Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.21.1
Revenue
 3 Months Ended
Apr. 01, 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 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 April 1, 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 April 1, 2021, contract liabilities totaled $32.4 million and included $15.7 million of deferred revenue, $13.9 million of loyalty program liabilities, and $2.8 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 $8.0 million was recognized in revenue during the thirteen weeks ended April 1, 2021.
Disaggregated Revenue
The Company has one operating segment and one reportable segment. The following table presents the net sales of each major product category (in thousands):
Thirteen Weeks Ended
April 1, 2021 March 26, 2020 (1)
Product Category Net Sales % of Net Sales Net Sales % of Net Sales
Tile $ 189,436  24  % $ 134,912  24  %
Laminate / luxury vinyl plank 186,035  24  124,994  23 
Decorative accessories / wall tile (1) 157,374  20  111,047  20 
Installation materials and tools 130,601  17  94,576  17 
Wood 62,131  8  48,995  9 
Natural stone 49,251  6  34,877  6 
Adjacent categories (1) 12,236  2  2,550  — 
Other (2) (4,527) (1) 2,986  1 
Total $ 782,537  100  % $ 554,937  100  %
(1) To conform to the current period presentation, the presentation of revenue by product category for the thirteen weeks ended March 26, 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 and sample 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.