Revenue (Notes)

3 Months Ended

Apr. 02, 2022

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 2, 2022 and April 3, 2021 (in thousands):

	Three Months Ended April 2, 2022
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	755,838	$	83,900	$	—	$	839,738
Europe	114,463		182,010		132,082		428,555
China	6,636		66,307		—		72,943
South America	—		8,496		—		8,496
Other	2,501		14,101		—		16,602
Net sales	$	879,438	$	354,814	$	132,082	$	1,366,334
Major product types
Fats	$	368,394	$	52,264	$	—	$	420,658
Used cooking oil	94,896		—		—		94,896
Proteins	270,187		—		—		270,187
Bakery	78,511		—		—		78,511
Other rendering	57,544		—		—		57,544
Food ingredients	—		270,516		—		270,516
Bioenergy	—		—		132,082		132,082
Other	9,906		32,034		—		41,940
Net sales	$	879,438	$	354,814	$	132,082	$	1,366,334

	Three Months Ended April 3, 2021
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	549,015	$	60,940	$	3,350	$	613,305
Europe	97,645		155,363		93,857		346,865
China	1,938		57,932		—		59,870
South America	—		10,454		—		10,454
Other	2,846		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 oil	51,029		—		—		51,029
Proteins	255,507		—		—		255,507
Bakery	63,105		—		—		63,105
Other rendering	42,957		—		—		42,957
Food ingredients	—		229,542		—		229,542
Bioenergy	—		—		93,857		93,857
Biofuels	—		—		3,350		3,350
Other	9,840		27,090		—		36,930
Net sales	$	651,444	$	298,065	$	97,207	$	1,046,716

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 2022 under these long-term supply contracts was approximately $35.0 million, with the remaining performance obligations to be recognized in future periods (generally 5 years) of approximately $1.21 billion.