Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.21.2
Revenue
 9 Months Ended
Sep. 30, 2021
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
Under 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 30, 2021 and December 31, 2020 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 30, 2021, contract liabilities totaled $43.0 million and included $21.2 million of deferred revenue, $18.4 million of loyalty program liabilities, and $3.4 million of unredeemed gift cards. As of December 31, 2020, contract liabilities totaled $24.8 million and included $10.1 million of deferred revenue, $12.1 million of loyalty program liabilities, and $2.6 million of unredeemed gift cards. Of the contract liabilities outstanding as of December 31, 2020, approximately $8.5 million was recognized in revenue during the thirty-nine weeks ended September 30, 2021.
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 30, 2021 September 24, 2020 (1)
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate / luxury vinyl plank $ 230,279  26  % $ 157,795  23  %
Tile 201,674  23  173,466  25 
Decorative accessories / wall tile (1) 160,195  18  130,136  19 
Installation materials and tools 138,794  16  113,202  17 
Wood 64,798  7  60,515  9 
Natural stone 48,267  6  41,712  6 
Adjacent categories (1) 13,685  2  5,732  1 
Other (2) 18,861  2  2,289  — 
Total $ 876,553  100  % $ 684,847  100  %
Thirty-nine Weeks Ended
September 30, 2021 September 24, 2020 (1)
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Laminate / luxury vinyl plank $ 630,956  25  % $ 388,216  23  %
Tile 599,489  24  427,359  25 
Decorative accessories / wall tile (1) 481,525  19  325,397  19 
Installation materials and tools 410,764  16  280,991  17 
Wood 193,087  8  151,411  9 
Natural stone 149,501  6  106,908  6 
Adjacent categories (1) 39,508  2  11,615  1 
Other (2) 14,368  —  10,239  — 
Total $ 2,519,198  100  % $ 1,702,136  100  %
(1) To conform to the current period presentation, the presentation of revenue by product category for the thirteen and thirty-nine weeks ended September 24, 2020 has been updated within this table to provide disclosure of adjacent categories, which primarily includes bathroom and kitchen products and accessories, as a separate category. In prior periods, adjacent categories revenue was included as a component of the decorative accessories / wall tile product category.
(2) Other includes delivery, sample, and other product revenue and adjustments for deferred revenue, sales returns reserves, customer rewards under our Pro Premier Loyalty program, and other revenue related adjustments that are not allocated on a product-level basis.