Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.1
Revenue
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Net sales consist of revenue associated with contracts with customers for the sale of goods and services in amounts that reflect the consideration the Company is entitled to receive in exchange for those goods and services.
Deferred Revenue & Contract Liabilities
In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, the Company recognizes revenue when the customer obtains control of the inventory. Amounts in deferred revenue at period-end reflect orders for which the inventory was not yet ready for physical transfer to customers.
Contract liabilities within the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 30, 2021 primarily consisted of deferred revenue as well as amounts in accrued expenses and other current liabilities related to the Pro Premier loyalty program and unredeemed gift cards. As of March 31, 2022, contract liabilities totaled $52.8 million and included $22.0 million of deferred revenue, $23.6 million of loyalty program liabilities, and $7.2 million of unredeemed gift cards. As of December 30, 2021, contract liabilities totaled $40.2 million and included $14.5 million of deferred revenue, $20.4 million of loyalty program liabilities, and $5.3 million of unredeemed gift cards. Of the contract liabilities outstanding as of December 30, 2021, approximately $12.5 million was recognized in revenue during the thirteen weeks ended March 31, 2022.
Disaggregated Revenue
The Company has one reportable segment. The following table presents the net sales of each major product category (in thousands):
Thirteen Weeks Ended
March 31, 2022 April 1, 2021
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate / luxury vinyl plank $ 282,235  27  % $ 186,035  24  %
Tile 230,611  22  189,436  24 
Decorative accessories / wall tile 191,035  19  157,374  20 
Installation materials and tools 167,845  16  130,601  17 
Wood 71,946  7  62,131  8 
Natural stone 53,456  5  49,251  6 
Adjacent categories (1) 16,188  2  12,236  2 
Other (2) 15,418  2  (4,527) (1)
Total $ 1,028,734  100  % $ 782,537  100  %
(1) Adjacent categories primarily includes bathroom and kitchen products and accessories.
(2) Other includes delivery, sample, and other product revenue and adjustments for deferred revenue, sales returns reserves, customer rewards under the Company’s Pro Premier Loyalty program, and other revenue related adjustments that are not allocated on a product-level basis.