Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue Recognition [Abstract]

Revenue Recognition

NOTE 14: REVENUE RECOGNITION

We are a leading value-added processor and distributor of industrial metals with operations in the United States, Canada, Mexico, and China. We purchase large quantities of metal products from primary producers and sell these materials in smaller quantities to a wide variety of metals-consuming industries. Nearly 80% of the metals products sold are processed by us to a specified thickness, length, width, shape, and surface quality pursuant to specific customer orders.

Disaggregated Revenue

We have one operating and reportable segment, metals service centers.

The Company derives substantially all of its sales from the distribution of metals. The following table shows the Company’s percentage of sales by major product line:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Product Line	2022			2021			2022			2021
Carbon Steel Flat		29	%		31	%		30	%		30	%
Carbon Steel Plate		10			10			10			10
Carbon Steel Long		13			13			13			13
Stainless Steel Flat		18			17			18			17
Stainless Steel Plate		4			5			5			5
Stainless Steel Long		5			4			5			4
Aluminum Flat		13			13			12			13
Aluminum Plate		2			2			2			2
Aluminum Long		4			4			4			4
Other		2			1			1			2
Total		100	%		100	%		100	%		100	%

A significant majority of the Company’s sales are attributable to its U.S. operations. The only operations attributed to foreign countries relate to the Company’s subsidiaries in Canada, China, and Mexico. The following table summarizes consolidated financial information of our operations by geographic location based on where sales originated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net Sales	(In millions)
United States		1,589.9	$	1,276.8	$	3,193.2	$	2,302.5
Foreign countries		153.6		142.2	$	299.1		263.8
Total	$	1,743.5	$	1,419.0	$	3,492.3	$	2,566.3

Revenue is recognized either at a point in time or over time based on if the contract has an enforceable right to payment and the type of product that is being sold to the customer, with products that are determined to have no alternative use being recognized over time. The following table summarizes revenues by the type of item sold:

	Three Months Ended June 30,						Six Months Ended June 30,
Timing of Revenue Recognition	2022			2021			2022			2021
Revenue on products with an alternative use		90	%		90	%		90	%		90	%
Revenue on products with no alternative use		10			10			10			10
Total		100	%		100	%		100	%		100	%

Contract Balances

A receivable is recognized in the period in which an invoice is issued, which is generally when the product is delivered to the customer. Payment terms on invoiced amounts are typically 30 days from the invoice date. We do not have any contracts with significant financing components.

Receivables, which are included in accounts receivables within the Condensed Consolidated Balance Sheet, from contracts with customers were $759.5 million and $633.0 million as of June 30, 2022 and December 31, 2021, respectively.

Contract assets, which consist primarily of revenues recognized over time that have not yet been invoiced and estimates of the value of inventory that will be received in conjunction with product returns, are reported in prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets. Contract liabilities, which consist primarily of accruals associated with amounts that will be paid to customers for volume rebates, cash discounts, sales returns and allowances, estimates of shipping and handling costs associated with performance obligations recorded over time, and bill and hold transactions are reported in other accrued liabilities within the Condensed Consolidated Balance Sheets. Significant changes in the contract assets and the contract liabilities balances during the period are as follows:

	Contract Assets			Contract Liabilities
	(In millions)
Beginning Balance at January 1, 2022	$	21.3		$	15.1
Contract liability satisfied during the period		—			(11.9	)
Contract liability incurred during the period		—			15.3
Net change in contract assets and liabilities for products with no alternative use during the period		(4.5	)		—
Changes to reserves		0.5			1.0
Ending Balance at June 30, 2022	$	17.3		$	19.5

The Company’s performance obligations are typically short-term in nature. As a result, the Company has elected the practical expedient that provides an exemption of the disclosure requirements regarding information about remaining performance obligations on contracts that have original expected durations of one year or less.