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Revenue from Contracts with Customers | 6 Months Ended
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Jun. 27, 2020
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue Revenue from contracts with customers disaggregated by product category is as follows (in thousands):
| Three Months Ended |  |  |  | Six Months Ended |  |
| June 27, 2020 |  | June 29, 2019 |  | June 27, 2020 |  | June 29, 2019
Systems and storage | $ | 167,007 |  |  | $ | 235,657 |  |  | $ | 371,028 |  |  | $ | 440,031 |
Seating | 114,772 |  |  | 134,342 |  |  | 230,644 |  |  | 247,801 |
Other | 26,302 |  |  | 39,513 |  |  | 44,795 |  |  | 75,191 |
Total workplace furnishings | 308,081 |  |  | 409,512 |  |  | 646,467 |  |  | 763,023 |
Residential building products | 109,375 |  |  | 116,514 |  |  | 239,694 |  |  | 242,459 |
Net sales | $ | 417,456 |  |  | $ | 526,026 |  |  | $ | 886,161 |  |  | $ | 1,005,482 |
Sales by product category are subject to similar economic factors and market conditions. See “Note 16. Reportable Segment Information” in the Notes to Condensed Consolidated Financial Statements for further information about operating segments. Contract Assets and Contract Liabilities In addition to trade receivables, the Corporation has contract assets consisting of funds paid to certain workplace furnishings dealers in exchange for their multi-year commitment to market and sell the Corporation’s products. These contract assets are amortized over the term of the contracts and recognized as a reduction of revenue. For contracts less than one year, the Corporation has elected the practical expedient to recognize incremental costs to obtain a contract as an expense when incurred. The Corporation has contract liabilities consisting of customer deposits and rebate and marketing program liabilities. Contract assets and contract liabilities were as follows (in thousands):
| June 27, 2020 |  | December 28, 2019
Trade receivables (1) | $ | 208,795 |  |  | $ | 278,124 |
Contract assets (current) (2) | $ | 686 |  |  | $ | 857 |
Contract assets (long-term) (3) | $ | 2,543 |  |  | $ | 2,700 |
Contract liabilities (4) | $ | 50,077 |  |  | $ | 54,972 |
The index below indicates the line item in the Condensed Consolidated Balance Sheets where contract assets and contract liabilities are reported: (1) "Receivables" (2) "Prepaid expenses and other current assets" (3) "Other Assets" (4) "Accounts payable and accrued expenses" Changes in contract asset and contract liability balances during the six months ended June 27, 2020 were as follows (in thousands):
| Contract assets increase (decrease) |  | Contract liabilities (increase) decrease
Reclassification of contract assets to contra-revenue | $ | (328) |  |  | $ | — |
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied | — |  |  | (53,784) |
Contract liabilities paid | — |  |  | 66,851 |
Cash received in advance and not recognized as revenue | — |  |  | (41,567) |
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied | — |  |  | 33,395 |
Net change | $ | (328) |  |  | $ | 4,895 |
Changes in contract asset and contract liability balances during the six months ended June 29, 2019 were as follows (in thousands):
| Contract assets increase (decrease) |  | Contract liabilities (increase) decrease
Contract assets recognized | $ | 888 |  |  | $ | — |
Reclassification of contract assets to contra-revenue | (185) |  |  | — |
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied | — |  |  | (71,517) |
Contract liabilities paid | — |  |  | 73,522 |
Cash received in advance and not recognized as revenue | — |  |  | (33,520) |
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied | — |  |  | 35,781 |
Net change | $ | 703 |  |  | $ | 4,266 |
Contract liabilities for customer deposits paid to the Corporation prior to the satisfaction of performance obligations are recognized as revenue upon completion of the performance obligations. The amount of revenue recognized during the three and six months ended June 27, 2020 that was included in the December 28, 2019 contract liabilities balance was $0.0 million and $8.6 million, respectively. Performance Obligations The Corporation recognizes revenue for sales of workplace furnishings and residential building products at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment of the product. In certain circumstances, transfer of control to the customer does not occur until the goods are received by the customer or upon installation and/or customer acceptance, depending on the terms of the underlying contracts. Contracts typically have a duration of less than one year and normally do not include a significant financing component. Generally, payment is due within 30 days of invoicing. The Corporation's backlog orders are typically cancellable for a period of time and almost all contracts have an original duration of one year or less. As a result, the Corporation has elected the practical expedient permitted in the revenue accounting standard not to disclose the unsatisfied performance obligation as of period end. The backlog is typically fulfilled within a few months. Significant Judgments The amount of consideration the Corporation receives and revenue recognized varies with changes in rebate and marketing program incentives, as well as early pay discounts, offered to customers. The Corporation uses significant judgment throughout the year in estimating the reduction in net sales driven by variable consideration for rebate and marketing programs. Judgments made include expected sales levels and utilization of funds. However, this judgment factor is significantly reduced at the end of each year when sales volumes and the impact to rebate and marketing programs are known and recorded as the programs typically end near the Corporation's fiscal year end.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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