Net Sales

6 Months Ended

Jun. 30, 2022

Revenue From Contract With Customer [Abstract]

Net Sales

8.  Net Sales

Disaggregated Net Sales

We primarily derive our revenues from the sales of various chemical products. The Company’s net sales disaggregation is consistent with other financial information utilized or provided outside of our condensed consolidated financial statements. With our continued focus on optimizing our commercial strategy and product mix going forward we will report revenue by product as opposed to the end market. Accordingly, this approach is reflected in disaggregated net sales, mirroring how the Company manages its net sales by product through contracts with customers.

The following table presents our net sales disaggregated by our principal product types:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In Thousands)
Net sales:
AN & Nitric Acid	$	96,142	$	56,739	$	167,942	$	106,576
Urea ammonium nitrate (UAN)		76,986		29,899		133,555		47,537
Ammonia		89,444		38,541		148,786		59,706
Other		22,231		15,517		33,501		24,993
Total net sales	$	284,803	$	140,696	$	483,784	$	238,812

Other Information

Although most of our contracts have an original expected duration of one year or less, for our contracts with a duration greater than one year at contract inception, the average remaining expected duration was approximately 22 months at June 30, 2022.

Liabilities associated with contracts with customers (contract liabilities) primarily relate to deferred revenue and customer deposits associated with cash payments received in advance from customers for volume shortfall charges and product shipments. We had approximately $0.4 million and $1.6 million of contract liabilities as of June 30, 2022 and December 31, 2021, respectively. For the three and six months ended June 30, 2022, revenues of $1.5 million and $1.4 million, respectively, were recognized and included in the balance at the beginning of the respective period. For the three and six months ended June 30, 2021, revenues of $1.0 million and $1.6 million, respectively, were recognized and included in the balance at the beginning of the respective period.

For most of our contracts with customers, the transaction price from the inception of a contract is constrained to a short period of time (generally one month) as these contracts contain terms with variable consideration related to both price and quantity. At June 30, 2022, we have remaining performance obligations with certain customer contracts, excluding contracts with original durations of less than one year and for service contracts for which we have elected the practical expedient for consideration recognized in revenue as invoiced. The remaining performance obligations totals approximately $72 million, of which approximately 35% of this amount relates to 2022 through 2024, approximately 31% relates to 2025 through 2026, with the remainder thereafter.