Revenue Recognition Revenue Recognition

9 Months Ended

Sep. 28, 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 September 28, 2024
United States and Canada	$	419,515	$	103,391	$	112,912	$	635,818
Asia	53,725		7,437		5,994		67,156
Europe and Middle East	99,494		45,280		52,952		197,726
Latin America	27,334		13,415		1,360		42,109
Total	$	600,068	$	169,523	$	173,218	$	942,809
Nine Months Ended September 28, 2024
United States and Canada	$	1,288,437	$	315,080	$	344,731	$	1,948,248
Asia	161,104		20,756		12,433		194,293
Europe and Middle East	288,225		137,459		176,577		602,261
Latin America	72,024		38,315		6,140		116,479
Total	$	1,809,790	$	511,610	$	539,881	$	2,861,281
Three Months Ended September 30, 2023
United States and Canada	$	458,529	$	111,092	$	116,522	$	686,143
Asia	59,922		6,389		3,371		69,682
Europe and Middle East	91,112		34,250		57,474		182,836
Latin America	24,446		14,936		2,608		41,990
Total	$	634,009	$	166,667	$	179,975	$	980,651
Nine Months Ended September 30, 2023
United States and Canada	$	1,385,929	$	354,945	$	395,236	$	2,136,110
Asia	173,901		30,507		8,652		213,060
Europe and Middle East	272,252		101,808		194,631		568,691
Latin America	61,525		41,658		6,985		110,168
Total	$	1,893,607	$	528,918	$	605,504	$	3,028,029

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):

	Sep 28, 2024		Dec 30, 2023
Contract assets	$	60,353	$	47,072
Contract liabilities	$	112,629	$	118,681
Non-current contract liabilities	$	14,485	$	15,721

During the nine months period ended September 28, 2024, the company reclassified $32.4 million to receivables, which was included in the contract asset balance at the beginning of the period. During the nine months period ended September 28, 2024, the company recognized revenue of $71.5 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 $95.8 million during the nine months period ended September 28, 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 nine months period ended September 28, 2024.