XML 23 R12.htm IDEA: XBRL DOCUMENT v3.23.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
We disaggregate our revenue from contracts with customers for our Installation segment by end market and product, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenues for the Other category are presented net of intercompany sales in the tables below. The following tables present our net revenues disaggregated by end market and product (in thousands):
Three months ended March 31,
2023
2022
Installation:
Residential new construction$475,095 72 %$442,404 75 %
Repair and remodel37,675 6 %32,641 6 %
Commercial109,972 16 %86,586 15 %
Net revenue, Installation$622,742 94 %$561,631 96 %
Other
36,567 6 %25,861 4 %
Net revenue, as reported$659,309 100 %$587,492 100 %
 Three months ended March 31,
20232022
Installation:
Insulation$394,043 60 %$364,943 63 %
Shower doors, shelving and mirrors45,513 7 %36,340 6 %
Garage doors43,312 7 %35,979 6 %
Waterproofing29,939 4 %29,022 5 %
Rain gutters27,800 4 %23,546 4 %
Window Blinds15,881 2 %13,058 2 %
Fireproofing/firestopping15,175 2 %15,922 3 %
Other building products51,079 8 %42,821 7 %
Net revenue, Installation$622,742 94 %$561,631 96 %
Other 36,567 6 %25,861 4 %
Net revenue, as reported$659,309 100 %$587,492 100 %
Contract Assets and Liabilities
Our contract assets consist of unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized, based on costs incurred, exceeds the amount billed to the customer. Our contract assets are recorded in other current assets in our Condensed Consolidated Balance Sheets. Our contract liabilities
consist of customer deposits and billings in excess of revenue recognized, based on costs incurred and are included in other current liabilities in our Condensed Consolidated Balance Sheets.
Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in thousands):
 March 31, 2023December 31, 2022
Contract assets$36,048 $29,431 
Contract liabilities(17,331)(18,884)
Uncompleted contracts were as follows (in thousands):
 March 31, 2023December 31, 2022
Costs incurred on uncompleted contracts$279,994 $273,788 
Estimated earnings116,621 114,781 
Total396,615 388,569 
Less: Billings to date369,686 368,009 
Net under billings$26,929 $20,560 
Net under billings were as follows (in thousands):
 March 31, 2023December 31, 2022
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets)$36,048 $29,431 
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities)(9,119)(8,871)
Net under billings$26,929 $20,560 
The difference between contract assets and contract liabilities as of March 31, 2023 compared to December 31, 2022 is primarily the result of timing differences between our performance of obligations under contracts and customer payments and billings. During three months ended March 31, 2023, we recognized $15.8 million of revenue that was included in the contract liability balance at December 31, 2022. We did not recognize any impairment losses on our receivables and contract assets during the three months ended March 31, 2023 or 2022.
Remaining performance obligations represent the transaction price of contracts for which work has not been performed and excludes unexercised contract options and potential modifications. As of March 31, 2023, the aggregate amount of the transaction price allocated to remaining uncompleted contracts was $154.3 million. We expect to satisfy remaining performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months.