Annual report pursuant to Section 13 and 15(d)

Revenue Recognition

v3.23.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2022
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. The Company’s customer terms of sale are generally on an open account basis with standard commercial terms of net 30 days. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised good or service to a customer. The Company recognizes material revenue at a point in time when delivery of the material to the customer takes place, which is either FOB shipping point or FOB destination, and recognizes installation revenue is recognized over time as the customer benefits based upon a cost-to-cost input method for all elements of the contract.
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 consolidated balance sheet. Contract balances as of December 31, 2022 and January 1, 2022 were as follows:

December 31, 2022 January 1, 2022
Contract assets, beginning of the period
 $ 23,121  $ 11,399 
Contract assets, end of the period
 $ 39,251  $ 23,121 
Contract liabilities, beginning of the period
 $ 23,207  $ 21,525 
Contract liabilities, end of the period
 $ 21,445  $ 23,207 
During the year ended December 31, 2022, the Company recognized revenue of approximately $21,227 related to contract liabilities at January 1, 2022. There were new billings of approximately $19,465 for product and services for which there were unsatisfied performance obligations to customers and revenue had yet been recognized as of December 31, 2022. All remaining performance obligations are expected to be satisfied within one year.
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 years ended December 31, 2022 and January 1, 2022:
Revenue by Timing of Revenue Recognition
Year Ended
Reportable Segments by Timing of Revenue Recognition
 December 31, 2022 January 1, 2022 December 26, 2020
Janus North America (1)
Goods transferred at a point in time $ 880,028  $ 614,851  $ 430,585 
Services transferred over time 114,288  100,093  89,534 

$ 994,316  $ 714,944  $ 520,119 
Janus International
Goods transferred at a point in time 43,378  38,490  25,509 
Services transferred over time 32,133  30,089  19,981 
$ 75,511  $ 68,579  $ 45,490 
Eliminations (50,318) (33,373) (16,636)
Total Revenue
 $ 1,019,509  $ 750,150  $ 548,973 
(1) Janus North America’s good transferred at a point in time and services transferred over time, previously reported for the year-ended January 1, 2022, have been revised due to an immaterial error correction. These revisions had no effect on the previously reported total Janus North America revenue. See Note 2 to our Consolidated Financial Statements for additional information.
Revenue by Sale Channel Revenue Recognition
Year Ended
Reportable Segments by Sales Channel Revenue Recognition
 December 31, 2022 January 1, 2022 December 26, 2020
Janus North America (1)
Self Storage-New Construction $ 289,381  $ 246,670  $ 246,547 
Self Storage-R3 304,051  210,180  132,283 
Commercial and Others 400,884  258,094  141,289 

$ 994,316  $ 994,316  $ 714,944  $ 714,944  $ 520,119 
Janus International(2)
Self Storage-New Construction $ 57,242  $ 51,723  $ 26,701 
Self Storage-R3 18,269  16,856  18,735 
Commercial and Others —  —  54 
$ 75,511  $ 68,579  $ 45,490 
Eliminations (50,318) (33,373) (16,636)
Total Revenue
 $ 1,019,509  $ 750,150  $ 548,973 
(1) Janus North America’s Self Storage-New Construction, Self Storage-R3, and Commercial and Others, previously reported for the year-ended January 1, 2022, have been revised due to an immaterial error correction. These revisions had no effect on the previously reported total Janus North America revenue or the Company’s net income. See Note 2 to our Consolidated Financial Statements for additional information.
(1) Janus International’s Self Storage-New Construction, Self Storage-R3, and Commercial and Others, previously reported for the year-ended December 26, 2020, have been revised due to an immaterial error correction. These revisions had no effect on the previously reported total Janus International revenue or the Company’s net income. See Note 2 to our Consolidated Financial Statements for additional information.