Revenue (Notes)

3 Months Ended

Mar. 28, 2020

Revenue from Contract with Customer [Abstract]

The Company extends payment terms to its customers based on commercially acceptable practices. The term between invoicing and payment due date is not significant. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring finished products or performing services, which is generally based on executed agreement or purchase order.

Most of the Company's products are shipped based on the customer specifications. Customer returns are infrequent and not material to the Company. Adjustments to net sales for sales deductions are generally recognized in the same period as the sale or when known. Customers in certain industries or countries may be required to prepay prior to shipment in order to maintain payment protection. These represent short-term prepayment from customers and are not material to the Company.

The following tables presents the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended March 28, 2020 and March 30, 2019 (in thousands):



	Three Months Ended March 28, 2020
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	427,463	$	46,415	$	5,400	$	479,278
Europe	80,443		158,587		64,523		303,553
China	2,423		39,956		—		42,379
South America	—		10,586		—		10,586
Other	2,296		14,750		—		17,046
Net sales	$	512,625	$	270,294	$	69,923	$	852,842

Major product types
Fats	$	163,284	$	33,476	$	—	$	196,760
Used cooking oil	47,608		—		—		47,608
Proteins	195,980		—		—		195,980
Bakery	47,101		—		—		47,101
Other rendering	47,164		—		—		47,164
Food ingredients	—		214,793		—		214,793
Bioenergy	—		—		64,523		64,523
Biofuels	—		—		5,400		5,400
Other	11,488		22,025		—		33,513
Net sales	$	512,625	$	270,294	$	69,923	$	852,842



	Three Months Ended March 30, 2019
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area Revenues
North America	$	410,237	$	48,813	$	5,710	$	464,760
Europe	79,998		151,652		54,411		286,061
China	2,952		46,937		—		49,889
South America	—		12,669		—		12,669
Other	2,632		19,093		—		21,725
Net sales	$	495,819	$	279,164	$	60,121	$	835,104

Major product types
Fats	$	144,876	$	35,138	$	—	$	180,014
Used cooking oil	45,406		—		—		45,406
Proteins	205,813		—		—		205,813
Bakery	45,656		—		—		45,656
Other rendering	41,254		—		—		41,254
Food ingredients	—		221,908		—		221,908
Bioenergy	—		—		54,411		54,411
Biofuels	—		—		5,710		5,710
Other	12,814		22,118		—		34,932
Net sales	$	495,819	$	279,164	$	60,121	$	835,104

Revenue from Contracts with Customers

The Company has two primary revenue streams. Finished product revenues are recognized when control of the promised finished product is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized when the service occurs.

Fats and Proteins. Fats and Proteins include the Company's global activities related to the collection and processing of beef, poultry and pork animal by-products into finished products of non-food grade oils, food grade fats and protein meal. Fats and proteins net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Used Cooking Oil. Used cooking oil includes collection and processing of used cooking oil into finished products of non-food grade fats. Used cooking oil net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Bakery. Bakery includes collection and processing of bakery residuals into finished product including Cookie Meal®, an animal feed ingredient primarily used in poultry and swine rations. Bakery net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Other Rendering. Other rendering include hides, pet food products, and service charges. Hides and pet food net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Service revenues are recognized when the service has occurred.

Food Ingredients. Food ingredients includes collection and processing of pigskin, hide, bone and fish into finished product. Also includes harvesting, sorting and selling of hog and sheep casings as well as harvesting, purchasing and processing of hog, sheep and beef meat for pet food industry. Collagen and CTH meat and casings net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Bioenergy. Bioenergy includes Ecoson, which converts organic sludge and food waste into biogas and Rendac, which collects fallen stock and animal waste for a fee and processes these materials into fats and meals that can only be used as low grade energy or fuel for boilers and cement kilns. Net sales are recognized when the finished product is shipped to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred.

Biofuels. Biofuels includes the North American processing of rendered animal fats, recycled cooking oils and third party additives to produce diesel fuel. Biofuel net sales are recognized when the finished product is shipped to the customer and control has been transferred.

Other. Other includes grease trap collection and environmental services to food processors in the Feed Ingredients segment and Sonac Bone and Sonac Heparin in the Food Ingredients segment. Net sales are recognized when the Company ships the finished product to the customer. Service revenues are recognized when the service has occurred.

Long-Term Performance Obligations. The Company from time to time enters into long-term contracts to supply certain volumes of finished products to certain customers. Revenue recognized to date in 2020 under these long-term supply contracts was approximately $7.5 million, with the remaining performance obligations to be recognized in future periods (generally 4 years) of approximately $273.2 million.