Revenue (Notes)

12 Months Ended

Dec. 30, 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 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 years ended December 30, 2023, December 31, 2022 and January 1, 2022 (in thousands):

	Year Ended December 30, 2023
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	3,696,423	$	469,289	$	—	$	4,165,712
Europe	373,180		754,846		563,423		1,691,449
China	27,433		281,139		—		308,572
South America	362,657		171,425		—		534,082
Other	12,899		75,366		—		88,265
Net sales	$	4,472,592	$	1,752,065	$	563,423	$	6,788,080
Major product types
Fats	$	1,739,349	$	164,730	$	—	$	1,904,079
Used cooking oil	497,657		—		—		497,657
Proteins	1,672,027		—		—		1,672,027
Bakery	255,214		—		—		255,214
Other rendering	243,525		—		—		243,525
Food ingredients	—		1,476,875		—		1,476,875
Bioenergy	—		—		563,423		563,423
Other	64,820		110,460		—		175,280
Net sales	$	4,472,592	$	1,752,065	$	563,423	$	6,788,080

	Year Ended December 31, 2022
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	3,852,559	$	369,499	$	—	$	4,222,058
Europe	502,432		733,967		533,574		1,769,973
China	25,100		259,584		—		284,684
South America	146,682		40,661		—		187,343
Other	12,227		55,919		—		68,146
Net sales	$	4,539,000	$	1,459,630	$	533,574	$	6,532,204
Major product types
Fats	$	1,951,183	$	205,674	$	—	$	2,156,857
Used cooking oil	519,119		—		—		519,119
Proteins	1,476,553		—		—		1,476,553
Bakery	333,442		—		—		333,442
Other rendering	200,945		—		—		200,945
Food ingredients	—		1,121,995		—		1,121,995
Bioenergy	—		—		533,574		533,574
Biofuels	—		—		—		—
Other	57,758		131,961		—		189,719
Net sales	$	4,539,000	$	1,459,630	$	533,574	$	6,532,204

	Year Ended January 1, 2022
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	2,577,705	$	286,852	$	3,377	$	2,867,934
Europe	430,549		663,619		426,863		1,521,031
China	19,446		233,766		—		253,212
South America	—		31,446		—		31,446
Other	11,800		55,946		—		67,746
Net sales	$	3,039,500	$	1,271,629	$	430,240	$	4,741,369
Major product types
Fats	$	1,198,122	$	182,674	$	—	$	1,380,796
Used cooking oil	319,145		—		—		319,145
Proteins	1,022,694		—		—		1,022,694
Bakery	287,424		—		—		287,424
Other rendering	173,405		—		—		173,405
Food ingredients	—		961,617		—		961,617
Bioenergy	—		—		426,863		426,863
Biofuels	—		—		3,377		3,377
Other	38,710		127,338		—		166,048
Net sales	$	3,039,500	$	1,271,629	$	430,240	$	4,741,369

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. Fats 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 and food grade fats. Fats net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Proteins. 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 protein meal. 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 in fiscal 2023, 2022 and 2021 under these long-term supply contracts was approximately $171.1 million, $168.4 million and $95.3 million, respectively, with the remaining performance obligations to be recognized in future periods (generally 4 years) of approximately $798.9 million.