Revenue (Notes)

6 Months Ended

Jul. 01, 2023

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 fulfillment 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 and six months ended July 1, 2023 and July 2, 2022 (in thousands):

	Three Months Ended July 1, 2023
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	946,100	$	101,388	$	—	$	1,047,488
Europe	96,064		227,193		139,867		463,124
China	6,160		71,414		—		77,574
South America	90,293		54,493		—		144,786
Other	3,044		21,605		—		24,649
Net sales	$	1,141,661	$	476,093	$	139,867	$	1,757,621
Major product types
Fats	$	405,287	$	38,207	$	—	$	443,494
Used cooking oil	146,275		—		—		146,275
Proteins	435,956		—		—		435,956
Bakery	67,263		—		—		67,263
Other rendering	70,265		—		—		70,265
Food ingredients	—		412,307		—		412,307
Bioenergy	—		—		139,867		139,867
Other	16,615		25,579		—		42,194
Net sales	$	1,141,661	$	476,093	$	139,867	$	1,757,621

	Six Months Ended July 1, 2023
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	1,971,857	$	200,739	$	—	$	2,172,596
Europe	206,316		417,466		297,153		920,935
China	11,503		148,785		—		160,288
South America	183,832		65,277		—		249,109
Other	5,647		40,218		—		45,865
Net sales	$	2,379,155	$	872,485	$	297,153	$	3,548,793
Major product types
Fats	$	895,605	$	83,195	$	—	$	978,800
Used cooking oil	283,968		—		—		283,968
Proteins	883,103		—		—		883,103
Bakery	142,196		—		—		142,196
Other rendering	140,079		—		—		140,079
Food ingredients	—		731,448		—		731,448
Bioenergy	—		—		297,153		297,153
Other	34,204		57,842		—		92,046
Net sales	$	2,379,155	$	872,485	$	297,153	$	3,548,793

	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
Other	23,761		67,602		—		91,363
Net sales	$	2,049,785	$	723,995	$	242,742	$	3,016,522

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 2023 under these long-term supply contracts was approximately $92.3 million, with the remaining performance obligations to be recognized in future periods (generally four years) of approximately $929.1 million.