Revenue from Contracts with Customers

12 Months Ended

Dec. 28, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

Revenue from contracts with customers disaggregated by product category is as follows:

	2024		2023		2022
Systems, storage, and tables	$	1,147.3	$	1,057.4	$	889.6
Seating	583.7		525.4		473.7
Other (1)	157.0		157.5		123.0
Total workplace furnishings	1,888.0		1,740.3		1,486.2
Residential building products	638.4		693.7		875.6
	$	2,526.4	$	2,434.0	$	2,361.8

(1) The Other category consists of education-specific furnishings, architectural products, workspace accessories, and miscellaneous product lines and services.

Sales by product category are subject to similar economic factors and market conditions. See "Note 16. Reportable Segment Information" for further information about operating segments.

Contract Assets and Contract Liabilities

In addition to trade receivables, the Corporation has contract assets consisting of funds paid up-front to certain workplace furnishings dealers in exchange for their multi-year commitment to market and sell the Corporation’s products. These contract assets are amortized over the term of the contracts and recognized as a reduction of revenue. The Corporation has contract liabilities consisting of customer deposits and rebate and marketing program liabilities.

Contract assets and contract liabilities were as follows:

	December 28, 2024		December 30, 2023
Trade receivables (1)	$	248.4	$	247.1
Contract assets (current) (2)	$	3.2	$	3.1
Contract assets (long-term) (3)	$	26.2	$	28.1
Contract liabilities - Customer deposits (4)	$	42.1	$	35.6
Contract liabilities - Accrued rebate and marketing programs (4)	$	25.4	$	31.4

The index below indicates the line item in the Consolidated Balance Sheets where contract assets and contract liabilities are reported:

(1)     "Receivables"

(2)     "Prepaid expenses and other current assets"

(3)     "Other Assets"

(4)     "Accounts payable and accrued expenses"

The increase in customer deposits in 2024 was driven by project timing in the hospitality customer channel, while the decrease in accrued rebate and marketing programs was driven by the timing of payments within the contract customer channel.

Changes in contract asset and contract liability balances during the year ended December 28, 2024 were as follows:

	Contract assets increase (decrease)		Contract liabilities (increase) decrease
Contract assets recognized	$	2.0	$	—
Reclassification of contract assets to contra-revenue	(3.8)		—
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied	—		(128.3)
Contract liabilities paid	—		134.4
Cash received in advance and not recognized as revenue	—		(195.8)
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied	—		189.3
Net change	$	(1.7)	$	(0.5)

Changes in contract asset and contract liability balances during the year ended December 30, 2023 were as follows:

	Contract assets increase (decrease)		Contract liabilities (increase) decrease
Contract assets recognized	$	3.8	$	—
Reclassification of contract assets to contra-revenue	(5.3)		—
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied	—		(134.3)
Contract liabilities paid	—		137.0
Cash received in advance and not recognized as revenue	—		(173.8)
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied	—		183.0
Impact of business combination	—		(20.3)
Net change	$	(1.5)	$	(8.4)

Contract liabilities for customer deposits paid to the Corporation prior to the satisfaction of performance obligations are recognized as revenue upon completion of the performance obligations. The amount of revenue recognized during the year ended

December 28, 2024 that was included in the December 30, 2023 contract liabilities balance was $35.1 million. The amount of revenue recognized during the year ended December 30, 2023 that was included in the December 31, 2022 contract liabilities balance was $25.7 million.