Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 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 (includes sheet vinyl and LVT), 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 $34,959 and $34,486 as of December 31, 2019 and December 31, 2018, 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 years ended December 31, 2019, 2018, and 2017 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 $69,039 and $57,840 as of December 31, 2019 and December 31, 2018, respectively. Amortization expense recognized during 2019 related to these capitalized costs was $41,819.

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 during the years ended December 31, 2019, 2018 and 2017, respectively:



December 31, 2019	Global Ceramic segment		Flooring NA segment	Flooring ROW segment	Intersegment sales	Total
Geographical Markets
United States	$	2,131,029	3,688,691	2,873	—	5,822,593
Europe	711,762		6,922	1,813,555	—	2,532,239
Russia	269,142		66	116,187	—	385,395
Other	519,209		148,035	563,201	—	1,230,445
Total	$	3,631,142	3,843,714	2,495,816	—	9,970,672

Product Categories
Ceramic & Stone	$	3,631,142	55,503	—	—	3,686,645
Carpet & Resilient	—		3,136,474	785,295	—	3,921,769
Laminate & Wood	—		651,737	849,340	—	1,501,077
Other ⁽¹⁾	—		—	861,181	—	861,181
Total	$	3,631,142	3,843,714	2,495,816	—	9,970,672



December 31, 2018	Global Ceramic segment		Flooring NA segment	Flooring ROW segment	Intersegment sales	Total
Geographical Markets
United States	$	2,251,233	3,851,267	1,289	—	6,103,789
Europe	714,315		6,487	1,861,890	—	2,582,692
Russia	245,867		2	103,351	—	349,220
Other	341,441		171,392	435,100	—	947,933
Total	$	3,552,856	4,029,148	2,401,630	—	9,983,634

Product Categories
Ceramic & Stone	$	3,552,856	68,337	—	—	3,621,193
Carpet & Resilient	—		3,258,029	645,669	—	3,903,698
Laminate & Wood	—		702,782	850,250	—	1,553,032
Other ⁽¹⁾	—		—	905,711	—	905,711
Total	$	3,552,856	4,029,148	2,401,630	—	9,983,634



December 31, 2017	Global Ceramic segment		Flooring NA segment		Flooring ROW segment	Intersegment sales		Total
Geographical Markets
United States	$	2,223,998	3,809,211		2,111	(120	)	6,035,200
Europe	645,341		19,100		1,698,628	—		2,363,069
Russia	235,043		(1	)	91,033	—		326,075
Other	300,718		182,548		283,680	—		766,946
Total	$	3,405,100	4,010,858		2,075,452	(120	)	9,491,290

Product Categories
Ceramic & Stone	$	3,405,100	80,145		—	—		3,485,245
Carpet & Resilient	—		3,219,971		435,931	—		3,655,902
Laminate & Wood	—		710,742		808,675	—		1,519,417
Other ⁽¹⁾	—		—		830,846	(120	)	830,726
Total	$	3,405,100	4,010,858		2,075,452	(120	)	9,491,290

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