Revenue Recognition

6 Months Ended

Jun. 29, 2019

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

The Company recognizes revenue when the performance obligation is satisfied, which occurs when a customer obtains control of the promised goods or services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these goods or services. The Company generates substantially all of its revenue from the distribution and sale of food and food-related products and recognizes revenue when title and risk of loss passes and the customer accepts the goods, which occurs at delivery. Customer sales incentives such as volume-based rebates or discounts are treated as a reduction of revenue at the time the revenue is recognized. Sales taxes invoiced to customers and remitted to governmental authorities are excluded from net sales. Shipping and handling costs are treated as fulfillment costs and included in distribution, selling and administrative costs.

At June 29, 2019, the Company did not have any material outstanding performance obligations, contract liabilities or capitalized contract acquisition costs. Customer receivables, which are included in accounts receivable, less allowances in the Company’s Consolidated Balance Sheets, were $1.4 billion and $1.3 billion at June 29, 2019 and December 29, 2018, respectively.

The Company has certain customer contracts under which incentives are paid upfront to its customers. These payments have become industry practice and are not related to financing any customer’s business, nor are they associated with any distinct good or service to be received from any customer. These incentive payments are capitalized in prepaid expenses and other assets and amortized as a reduction of revenue over the life of the contract or as goods or services are transferred to the customer. The Company’s contract assets for these upfront payments were $34 million and $37 million included in prepaid expenses in the Company’s Consolidated Balance Sheets at June 29, 2019 and December 29, 2018, respectively, and $38 million and $28 million included in other assets in the Company’s Consolidated Balance Sheets at June 29, 2019 and December 29, 2018, respectively.

The following table presents the disaggregation of revenue for each of the Company’s principal product categories:



	13 Weeks Ended				26 Weeks Ended
	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
Meats and seafood	$	2,340	$	2,218	$	4,497	$	4,286
Dry grocery products	1,094		1,069		2,154		2,111
Refrigerated and frozen grocery products	1,034		973		2,022		1,917
Dairy	661		650		1,266		1,260
Equipment, disposables and supplies	618		588		1,194		1,128
Beverage products	348		335		677		654
Produce	348		325		664		625
Net sales	$	6,443	$	6,158	$	12,474	$	11,981