Revenue Recognition Revenue Recognition (Notes)

9 Months Ended

Oct. 02, 2021

Revenue Recognition [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue Recognition

Disaggregation of Revenue

The company disaggregates its net sales by reportable operating segment and geographical location as the company believes it best depicts how the nature, timing and uncertainty of its net sales and cash flows are affected by economic factors. In general, the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups recognize revenue at the point in time control transfers to their customers based on contractual shipping terms. Revenue from equipment sold under the company's long-term contracts within the Food Processing Equipment group is recognized over time as the equipment is manufactured and assembled. The following table summarizes the company's net sales by reportable operating segment and geographical location (in thousands):

	Commercial  Foodservice		Food Processing		Residential Kitchen		Total
Three Months Ended October 2, 2021
United States and Canada	$	366,619	$	84,443	$	113,230	$	564,292
Asia	49,489		4,257		2,741		56,487
Europe and Middle East	82,881		14,332		76,310		173,523
Latin America	12,491		9,638		1,114		23,243
Total	$	511,480	$	112,670	$	193,395	$	817,545
Nine Months Ended October 2, 2021
United States and Canada	$	1,064,482	$	259,577	$	335,138	$	1,659,197
Asia	146,849		10,713		7,631		165,193
Europe and Middle East	255,649		56,507		181,359		493,515
Latin America	34,433		28,375		3,663		66,471
Total	$	1,501,413	$	355,172	$	527,791	$	2,384,376
Three Months Ended September 26, 2020
United States and Canada	$	265,793	$	82,126	$	97,318	$	445,237
Asia	39,864		4,711		1,875		46,450
Europe and Middle East	60,603		18,600		52,216		131,419
Latin America	4,963		5,211		1,245		11,419
Total	$	371,223	$	110,648	$	152,654	$	634,525
Nine Months Ended September 26, 2020
United States and Canada	$	768,202	$	227,770	$	264,116	$	1,260,088
Asia	104,936		18,460		3,753		127,149
Europe and Middle East	180,187		57,051		117,187		354,425
Latin America	28,522		13,196		581		42,299
Total	$	1,081,847	$	316,477	$	385,637	$	1,783,961

Contract Balances

Contract assets primarily relate to the company's right to consideration for work completed but not billed at the reporting date and are recorded in prepaid expenses and other in the Condensed Consolidated Balance Sheet. Contract assets are transferred to receivables when the right to consideration becomes unconditional. Accounts receivable are not considered contract assets under the revenue standard as contract assets are conditioned upon the company's future satisfaction of a performance obligation. Accounts receivable, in contracts, are unconditional rights to consideration.

Contract liabilities relate to advance consideration received from customers for which revenue has not been recognized. Current contract liabilities are recorded in accrued expenses in the Condensed Consolidated Balance Sheet. Non-current contract liabilities are recorded in other non-current liabilities in the Condensed Consolidated Balance Sheet. Contract liabilities are reduced when the associated revenue from the contract is recognized.

The following table provides information about contract assets and contract liabilities from contracts with customers (in thousands):

	Oct 2, 2021		Jan 2, 2021
Contract assets	$	20,955	$	20,328
Contract liabilities	$	132,984	$	93,871
Non-current contract liabilities	$	12,187	$	13,523

During the nine months period ended October 2, 2021, the company reclassified $14.0 million to receivables, which was included in the contract asset balance at the beginning of the period. During the nine months period ended October 2, 2021, the company recognized revenue of $72.6 million which was included in the contract liability balance at the beginning of the period. Additions to contract liabilities representing amounts billed to clients in excess of revenue recognized to date were $122.7 million during the nine months period ended October 2, 2021. Substantially, all of the company's outstanding performance obligations will be satisfied within 12 to 36 months. There were no contract asset impairments during the nine months period ended October 2, 2021.