Revenue Recognition

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

We recognize revenue when (or as) the following criteria are met: i) contract with the customer has been identified; ii) performance obligations in the contract have been identified; iii) transaction price has been determined; iv) the

transaction price has been allocated to the performance obligations; and v) the related performance obligations are satisfied.

Contracts with our customers are generally in the form of standard terms and conditions of sale. From time to time, we may enter into specific contracts with some of our larger customers, which may affect delivery terms. Performance obligations in our contracts generally consist solely of delivery of goods. For all sales channel types, consisting of warehouse, direct, and reload sales, we typically satisfy our performance obligations upon shipment. Our customer payment terms are typical for our industry, and may vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not deemed to be significant by us. For certain sales channels and/or products, our standard terms of payment may be as early as ten days.

In addition, we provide inventory to certain customers through pre-arranged agreements on a consignment basis. Customer consigned inventory is maintained and stored by certain customers; however, ownership and risk of loss remains with us. When the consigned inventory is sold by the customer, we recognize revenue on a gross basis, and subsequently adjust for trade allowances at month-end.

All revenues recognized are net of trade allowances (i.e., rebates), cash discounts and sales returns. Cash discounts and sales returns are estimated using historical experience. Trade allowances are based on the estimated obligations and historical experience. Adjustments to earnings resulting from revisions to estimates on discounts and returns have been insignificant for each of the reported periods. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration.

The following table presents our revenues disaggregated by revenue source. Sales and usage-based taxes are excluded from revenues.



	Three Months Ended						Six Months Ended
(In thousands)	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Structural products	$	422,464		$	213,986		$	628,861		$	404,699
Specialty products	473,410			263,749			704,891			502,868
Other^[1]	(2,922		)	(3,734		)	(3,313		)	(4,958		)
Total net sales	$	892,952		$	474,001		$	1,330,439		$	902,609

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^[1]“Other” includes unallocated allowances and discounts.

The following table presents our revenues disaggregated by sales channel. Sales and usage-based taxes are excluded from revenues.



	Three Months Ended						Six Months Ended
(In thousands)	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Warehouse	$	704,328		$	353,157		$	1,037,633		$	672,588
Direct	165,630			97,729			248,572			185,240
Reload and service revenue	34,914			31,515			63,184			59,902
Variable consideration	(11,920		)	(8,400		)	(18,950		)	(15,121		)
Total net sales	$	892,952		$	474,001		$	1,330,439		$	902,609

Practical Expedients and Exemptions

We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general, and administrative expense.

We have made an accounting policy election to treat any common carrier shipping and handling activities as a fulfillment cost, rather than as a separate obligation or separate promised service.