Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.23.1
Revenue Recognition
 3 Months Ended
Apr. 01, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company accounts for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights and payment terms can be identified, the contract has commercial substance, and it is probable that the Company will collect substantially all of the consideration to which it is entitled. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised good or service to a customer.
Contract Balances
Contract assets are the rights to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditional on something other than the passage of time. Contract assets primarily result from contracts that include installation which are billed via payment requests that are submitted in the month following the period during which revenue was recognized. Contract liabilities are recorded for any services billed to customers and not yet recognizable if the contract period has commenced or for the amount collected from customers in advance of the contract period commencing. Contract assets are disclosed as costs and estimated earnings in excess of billings on uncompleted contracts, and contract liabilities are disclosed as billings in excess of costs and estimated earnings on uncompleted contracts in the Unaudited Condensed Consolidated Balance Sheet. Contract balances as of April 1, 2023 were as follows:
April 1, 2023
Contract assets, beginning of the period
 $ 39,251 
Contract assets, end of the period
 40,992 
Contract liabilities, beginning of the period
 21,445 
Contract liabilities, end of the period
 $ 18,311 
During the three months ended April 1, 2023, the Company recognized revenue of approximately $11,948 related to contract liabilities at December 31, 2022. This reduction was offset by new billings of approximately $8,814 for product and services for which there were unsatisfied performance obligations to customers and revenue had not yet been recognized for the three month period ended April 1, 2023.
The Company derives subscription revenue from continued software support and through the Nokē Smart Entry System, a product which provides mobile access for tenants and remote monitoring and tracking for operators. We determine standalone selling price for recurring software revenue by using the adjusted market assessment approach. The recurring revenue recognized from the Nokē Smart Entry System for the three months ended April 1, 2023 and April 2, 2022 was $439 and $268 , respectively.
Disaggregation of Revenue
The principal categories we use to disaggregate revenues are by timing and sales channel of revenue recognition. The following disaggregation of revenues depict the Company’s reportable segment revenues by timing and sales channel of revenue recognition for the three months ended April 1, 2023 and April 2, 2022:
Revenue by Timing of Revenue Recognition
Three Months Ended
Reportable Segments by Timing of Revenue Recognition
 April 1, 2023 April 2, 2022
Janus North America
Goods transferred at a point in time $ 204,439  $ 200,157 
Services transferred over time 33,775  25,099 

$ 238,214  $ 225,256 
Janus International
Goods transferred at a point in time $ 13,106  $ 10,798 
Services transferred over time 8,466  7,116 
$ 21,572  $ 17,914 
Eliminations $ (7,882) $ (13,650)
Total Revenue
 $ 251,904  $ 229,520 
Revenue by Sales Channel
Three Months Ended
Reportable Segments by Sales Channel Revenue Recognition
 April 1, 2023 April 2, 2022
Janus North America
Self Storage-New Construction $ 68,243  $ 75,709 
Self Storage-R3 82,253  61,572 
Commercial and Others 87,718  87,975 

$ 238,214  $ 225,256 
Janus International
Self Storage-New Construction $ 18,538  $ 11,897 
Self Storage-R3 3,034  6,017 
$ 21,572  $ 17,914 
Eliminations $ (7,882) $ (13,650)
Total Revenue
 $ 251,904  $ 229,520