Revenue Recognition Revenue Recognition

3 Months Ended

Apr. 01, 2023

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 April 1, 2023
United States and Canada	$	452,655	$	116,900	$	143,959	$	713,514
Asia	56,526		8,587		3,189		68,302
Europe and Middle East	86,965		34,059		70,386		191,410
Latin America	17,789		13,957		2,424		34,170
Total	$	613,935	$	173,503	$	219,958	$	1,007,396
Three Months Ended April 2, 2022
United States and Canada	$	390,776	$	98,288	$	229,599	$	718,663
Asia	47,382		3,746		6,005		57,133
Europe and Middle East	88,570		14,207		93,583		196,360
Latin America	13,290		7,337		1,893		22,520
Total	$	540,018	$	123,578	$	331,080	$	994,676

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):

	Apr 1, 2023		Dec 31, 2022
Contract assets	$	46,495	$	40,438
Contract liabilities	$	177,190	$	185,824
Non-current contract liabilities	$	13,195	$	12,495

During the three months period ended April 1, 2023, the company reclassified $12.7 million to receivables, which was included in the contract asset balance at the beginning of the period. During the three months period ended April 1, 2023, the company recognized revenue of $43.1 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 $47.0 million during the three months period ended April 1, 2023. In addition, contract liabilities increased due to the acquisitions during the three months ended April 1, 2023. 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 three months period ended April 1, 2023.