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Revenue from Contracts with Customers
 12 Months Ended
Jan. 02, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue

The following tables represent disaggregated revenue from contracts with customers for fiscal 2021, 2020, and 2019 along with the reportable segment for each category:

Fiscal Year Ended
(In thousands)January 2, 2022January 3, 2021December 29, 2019
CategoryResidential. Light CommercialCommercial and Industrial SolutionsOthersTotal RevenuesResidential. Light CommercialCommercial and Industrial SolutionsOthersTotal RevenuesResidential. Light CommercialCommercial and Industrial SolutionsOthersTotal Revenues
Solar power systems sales and EPC services786,707 180,494 7,844 $975,045 540,690 245,391 6,109 $792,190 409,859 231,281 72,366 $713,506 
Component/product sales240,911 — — 240,911 185,858 — — 185,858 185,620 — — 185,620 
Light commercial products72,126 — — 72,126 97,136 — — 97,136 112,398 — — 112,398 
Operations and maintenance— 10,971 2,981 13,952 — 8,036 20,603 28,639 — 10,785 40,841 51,626 
Leasing revenue21,459 — — 21,459 19,698 1,308 — 21,006 27,860 1,216 — 29,076 
Total revenues$1,121,203 $191,465 $10,825 $1,323,493 $843,382 $254,735 $26,712 $1,124,829 $735,737 $243,282 $113,207 $1,092,226 
Changes in estimates for sales of EPC services on projects in our commercial and industrial solutions segment occur for a variety of reasons, including but not limited to (i) construction plan accelerations or delays, (ii) product cost forecast changes, (iii) change orders, or (iv) changes in other information used to estimate costs. Changes in estimates may have a material effect in our consolidated statements of operations. The table below outlines the impact on revenue of net changes in estimated transaction prices and input costs for systems related sales contracts (both increases and decreases) for the years ended January 2, 2022, January 3, 2021, and December 29, 2019 as well as the number of projects that comprise such changes. For purposes of the following table, only projects with changes in estimates that have an impact on revenues and or costs of at least $1.0 million, calculated on a quarterly basis during the periods, were presented. Also, included in the table is the net change in estimate as a percentage of the aggregate revenue for such projects.
Fiscal Year Ended
(In thousands, except number of projects)January 2, 2022January 3, 2021December 29, 2019
Increase (decrease) in revenue from net changes in transaction prices$10,905 $2,838 $5,391 
Increase (decrease) in revenue from net changes in input cost estimates$(9,996)$(762)$6,233 
Net increase (decrease) in revenue from net changes in estimates$909 $2,076 $11,624 
Number of projects845
Net change in estimate as a percentage of aggregate revenue for associated projects1.5 %1.2 %11.6 %

Contract Assets and Liabilities

Contract assets consist of (i) retainage which represents the earned, but unbilled, portion of a construction and development project for which payment is deferred by the customer until certain contractual milestones are met; and (ii) unbilled receivables which represent revenue that has been recognized in advance of billing the customer, which is common for long-term construction contracts. Contract liabilities consist of deferred revenue and customer advances, which represent consideration received from a customer prior to transferring control of goods or services to the customer under the terms of a sales contract. Refer to Note 4. Balance Sheet Components for further details. Total contract assets and contract liabilities balances as of the respective dates are as follows:

As of
(In thousands)January 2, 2022January 3, 2021
Contract assets$87,952 $122,802 
Contract liabilities116,645 102,594 
During the year ended January 2, 2022, the decrease in contract assets of $34.9 million was primarily driven by a settlement for milestone achievement for one legacy power plant project, as well as a collection of variable consideration on a power plant development project sold in prior years. Of the total decrease in contract assets, the increase in management’s estimate of variable consideration on power plant development projects sold in prior years was $9.1 million.

During the year ended January 3, 2021, the increase in contract assets of $6.0 million was primarily driven by commercial projects where certain milestones had not yet been reached, but the criteria for revenue had been met.

During the year ended January 2, 2022, the increase in contract liabilities of $14.1 million was primarily due to increase in invoiced contracts waiting for revenue recognition, as well as increase in billings in excess of cost.

During the year ended January 3, 2021, the decrease in contract liabilities of $20.7 million was primarily due to revenue recognized from customer advances.

During the year ended January 2, 2022, we recognized revenue of $44.3 million that was included in contract liabilities as of January 3, 2021. During the year ended January 3, 2021, we recognized revenue of $97.8 million that was included in contract liabilities as of December 29, 2019.
The following table represents the average percentage of completion as of January 2, 2022 for EPC agreements for commercial projects that we are constructing. We expect to recognize $225.6 million of revenue upon transfer of control of the projects.

ProjectRevenue CategoryEPC Contract/Partner Developed ProjectExpected Year Revenue Recognition Will Be CompletedAverage Percentage of Revenue Recognized
Various Distribution Generation ProjectsSolar power systems sales and EPC servicesVarious202389.0 %
As of January 2, 2022, we have entered into contracts with customers for sales of solar power systems and components for an aggregate transaction price of $453.5 million, the substantial majority of which we expect to recognize over the next 12 months.