Revenue from Contracts with Customers

6 Months Ended

Jul. 03, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation of Revenue

The following table represents disaggregated revenue from contracts with customers for the three and six months ended July 3, 2022 and July 4, 2021:

	Three Months Ended				Six Months Ended
(In thousands)	July 3, 2022		July 4, 2021		July 3, 2022		July 4, 2021
Solar power systems sales	$	320,294	$	172,837	$	591,938	$	339,164
Component sales	74,542		56,656		134,419		107,388
Light commercial sales	24,569		19,107		38,765		34,825
Services and other1	(1,633)		12,151		2,927		19,510
Total revenues	$	417,772	$	260,751	$	768,049	$	500,887

1 The reduction in “services and other” revenue for the three months ended July 3, 2022 was due to the reversal of variable consideration on two of our legacy large power plant projects that we sold in fiscal 2018 and 2019.

We recognize revenue from contracts with customers when we have completed our performance obligations under an identified contract. The revenue is recognized in an amount that reflects the consideration for the corresponding performance obligations for the goods and services transferred.

Contract Assets and Liabilities

Contract assets consist of unbilled receivables which represent revenue that has been recognized in advance of billing the customer, which is common for our residential cash and loan customers. 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 5. 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)	July 3, 2022		January 2, 2022
Contract assets	$	34,051	$	31,925
Contract liabilities	121,452		80,990

During the three and six months ended July 3, 2022, we recognized revenue of $40.0 million and $38.1 million that was included in contract liabilities as of April 3, 2022 and January 2, 2022. During the three and six months ended July 4, 2021, we recognized revenue of $21.2 million and $23.2 million that was included in contract liabilities as of April 4, 2021 and January 3, 2021.

As of July 3, 2022, we have entered into contracts with customers for sales of solar power systems and components for an aggregate transaction price of $817.9 million, the substantial majority of which we expect to recognize over the next 12 months.