Revenue From Contracts with Customers | Note 4. 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 – (d) Revenue Recognition , to the Notes to Consolidated Financial Statements within our Annual Report on Form 10-K for the year ended December 31, 2022. The following tables represents the disaggregation of our net sales by product for each of our reportable segments: Three Months Ended June 30, 2023 U.S. Mexico EMEA India Total (in thousands) Wind blade, tooling and other wind $ — $ 166,767 $ 132,614 $ 63,353 $ 362,734 Automotive sales 7,250 — — — 7,250 Field service, inspection and 9,110 211 1,966 — 11,287 Total net sales $ 16,360 $ 166,978 $ 134,580 $ 63,353 $ 381,271 Three Months Ended June 30, 2022 U.S. Mexico EMEA India Total (in thousands) Wind blade, tooling and other wind $ 67 $ 188,970 $ 128,333 $ 50,248 $ 367,618 Automotive sales 10,660 — — — 10,660 Field service, inspection and 9,930 3,015 1,277 2 14,224 Total net sales $ 20,657 $ 191,985 $ 129,610 $ 50,250 $ 392,502 Six Months Ended June 30, 2023 U.S. Mexico EMEA India Total (in thousands) Wind blade, tooling and other wind $ — $ 321,229 $ 299,451 $ 129,646 $ 750,326 Automotive sales 17,511 — — — 17,511 Field service, inspection and 14,469 389 2,642 — 17,500 Total net sales $ 31,980 $ 321,618 $ 302,093 $ 129,646 $ 785,337 Six Months Ended June 30, 2022 U.S. Mexico EMEA India Total (in thousands) Wind blade, tooling and other wind $ 166 $ 319,366 $ 277,737 $ 92,135 $ 689,404 Automotive sales 23,517 — — — 23,517 Field service, inspection and 18,531 3,015 1,558 2 23,106 Total net sales $ 42,214 $ 322,381 $ 279,295 $ 92,137 $ 736,027 For a further discussion regarding our operating segments, see Note 17, Segment Reporting . 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. 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, 2023 2022 $ Change (in thousands) Gross contract assets $ 236,813 $ 231,487 $ 5,326 Less: reclassification from contract liabilities ( 16,694 ) ( 15,548 ) ( 1,146 ) Contract assets $ 220,119 $ 215,939 $ 4,180 June 30, December 31, 2023 2022 $ Change (in thousands) Gross contract liabilities $ 16,694 $ 32,648 $ ( 15,954 ) Less: reclassification to contract assets ( 16,694 ) ( 15,548 ) ( 1,146 ) Contract liabilities $ — $ 17,100 $ ( 17,100 ) Contract assets increased by $ 4.2 million from December 31, 2022 to June 30, 2023 due to an increase in unbilled production during the six months ended June 30, 2023 . Contract liabilities, net of the amounts reclassed to contract assets decreased by $ 17.1 million from December 31, 2022 to June 30, 2023. For the three and six months ended June 30, 2023 , we recognized $ 17.1 million of revenue related to customer advances, 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, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligations to be satisfied in future periods was approximately $ 1.2 billion. This total transaction price excludes approximately $ 22.5 million of variable consideration related to one of our customer supply agreements, which has been constrained primarily due to uncertainty associated with production volume during the remaining term. Had the variable consideration not been constrained, approximately $ 14.2 million of the $ 22.5 million revenue would have been recognized as of June 30, 2023. We estimate the constraint will be resolved in subsequent periods when our customer provides additional information relevant to forecasted future production. We estimate that we will recognize the remaining performance obligations as revenue as follows: $ % of Total (in thousands) Year Ending December 31, Remainder of 2023 $ 579,137 49.0 % 2024 502,925 42.6 2025 98,874 8.4 Total remaining performance obligations $ 1,180,936 100 % For the three and six months ended June 30, 2023 , net revenue recognized from our performance obligations satisfied in previous periods decreased by $ 11.2 million and $ 15.5 million, respectively. 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. The decreases for the three and six months ended June 30, 2023 primarily relate to changes in certain of our estimated total contract values and related direct costs to complete the performance obligations. |