Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Summary of Impact of Adopting Topic 606 on Condensed Consolidated Balance Sheet, Condensed Consolidated Statements of Operations and Comprehensive Income

The following table summarizes the impact of the new revenue standard on the Condensed Consolidated Balance Sheet as of September 30, 2018, including the cumulative effect of applying the new standard to all contracts upon adoption (in thousands):


	Impact of Change in Accounting Policy
	As reported		Adjustments			Without adoption
Inventories	$	51,491	$	7,003		$	58,494
Other current assets		32,836		(10,689	)		22,147
Total assets		863,106		(3,686	)		859,420
Deferred income taxes		7,758		(921	)		6,837
Retained earnings		88,736		(2,765	)		85,971
Total liabilities and stockholders’ equity		863,106		(3,686	)		859,420

The following table summarizes the impact of the new revenue standard on the Condensed Consolidated Statements of Operations and Comprehensive Income (in thousands):


	Three months ended September 30, 2018							Nine months ended September 30, 2018
	As reported		Adjustments			Without adoption		As reported		Adjustments			Without adoption
Net revenue	$	348,999	$	60		$	349,059	$	983,311	$	(2,612	)	$	980,699
Cost of sales		251,665		(207	)		251,458		710,358		(1,781	)		708,577
Income before income taxes	$	20,921	$	267		$	21,188	$	51,034	$	(831	)	$	50,203
Income tax provision		5,358		68			5,426		12,762		(208	)		12,554

Net income	$	15,563	$	199		$	15,762	$	38,272	$	(623	)	$	37,649

Summary of Revenues Disaggregated by End Market and Product

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


	Three months ended September 30,								Nine months ended September 30,
	2018				2017⁽¹⁾				2018				2017⁽¹⁾
Residential new construction	$	268,254	77	%	$	228,526	77	%	$	755,800	77	%	$	637,915	77	%
Repair and remodel		23,107	7	%		18,722	6	%		65,453	7	%		53,597	6	%
Commercial		57,638	16	%		47,945	17	%		162,058	16	%		141,546	17	%

Net revenues	$	348,999	100	%	$	295,193	100	%	$	983,311	100	%	$	833,058	100	%


	Three months ended September 30,								Nine months ended September 30,
	2018				2017⁽¹⁾				2018				2017⁽¹⁾
Insulation	$	225,503	65	%	$	195,872	66	%	$	646,270	66	%	$	561,462	67	%
Waterproofing		25,980	7	%		21,571	7	%		73,477	7	%		64,695	8	%
Shower doors, shelving and mirrors		23,190	7	%		21,849	7	%		66,222	7	%		53,107	6	%
Garage doors		21,781	6	%		15,874	6	%		56,574	6	%		45,338	5	%
Rain gutters		12,163	4	%		10,863	4	%		31,429	3	%		29,493	4	%
Blinds		7,811	2	%		2,634	1	%		21,196	2	%		5,909	1	%
Other building products		32,571	9	%		26,530	9	%		88,143	9	%		73,054	9	%

Net revenues	$	348,999	100	%	$	295,193	100	%	$	983,311	100	%	$	833,058	100	%

⁽¹⁾	As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Summary of Assets and Liabilities Related to Uncompleted Contracts and Customer Deposits

Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in thousands):


	September 30,			December 31,
	2018			2017
Contract assets	$	17,229		$	14,476
Contract liabilities		(8,039	)		(7,519	)

Schedule of Cost and Estimated Earnings on Uncompleted Contracts

Uncompleted contracts were as follows (in thousands):


	September 30, 2018		December 31, 2017
Costs incurred on uncompleted contracts	$	112,444	$	84,563
Estimated earnings		57,834		47,000

Total		170,278		131,563

Less: Billings to date		158,218		122,144

Net under (over) billings	$	12,060	$	9,419

Schedule of Net Under (Over) Billings

Net under (over) billings were as follows (in thousands):


	September 30, 2018			December 31, 2017
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets)	$	17,229		$	14,476
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities)		(5,169	)		(5,057	)

Net under (over) billings	$	12,060		$	9,419