Revenue from Contracts with Customers

12 Months Ended

Jan. 01, 2023

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 2022, 2021, and 2020:

	Fiscal Year Ended
	January 1, 2023		January 2, 2022		January 3, 2021
(In thousands)	(As Restated)		(As Restated)		(As Restated)
Solar power systems sales	$	1,341,277	$	783,037	$	534,162
Component sales	337,076		240,911		185,858
Light commercial sales	46,543		72,126		97,136
Services and other	17,047		32,284		46,333
Total revenues	$	1,741,943	$	1,128,358	$	863,489

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. Total contract assets and contract liabilities balances as of the respective dates are as follows:

	As of
	January 1, 2023		January 2, 2022
(In thousands)	(As Restated)		(As Restated)
Contract assets	$	57,379	$	33,746
Contract liabilities	153,451		81,362

1 As of January 1, 2023, we had indemnifications of $1.1 million retained in connection with our C&I Solutions sale, which are presented within “contract liabilities, net of current portion” on our consolidated balance sheets.

During the year ended January 1, 2023, the increase in contract assets of $23.6 million was primarily driven by an increase in residential cash projects that have met revenue recognition based on applicable milestones, but have not yet been billed to customers. The increase in contract liabilities of $72.1 million, during the year ended January 1, 2023, was primarily due to an increase in invoiced contracts related to our cash and loan projects waiting for revenue recognition, as well as an increase in customer advances.

During the year ended January 2, 2022, the decrease in contract assets of $25.6 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. The increase in contract liabilities of $5.7 million, during the year ended January 2, 2022, was primarily due to an increase in invoiced contracts waiting for revenue recognition, as well as an increase in billings in excess of cost.

During the year ended January 1, 2023, we recognized revenue of $42.5 million that was included in contract liabilities as of January 2, 2022. During the year ended January 2, 2022, we recognized revenue of $35.6 million that was included in contract liabilities as of January 3, 2021.

As of January 1, 2023, we have entered into contracts with customers for sales of solar power systems and components for an aggregate transaction price of $986.3 million, the substantial majority of which we expect to recognize over the next 12 months.