Revenue (Notes)

6 Months Ended

Jul. 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 July 2, 2022 and July 3, 2021 (in thousands):

	Three Months Ended July 2, 2022
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	1,028,244	$	91,381	$	—	$	1,119,625
Europe	132,247		186,865		110,660		429,772
China	6,932		64,326		—		71,258
South America	—		12,868		—		12,868
Other	2,924		13,741		—		16,665
Net sales	$	1,170,347	$	369,181	$	110,660	$	1,650,188
Major product types
Fats	$	498,914	$	53,178	$	—	$	552,092
Used cooking oil	152,737		—		—		152,737
Proteins	351,125		—		—		351,125
Bakery	89,593		—		—		89,593
Other rendering	64,123		—		—		64,123
Food ingredients	—		280,435		—		280,435
Bioenergy	—		—		110,660		110,660
Other	13,855		35,568		—		49,423
Net sales	$	1,170,347	$	369,181	$	110,660	$	1,650,188

	Six Months Ended July 2, 2022
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	1,784,082	$	175,281	$	—	$	1,959,363
Europe	246,710		368,875		242,742		858,327
China	13,568		130,633		—		144,201
South America	—		21,364		—		21,364
Other	5,425		27,842		—		33,267
Net sales	$	2,049,785	$	723,995	$	242,742	$	3,016,522
Major product types
Fats	$	867,308	$	105,442	$	—	$	972,750
Used cooking oil	247,633		—		—		247,633
Proteins	621,312		—		—		621,312
Bakery	168,104		—		—		168,104
Other rendering	121,667		—		—		121,667
Food ingredients	—		550,951		—		550,951
Bioenergy	—		—		242,742		242,742
Biofuels	—		—		—		—
Other	23,761		67,602		—		91,363
Net sales	$	2,049,785	$	723,995	$	242,742	$	3,016,522

	Three Months Ended July 3, 2021
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	660,513	$	79,165	$	24	$	739,702
Europe	104,397		165,654		109,682		379,733
China	3,746		52,092		—		55,838
South America	—		5,590		—		5,590
Other	3,276		14,530		—		17,806
Net sales	$	771,932	$	317,031	$	109,706	$	1,198,669
Major product types
Fats	$	292,559	$	41,111	$	—	$	333,670
Used cooking oil	86,437		—		—		86,437
Proteins	258,391		—		—		258,391
Bakery	79,202		—		—		79,202
Other rendering	45,452		—		—		45,452
Food ingredients	—		239,622		—		239,622
Bioenergy	—		—		109,682		109,682
Biofuels	—		—		24		24
Other	9,891		36,298		—		46,189
Net sales	$	771,932	$	317,031	$	109,706	$	1,198,669

	Six Months Ended July 3, 2021
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	1,209,528	$	140,105	$	3,374	$	1,353,007
Europe	202,042		321,017		203,539		726,598
China	5,684		110,024		—		115,708
South America	—		16,044		—		16,044
Other	6,122		27,906		—		34,028
Net sales	$	1,423,376	$	615,096	$	206,913	$	2,245,385
Major product types
Fats	$	521,565	$	82,544	$	—	$	604,109
Used cooking oil	137,466		—		—		137,466
Proteins	513,898		—		—		513,898
Bakery	142,307		—		—		142,307
Other rendering	88,409		—		—		88,409
Food ingredients	—		469,164		—		469,164
Bioenergy	—		—		203,539		203,539
Biofuels	—		—		3,374		3,374
Other	19,731		63,388		—		83,119
Net sales	$	1,423,376	$	615,096	$	206,913	$	2,245,385

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 $73.4 million, with the remaining performance obligations to be recognized in future periods (generally 5 years) of approximately $1.17 billion.