Revenue

3 Months Ended

Mar. 31, 2021

Revenue From Contract With Customer [Abstract]

Revenue

Note 3. Revenue  

In the fourth quarter of 2019, the Company adopted ASU 2014-09, the new accounting standard under ASC Topic 606, using the modified retrospective method as of January 1, 2019.  

Contract Balances

The timing of revenue recognition, billings, and cash collections results in billed accounts receivable, revenue in excess of billings, customer deposits, and billings in excess of revenue recognized in the Company’s Consolidated Balance Sheets.

Contract assets

The Company’s contract assets consist of unbilled amounts typically resulting from sales under contracts when the revenue recognized exceeds the amount billed to the customer, generally in the RDS operating segment revenues derived from homebuilders and commercial and multifamily projects. Contract assets are recorded in other current assets in the Company’s Consolidated Balance Sheets. The Company had contract assets of $15.7 million and $12.8 million as of March 31, 2021 and December 31, 2020, respectively. The Company’s contract assets generally become unconditional and are reclassified to receivables in the quarter subsequent to each balance sheet date.

Contract liabilities

The Company records contract liabilities when it receives payment prior to fulfilling a performance obligation or has billings in excess of revenue recognized. Contract liabilities related to revenues are recorded in customer deposits in the Company’s Consolidated Balance Sheets. The Company had total contract liabilities of $9.8 million and $8.1 million as of March 31, 2021 and December 31, 2020, respectively. Contract liabilities are normally recognized to net revenue within three to six months subsequent to each balance sheet date.

Remaining Performance Obligations

Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period, and relate primarily to multi-family or commercial revenue. For the three months ended March 31, 2021 and 2020, multi-family and commercial projects accounted for approximately 4.8% and 2.8% of the Company’s consolidated revenues, respectively. As of March 31, 2021, and December 31, 2020, the aggregate amount of the transaction price allocated to remaining uncompleted contracts was $2.4 million and $3.2 million, respectively. The Company expects to satisfy remaining performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 12 months. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

Revenue from contracts with customers is disaggregated differently for each reporting segment as this is how management evaluates the nature, amount, timing and uncertainty of revenue and cash flows as affected by economic factors. RDS operating segment revenues are disaggregated by geographic area within the United States. ASG operating segment revenues are disaggregated by product category.

The following table presents net revenue for the RDS operating segment disaggregated by geographical area for the three months ended March 31, 2021 and 2020, respectively:

RDS
(in thousands)	For the Three Months Ended March 31, 2021		%			For the Three Months Ended March 31, 2020		%
East	$	18,700		23	%	$	19,100		24	%
Central		5,500		7	%		4,900		6	%
West		56,211		70	%		55,350		70	%
	$	80,411		100	%	$	79,350		100	%

The East consists of Virginia, Maryland, North Carolina and Georgia; the Central consists of Texas, and the West consists of California, Nevada, Arizona and Idaho.

The following table presents net revenue for the ASG operating segment disaggregated by product category for the three months ended March 31, 2021 and 2020, respectively:

ASG
(in thousands)	For the Three Months Ended March 31, 2021		%			For the Three Months Ended March 31, 2020		%
Quartz	$	36,408		63	%	$	32,636		59	%
Stone		15,892		28	%		17,037		30	%
Tile		3,174		5	%		3,762		7	%
Other		2,332		4	%		2,108		4	%
	$	57,806		100	%	$	55,543		100	%