Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.21.2
Revenue Recognition
9 Months Ended
Sep. 30, 2021
Revenue Recognition  
Revenue Recognition

3.  REVENUE RECOGNITION

Revenue is disaggregated between our Installation and 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 September 30, 

2021

2020

Installation

Distribution

Elims

Total

Installation

Distribution

Elims

Total

Residential

$

501,494

$

206,951

$

(36,018)

$

672,427

$

390,101

$

186,408

$

(30,821)

$

545,688

Commercial

111,406

69,447

(7,523)

173,330

102,105

57,705

(8,275)

151,535

Net sales

$

612,900

$

276,398

$

(43,541)

$

845,757

$

492,206

$

244,113

$

(39,096)

$

697,223

Nine Months Ended September 30, 

2021

2020

Installation

Distribution

Elims

Total

Installation

Distribution

Elims

Total

Residential

$

1,405,837

$

602,059

$

(106,076)

$

1,901,820

$

1,134,350

$

512,479

$

(88,875)

$

1,557,954

Commercial

345,441

199,304

(23,755)

520,990

300,298

162,193

(23,894)

438,597

Net sales

$

1,751,278

$

801,363

$

(129,831)

$

2,422,810

$

1,434,648

$

674,672

$

(112,769)

$

1,996,551

The following tables present our revenues disaggregated by product (in thousands):

Three Months Ended September 30, 

2021

2020

Installation

Distribution

Elims

Total

Installation

Distribution

Elims

Total

Insulation and accessories

$

487,798

$

219,441

$

(36,406)

$

670,833

$

379,958

$

200,210

$

(31,816)

$

548,352

Glass and windows

46,096

46,096

41,912

41,912

Gutters

23,057

40,555

(6,422)

57,190

21,336

28,616

(5,482)

44,470

All other

55,949

16,402

(713)

71,638

49,000

15,287

(1,798)

62,489

Net sales

$

612,900

$

276,398

$

(43,541)

$

845,757

$

492,206

$

244,113

$

(39,096)

$

697,223

Nine Months Ended September 30, 

2021

2020

Installation

Distribution

Elims

Total

Installation

Distribution

Elims

Total

Insulation and accessories

$

1,383,472

$

651,192

$

(108,125)

$

1,926,539

$

1,110,952

$

556,018

$

(91,422)

$

1,575,548

Glass and windows

136,309

136,309

122,603

122,603

Gutters

64,831

103,244

(17,992)

150,083

61,843

74,585

(16,557)

119,871

All other

166,666

46,927

(3,714)

209,879

139,250

44,069

(4,790)

178,529

Net sales

$

1,751,278

$

801,363

$

(129,831)

$

2,422,810

$

1,434,648

$

674,672

$

(112,769)

$

1,996,551

The following table represents our contract assets and contract liabilities with customers, in thousands:

Included in Line Item on

As of

Condensed

September 30, 

December 31, 

Balance Sheets

2021

2020

Contract Assets:

Receivables, unbilled

Receivables, net

$

71,564

$

48,839

Contract Liabilities:

Deferred revenue

Accrued liabilities

$

12,767

$

6,542

The increase in contract assets as of September 30, 2021 is primarily driven by an increase in organic sales as well as sales from our acquisitions during the nine months ended September 30, 2021.

The aggregate amount remaining on uncompleted performance obligations was $303.9 million as of September 30, 2021. We expect to satisfy the performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months.

Certain customer contracts contain provisions whereby customers are entitled to withhold an agreed upon percentage of the total contract value until the customer’s project is satisfactorily complete. This amount held back is referred to as retainage and is a common practice in the construction industry. Retainage receivables are classified as a component of accounts receivable.