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Revenue from Contracts with Customers (Notes) | 6 Months Ended
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Sep. 29, 2018
Revenue from Contract with Customer [Abstract] |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Revenue from Contracts with Customers As discussed in Note 1, we adopted ASC 606 on April 1, 2018. Our revenue recognition practices under ASC 606 do not differ materially from prior practices. Under ASC 606, revenues are recognized when a good or service is transferred to a customer. A good or service is transferred when, or as, the customer obtains control of that good or service. Revenues are based on the consideration we expect to receive in connection with our promises to deliver goods and services to our customers. Factory-Built Housing Revenue Recognition - Wholesale. Revenue from homes sold to independent retailers is generally recognized when the home is shipped, at which time title passes to the independent retailer and collectability is reasonably assured. Homes sold to independent retailers are generally either paid upon shipment or floor plan financed by the independent retailer through standard industry financing arrangements, which can include repurchase agreements. Manufacturing sales financed under repurchase agreements are reduced by a provision for estimated repurchase obligations (see Note 16). Prior to the adoption of ASC 606, revenue from homes sold under commercial loan programs involving funds provided by the Company were either deferred until such time that payment for the related commercial loan was received by the Company or recognized when the home was shipped and title transferred, depending on the nature of the program and borrower. Upon adoption of ASC 606, we generally recognize home sales revenue upon shipment and transfer of title, as it is probable that substantially all of the consideration in exchange for the goods or services transferred to the customer will be collected. One consideration under the guidance requires the evaluation of the financing component of the related loan program. If it is determined that the interest rate charged under the loan program is less than the market rate, the Company will reduce the transaction price by an amount for deferred interest. In these cases, interest income will be accrued and recognized over the life of the loan using the effective interest method. A significant amount of the Company's loan programs are offered at market rates. Factory-Built Housing Revenue Recognition - Retail. Sales by Company-owned retail locations are generally recognized when the customer has entered into a legally binding sales contract, the home is delivered and permanently located at the customer's site, accepted by the customer, title has transferred and funding is probable. Site Improvements on Retail Sales. Under previous guidance, the Company recorded the sales of subcontracted ancillary services, such as preparation of the home site or other exterior enhancements, net of associated costs. Such services are provided as a convenience to the customer. As the Company is involved in the selection of subcontractors, under ASC 606, we have concluded that it is appropriate to recognize the sale of these ancillary services on a gross basis. The revenues associated with these programs for the three months ended September 29, 2018 and September 30, 2017 were $6.2 million and $5.0 million, respectively. The revenues associated with these programs for the six months ended September 29, 2018 and September 30, 2017 were $12.8 million and $10.1 million, respectively. Additional Items. Expected consideration, and therefore revenue, reflects reductions for returns, allowances, and other incentives, some of which may be contingent on future events. Additionally, we have a volume rebate program under which certain sales to retailers, builders and developers can qualify for cash rebates generally based on the level of sales attained during a twelve-month period. Volume rebates are accrued at the time of sale and are recorded as a reduction of revenue. In customer contracts for retail sales of manufactured homes, consideration includes certain state and local excise taxes billed to customers when those taxes are levied directly upon us by the taxing authorities. Expected consideration excludes sales and other taxes collected on behalf of taxing authorities. We elect to treat consideration for shipping performed as a fulfillment activity. Therefore, revenue includes consideration for shipping and other fulfillment activities performed prior to the customer obtaining control of the goods. Practical Expedients and Exemptions. We generally expense sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within selling, general and administrative expenses. In addition, we do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Financial Services Revenue Recognition. Financial services revenue is generally not within the scope of ASC 606, with the exception of insurance agency commissions received from third-party insurance companies. The Company recognizes such revenue upon execution of the insurance policy, where the Company has no future or ongoing obligation. Disaggregation of Revenue. The following table summarizes customer contract revenues disaggregated by reportable segment and the source of the revenue for the three and six months ended September 29, 2018 (in thousands). All revenue from customers is recognized at a point in time, either when the customer takes delivery or when a third-party insurance contract is executed, as more fully discussed above. Other items included in our consolidated revenues are primarily related to financial services, including manufactured housing consumer finance and insurance, which are not within the scope of ASC 606. See Form 10-K for revenue recognition policies related to these items.
| September 29, 2018
| Three Months Ended |  | Six Months Ended
Factory-built housing |  |  |
U.S. Housing and Urban Development code homes | $ | 184,687 |  |  | $ | 371,003 |
Modular homes | 23,901 |  |  | 46,348 |
Park model RVs | 5,979 |  |  | 17,706 |
Other (1) | 12,527 |  |  | 24,799 |
Net revenue from factory-built housing | 227,094 |  |  | 459,856 |
Financial services |  |  |
Insurance agency commissions received from third-party insurance companies | 643 |  |  | 1,275 |
Other | 13,793 |  |  | 26,802 |
Net revenue from financial services | 14,436 |  |  | 28,077 |
Total Net revenue | $ | 241,530 |  |  | $ | 487,933 |
(1) | Other factory-built housing revenue from ancillary products and services including used homes, freight and other services.
Impacts on Consolidated Financial Statements. The impact to our consolidated financial statements as a result of ASC 606 implementation are as follows (in thousands):
| September 29, 2018
Consolidated Balance Sheet | As Reported |  | Adjustments |  | Balance without ASC 606 Adoption
Accrued liabilities | $ | 130,083 |  |  | $ | 2,007 |  |  | $ | 132,090 |
Total current liabilities | 196,728 |  |  | 2,007 |  |  | 198,735 |
Deferred income taxes | 8,580 |  |  | (549 | ) |  | 8,031 |
Retained earnings | 246,723 |  |  | (1,458 | ) |  | 245,265 |
Total stockholders' equity | 494,748 |  |  | (1,458 | ) |  | 493,290 |
| Three Months Ended September 29, 2018
Consolidated Statement of Comprehensive Income | As Reported |  | Adjustments |  | Balance without ASC 606 Adoption
Net revenue | $ | 241,530 |  |  | $ | (9,160 | ) |  | $ | 232,370 |
Cost of sales | 192,114 |  |  | (8,691 | ) |  | 183,423 |
Gross profit | 49,416 |  |  | (469 | ) |  | 48,947 |
Selling, general and administrative expenses | 30,035 |  |  | (136 | ) |  | 29,899 |
Income from operations | 19,381 |  |  | (333 | ) |  | 19,048 |
Income before income taxes | 19,517 |  |  | (333 | ) |  | 19,184 |
Income tax expense | (3,941 | ) |  | 76 |  |  | (3,865 | )
Net income | 15,576 |  |  | (257 | ) |  | 15,319 |
| Six Months Ended September 29, 2018
Consolidated Statement of Comprehensive Income | As Reported |  | Adjustments |  | Balance without ASC 606 Adoption
Net revenue | $ | 487,933 |  |  | $ | (22,829 | ) |  | $ | 465,104 |
Cost of sales | 387,041 |  |  | (21,080 | ) |  | 365,961 |
Gross profit | 100,892 |  |  | (1,749 | ) |  | 99,143 |
Selling, general and administrative expenses | 59,248 |  |  | (444 | ) |  | 58,804 |
Income from operations | 41,644 |  |  | (1,305 | ) |  | 40,339 |
Income before income taxes | 43,653 |  |  | (1,305 | ) |  | 42,348 |
Income tax expense | (8,386 | ) |  | 301 |  |  | (8,085 | )
Net income | 35,267 |  |  | (1,004 | ) |  | 34,263 |

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- Definition The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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