Revenue from Contracts with Customers

9 Months Ended

Oct. 02, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation of Revenue

The following table represents disaggregated revenue from contracts with customers for the three and nine months ended October 2, 2022 and October 3, 2021:

	Three Months Ended				Nine Months Ended
(In thousands)	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Solar power systems sales	$	359,541	$	198,663	$	951,479	$	537,827
Component sales	105,303		62,805		239,722		170,193
Light commercial sales	4,918		15,138		43,683		49,963
Services and other	5,949		6,706		8,876		26,216
Total revenues	$	475,711	$	283,312	$	1,243,760	$	784,199

We recognize revenue from contracts with customers when we have completed our performance obligations under an identified contract. The revenue is recognized in an amount that reflects the consideration for the corresponding performance obligations for the goods and services transferred.

Contract Assets and Liabilities

Contract assets consist of unbilled receivables which represent revenue that has been recognized in advance of billing the customer, which is common for our residential cash and loan customers. 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. Total contract assets and contract liabilities balances as of the respective dates are as follows:

	As of
(In thousands)	October 2, 2022		January 2, 2022
Contract assets	$	39,058	$	31,925
Contract liabilities	$	153,842	$	80,990

During the three and nine months ended October 2, 2022, we recognized revenue of $55.9 million and $40.9 million that was included in contract liabilities as of July 3, 2022 and January 2, 2022. During the three and nine months ended October 3, 2021, we recognized revenue of $25.0 million and $35.8 million that was included in contract liabilities as of July 4, 2021 and January 3, 2021.

As of October 2, 2022, we have entered into contracts with customers for sales of solar systems and components for an aggregate transaction price of $1.0 billion, the substantial majority of which we expect to recognize over the next 12 months.