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.