Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.23.3
Revenue Recognition
 9 Months Ended
Sep. 30, 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 September 30, 2023 were as follows:

Costs in excess of billings at December 31, 2022
 $ 17.0 
Unbilled receivables at December 31, 2022
 22.2 
Contract assets at December 31, 2022
$ 39.3 
Costs in excess of billings at September 30, 2023
 $ 31.9 
Unbilled receivables at September 30, 2023
 19.4 
Contract assets at September 30, 2023
 $ 51.3 
Billings in excess of cost at December 31, 2022
 $ 21.4 
Billings in excess of cost at September 30, 2023
 $ 17.9 
During the three and nine month periods ended September 30, 2023, the Company recognized revenue of approximately $1.4 and $18.6 related to contract liabilities at December 31, 2022.
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,
included in service revenues, for the three month periods ended September 30, 2023 and October 1, 2022 was $1.2 and $0.4, respectively. The recurring revenue recognized from the Nokē Smart Entry System, included in service revenues, for the nine month periods ended September 30, 2023 and October 1, 2022 was $2.4 and $1.0, 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 nine month periods ended September 30, 2023 and October 1, 2022:
Revenue by Timing of Revenue Recognition
Three Months Ended Nine Months Ended
Reportable Segments by Timing of Revenue Recognition
 September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022
Janus North America
Product revenues transferred at a point in time(1)
$ 210.4  $ 214.5  $ 592.3  $ 587.4 
Product revenues transferred over time(1)
28.9  20.5  89.5  73.2 
Service revenues transferred over time(1)
32.8  21.7  89.9  62.9 

$ 272.1  $ 256.7  $ 771.7  $ 723.5 
Janus International
Product revenues transferred at a point in time $ 10.5  $ 9.8  $ 35.7  $ 32.8 
Service revenues transferred over time 9.9  7.2  27.5  22.4 
$ 20.4  $ 17.0  $ 63.2  $ 55.2 
Eliminations $ (12.4) $ (11.2) $ (32.3) $ (38.9)
Total Revenue
 $ 280.1  $ 262.5  $ 802.6  $ 739.8 
(1) These numbers have been revised for the three and nine month periods ended October 1, 2022. See Note 2 to our Unaudited Condensed Consolidated Financial Statements for additional information.

Revenue by Sales Channel
Three Months Ended Nine Months Ended
Reportable Segments by Sales Channel Revenue Recognition
 September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022
Janus North America
Self Storage-New Construction $ 90.7  $ 65.8  $ 247.5  $ 212.2 
Self Storage-R3 85.4  84.9  245.7  215.9 
Commercial and Others 96.0  106.0  278.5  295.4 

$ 272.1  $ 256.7  $ 771.7  $ 723.5 
Janus International
Self Storage-New Construction $ 18.8  $ 13.2  $ 55.9  $ 40.0 
Self Storage-R3 1.6  3.8  7.3  15.2 
$ 20.4  $ 17.0  $ 63.2  $ 55.2 
Eliminations $ (12.4) $ (11.2) $ (32.3) $ (38.9)
Total Revenue
 $ 280.1  $ 262.5  $ 802.6  $ 739.8