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.