised products or services to the customer. The Company ships products to customers by internal fleet and third-party carriers. Transfer of control to the customer for products generally occurs at the point of destination (i.e., upon transfer of title and risk of loss of product). Transfer of control to the customer for services occurs when the customer has the right to direct the use of and obtain substantially all the remaining benefits of the asset that is created or enhanced from the service. The Company accounts for shipping and handling costs associated with outbound freight as a fulfillment cost. Such costs are included in Selling, general, and administrative expenses.

Disaggregation of Revenue

The Company elected to disaggregate revenue by its demand types: MRO and Property Improvement. The Company believes this disaggregation appropriately meets the objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The table below represents disaggregated revenue for the Company (amounts in millions):

	Three Months Ended				Nine Months Ended
	November 1, 2020		November 3, 2019		November 1, 2020		November 3, 2019
Maintenance, Repair, and Operations	$	742.7	$	725.9	$	2,040.1	$	2,149.2
Property Improvement		84.8		99.3		228.9		276.8
Total Net Sales	$	827.5	$	825.2	$	2,269.0	$	2,426.0