Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.23.2
Revenue Recognition
 6 Months Ended
Jul. 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 and services that the Company has transferred to a customer. Unbilled receivables result from revenues recognized at a point-in-time and represent an unconditional right to payment subject primarily to the passage of time. Unbilled receivables are recognized as accounts receivable when they are billed. Costs in excess of billings result from revenues recognized over time and represent the net balance of billings that already occurred. Contract liabilities (billings in excess of costs) represent billings to a customer in excess of revenue that has been recognized over time.
Contract balances as of July 1, 2023 were as follows:

Costs in excess of billings at December 31, 2022
 $ 17,008 
Unbilled receivables at December 31, 2022
 $ 22,243 
Contract assets at December 31, 2022
$ 39,251 
Costs in excess of billings at July 1, 2023
 $ 17,600 
Unbilled receivables at July 1, 2023
 $ 32,571 
Contract assets at July 1, 2023
 $ 50,171 
Billings in excess of cost at December 31, 2022
 $ 21,445 
Billings in excess of cost at July 1, 2023
 $ 18,840 
During the three and six months ended July 1, 2023, the Company recognized revenue of approximately $6,642 and $18,590 related to contract liabilities at December 31, 2022. This reduction was offset by new billings of approximately $7,171 and $15,985 for product and services for which there were unsatisfied performance obligations to customers and revenue had not yet been recognized for the three and six month periods ended July 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 July 1, 2023 and July 2, 2022 was $774 and $316, respectively. The recurring revenue recognized from the Nokē Smart Entry System for the six months ended July 1, 2023 and July 2, 2022 was $1,208 and $611, 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 and six months ended July 1, 2023 and July 2, 2022:
Revenue by Timing of Revenue Recognition
Three Months Ended Six Months Ended
Reportable Segments by Timing of Revenue Recognition
 July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Janus North America
Product revenues transferred at a point in time(1)
$ 204,548  $ 195,943  $ 381,847  $ 372,843 
Product revenues transferred over time(1)
27,700  24,975  60,584  52,754 
Service revenues transferred over time(1)
29,061  20,544  57,092  41,122 

$ 261,309  $ 241,462  $ 499,523  $ 466,719 
Janus International
Product revenues transferred at a point in time $ 12,038  $ 12,176  $ 25,143  $ 22,975 
Service revenues transferred over time 9,171  8,148  17,638  15,263 
$ 21,209  $ 20,324  $ 42,781  $ 38,238 
Eliminations $ (11,907) $ (14,072) $ (19,788) $ (27,723)
Total Revenue
 $ 270,611  $ 247,714  $ 522,516  $ 477,234 
(1) These numbers have been revised for the three and six month periods ended July 2, 2022. See Note 2 to our Unaudited Condensed Consolidated Financial Statements for additional information.

Revenue by Sales Channel
Three Months Ended Six Months Ended
Reportable Segments by Sales Channel Revenue Recognition
 July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Janus North America
Self Storage-New Construction $ 88,599  $ 70,650  $ 156,842  $ 146,359 
Self Storage-R3 78,022  69,431  160,275  131,003 
Commercial and Others 94,688  101,381  182,406  189,357 

$ 261,309  $ 241,462  $ 499,523  $ 466,719 
Janus International
Self Storage-New Construction $ 18,529  $ 14,884  $ 37,067  $ 26,782 
Self Storage-R3 2,680  5,440  5,714  11,456 
$ 21,209  $ 20,324  $ 42,781  $ 38,238 
Eliminations $ (11,907) $ (14,072) $ (19,788) $ (27,723)
Total Revenue
 $ 270,611  $ 247,714  $ 522,516  $ 477,234