Revenue From Contracts with Customers

9 Months Ended

Sep. 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 by product for each of our reportable segments:

	Three Months Ended September 30, 2022
	U.S.		Asia		Mexico		EMEA		India		Total
	(in thousands)
Wind blade sales	$	—	$	73,625	$	162,100	$	123,434	$	65,860	$	425,019
Precision molding and    assembly systems sales		—		—		274		—		—		274
Transportation sales		10,542		—		—		—		—		10,542
Field service, inspection and    repair services sales		15,062		990		535		2,503		—		19,090
Other sales		1,152		217		1,459		1,411		107		4,346
Total net sales	$	26,756	$	74,832	$	164,368	$	127,348	$	65,967	$	459,271

	Three Months Ended September 30, 2021
	U.S.		Asia		Mexico		EMEA		India		Total
	(in thousands)
Wind blade sales	$	35,154	$	47,187	$	191,499	$	126,705	$	50,180	$	450,725
Precision molding and    assembly systems sales		—		3,869		4,514		—		—		8,383
Transportation sales		6,815		—		—		—		—		6,815
Field service, inspection and    repair services sales		8,854		713		—		1,458		8		11,033
Other sales		73		100		1,125		1,281		64		2,643
Total net sales	$	50,896	$	51,869	$	197,138	$	129,444	$	50,252	$	479,599

	Nine Months Ended September 30, 2022
	U.S.		Asia		Mexico		EMEA		India		Total
	(in thousands)
Wind blade sales	$	—	$	166,256	$	472,979	$	396,721	$	157,680	$	1,193,636
Precision molding and    assembly systems sales		—		6,466		648		—		—		7,114
Transportation sales		34,059		—		—		—		—		34,059
Field service, inspection and    repair services sales		33,593		2,770		3,550		4,061		2		43,976
Other sales		1,318		551		9,572		5,861		422		17,724
Total net sales	$	68,970	$	176,043	$	486,749	$	406,643	$	158,104	$	1,296,509

	Nine Months Ended September 30, 2021
	U.S.		Asia		Mexico		EMEA		India		Total
	(in thousands)
Wind blade sales	$	114,208	$	202,181	$	431,129	$	340,933	$	160,157	$	1,248,608
Precision molding and    assembly systems sales		—		15,467		15,446		—		—		30,913
Transportation sales		29,861		—		—		—		—		29,861
Field service, inspection and    repair services sales		16,919		2,002		962		3,743		8		23,634
Other sales		350		253		6,835		2,484		182		10,104
Total net sales	$	161,338	$	219,903	$	454,372	$	347,160	$	160,347	$	1,343,120

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:

	September 30,			December 31,
	2022			2021			$ Change
	(in thousands)
Gross contract assets	$	219,308		$	196,659		$	22,649
Less: reclassification from contract liabilities		(7,582	)		(8,336	)		754
Contract assets	$	211,726		$	188,323		$	23,403

	September 30,			December 31,
	2022			2021			$ Change
	(in thousands)
Gross contract liabilities	$	7,582		$	9,610		$	(2,028	)
Less: reclassification to contract assets		(7,582	)		(8,336	)		754
Contract liabilities	$	—		$	1,274		$	(1,274	)

Contract assets increased by $23.4 million from December 31, 2021 to September 30, 2022 due to an increase in unbilled production during the nine months ended September 30, 2022. Contract liabilities, net of the amounts reclassed to contract assets decreased by $1.3 million from December 31, 2021 to September 30, 2022.

For the three and nine months ended September 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 September 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	$	304,490		13.9	%
2023		1,513,228		69.1
2024		292,208		13.3
2025		79,664		3.6
Total remaining performance obligations	$	2,189,590		100	%

For the three months ended September 30, 2022, net revenue recognized from our performance obligations satisfied in previous periods increased by $0.3 million. For the nine months ended September 30, 2022, net revenue recognized from our performance obligations satisfied in previous periods decreased by $10.3 million. For the three and nine months ended September 30, 2021, net revenue recognized from our performance obligations satisfied in previous periods decreased by $7.3 million and $19.8 million, respectively. The increase for the three months ended September 30, 2022 and decrease for the nine months ended September 30, 2022 primarily relate to changes in certain of our estimated total contract values and related direct costs to complete the performance obligations.