Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.2.2
Revenue
 9 Months Ended
Sep. 29, 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 September 29, 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 September 29, 2022, contract liabilities totaled $58.9 million and included $15.9 million of deferred revenue, $31.7 million of loyalty program liabilities, and $11.3 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 $15.8 million was recognized in revenue during the thirty-nine weeks ended September 29, 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
September 29, 2022 September 30, 2021
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate / luxury vinyl plank $ 314,502  29  % $ 230,279  26  %
Tile 246,336  22  201,674  23 
Decorative accessories / wall tile 187,369  17  160,195  18 
Installation materials and tools 183,495  17  138,794  16 
Wood 69,691  6  64,798  7 
Natural stone 52,670  5  48,267  6 
Adjacent categories (1) 17,338  2  13,685  2 
Other (2) 26,423  2  18,861  2 
Total $ 1,097,824  100  % $ 876,553  100  %
Thirty-nine Weeks Ended
September 29, 2022 September 30, 2021
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate / luxury vinyl plank $ 896,347  28  % $ 630,956  25  %
Tile 725,242  22  599,489  24 
Decorative accessories / wall tile 569,370  18  481,525  19 
Installation materials and tools 529,659  16  410,764  16 
Wood 213,126  7  193,087  8 
Natural stone 161,374  5  149,501  6 
Adjacent categories (1) 51,363  2  39,508  2 
Other (2) 69,923  2  14,368  — 
Total $ 3,216,404  100  % $ 2,519,198  100  %
(1) Adjacent categories primarily include 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.