Revenue (Notes)

6 Months Ended

Jun. 27, 2020

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

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 and six months ended June 27, 2020 and June 29, 2019 (in thousands):

	Three Months Ended June 27, 2020
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	419,318	$	58,548	$	991	$	478,857
Europe	78,466		157,326		65,058		300,850
China	3,354		45,043		—		48,397
South America	—		2,080		—		2,080
Other	2,552		15,937		—		18,489
Net sales	$	503,690	$	278,934	$	66,049	$	848,673
Major product types
Fats	$	167,507	$	31,839	$	—	$	199,346
Used cooking oil	39,007		—		—		39,007
Proteins	210,141		—		—		210,141
Bakery	37,964		—		—		37,964
Other rendering	39,464		—		—		39,464
Food ingredients	—		223,526		—		223,526
Bioenergy	—		—		65,058		65,058
Biofuels	—		—		991		991
Other	9,607		23,569		—		33,176
Net sales	$	503,690	$	278,934	$	66,049	$	848,673

	Six Months Ended June 27, 2020
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	846,781	$	104,963	$	6,391	$	958,135
Europe	158,909		315,913		129,581		604,403
China	5,777		84,999		—		90,776
South America	—		12,666		—		12,666
Other	4,848		30,687		—		35,535
Net sales	$	1,016,315	$	549,228	$	135,972	$	1,701,515
Major product types
Fats	$	330,791	$	65,315	$	—	$	396,106
Used cooking oil	86,615		—		—		86,615
Proteins	406,121		—		—		406,121
Bakery	85,065		—		—		85,065
Other rendering	86,628		—		—		86,628
Food ingredients	—		438,319		—		438,319
Bioenergy	—		—		129,581		129,581
Biofuels	—		—		6,391		6,391
Other	21,095		45,594		—		66,689
Net sales	$	1,016,315	$	549,228	$	135,972	$	1,701,515

	Three Months Ended June 29, 2019
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area Revenues
North America	$	401,450	$	54,801	$	9,644	$	465,895
Europe	78,857		147,807		55,398		282,062
China	4,953		42,984		—		47,937
South America	—		12,121		—		12,121
Other	2,187		17,122		—		19,309
Net sales	$	487,447	$	274,835	$	65,042	$	827,324
Major product types
Fats	$	143,542	$	30,785	$	—	$	174,327
Used cooking oil	45,299		—		—		45,299
Proteins	200,385		—		—		200,385
Bakery	44,415		—		—		44,415
Other rendering	40,883		—		—		40,883
Food ingredients	—		223,236		—		223,236
Bioenergy	—		—		55,398		55,398
Biofuels	—		—		9,644		9,644
Other	12,923		20,814		—		33,737
Net sales	$	487,447	$	274,835	$	65,042	$	827,324

	Six Months Ended June 29, 2019
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area Revenues
North America	$	811,687	$	103,614	$	15,354	$	930,655
Europe	158,855		299,459		109,809		568,123
China	7,905		89,921		—		97,826
South America	—		24,790		—		24,790
Other	4,819		36,215		—		41,034
Net sales	$	983,266	$	553,999	$	125,163	$	1,662,428
Major product types
Fats	$	288,418	$	65,923	$	—	$	354,341
Used cooking oil	90,705		—		—		90,705
Proteins	406,198		—		—		406,198
Bakery	90,071		—		—		90,071
Other rendering	82,137		—		—		82,137
Food ingredients	—		445,144		—		445,144
Bioenergy	—		—		109,809		109,809
Biofuels	—		—		15,354		15,354
Other	25,737		42,932		—		68,669
Net sales	$	983,266	$	553,999	$	125,163	$	1,662,428

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. It 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 $16.6 million, with the remaining performance obligations to be recognized in future periods (generally 3 years) of approximately $204.9 million.