Revenue Recognition Revenue Recognition

6 Months Ended

Jun. 29, 2024

Revenue Recognition [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue Recognition

Disaggregation of Revenue

The company disaggregates its net sales by reportable operating segment and geographical location as the company believes it best depicts how the nature, timing and uncertainty of its 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 the company's long-term contracts within the Food Processing Equipment group is recognized over time as the equipment is manufactured and assembled. The following table summarizes the company's net sales by reportable operating segment and geographical location (in thousands):

	Commercial  Foodservice		Food Processing		Residential Kitchen		Total
Three Months Ended June 29, 2024
United States and Canada	$	442,395	$	108,659	$	124,777	$	675,831
Asia	55,992		6,951		3,843		66,786
Europe and Middle East	98,266		50,354		61,468		210,088
Latin America	22,726		13,440		2,675		38,841
Total	$	619,379	$	179,404	$	192,763	$	991,546
Six Months Ended June 29, 2024
United States and Canada	$	868,923	$	211,689	$	231,818	$	1,312,430
Asia	107,379		13,319		6,439		127,137
Europe and Middle East	188,731		92,179		123,625		404,535
Latin America	44,690		24,900		4,780		74,370
Total	$	1,209,723	$	342,087	$	366,662	$	1,918,472
Three Months Ended July 1, 2023
United States and Canada	$	474,745	$	126,953	$	134,755	$	736,453
Asia	57,453		15,531		2,092		75,076
Europe and Middle East	94,175		33,499		66,771		194,445
Latin America	19,290		12,765		1,953		34,008
Total	$	645,663	$	188,748	$	205,571	$	1,039,982
Six Months Ended July 1, 2023
United States and Canada	$	927,400	$	243,853	$	278,714	$	1,449,967
Asia	113,979		24,118		5,281		143,378
Europe and Middle East	181,140		67,558		137,157		385,855
Latin America	37,079		26,722		4,377		68,178
Total	$	1,259,598	$	362,251	$	425,529	$	2,047,378

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, 2024		Dec 30, 2023
Contract assets	$	54,968	$	47,072
Contract liabilities	$	121,036	$	118,681
Non-current contract liabilities	$	14,746	$	15,721

During the six months period ended June 29, 2024, the company reclassified $30.2 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, 2024, the company recognized revenue of $49.9 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 $84.9 million during the six months period ended June 29, 2024.

Remaining Performance Obligations

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, 2024.