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Revenue from Contracts with Customers
 3 Months Ended
Mar. 29, 2020
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 the three months ended March 29, 2020, and March 31, 2019 along with the reportable segment for each category:

Three Months Ended
(In thousands)SunPower TechnologiesSunPower Energy ServicesTotal Revenue
Category March 29, 2020 March 31, 2019March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019
Module and component sales $94,299  $79,524  $165,738  $115,656  $260,037  $195,180  
Solar power systems sales and EPC services 65,023  90,481  103,803  46,537  168,826  137,018  
Operations and maintenance—  —  15,070  9,244  15,070  9,244  
Residential leasing—  —  1,324  3,884  1,324  3,884  
Solar services1
—  —  3,933  2,899  3,933  2,899  
Revenue $159,322  $170,005  $289,868  $178,220  $449,190  $348,225  
1Upon adoption of ASC 842, revenues from residential leasing are being accounted for under ASC 606 and recorded under 'Solar services'

We recognize revenue for sales of modules and components at the point that control transfers to the customer, which typically occurs upon shipment or delivery to the customer, depending on the terms of the contract, and we recognize revenue for operations and maintenance and solar services over the term of the service period.

For EPC revenue and solar power systems sales, we commence recognizing revenue when control of the underlying system transfers to the customer and continue recognizing revenue over time as work is performed based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligations.

Judgment is required to evaluate assumptions including the amount of net contract revenues and the total estimated costs to determine our progress towards contract completion and to calculate the corresponding amount of revenue to recognize. If estimated total costs on any contract are greater than the net contract revenues, we recognize the entire estimated loss in the period the loss becomes known. For contracts with post-installation systems monitoring and maintenance, we recognize revenue related to systems monitoring and maintenance over the non-cancellable contract term on a straight-line basis.

Changes in estimates for EPC services occur for a variety of reasons, including but not limited to (i) construction plan accelerations or delays, (ii) product cost forecast changes, (iii) change orders, or (iv) changes in other information used to estimate costs. Changes in estimates may have a material effect in our condensed consolidated statements of operations. The table below outlines the impact on revenue of net changes in estimated transaction prices and input costs for systems related sales contracts (both increases and decreases) for the three months ended March 29, 2020 and March 31, 2019 as well as the number of projects that comprise such changes. For purposes of the following table, only projects with changes in estimates that have an impact on revenue and or cost of at least $1.0 million during the periods were presented. Also included in the table is the net change in estimate as a percentage of the aggregate revenue for such projects.
Three Months Ended
(In thousands, except number of projects)March 29, 2020March 31, 2019
Decrease in revenue from net changes in transaction prices$—  $(3,301) 
Increase (decrease) in revenue from net changes in input cost estimates(1,133) 2,410  
Net decrease in revenue from net changes in estimates$(1,133) $(891) 
 
Number of projects11
Net change in estimate as a percentage of aggregate revenue for associated projects(1.1)%(11.3)%
Contract Assets and Liabilities

Contract assets consist of (i) retainage which represents the earned, but unbilled, portion of a construction and development project for which payment is deferred by the customer until certain contractual milestones are met; and (ii) unbilled receivables which represent revenue that has been recognized in advance of billing the customer, which is common for long-term construction contracts. 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. Refer to "Note 4. Balance Sheet Components" for further details.

During the three months ended March 29, 2020 and March 31, 2019, the decrease in contract assets of $0.3 million and $1.7 million, respectively, was primarily driven by billings for commercial projects where certain milestones had been reached as well as changes in estimates of variable consideration due for previous sales of certain power plant projects. During the three months ended March 29, 2020 and March 31, 2019, the decrease in contract liabilities of $16.1 million and $36 million, respectively, was primarily due to the attainment of milestones billings for a variety of projects. During the three months ended March 29, 2020 and March 31, 2019, we recognized revenue of $53.6 million and $26.3 million that was included in contract liabilities as of December 29, 2019 and December 30, 2018, respectively.

The following table represents our remaining performance obligations as of March 29, 2020 for EPC agreements for projects that we are constructing or expect to construct. We expect to recognize $162.4 million of revenue upon transfer of control of the projects.
ProjectRevenue CategoryEPC Contract/Partner Developed ProjectExpected Year Revenue Recognition Will Be Completed
Percentage of Revenue Recognized1
Various Distribution Generation ProjectsSolar power systems sales and EPC servicesVarious202072.8%
1Denotes average percentage of revenue recognized.

As of March 29, 2020, we have entered into contracts with customers for sales of modules and components for an aggregate transaction price of $389.1 million, the substantial majority of which we expect to recognize over the next 12 months.