Revenue From Contracts with Customers

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue From Contracts with Customers

Note 3. Revenue From Contracts with Customers

For a detailed discussion of our revenue recognition policy, refer to the discussion in Note 1, Summary of Operations and Summary of Significant Accounting Policies – (c) Revenue Recognition, to the Notes to Consolidated Financial Statements within our Annual Report on Form 10-K for the year ended December 31, 2021.

The following tables represents the disaggregation of our net sales revenue by product for each of our reportable segments:

	Three Months Ended June 30, 2022
	U.S.		Asia		Mexico		EMEA		India		Total
	(in thousands)
Wind blade sales	$	—	$	56,232	$	181,273	$	126,438	$	50,093	$	414,036
Precision molding and    assembly systems sales		—		2,607		227		—		—		2,834
Transportation sales		10,660		—		—		—		—		10,660
Field service, inspection and    repair services sales		9,930		812		3,015		1,277		2		15,036
Other sales		67		214		7,470		1,895		156		9,802
Total net sales	$	20,657	$	59,865	$	191,985	$	129,610	$	50,251	$	452,368

	Three Months Ended June 30, 2021
	U.S.		Asia		Mexico		EMEA		India		Total
	(in thousands)
Wind blade sales	$	39,427	$	82,491	$	131,188	$	103,201	$	62,397	$	418,704
Precision molding and    assembly systems sales		—		7,634		5,969		—		—		13,603
Transportation sales		14,915		—		—		—		—		14,915
Field service, inspection and    repair services sales		5,071		981		962		1,272		—		8,286
Other sales		36		—		2,363		877		57		3,333
Total net sales	$	59,449	$	91,106	$	140,482	$	105,350	$	62,454	$	458,841

	Six Months Ended June 30, 2022
	U.S.		Asia		Mexico		EMEA		India		Total
	(in thousands)
Wind blade sales	$	—	$	92,631	$	310,879	$	273,287	$	91,820	$	768,617
Precision molding and    assembly systems sales		—		6,466		374		—		—		6,840
Transportation sales		23,517		—		—		—		—		23,517
Field service, inspection and    repair services sales		18,531		1,780		3,015		1,558		2		24,886
Other sales		166		334		8,113		4,450		315		13,378
Total net sales	$	42,214	$	101,211	$	322,381	$	279,295	$	92,137	$	837,238

	Six Months Ended June 30, 2021
	U.S.		Asia		Mexico		EMEA		India		Total
	(in thousands)
Wind blade sales	$	79,054	$	154,994	$	239,630	$	214,228	$	109,977	$	797,883
Precision molding and    assembly systems sales		—		11,598		10,932						22,530
Transportation sales		23,046		—		—		—		—		23,046
Field service, inspection and    repair services sales		8,065		1,289		962		2,285		—		12,601
Other sales		277		153		5,710		1,203		118		7,461
Total net sales	$	110,442	$	168,034	$	257,234	$	217,716	$	110,095	$	863,521

For a further discussion regarding our operating segments, see Note 16, Segment Reporting. The geographic regions of Europe, the Middle East and Africa comprises the EMEA segment. The geographic region of China comprises the Asia segment.

Contract Assets and Liabilities

Contract assets consist of the amount of revenue recognized over time for performance obligations in production where control has transferred to the customer but the contract does not yet allow for the customer to be billed. Typically, customers are billed when the product finishes production and meets the technical specifications contained in the contract. The majority of the contract asset balance relates to materials procured based on customer specifications. The contract assets are recorded as current assets in the condensed consolidated balance sheets. Contract liabilities consist of advance payments in excess of revenue earned. These amounts primarily represent progress payments received as precision molding and assembly systems are being manufactured. The contract liabilities are recorded as current liabilities in the condensed consolidated balance sheets and are reduced as we record revenue over time.

These contract assets and liabilities are reported on the condensed consolidated balance sheets net on a contract-by-contract basis at the end of each reporting period.

Contract assets and contract liabilities consisted of the following:

	June 30,			December 31,
	2022			2021			$ Change
	(in thousands)
Gross contract assets	$	194,319		$	196,659		$	(2,340	)
Less: reclassification from contract liabilities		(752	)		(8,336	)		7,584
Contract assets	$	193,567		$	188,323		$	5,244

	June 30,			December 31,
	2022			2021			$ Change
	(in thousands)
Gross contract liabilities	$	2,026		$	9,610		$	(7,584	)
Less: reclassification to contract assets		(752	)		(8,336	)		7,584
Contract liabilities	$	1,274		$	1,274		$	—

Contract assets increased by $5.2 million from December 31, 2021 to June 30, 2022 due to an increase in customer specific material purchases and incremental unbilled production during the six months ended June 30, 2022. Contract liabilities, net of the amounts reclassed to contract assets, remained consistent from December 31, 2021 to June 30, 2022.

For the three and six months ended June 30, 2022, we recognized $1.3 million of revenue related to precision molding and assembly systems and wind blades, which was included in the corresponding contract liability balance at the beginning of the period.

Performance Obligations

Remaining performance obligations represent the transaction price for which work has not been performed and excludes any unexercised contract options. The transaction price includes estimated variable consideration as determined based on the estimated production output within the range of the contractual guaranteed minimum volume obligations and production capacity.

As of June 30, 2022, the aggregate amount of the transaction price allocated to the remaining performance obligations to be satisfied in future periods was approximately $2.2 billion. We estimate that we will recognize the remaining performance obligations as revenue as follows:

	$		% of Total
	(in thousands)
Year Ending December 31,
Remainder of 2022	$	813,599		36.3	%
2023		1,213,634		54.2
2024		212,830		9.5
Total remaining performance obligations	$	2,240,063		100	%

For the three and six months ended June 30, 2022, net revenue recognized from our performance obligations satisfied in previous periods decreased by $4.0 million and $10.6 million, respectively, as compared to decreases of $4.0 million and $12.5 million, respectively, in the comparative prior year periods. The current year decreases primarily relate to changes in certain of our estimated total contract values and related direct costs to complete the performance obligations.