Revenue Recognition

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

We disaggregate our revenue from contracts with customers for our Installation segment by end market and product, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenues for the Other category are presented net of intercompany sales in the tables below. The following tables present our net revenues disaggregated by end market and product (in millions):

	Years ended December 31,
	2023				2022				2021
Residential new construction	$	1,999.4	72	%	$	1,980.3	74	%	$	1,488.7	76	%
Repair and remodel	159.0		6	%	151.8		6	%	121.6		6	%
Commercial	447.2		16	%	381.5		14	%	331.2		17	%
Net revenue, Installation	$	2,605.6	94	%	$	2,513.6	94	%	$	1,941.5	99	%
Other (1)	173.0		6	%	156.2		6	%	27.2		1	%
Net revenue, as reported	$	2,778.6	100	%	$	2,669.8	100	%	$	1,968.7	100	%

	Years ended December 31,
	2023				2022				2021
Insulation	$	1,666.0	60	%	$	1,611.1	61	%	$	1,235.6	63	%
Shower doors, shelving and mirrors	191.5		7	%	173.0		7	%	138.8		7	%
Garage doors	168.5		6	%	168.8		6	%	108.7		6	%
Waterproofing	133.3		5	%	124.8		5	%	130.9		6	%
Rain gutters	119.0		4	%	114.0		4	%	86.4		4	%
Fireproofing/firestopping	73.7		3	%	63.5		2	%	59.4		3	%
Window blinds	65.2		2	%	61.3		2	%	50.2		3	%
Other building products	188.4		7	%	197.1		7	%	131.5		7	%
Net revenues, Installation	$	2,605.6	94	%	$	2,513.6	94	%	$	1,941.5	99	%
Other (1)	173.0		6	%	156.2		6	%	27.2		1	%
Net revenue, as reported	$	2,778.6	100	%	$	2,669.8	100	%	$	1,968.7	100	%

(1) Net revenue for distribution and manufacturing operations are included in the Other category for all periods presented.

Contract Assets and Liabilities

Our contract assets consist of unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized, based on costs incurred, exceeds the amount billed to the customer. Our contract assets are recorded in other current assets in our Consolidated Balance Sheets. Our contract liabilities consist of customer deposits and billings in excess of revenue recognized, based on costs incurred and are included in other current liabilities in our Consolidated Balance Sheets.

Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in millions):

	As of December 31,
	2023		2022
Contract assets	$	31.7	$	29.4
Contract liabilities	(19.0)		(18.9)

Uncompleted contracts were as follows (in millions):

	As of December 31,
	2023		2022
Costs incurred on uncompleted contracts	$	268.9	$	273.8
Estimated earnings	124.4		114.8
Total	393.3		388.6
Less: Billings to date	371.7		368.0
Net under billings	$	21.6	$	20.6

Net under billings were as follows (in millions):

	As of December 31,
	2023		2022
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets)	$	31.7	$	29.4
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities)	(10.1)		(8.8)
Net under billings	$	21.6	$	20.6

The difference between contract assets and contract liabilities as of December 31, 2023 compared to December 31, 2022 is primarily the result of timing differences between our performance of obligations under contracts and customer payments and billings. During the year ended December 31, 2023, we recognized $17.9 million of revenue that was included in the contract liability balance at December 31, 2022. We did not recognize any impairment losses on our receivables and contract assets during the years ended December 31, 2023, 2022 and 2021.

Remaining performance obligations represent the transaction price of contracts for which work has not been performed and excludes unexercised contract options and potential modifications. As of December 31, 2023, the aggregate amount of the transaction price allocated to remaining uncompleted contracts was $115.7 million. We expect to satisfy remaining performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months.