Revenue Recognition Revenue Recognition (Notes)

6 Months Ended

Jul. 02, 2022

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 July 2, 2022
United States and Canada	$	454,464	$	87,873	$	189,729	$	732,066
Asia	45,802		4,114		10,072		59,988
Europe and Middle East	92,328		20,460		78,382		191,170
Latin America	17,085		11,466		1,826		30,377
Total	$	609,679	$	123,913	$	280,009	$	1,013,601
Six Months Ended July 2, 2022
United States and Canada	$	849,279	$	182,670	$	419,328	$	1,451,277
Asia	93,187		7,857		16,077		117,121
Europe and Middle East	180,603		34,660		171,965		387,228
Latin America	30,263		18,669		3,719		52,651
Total	$	1,153,332	$	243,856	$	611,089	$	2,008,277
Three Months Ended July 3, 2021
United States and Canada	$	359,026	$	95,484	$	113,334	$	567,844
Asia	47,641		2,453		1,858		51,952
Europe and Middle East	90,751		21,750		53,205		165,706
Latin America	11,360		10,321		1,590		23,271
Total	$	508,778	$	130,008	$	169,987	$	808,773
Six Months Ended July 3, 2021
United States and Canada	$	697,863	$	175,134	$	221,908	$	1,094,905
Asia	97,360		6,456		4,890		108,706
Europe and Middle East	172,768		42,175		105,049		319,992
Latin America	21,942		18,737		2,549		43,228
Total	$	989,933	$	242,502	$	334,396	$	1,566,831

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):

	Jul 2, 2022		Jan 1, 2022
Contract assets	$	32,678	$	21,592
Contract liabilities	$	197,600	$	133,315
Non-current contract liabilities	$	11,063	$	11,602

During the six months period ended July 2, 2022, the company reclassified $9.3 million to receivables, which was included in the contract asset balance at the beginning of the period. During the six months period ended July 2, 2022, the company recognized revenue of $88.5 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 $180.1 million during the six months period ended July 2, 2022. 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 six months period ended July 2, 2022.