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Revenue Recognition
 6 Months Ended
Jun. 29, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition 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 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 June 29, 2024 or December 30, 2023. Customer receivables, which are included in accounts receivable, less allowances in the Company’s Consolidated Balance Sheets, were $2.0 billion and $1.9 billion as of June 29, 2024 and December 30, 2023, 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 $39 million and $35 million included in prepaid expenses in the Company’s Consolidated Balance Sheets as of June 29, 2024 and December 30, 2023, respectively, and $47 million and $39 million included in other assets in the Company’s Consolidated Balance Sheets as of June 29, 2024 and December 30, 2023, respectively.
The following table presents the disaggregation of revenue for each of the Company’s principal product categories:
13 Weeks Ended26 Weeks Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Meats and seafood$3,329 $3,024 $6,305 $5,850 
Dry grocery products1,687 1,611 3,301 3,162 
Refrigerated and frozen grocery products1,641 1,517 3,192 2,962 
Dairy1,009 940 1,936 1,875 
Equipment, disposables and supplies922 921 1,786 1,801 
Beverage products558 502 1,067 963 
Produce563 498 1,071 942 
Total net sales$9,709 $9,013 $18,658 $17,555