Revenue Recognition
The following table presents the Company’s revenues disaggregated by revenue source. Sales and usage-based taxes are excluded from revenues. No single customer of the Company generated 10% or more of the Company’s total Net sales during fiscal years 2025, 2024 or 2023.
| | | | | | | | | | | | | | | | | |
| Fiscal Year Ended |
| (in thousands) | January 3, 2026 | | December 28, 2024 | | December 30, 2023 |
| (53 weeks) | | (52 weeks) | | (52 weeks) |
| Specialty products | $ | 2,052,990 | | | $ | 2,045,910 | | | $ | 2,184,240 | |
| Structural products | 901,017 | | | 906,622 | | | 952,141 | |
| Total Net sales | $ | 2,954,007 | | | $ | 2,952,532 | | | $ | 3,136,381 | |
The following table presents the Company’s revenues disaggregated by sales channel. Warehouse sales are delivered from the Company’s warehouses. Reload sales are similar to warehouse sales but are shipped from non-warehouse locations, most of which are operated by third parties, where the Company stores owned products to enhance operating efficiencies. The reload channel is employed primarily to service strategic customers that are less economical to service from Company warehouses, and to distribute large volumes of imported products from port facilities. Direct sales are shipped from the manufacturer to the customer and therefore the Company does not take physical possession of the inventory and, as a result, typically generate lower margins than the warehouse and reload distribution channels. The direct distribution channel requires the lowest amount of committed capital and fixed costs.
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| Fiscal Year Ended |
| (in thousands) | January 3, 2026 | | December 28, 2024 | | December 30, 2023 |
| (53 weeks) | | (52 weeks) | | (52 weeks) |
| Warehouse and reload | $ | 2,454,565 | | | $ | 2,432,820 | | | $ | 2,663,107 | |
| Direct | 563,459 | | | 581,517 | | | 535,163 | |
| Cash discounts and rebates | (64,017) | | | (61,805) | | | (61,889) | |
| Total Net sales | $ | 2,954,007 | | | $ | 2,952,532 | | | $ | 3,136,381 | |
The Company generally expenses sales commissions when incurred because the amortization period would typically be one year or less. These costs are recorded within SG&A expense.
The Company has made an accounting policy election to treat outbound shipping and handling activities as an SG&A expense. Shipping and handling costs include amounts related to the administration of the Company’s logistical infrastructure, handling of material in its warehouses, and amounts pertaining to the delivery of products to customers, such as fuel and maintenance costs for mobile fleet, wages for drivers, and third-party freight charges. These expenses were $165.9 million, $154.3 million, and $152.3 million for fiscal 2025, fiscal 2024, and fiscal 2023, respectively.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.