Revenue from Contracts with Customers

3 Months Ended

Mar. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Contract Liabilities

The Company 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 Consolidated Balance Sheets. The revenues related to these performance obligations are expected to be recognized within a twelve-month period. The Company had contract liabilities of $72.3 million and $68.0 million as of March 30, 2024 and December 31, 2023, 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, 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 30, 2024 and April 1, 2023 was immaterial.

Costs to Obtain a Contract

The Company 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 $67.2 million and $66.7 million as of March 30, 2024 and December 31, 2023, respectively. Straight-line amortization expense recognized during the three months ended March 30, 2024 and April 1, 2023 related to these capitalized costs was $15.8 million and $13.1 million, respectively.

Revenue Disaggregation

The Company has three reporting segments: Global Ceramic, Flooring North America (“Flooring NA”) and Flooring Rest of the World (“Flooring ROW”). 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 30, 2024 and April 1, 2023:

(In millions)
March 30, 2024	Global Ceramic		Flooring NA	Flooring ROW	Total
Geographical Markets:
United States	$	560.4	869.7	1.6	1,431.7
Europe (1)	255.5		0.6	565.6	821.7
Latin America	185.1		1.0	9.9	196.0
Other	43.8		28.9	157.3	230.0
Total	$	1,044.8	900.2	734.4	2,679.4
Product Categories:
Ceramic & Stone	$	1,032.2	5.9	—	1,038.1
Carpet & Resilient	12.6		700.0	214.2	926.8
Laminate & Wood	—		194.3	232.3	426.6
Other (2)	—		—	287.9	287.9
Total	$	1,044.8	900.2	734.4	2,679.4

April 1, 2023	Global Ceramic		Flooring NA	Flooring ROW	Total
Geographical Markets:
United States	$	596.6	925.8	1.2	1,523.6
Europe (1)	273.5		0.2	631.6	905.3
Latin America	144.3		0.8	6.3	151.4
Other	44.9		26.6	154.4	225.9
Total	$	1,059.3	953.4	793.5	2,806.2
Product Categories:
Ceramic & Stone	$	1,050.1	8.6	—	1,058.7
Carpet & Resilient	9.2		750.5	222.0	981.7
Laminate & Wood	—		194.3	252.7	447.0
Other (2)	—		—	318.8	318.8
Total	$	1,059.3	953.4	793.5	2,806.2

(1) Russia revenue included in Europe.

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