Revenue from Contracts with Customers

9 Months Ended

Sep. 28, 2019

Revenue from Contract with Customer [Abstract]

Revenue recognition and accounts receivable

The Company recognizes revenues when it satisfies performance obligations as evidenced by the transfer of control of the promised goods to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The nature of the promised goods are ceramic, stone, carpet, resilient, laminate, wood and other flooring products. Payment is typically received 90 days or less from the invoice date. The Company adjusts the amounts of revenue for expected cash discounts, sales allowances, returns, and claims, based upon historical experience. The Company adjusts accounts receivable for doubtful account allowances based upon historical bad debt, claims experience, periodic evaluation of specific customer accounts, and the aging of accounts receivable. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

Contract liabilities

The Company historically records contract liabilities when it receives payment prior to fulfilling a performance obligation. Contract liabilities related to revenues are recorded in accounts payable and accrued expenses on the accompanying condensed consolidating balance sheets. The Company had contract liabilities of $39,284 and $34,486 as of September 28, 2019 and January 1, 2019, respectively.

Performance obligations

Substantially all of the Company’s revenue is recognized at a point in time when the product is either shipped or received from the Company’s facilities and control of the product is transferred to the customer. Accordingly, in any period, the Company does not recognize a significant amount of revenue from performance obligations satisfied or partially satisfied in prior periods and the amount of such revenue recognized during the three and nine months ended September 28, 2019 was immaterial.

Costs to obtain a contract

The Company historically incurs certain incremental costs to obtain revenue contracts. These costs relate to marketing display structures and are capitalized when the amortization period is greater than one year, with the amount recorded in other assets on the accompanying condensed consolidated balance sheets. Capitalized costs to obtain contracts were $54,900 and $57,840 as of September 28, 2019 and January 1, 2019, respectively. Amortization expense recognized during the nine months ended September 28, 2019 related to these capitalized costs was $41,889.

Practical expedients and policy elections

The Company elected the following practical expedients and policy elections:


•	Incremental costs of obtaining a contract is recorded as an expense when incurred in selling, general and administrative expenses if the amortization period is less than one year.


•	Shipping and handling activities performed after control has been transferred is accounted for as a fulfillment cost in cost of sales.

Revenue disaggregation

The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories for the three months ended September 28, 2019 and September 29, 2018:



September 28, 2019	Global Ceramic segment		Flooring NA segment	Flooring ROW segment	Total
Geographical Markets
United States	$	537,247	963,784	475	1,501,506
Europe	168,032		1,901	424,230	594,163
Russia	77,024		15	32,614	109,653
Other	134,119		36,208	143,536	313,863
	$	916,422	1,001,908	600,855	2,519,185

Product Categories
Ceramic & Stone	$	916,422	13,570	—	929,992
Carpet & Resilient	—		816,190	193,941	1,010,131
Laminate & Wood	—		172,148	204,241	376,389
Other ⁽¹⁾	—		—	202,673	202,673
	$	916,422	1,001,908	600,855	2,519,185



September 29, 2018	Global Ceramic segment		Flooring NA segment	Flooring ROW segment	Total
Geographical Markets
United States	$	565,616	998,488	421	1,564,525
Europe	175,026		1,217	438,585	614,828
Russia	68,113		—	27,435	95,548
Other	77,018		47,835	146,046	270,899
	$	885,773	1,047,540	612,487	2,545,800

Product Categories
Ceramic & Stone	$	885,773	16,779	—	902,552
Carpet & Resilient	—		851,970	192,001	1,043,971
Laminate & Wood	—		178,791	200,499	379,290
Other ⁽¹⁾	—		—	219,987	219,987
	$	885,773	1,047,540	612,487	2,545,800

⁽¹⁾ Other includes roofing elements, insulation boards, chipboards and IP contracts.

The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories for the nine months ended September 28, 2019 and September 29, 2018:



September 28, 2019	Global Ceramic segment		Flooring NA segment	Flooring ROW segment	Total
Geographical Markets
United States	$	1,633,583	2,793,110	1,252	4,427,945
Europe	552,546		5,902	1,369,908	1,928,356
Russia	196,731		66	83,315	280,112
Other	389,945		108,249	411,553	909,747
	$	2,772,805	2,907,327	1,866,028	7,546,160

Product Categories
Ceramic & Stone	$	2,772,805	41,928	—	2,814,733
Carpet & Resilient	—		2,360,014	586,388	2,946,402
Laminate & Wood	—		505,385	629,500	1,134,885
Other ⁽¹⁾	—		—	650,140	650,140
	$	2,772,805	2,907,327	1,866,028	7,546,160



September 29, 2018	Global Ceramic segment		Flooring NA segment	Flooring ROW segment	Total
Geographical Markets
United States	$	1,700,338	2,920,604	421	4,621,363
Europe	573,932		4,737	1,424,113	2,002,782
Russia	183,244		—	73,417	256,661
Other	234,104		130,127	289,979	654,210
	$	2,691,618	3,055,468	1,787,930	7,535,016

Product Categories
Ceramic & Stone	$	2,691,618	52,500	—	2,744,118
Carpet & Resilient	—		2,466,695	453,597	2,920,292
Laminate & Wood	—		536,273	643,389	1,179,662
Other ⁽¹⁾	—		—	690,944	690,944
	$	2,691,618	3,055,468	1,787,930	7,535,016

⁽¹⁾ Other includes roofing elements, insulation boards, chipboards and IP contracts.