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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers

4. Revenue from Contracts with Customers

 

The Company markets and sells its products through direct-to-consumer online channels, traditional wholesale partners, third-party online retailers and Company showrooms. Revenue is recognized when the Company satisfies its performance obligations under the contract which is transferring the promised products to the customer as described in Note 2 – Summary of Significant Accounting Policies.

 

Disaggregated Revenue

 

The Company sells products through two channels: Direct-to-Consumer and Wholesale. The Direct-to-Consumer channel includes product sales through various direct-to-consumer channels including Company showrooms and contact center. The Wholesale channel includes all product sales to traditional third-party retailers for their in store and online channels. The Company classifies products into two major categories: Bedding and Other. Bedding products include mattresses, platforms, adjustable bases, mattress protectors, pillows and sheets. Other products include cushions and various other products.

 

The following table presents the Company’s revenue disaggregated by sales channel and product category (in thousands):

 

   Year Ended
December 31,		 
Channel  2020   2019 
Direct-to-consumer  $485,305   $265,205 
Wholesale   163,166    163,153 
Revenues, net  $648,471   $428,358 

 

   Year Ended
December 31,		 
Product  2020   2019 
Bedding  $598,046   $401,499 
Other   50,425    26,859 
Revenues, net  $648,471   $428,358 

   

Contract Balances

 

Payment for sale of products through the direct-to-consumer online channels, third-party online retailers, Company showrooms and contact center is collected at point of sale in advance of shipping the products. Amounts received for unshipped products are recorded as customer prepayments. Customer prepayments totaled $6.3 million at December 31, 2020 and 2019. During the years ended December 31, 2020 and 2019, the Company recognized all of the revenue that was deferred in customer prepayments at December 31, 2019 and 2018, respectively.