| Revenue Recognition |
3. REVENUE RECOGNITION
Revenue is disaggregated between our Installation and Specialty Distribution segments and further based on market and product, as we believe this best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
The following tables present our revenues disaggregated by market (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
2023 |
|
2022 |
|
|
|
Installation |
|
|
Specialty Distribution |
|
|
Eliminations |
|
|
Total |
|
|
Installation |
|
|
Specialty Distribution |
|
|
Eliminations |
|
|
Total |
Residential |
|
$ |
668,172 |
|
$ |
227,254 |
|
$ |
(56,667) |
|
$ |
838,759 |
|
$ |
634,078 |
|
$ |
247,827 |
|
$ |
(50,007) |
|
$ |
831,898 |
Commercial/Industrial |
|
|
140,883 |
|
|
347,234 |
|
|
(9,614) |
|
|
478,503 |
|
|
114,890 |
|
|
339,964 |
|
|
(12,467) |
|
|
442,387 |
Net sales |
|
$ |
809,055 |
|
$ |
574,488 |
|
$ |
(66,281) |
|
$ |
1,317,262 |
|
$ |
748,968 |
|
$ |
587,791 |
|
$ |
(62,474) |
|
$ |
1,274,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2023 |
|
2022 |
|
|
|
Installation |
|
|
Specialty Distribution |
|
|
Eliminations |
|
|
Total |
|
|
Installation |
|
|
Specialty Distribution |
|
|
Eliminations |
|
|
Total |
Residential |
|
$ |
1,313,875 |
|
$ |
451,579 |
|
$ |
(108,056) |
|
$ |
1,657,398 |
|
$ |
1,197,382 |
|
$ |
484,238 |
|
$ |
(93,429) |
|
$ |
1,588,191 |
Commercial/Industrial |
|
|
262,270 |
|
|
681,283 |
|
|
(18,451) |
|
|
925,102 |
|
|
228,279 |
|
|
647,415 |
|
|
(20,682) |
|
|
855,012 |
Net sales |
|
$ |
1,576,145 |
|
$ |
1,132,862 |
|
$ |
(126,507) |
|
$ |
2,582,500 |
|
$ |
1,425,661 |
|
$ |
1,131,653 |
|
$ |
(114,111) |
|
$ |
2,443,203 |
The following tables present our revenues disaggregated by product (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
2023 |
|
2022 |
|
|
Installation |
|
Specialty Distribution |
|
Eliminations |
|
Total |
|
Installation |
|
Specialty Distribution |
|
Eliminations |
|
Total |
Insulation and accessories |
|
$ |
633,924 |
|
$ |
513,162 |
|
$ |
(57,599) |
|
$ |
1,089,487 |
|
$ |
590,099 |
|
$ |
518,507 |
|
$ |
(53,343) |
|
$ |
1,055,263 |
Glass and windows |
|
|
68,841 |
|
|
- |
|
|
- |
|
|
68,841 |
|
|
57,121 |
|
|
- |
|
|
- |
|
|
57,121 |
Gutters |
|
|
29,401 |
|
|
44,088 |
|
|
(7,571) |
|
|
65,918 |
|
|
27,240 |
|
|
50,879 |
|
|
(8,094) |
|
|
70,025 |
All other |
|
|
76,889 |
|
|
17,238 |
|
|
(1,111) |
|
|
93,016 |
|
|
74,508 |
|
|
18,405 |
|
|
(1,037) |
|
|
91,876 |
Net sales |
|
$ |
809,055 |
|
$ |
574,488 |
|
$ |
(66,281) |
|
$ |
1,317,262 |
|
$ |
748,968 |
|
$ |
587,791 |
|
$ |
(62,474) |
|
$ |
1,274,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2023 |
|
2022 |
|
|
Installation |
|
Specialty Distribution |
|
Eliminations |
|
Total |
|
Installation |
|
Specialty Distribution |
|
Eliminations |
|
Total |
Insulation and accessories |
|
$ |
1,234,691 |
|
$ |
1,015,964 |
|
$ |
(109,572) |
|
$ |
2,141,083 |
|
$ |
1,126,440 |
|
$ |
998,267 |
|
$ |
(97,153) |
|
$ |
2,027,554 |
Glass and windows |
|
|
132,283 |
|
|
- |
|
|
- |
|
|
132,283 |
|
|
108,317 |
|
|
- |
|
|
- |
|
|
108,317 |
Gutters |
|
|
57,679 |
|
|
83,931 |
|
|
(14,736) |
|
|
126,874 |
|
|
50,198 |
|
|
97,509 |
|
|
(15,096) |
|
|
132,611 |
All other |
|
|
151,492 |
|
|
32,967 |
|
|
(2,199) |
|
|
182,260 |
|
|
140,706 |
|
|
35,877 |
|
|
(1,862) |
|
|
174,721 |
Net sales |
|
$ |
1,576,145 |
|
$ |
1,132,862 |
|
$ |
(126,507) |
|
$ |
2,582,500 |
|
$ |
1,425,661 |
|
$ |
1,131,653 |
|
$ |
(114,111) |
|
$ |
2,443,203 |
The following table represents our contract assets and contract liabilities with customers, in thousands:
|
|
|
|
|
|
|
|
|
Included in Line Item on |
|
As of |
|
Condensed Consolidated |
|
June 30, |
|
December 31, |
|
Balance Sheets |
|
2023 |
|
2022 |
Contract Assets: |
|
|
|
|
|
|
|
Receivables, unbilled |
Receivables, net |
|
$ |
87,305 |
|
$ |
75,481 |
|
|
|
|
|
|
|
|
Contract Liabilities: |
|
|
|
|
|
|
|
Deferred revenue |
Accrued liabilities |
|
$ |
16,332 |
|
$ |
21,940 |
The aggregate amount remaining on uncompleted performance obligations was $419.3 million as of June 30, 2023. We expect to satisfy the performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months.
On certain of our long-term contracts, a percentage of the total project cost is withheld and not invoiced to the customer and collected until satisfactory completion of the customer’s project, typically within a year. This amount is referred to as retainage and is common practice in the construction industry. Retainage receivables are classified as a component of Receivables, net on our condensed consolidated balance sheets and were $73.5 million and $63.0 million as of June 30, 2023 and December 31, 2022, respectively.
|