Revenue Recognition (Footnote - Level 1)

9 Months Ended

Oct. 01, 2022

Revenue from Contract with Customer [Abstract]

Revenue recognition

REVENUE RECOGNITIONThe 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 to the customer

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.

The Company did not have any material outstanding performance obligations, contract liabilities or capitalized contract acquisition costs as of October 1, 2022 or January 1, 2022. Customer receivables, which are included in accounts receivable, less allowances in the Company’s Consolidated Balance Sheets, were $1.9 billion and $1.5 billion as of October 1, 2022 and January 1, 2022, 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 these payments 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 $26 million and $27 million included in prepaid expenses in the Company’s Consolidated Balance Sheets as of October 1, 2022 and January 1, 2022, respectively, and $30 million and $26 million included in other assets in the Company’s Consolidated Balance Sheets as of October 1, 2022 and January 1, 2022, respectively.

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

	13 Weeks Ended				39 Weeks Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Meats and seafood	$	3,207	$	3,067	$	9,443	$	8,280
Dry grocery products	1,529		1,319		4,347		3,684
Refrigerated and frozen grocery products	1,386		1,168		3,880		3,303
Dairy	959		739		2,658		2,098
Equipment, disposables and supplies	916		815		2,622		2,305
Beverage products	441		391		1,248		1,104
Produce	479		391		1,344		1,074
Total Net sales	$	8,917	$	7,890	$	25,542	$	21,848