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Revenue (Notes)
 3 Months Ended
Apr. 03, 2021
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 an 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 Company elected to treat shipping and handling as fulfilment costs, which will result in billed freight recorded in cost of sales and netted against freight costs. Sales, value-add, and other taxes collected concurrently with revenue-producing activities are excluded from revenue and booked on a net basis.

The following tables present the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended April 3, 2021 and March 28, 2020 (in thousands):
Three Months Ended April 3, 2021
Feed IngredientsFood IngredientsFuel IngredientsTotal
Geographic Area
North America$549,015 $60,940 $3,350 $613,305 
Europe97,645 155,363 93,857 346,865 
China1,938 57,932 — 59,870 
South America— 10,454 — 10,454 
Other2,846 13,376 — 16,222 
Net sales$651,444 $298,065 $97,207 $1,046,716 
Major product types
Fats$229,006 $41,433 $— $270,439 
Used cooking oil51,029 — — 51,029 
Proteins255,507 — — 255,507 
Bakery63,105 — — 63,105 
Other rendering42,957 — — 42,957 
Food ingredients— 229,542 — 229,542 
Bioenergy— — 93,857 93,857 
Biofuels— — 3,350 3,350 
Other9,840 27,090 — 36,930 
Net sales$651,444 $298,065 $97,207 $1,046,716 

Three Months Ended March 28, 2020
Feed IngredientsFood IngredientsFuel IngredientsTotal
Geographic Area
North America$427,463 $46,415 $5,400 $479,278 
Europe80,443 158,587 64,523 303,553 
China2,423 39,956 — 42,379 
South America— 10,586 — 10,586 
Other2,296 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 oil47,608 — — 47,608 
Proteins195,980 — — 195,980 
Bakery47,101 — — 47,101 
Other rendering47,164 — — 47,164 
Food ingredients— 214,793 — 214,793 
Bioenergy— — 64,523 64,523 
Biofuels— — 5,400 5,400 
Other11,488 22,025 — 33,513 
Net sales$512,625 $270,294 $69,923 $852,842 
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 in net sales 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 in net sales 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 and control has been transferred. Service revenues are recognized in net sales 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 2021 under these long-term supply contracts was approximately $15.0 million, with the remaining performance obligations to be recognized in future periods (generally 2 years) of approximately $154.7 million.