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Revenue from Contracts with Customers
 3 Months Ended
Apr. 03, 2021
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
April 3,
2021		March 28,
2020
Systems and storage$182,859 $204,021 
Seating101,650 115,872 
Other18,239 18,493 
Total workplace furnishings302,748 338,386 
Residential building products181,545 130,318 
Net sales$484,293 $468,704 

Sales by product category are subject to similar economic factors and market conditions. See “Note 15. 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 with a duration of 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):
April 3,
2021		January 2,
2021
Trade receivables (1)$198,039 $207,971 
Contract assets (current) (2)$761 $761 
Contract assets (long-term) (3)$2,174 $2,486 
Contract liabilities (4)$47,022 $53,070 

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 three months ended April 3, 2021, were as follows (in thousands):
Contract assets increase (decrease)Contract liabilities (increase) decrease
Reclassification of contract assets to contra-revenue$(312)$— 
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied— (47,347)
Contract liabilities paid— 54,735 
Cash received in advance and not recognized as revenue— (51,014)
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied— 49,674 
Net change$(312)$6,048 

Changes in contract asset and contract liability balances during the three months ended March 28, 2020 were as follows (in thousands):
Contract assets increase (decrease)Contract liabilities (increase) decrease
Reclassification of contract assets to contra-revenue$(164)$— 
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied— (24,610)
Contract liabilities paid— 39,064 
Cash received in advance and not recognized as revenue— (19,220)
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied— 21,710 
Net change$(164)$16,944 

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 months ended April 3, 2021, that was included in the January 2, 2021, contract liabilities balance was $21.1 million.

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.