Revenue from Contracts with Customers

3 Months Ended

Mar. 28, 2020

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 relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount, periodic evaluation of specific customer accounts, and the aging of accounts receivable. If the Company expects the financial condition of the Company’s customers to deteriorate based on current conditions or reasonable and supportable forecasts, 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 $29,268 and $34,959 as of March 28, 2020 and December 31, 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 months ended March 28, 2020 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 $66,965 and $69,039 as of March 28, 2020 and December 31, 2019, respectively. Amortization expense recognized during the three months ended March 28, 2020 related to these capitalized costs was $15,540.

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 March 28, 2020 and March 30, 2019:



March 28, 2020	Global Ceramic segment		Flooring NA segment	Flooring ROW segment	Total
Geographical Markets
United States	$	505,105	810,448	707	1,316,260
Europe	169,536		2,636	440,495	612,667
Russia	59,807		—	26,326	86,133
Other	114,002		35,246	121,455	270,703
	$	848,450	848,330	588,983	2,285,763

Product Categories
Ceramic & Stone	$	848,450	10,365	—	858,815
Carpet & Resilient	—		683,713	191,295	875,008
Laminate & Wood	—		154,252	198,810	353,062
Other ⁽¹⁾	—		—	198,878	198,878
	$	848,450	848,330	588,983	2,285,763



March 30, 2019	Global Ceramic segment		Flooring NA segment	Flooring ROW segment	Total
Geographical Markets
United States	$	541,826	883,242	68	1,425,136
Europe	179,310		1,837	469,916	651,063
Russia	51,915		29	23,615	75,559
Other	125,301		36,872	128,559	290,732
	$	898,352	921,980	622,158	2,442,490

Product Categories
Ceramic & Stone	$	898,352	14,443	—	912,795
Carpet & Resilient	—		735,424	190,929	926,353
Laminate & Wood	—		172,113	210,201	382,314
Other ⁽¹⁾	—		—	221,028	221,028
	$	898,352	921,980	622,158	2,442,490

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