Revenue

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregation of Revenue

The following table summarizes net sales by end market:

(in thousands)	For the Three Months Ended March 31,
End Market	2022		2021
Power Systems	$	38,230	$	25,159
Industrial	45,803		34,320
Transportation	14,914		40,692
Total	$	98,947	$	100,171

The following table summarizes net sales by geographic area:

(in thousands)	For the Three Months Ended March 31,
Geographic Area	2022		2021
United States	$	74,410	$	89,595
North America (outside of United States)	3,411		2,320
Pacific Rim	13,841		5,528
Europe	3,122		1,610
Other	4,163		1,118
Total	$	98,947	$	100,171

Contract Balances

Most of the Company’s contracts are for a period of less than one year; however, certain long-term manufacturing and extended warranty contracts extend beyond one year. The timing of revenue recognition may differ from the time of invoicing to customers and these timing differences result in contract assets, or contract liabilities, on the Company’s Consolidated Balance Sheet. Contract assets include amounts related to the contractual right to consideration for completed performance when the right to consideration is conditional. The Company records contract liabilities when cash payments are received or due in advance of performance. Contract assets and contract liabilities are recognized at the contract level.

(in thousands)	As of March 31, 2022		As of December 31, 2021
Short-term contract assets (included in Prepaid expenses and other current assets)	$	2,372	$	2,707
Short-term contract liabilities (included in Other accrued liabilities)	(2,702)		(1,819)
Long-term contract liabilities (included in Noncurrent contract liabilities)	(3,565)		(3,330)
Net contract liabilities	$	(3,895)	$	(2,442)

During the three months ended March 31, 2022 and 2021, the Company recognized $0.4 million and $14.9 million, respectively, of revenue upon satisfaction of performance obligations related to amounts that were included in the net contract liabilities balance as of December 31, 2021 and 2020, respectively. The decrease in the contract asset during the three months ended March 31, 2022 is related to the Company’s right to consideration being conditional at the end of the period. The increase in the contract liabilities during the three months ended March 31, 2022 was primarily related to revenue deferred related to a storage agreement for completed engines.

Remaining Performance Obligations

For performance obligations that extend beyond one year, the Company had $5.7 million of remaining performance obligations as of March 31, 2022 primarily related to a long-term manufacturing contract with a customer and extended warranties. The Company expects to recognize revenue related to these remaining performance obligations of approximately $1.8 million in the remainder of 2022, $1.0 million in 2023, $1.0 million in 2024, $0.5 million in 2025, $0.2 million in 2026 and less than $1.2 million in 2027 and beyond.