Revenue Recognition (Notes)

6 Months Ended

Jun. 29, 2019

Revenue from Contract with Customer [Text Block]

Revenue Recognition

Disaggregation of Revenue

We disaggregate our net sales by reportable operating segment and geographical location as we believe it best depicts how the nature, timing and uncertainty of our net sales and cash flows are affected by economic factors. In general, the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups recognize revenue at the point in time control transfers to their customers based on contractual shipping terms. Revenue from equipment sold under our long-term contracts within the Food Processing Equipment group is recognized over time as the equipment is manufactured and assembled. The following table summarizes our net sales by reportable operating segment and geographical location (in thousands):



	Commercial Foodservice		Food Processing		Residential Kitchen		Total
Three Months Ended June 29, 2019
United States and Canada	$	357,718	$	58,100	$	100,472	$	516,290
Asia	52,031		8,054		1,467		61,552
Europe and Middle East	85,962		25,881		47,006		158,849
Latin America	17,568		5,818		927		24,313
Total	$	513,279	$	97,853	$	149,872	$	761,004

Six Months Ended June 29, 2019
United States and Canada	$	657,993	$	115,689	$	183,830	$	957,512
Asia	100,324		16,736		2,865		119,925
Europe and Middle East	175,858		46,499		97,621		319,978
Latin America	36,635		11,403		2,353		50,391
Total	$	970,810	$	190,327	$	286,669	$	1,447,806

Three Months Ended June 30, 2018
United States and Canada	$	289,523	$	59,306	$	103,420	$	452,249
Asia	37,959		11,723		2,060		51,742
Europe and Middle East	75,352		16,803		53,819		145,974
Latin America	11,283		5,817		1,063		18,163
Total	$	414,117	$	93,649	$	160,362	$	668,128

Six Months Ended June 30, 2018
United States and Canada	$	544,636	$	126,241	$	181,980	$	852,857
Asia	66,991		17,435		3,579		88,005
Europe and Middle East	141,963		25,535		108,874		276,372
Latin America	20,431		13,010		2,253		35,694
Total	$	774,021	$	182,221	$	296,686	$	1,252,928

Contract Balances

Contract assets primarily relate to the company's right to consideration for work completed but not billed at the reporting date and are recorded in prepaid expenses and other in the Condensed Consolidated Balance Sheet. Contract assets are transferred to receivables when the right to consideration becomes unconditional. Accounts receivable are not considered contract assets under the revenue standard as contract assets are conditioned upon the company's future satisfaction of a performance obligation. Accounts receivable, in contracts, are unconditional rights to consideration.

Contract liabilities relate to advance consideration received from customers for which revenue has not been recognized. Current contract liabilities are recorded in accrued expenses in the Condensed Consolidated Balance Sheet. Non-current contract liabilities are recorded in other non-current liabilities in the Condensed Consolidated Balance Sheet. Contract liabilities are reduced when the associated revenue from the contract is recognized.

The following table provides information about contract assets and contract liabilities from contracts with customers (in thousands):



	Jun 29, 2019		Dec 29, 2018
Contract assets	$	20,430	$	14,048
Contract liabilities	$	56,099	$	57,913
Non-current contract liabilities	$	13,065	$	12,170

During the six months period ended June 29, 2019, the company reclassified $7.1 million to receivables, which was included in the contract asset balance at the beginning of the period. During the six months period ended June 29, 2019, the company recognized revenue of $50.4 million which was included in the contract liability balance at the beginning of the period. Additions to contract liabilities representing amounts billed to clients in excess of revenue recognized to date were $52.9 million during the six months period ended June 29, 2019. Substantially, all of the company's outstanding performance obligations will be satisfied within 12 to 36 months. There were no contract asset impairments during the six months period ended June 29, 2019.