Net Sales

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Net Sales

8. Net Sales

Disaggregated Net Sales

We primarily derive our revenues from the sales of various chemical products. The Company’s net sales disaggregation is consistent with other financial information utilized or provided outside of our condensed consolidated financial statements. With our continued focus on optimizing our commercial strategy and product mix going forward we will report revenue by product as opposed to the end market. Accordingly, this approach is reflected in disaggregated net sales, mirroring how the Company manages its net sales by product through contracts with customers.

The following table presents our net sales disaggregated by our principal product types:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(In Thousands)
Net sales:
AN & Nitric Acid	$	47,981	$	46,026	$	154,858	$	173,859
Urea ammonium nitrate (UAN)		25,303		30,090		109,303		117,585
Ammonia		28,490		26,823		96,468		129,850
Other		7,443		11,348		26,865		39,802
Total net sales	$	109,217	$	114,287	$	387,494	$	461,096

Other Information

For our contracts with a duration greater than one year at contract inception, the average remaining expected duration was approximately 34 months at September 30, 2024.

Liabilities associated with contracts with customers (contract liabilities) primarily relate to deferred revenue and customer deposits associated with cash payments received in advance from customers for product shipments. We had approximately $0.7 million and $1.0 million of contract liabilities as of September 30, 2024 and December 31, 2023, respectively. For the three and nine months ended September 30, 2024, revenues of $0.1 million and $0.8 million, respectively, were recognized and included in the balances as of June 30, 2024 and December 31, 2023. For the three and nine months ended September 30, 2023, revenues of $0.3 million and $1.6 million, respectively, were recognized and were previously included in the balances as of June 30, 2023 and December 31, 2022. Our contract assets consist of unconditional rights to payment from our customers, which are reflected as accounts receivable in our condensed consolidated balance sheets.

For most of our contracts with customers, the transaction price from the inception of a contract is constrained to a short period of time (generally one month) as these contracts contain terms with variable consideration related to both price and quantity. At September 30, 2024, we have remaining performance obligations with certain customer contracts, excluding contracts with original durations of less than one year and for service contracts for which we have elected the practical expedient for consideration recognized in revenue as invoiced. The remaining performance obligations totals approximately $82.3 million, of which approximately 50% of this amount relates to 2024 through 2026, approximately 21% relates to 2027 through 2028, with the remainder thereafter.