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REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 26, 2020
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS

NOTE 3 — REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS

On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method, applied to those contracts for which all performance obligations were not completed as of that date. Under the modified retrospective method, results for reporting periods beginning after January 1, 2018 are presented using the guidance of ASC 606.

The impact of the adoption of ASC 606 on revenue recognized during the three and nine months ended September 26, 2020 and September 28, 2019 is as follows:

Three Months Ended

Nine Months Ended

September 26,

2020

September 28,

2019

September 26,

2020

September 28,

2019

Contract liabilities with customers at beginning of period

$3,646

$1,275

$9,623

$7,477

Revenue deferred

150

5,634

4,843

8,671

Revenue recognized

(2,593)

(3,269)

(13,263)

(12,508)

Contract liabilities with customers at end of period

$1,203

$3,640

$1,203

$3,640

As more fully described in the Revenue Recognition section of Note 2, the deferral of revenue and subsequent recognition thereof relates to certain of the Company’s sales promotion programs that include the future shipment of free products. The Company expects the deferred revenue from this contract liability with customers to be recognized in the fourth quarter of 2020.

Practical Expedients and Exemptions

The Company has elected to account for shipping and handling activities that occur after control of the related product transfers to the customer as fulfillment activities that are recognized upon shipment of the goods.