Revenue from Contracts with Customers

3 Months Ended

Mar. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue recognition and accounts receivable

The Company recognizes revenues when it satisfies performance obligations as evidenced by the transfer of control of the promised goods to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The nature of the promised goods are ceramic, stone, carpet, resilient, laminate, wood and other flooring products. Payment is typically received 90 days or less from the invoice date. The Company adjusts the amounts of revenue for expected cash discounts, sales allowances, returns, and claims, based upon historical experience. The Company adjusts accounts receivable for doubtful account allowances based upon historical bad debt, claims experience, periodic evaluation of specific customer accounts, and the aging of accounts receivable. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

Contract liabilities

The Company historically records contract liabilities when it receives payment prior to fulfilling a performance obligation. Contract liabilities related to revenues are recorded in accounts payable and accrued expenses on the accompanying condensed consolidating balance sheets. The Company had contract liabilities of $34,665 and $34,486 as of March 30, 2019 and January 1, 2019, respectively.

Performance obligations

Substantially all of the Company’s revenue is recognized at a point in time when the product is either shipped or received from the Company’s facilities and control of the product is transferred to the customer. Accordingly, in any period, the Company does not recognize a significant amount of revenue from performance obligations satisfied or partially satisfied in prior periods and the amount of such revenue recognized during the three months ended March 30, 2019 was immaterial.

Costs to obtain a contract

The Company historically incurs certain incremental costs to obtain revenue contracts. These costs relate to marketing display structures and are capitalized when the amortization period is greater than one year, with the amount recorded in other assets on the accompanying condensed consolidated balance sheets. Capitalized costs to obtain contracts were $59,034 and $57,840 as of March 30, 2019 and January 1, 2019, respectively. Amortization expense recognized during the three months ended March 30, 2019 related to these capitalized costs was $11,048.

Practical expedients and policy elections

The Company elected the following practical expedients and policy elections:


•	Incremental costs of obtaining a contract is recorded as an expense when incurred in selling, general and administrative expenses if the amortization period is less than one year.


•	Shipping and handling activities performed after control has been transferred is accounted for as a fulfillment cost in cost of sales.

Revenue disaggregation

The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories for the three months ended March 30, 2019 and March 31, 2018:



March 30, 2019	Global Ceramic segment		Flooring NA segment	Flooring ROW segment	Total
Geographical Markets
United States	$	541,826	883,242	68	1,425,136
Europe	179,310		1,837	469,916	651,063
Russia	51,915		29	23,615	75,559
Other	125,301		36,872	128,559	290,732
	$	898,352	921,980	622,158	2,442,490

Product Categories
Ceramic & Stone	$	898,352	14,443	—	912,795
Carpet & Resilient	—		735,424	190,929	926,353
Laminate & Wood	—		172,113	210,201	382,314
Other ⁽¹⁾	—		—	221,028	221,028
	$	898,352	921,980	622,158	2,442,490



March 31, 2018	Global Ceramic segment		Flooring NA segment	Flooring ROW segment	Total
Geographical Markets
United States	$	556,187	908,122	—	1,464,309
Europe	190,235		1,650	494,644	686,529
Russia	51,422		—	19,428	70,850
Other	78,704		40,586	71,224	190,514
	$	876,548	950,358	585,296	2,412,202

Product Categories
Ceramic & Stone	$	876,548	17,544	—	894,092
Carpet & Resilient	—		755,545	129,011	884,556
Laminate & Wood	—		177,269	226,143	403,412
Other ⁽¹⁾	—		—	230,142	230,142
	$	876,548	950,358	585,296	2,412,202

⁽¹⁾ Other includes roofing elements, insulation boards, chipboards and IP contracts.